NEW PRODUCT

DEVELOPMENT
Figure 12.9 Commonly presented linear NPD model
CONSIDERATIONS WHEN DEVELOPING A
NPD STRATEGY
• Ongoing corporate planning
• Ongoing market planning
• Ongoing technology management
• Opportunity analysis/serendipity

NPD as a strategy for growth

• Market penetration
• Market development
• Product development
• Diversification Figure 12.3 Ansoff matrix

• A range of product development

opportunities (Ansoff matrix)
MODELS OF NPD

1. Departmental stage model

2. Activity stage model & concurrent
engineering
3. Cross functional model
4. Decision stage model
5. Conversion stage model
6. Response model
7. Network model

Figure 12.13 An activity-stage model

.
Figure 12.14 A network model of NPD
T Y P E S O F S E RV I C E C L A S S I F I C AT I O N O F N E W
I N N OVAT I O N S P RO D U C T S

1. Major innovation 1. New to the world

2. Start-up business 2. New product line
3. New service for the market presently 3. Addition to existing line
served 4. Improvements and revisions to existing
4. Service line extension products
5. Service improvement 5. Cost reduction
6. Style changes 6. Repositioning
Figure 3.4 A two-dimensional typology of innovation projects