1. Understanding the customer is the premier issue in new-product development. Many
commercially important products are initially thought of and even prototyped by users rather
than producers. Such products tend to be developed by "lead users"—companies, organizations,
or individuals that are well ahead of market trends and have needs that go far
beyond those of average users. The operations manager must be "tuned in" to the market
and particularly these innovative lead users.
2. Economic change brings increasing levels of affluence in the long run but economic cycles
and price changes in the short run. In the long run, for instance, more and •more people
can afford automobiles, but in the short run, a recession may weaken the demand for
automobiles.
3. Sociological and demographic change may appear in such factors as decreasing family size.
This trend alters the size preference for homes, apartments, and automobiles. .
4. Technological change makes possible everything from cell phones to iPads to artificial hearts.
5. Political and legal change brings about new trade agreements, tariffs, and government
requirements.
6. Other changes may be brought about through market practice, professional standards,
suppliers, and distributors.
Operations managers must be aware of these dynamics and be able to anticipate changes in
product opportunities, the products themselves, product volume, and product mix.