New Product Development Research

Document Type:Thesis

Subject Area:Business

Document 1

For the last few decades, there has been an increased introduction of new products in the industry. Despite the increased level of new product development, the NDP process has become challenging to the many firms as a lot of time, human resources and finances are required. According to Bhuiyan (2011), 25 to 45 percent of the new products fail to reach the market and if they reach the market they have a high rate of failure. Brock, Podoynitsyna, den Ouden, & Langerak, (2017), states that out of seven new product ideas, four are developed, one and a half are launched and only one new product survives or succeeds. Although there has been extensive research on how to succeed in developing a new product many organizations still deliver failing products. Due to the failing factor, new product development is listed among one of the most confusing and riskiest tasks for many organizations. Huge amounts of finances are channeled to the development of new products therefore, the pressures of maximizing the returns on the investment increase significantly. According to Brock, Podoynitsyna, den Ouden, & Langerak (2017), 46 % of resources channeled to new product development are spent on products that will be canceled or products that will produce inadequate financial return. II. Project objective This paper proposes a basic structure that identifies the critical success factors in the different sections of new product development process, metrics that will be used to measure them and the techniques to evaluate each metric. III. Project scope The research focuses on new product development in the production sector.

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The research focuses on the different industries that produce new products. The new product development process involves different activities carried out by the firm including launching. The process is crucial for the success of a product from any industry. The different factors that affect new products development process will be evaluated critically using different techniques and measurements. IV. Literature review. The process of the new product development is performed by firms when they develop and launch a new product. Introduction of a new product involves different sequences or stages with the first one being the development of an idea. Business analysis: this stage involves analysis or evaluation of the generated concepts with regards to the return on investment, sales volume and profit. Development: the development stage intends on turning an idea into a producible and demonstrable product.

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Testing: this stage aims at conducting commercial experiments that are important in verifying the business judgments Commercialization: this stage focus on launching a product. According to Bhuiyan (2011), Booz, Allen, and Hamilton noted that firms' which successful launch new products they always have a process that entails all the stages stated above and they them for all the new products they want to develop. Critical Success Factors. The process of developing a new product is a risky, long-term and fundamental, therefore, by having a value of the NPD the firm is assured of success and not failure (Tomczak, Reinecke, & Kuss, 2018). Second, valuable metrics facilitate evaluation of people, projects, programs, and objectives by the Chief Executive Officer and the Chief Technical Officers so as to ensure they effectively allocate resources. Lastly, metrics affect behaviors.

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Employees, managers, engineers, and scientists can be evaluated on certain metrics. The results make the employees to take action, alter their behavior and make decisions that will improve the metrics (Tomczak, Reinecke, & Kuss 2018), Metrics should be chosen carefully as they align the goals of employees with the goals of the organization. The second critical success factor for stage one is a well-communicated strategy, its metric is the degree of communication and the tool and technique to be used is a score-card that is balanced. For the stage of creating ideas, the critical success factor is the customer-focused idea because according to research for a new product to be a success the firm has to understand the need and wants of their clients (Brock, Podoynitsyna, Ouden, & Langerak, 2017). Metrics for concept creation and enrichment is the amount customers focused idea created.

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The tools and techniques to be put into practice are the methodology of lead user and ethnographic technique. For the screening and business stage, they have the same critical success factor which is the up-front homework. In the development stage, customer feedback is very important so as to ensure production of a quality product. The metrics include concurrency of activities, the degree of team commitment, functional integration and design efforts on real customer priorities. The tools and techniques of measure include the degree of parallelism and dynamic time to market. For testing, the CSF is product functionality and the metrics as product performance. The tool and technique of measure are validation testing. In the pay the key success factor of developing a new product were also identified. References Athaide, G. A.

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and Klink, R. Managing Successful NPD Relationships: An Abstract. H. and Langerak, F. Determinants of successful new product and business development transfers in smart cities: an incumbent perspective. In 24th Innovation and Product Development Management Conference (IPDMC 2017), 11-13 June 2017, Reykjavik, Iceland. Fraenkel, S. In Proceedings of the 1997 Academy of Marketing Science (AMS) Annual Conference (pp. Springer, Cham. Tomczak, T. Reinecke, S. and Kuss, A.

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