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
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’
– Cooper & Edgett
– Clark & Wheelwright
- 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
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.
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
NPD / NPI Consultancy
The NPD / NPI process consultants at Elite Consulting can help you review and improve your NPD / NPI process.