New Product Development & Introduction (NPD/NPI)

It is more important than ever to have steady stream of successful new products. But currently almost 50% of new products fail to meet the targets set for them.

Money is being thrown away

throwing-money-away

Would you invest in a company with that level of performance?

Improve your chances of success by tuning up your new product development process.

Purpose of NPD Process

  • To obtain a higher success rate for new product development
  • To provide a common framework for all projets
  • To guide project teams with best practice model
  • To ensure all requirements are met
  • To identify problems early so as to rectify them or weed our weak projects
  • To help management identify the best projects in order to optimise the allocation of scarce resources.

History of NPD

  • Research by Academics and Consultancies in USA and Canada to find out differences between ‘winner’ and ‘losers’
    – Booz-Allen
    – Cooper & Edgett
    – Clark & Wheelwright
    – McGrath
  • From this best practice has been distilled
  • Cooper & Edgett invented the Stage-GateTM process
  • PDMA formed in USA, now active in UK

Current NPD Performance

  • On average, 46% of NPD spending is on projects that are losers… top companies only spend 20% on losers.
  • 66% of CEOs are “somewhat” or “very disappointed” with their firms’ new product performance
  • 70% of projects take longer than expected
  • New products currently represent 50% of companies’ sales revenues & 40% of their profits, and this is growing
  • Innovativeness drives companies’ investment value
  • Only one in seven concepts is a winner
  • One-third of new products fail to launch

Stage-Gate Process

One way of helping to improve the situation is to have a formal Stage-Gate process. This brings discipline to the process and if well-applied will weed out the less favourable projects at an early stage, releasing resources for those projects that are likeley to be more successful.

structured-phases-decidions

Portfolio Management

Portfolio Management is about Choosing the Right Projects

3 Goals of Portfolio Management

  • To maximise the value of the portfolio
  • To achieve a desired balance of projects
  • To link new product effort to the Business Strategy

portfolio-management portfolio-management2

NPD / NPI Consultancy

Download our NPD / NPI Brochure or contact us by going to our Contact Page

The NPD / NPI process consultants at Elite Consulting can help you review and improve your NPD / NPI process.

Call to discuss.