Overhauling the new product processes

Article Abstract:

The three cornerstones of successful product development are process, strategy, and resources, according to the benchmarking study reported in this article. Of the three, having a high quality new product process had the strongest impact on business's new product performance. A high quality new product process meant: an emphasis on up-front homework; sharp, early product definition; the voice of the customer evident throughout; tough go/kill decision points; a focus on quality of execution; and a thorough yet flexible process. The research results point strongly to a need to overhaul firms' new product processes - from idea to launch - to incorporate these and other key success drivers, such as the quest for real product superiority, and the need for true cross-functional teams. The goals of an effective new product process - that is, the specifications or key elements of a high quality process - are outlined, a vital starting point to any process reengineering exercise. The article ends with a quick look at a third generation stage-gate or new product process, together with some tips and hints on how to proceed to overhaul your company's new product process. (Reprinted by permission of the publisher.)

Research, New products, Product introduction

Criteria for screening new industrial products

Article Abstract:

The criteria used by production managers to decide whether a new product idea should be developed are identified and evaluated, through personal interviews with managers at 45 industrial corporations. A content analysis of the data uncovered in these interviews revealed 86 screening criteria used by managers when considering the feasibility of potential new products. These criteria can be categorized as: product opportunity criteria, which indicate the product's advantages over other products, its financial potential and its product life; market opportunity criteria, which identify the size of the product's market, its rational market and its domestic market; and strategy criteria, which identify the product's diversification and marketability to the manufacturer. Of these, the most important criteria were related to the financial potential of the product concept.

Industrial management, Industrial engineering

Do customer partnerships improve new product success rates?

Article Abstract:

This empirical study investigates the impact of customer partnering in new product development by comparing the performance of new products undertaken in partnerships versus those developed in-house. The results demonstrate that overall, partnership projects were no more successful than in-house projects. This surprising result was true regardless of the performance metric used. Not all new product development is improved by close cooperation with customers. (Reprinted by permission of the publisher.)

Product Development, Customer Relations