Professional Documents
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Product Development
Best Practice
Submitted by : Group 09
20PGP022 ANIRUDH PARMAR
20PGP047 BHARAT MOHLA
20PGP085 GIRIDHARAN JK
20PGP091 S GOUTHAM VIGNESH
20PGP116 MIHIR P MEHTA
20PGP163 VETRI SELVAN G
20PGP178 ROHIT PETER XALXO
20PGP232 SINGANJUDE ANKUR RAMESH
20PGP244 VENKATESAN D
Article overview NPD Practices – Overview
In this article we are going to discuss regarding the below
subparts which deeply covers about the NPD best practices Assumptions
Challenges which create the need for best practices
NPD Practices – Overview The firms will evident and sustain the following
Multidimension nature of NPD practices Adams-Bigelow, 2005 - Establishing an NPD Best Practices Framework
Poor and Best NPD practices Barczak et al., 2009 - Trends and Drivers of Success in NPD Practices
Framework to implement NPD Best practices Cooper et al., 2002, 2004a. 2004b, 2004c
Flaws in benchmarking process with Industrial examples
Highlights
Challenges which create the need for best practices
These Dimensions were authenticated though Delphi Methodology
Competitive The dimensions have been divided 100% importance across all the
market seven dimensions
Structure
Delphi Methodologies
Inappropriate
technique or Challenges Internal
Process The results of the Delphi approach led to changes to the original six dimensions.
methodologies
Model Commercialization has been included as a seventh dimension. The people
Failures component was split into two dimensions: Project Climate and Company Culture, as
it was deemed too broad.
Company culture handled cross-company values and extra-company alliances and
Changes in
consumer collaborations, whereas project climate addressed intra-company and project-
need specific personnel difficulties.
NPD MULTIDIMENSION AND ITS RELATIVE IMPORTANCE
Strategy Research
- R&D Methodologies to study and understand customers,
18% Defining and planning- Technology Management 16% Competitors and macroenvironmental factors in marketplace
- Product Development Effort e.g. – Focus groups, electronic survey
Commercialization Process
The process of implementation from concept to launch which
15% Marketing activities such as campaign, product launch and post 15% facilitate activities that enables knowledge management across
launch management
project
Research • Non-involvement of • Consumers are the integral part of • Technology driven, "to solve big problems"
Customer/user in the NPD the NPD process • Market oriented, favors growth for everyone
process • Results of testing (concept,
• No real evaluation of testing product, market) formally • Optimizes for growth not revenue
(concept, product, market) result evaluated • A consistent market leader
is performed
• Product innovation strategy via partnerships
Commercialization • Marketing budget decisions can • Launch team is cross-functional in • Conceded Smartphone to rivals, invested in AI and cloud
dramatically change up to the nature
point launch • Decisions regarding manufacturing, • Leading open-source contributor by 2017
logistics, marketing sales by cross- • Offers discrete products instead of user data like Google, Twitter and Facebook
functional team
• Profit and margin driven, maximize adoption and retention
Process • NPD process is non-existent • Clear NPD process exists •
• Limited documentation exists • NPD process is visible and well Core offer is a subscription, monthly retention is a key metric
documented • High quality content to keep eyeballs hooked to the screens
• Relies on a strong, trustable brand
• Difficult for competitors to duplicate strong brand, ease of use and
Project Climate • No project leader • Each project has got an identifiable personalization
• Lack of identifiable project group leader
• Every project has got a cross-
functional team • Entirely focused on consumers
• Rolled out juices, organic tea and coconut water as per consumer demand
• Listen and respond to consumer's voice
Company Culture • NPD is not the priority of the • NPD process is continuously
management supported by the top management
• Ideas come from within the • Involvement of customers in • Low cost at a consistent level of quality
company developing new solutions • Initially leased out equipment and provided training
• Re-organized supply chain to manage large volumes
Metrics/Performance Measurement • Non-existence of standard criteria • Core competency is in supply chain management
for the evaluation of the project
• No real evaluation of testing • Strategy of divest and acquire
(concept, product, market) result
is performed • Need to divest its cereal brand to move to serve consumers better in future
• Sold off Kebler & Amos cookies brand, acquired health brands like RXBAR
following a strategy of acquisition and divestment
Implementing the best practice framework
Getting to the best NPD practices
Methodology:
100 questions to be asked by the company to itself • The questions in the framework are asked based out of
Audit team – personnel from different department many different functions of a New Product.
Possible responses: “No”, “Possibly/Partially true”, “Yes” (example given below) • Based on the score of the Company we can determine if the
Weightage: “-1”, “0”, “1” respectively to above responses New product is developed with best practices or poor
Total score range: -100 to 100 practices.
Negative score – “Deficient NPD effort”, Zero score – “Marginal NPD effort”, Positive • A positive score indicates good practices whereas a negative
score – “Enabling NPD effort” score indicates poor practices.
For each dimension – number of questions is equal to its importance • There can be more questions on dimensions which are
Audit can be performed at Dimension and company NPD effort level more important for the new product development.
Descriptive Assessment – ask “Why” to questions with negative reply
Using the results:
• The dimensions with least scores are the ones that deserve
most attention.
• The dimensions with good score indicate good practices
• Overall, the scores and their weightage help us identify and
understand which parts of the New Product Development
deserve more attention w.r.t the company goals
In Summary:
This NPD Audit:
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organization by eliminating or reducing the risk of failure L1-Individual Drivers of NPD
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Ø Acc. To Cooper et al. (1991) using a framework like this has
potential problems like - more bureaucracy, tighter controls that
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might thwart creativity
Ø Time to market is 6620e8605594
an important aspect of a Product which this
framework overlooks along with directive on how to improve
efficiency of the processes
Ø Focuses on Perfection, which might not always be achievable Learnings from the IT Industry
and advisable • A slightly tweaked version of agile for B2B physical products
Sprints to build a product8&cid
Ø Collaboration between both external parties and internal teams
• between a “virtual product” <-->
is indispensable for the success of a NPD process, framework
“ready-to trial” prototype
has ignored this Integration dimension
Conclusion
The framework may be a good starting point for firms exploring NPD for the first time, but it lacks implementation related aspects which are critical to the
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success of NPD process