1zm16 - Management of product development (MOPD)

Question 1

Define services and name 2 types of services &
explain them

Answer 1

Services are widely recognized as intangible, inconsistent and inseparable.

𝗘𝘅𝗽𝗹𝗶𝗰𝗶𝘁 𝘀𝗲𝗿𝘃𝗶𝗰𝗲𝘀 = proces / technology based (banking)

𝗧𝗮𝗰𝗶𝘁/ experiential 𝘀𝗲𝗿𝘃𝗶𝗰𝗲𝘀 = delivered by other people (massages) -> interpersonal interaction

Question 2

Describe the 4 dimensions along which new product succes can be measured & describe them

Also the gates (of stage gate) are verified according to these dimensions.

Answer 2

𝗧𝗲𝗰𝗵𝗻𝗶𝗰𝗮𝗹= e.g. met quality and performance specs

𝗧𝗶𝗺𝗶𝗻𝗴 = e.g. entry timing, break even time, time to critical mass

𝗠𝗮𝗿𝗸𝗲𝘁 = e.g. satisfaction, loyalty, market share

𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 = e.g. profitability, ROI, RAI

performance can be benchmarked against competitors, objectives and/or prior projects

Question 3

Describe the 4 key roles in the front end

Answer 3

𝗖𝗼𝗿𝗲 𝘁𝗲𝗮𝗺 = cross functional team responsible for phase 1 & 2’s key activities

𝗣𝗿𝗼𝗷𝗲𝗰𝘁 𝗹𝗲𝗮𝗱𝗲𝗿 = facilitator, communicator & motivator

𝗲𝘅𝗲𝗰𝘂𝘁𝗶𝘃𝗲 𝗿𝗲𝘃𝗶𝗲𝘄 𝗰𝗼𝗺𝗺𝗶𝘁𝗲𝗲 = provides checkpoints troughout NPD process

𝘀𝗲𝗻𝗶𝗼𝗿 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 = general guidance underlying the formulation of the product strategy,
portfolio & resource plans

Question 4

name the 4 front end succes factors & describe them

Answer 4

𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 = e.g. strategic allignment, product positioning & portfolio planning

𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗱𝗲𝗳𝗶𝗻𝗶𝘁𝗶𝗼𝗻 = e.g. early/sharp definition & customer needs analysis

𝗽𝗿𝗼𝗷𝗲𝗰𝘁 𝗱𝗲𝗳𝗶𝗻𝗶𝘁𝗶𝗼𝗻 = e.g. project priorities & resource allocation planning

𝗼𝗿𝗴𝗮𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗿𝗼𝗹𝗲𝘀 = e.g. project manager’s role, team organization & communications

Question 5

Name the 4 dimensions of front-end fuziness & describe them

Answer 5

𝗨𝗻𝗰𝗲𝗿𝘁𝗮𝗶𝗻𝘁𝘆 = lack of (clarity of) information & knowledge

𝗘𝗾𝘂𝗶𝘃𝗼𝗰𝗮𝗹𝗶𝘁𝘆 = existence of multiple and conflicting interpretations

𝗖𝗼𝗺𝗽𝗹𝗲𝘅𝗶𝘁𝘆 = range of difference, amount of interdependancies & information overload

𝗩𝗮𝗿𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆 = rate & intensity of change

𝘀𝘂𝗯𝗷𝗲𝗰𝘁𝗶𝘃𝗲 𝗙𝗙𝗘 = part of team has knowledge
𝗼𝗯𝗷𝗲𝗰𝘁𝗶𝘃𝗲 𝗙𝗙𝗘 = full team has knowledge

Question 6

Name the 4 different strategy typologies, describe them & explain how they are different

(Package 3)

Answer 6

𝗣𝗿𝗼𝘀𝗽𝗲𝗰𝘁𝗼𝗿𝘀 = Value being first to market, even though not always profitable

𝐀𝐧𝐚𝐥𝐲𝐳𝐞𝐫𝐬 = Rarely first to market, quickly follow up with cheaper/better product

𝐃𝐞𝐟𝐞𝐧𝐝𝐞𝐫𝐬 = Locate & maintain secure niche in a stable market, protect marketshare

𝐑𝐞𝐚𝐜𝐭𝐨𝐫𝐬 = not too aggresive in maintaining established products, only respond when
forced strongly

Each requires different NPD succes measures
The speed by which an organization responds to change differentiates the strategies

Question 7

Name 4 micropolitical strategies & describe them

Answer 7

𝗖𝗼𝗮𝗹𝗶𝘁𝗶𝗼𝗻 𝗯𝘂𝗶𝗹𝗱𝗶𝗻𝗴 = building support & consensus around colleagues to win approval

𝗙𝗿𝗮𝗺𝗶𝗻𝗴 = presenting the product such that it appears to be linked to the existing products, strategies, and competitive thrusts of business unit

𝗖𝗼𝗺𝗽𝗿𝗼𝗺𝗶𝘀𝗲 = modifying the product as a concession to get it approved for development

𝗛𝗶𝗱𝗶𝗻𝗴 = secret development of the new product

NPD teams should be carefully using coalition building when the technology newness is high and framing the market newness is high.

Question 8

What does ‘differentation’ mean within NPD teams & why is it important?

Answer 8

creating functional diversity within NPD teams helps in segmenting uncertainty, though there is a risk of isolation with higher diversity

Question 9

Which 4 kinds of NPD teams do we distinguish between?

Answer 9

𝗙𝘂𝗻𝗰𝘁𝗶𝗼𝗻𝗮𝗹 𝗴𝗿𝗼𝘂𝗽𝘀 = work is done by various departments, very little project focus

𝗟𝗶𝗴𝗵𝘁𝘄𝗲𝗶𝗴𝗵𝘁 𝘁𝗲𝗮𝗺𝘀 = team of people from various departments, current work dominates

𝗛𝗲𝗮𝘃𝘆𝘄𝗲𝗶𝗴𝗵𝘁 𝘁𝗲𝗮𝗺𝘀 = team of people from various departments, project dominates (project people first and functional people second)

𝗔𝘂𝘁𝗼𝗻𝗼𝗺𝗼𝘂𝘀 𝘁𝗲𝗮𝗺𝘀 = people pulled out of department to work on project full-time

Question 10

What is an incubator and which 3 kinds of incubators do we know?

Answer 10

𝗜𝗻𝗰𝘂𝗯𝗮𝘁𝗼𝗿= ventures with external entrepeneurs (alliances, co-development etc.)

𝗦𝗽𝗶𝗻-𝘂𝗽= venture is merged with mother firm (formed into a business unit)

𝗦𝗽𝗶𝗻-𝗼𝘂𝘁 = keep investing & wait for further development (additional time, potential successful project)

𝗦𝗽𝗶𝗻-𝗼𝗳𝗳 = project removed from portfolio

Question 11

Which 3 types of organizational control do we know? & which is the best?

Answer 11

𝗢𝘂𝘁𝗰𝗼𝗺𝗲 𝗰𝗼𝗻𝘁𝗿𝗼𝗹 = Specifying quantitative performance objectives & monitoring,
evaluating and rewarding teams based on how well they adhere to these.

𝗕𝗲𝗵𝗮𝘃𝗶𝗼𝘂𝗿 𝗰𝗼𝗻𝘁𝗿𝗼𝗹 = Specification of rules & procedures that a team needs to follow,
monitor, evaluate & reward teams based on how well they adhere

𝗖𝗹𝗮𝗻 𝗰𝗼𝗻𝘁𝗿𝗼𝗹 = Motivating team members to embrace common values, norms, goals &
commit to shared objectives –> implicit guide for what is (not)
acceptable, not needing formal monitoring to ensure compliance

A skillfull blend off all works best - clan control is generally the best because it promotes an environment of mutual trust where members can share information freely, all to the benefit of X products. The strict rules of outcome/behaviour control are generally not in favour of developing X products.

Question 12

Name the 4 perspectives to integrated portfolio management & describe them

Answer 12

𝗢𝗽𝘁𝗶𝗺𝗶𝘇𝗮𝘁𝗶𝗼𝗻 = making sure to have the best projects in a firms innovation portfolio

𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 = IPM as a central process to turn strategy into action

𝗗𝗲𝗰𝗶𝘀𝗶𝗼𝗻 𝗺𝗮𝗸𝗶𝗻𝗴 = Dynamic process of constantly updating NPD portfolio

𝗢𝗿𝗴𝗮𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻𝗮𝗹 = IPM as multi-level collective of decisions and parties

All four components should be incorperated for IPM succes

Question 13

Name 4 challenges to achieving good portfolio management

(Let op: rijtje in rijtje)

(Package 4 - Summary)

Answer 13

1. Setting the right portfolio objectives =e.g. alignment, max portfolio value, balance, #projects)
2. Formulating decision criteria to achieve objectives
3. Selecting which portfolio tools to use
4. Deciding on the decision making process

Look to the summary of theory package 4, page 30!

Question 14

Which 2 factors constitute to NPD portfolio succes antecedents

Answer 14

Portfolio succes & Decision making effectiveness

Question 15

Name & describe all 4 dimensions of NPD portfolio success (under section setting the right portfolio objectives)

Answer 15

𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗮𝗹𝗶𝗴𝗻𝗺𝗲𝗻𝘁 = how well the NPD portfolio reflects a firm’s strategy+objectives

𝗠𝗮𝘅𝗶𝗺𝗮𝗹 𝗡𝗣𝗗 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝘃𝗮𝗹𝘂𝗲 = the NPD portfolio has an optimal ratio between resource input and return

𝗡𝗣𝗗 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗯𝗮𝗹𝗮𝗻𝗰𝗲 = a balanced portfolio in risk, depth & breadth

𝗥𝗶𝗴𝗵𝘁 #𝗻𝘂𝗺𝗯𝗲𝗿 𝗼𝗳 𝗽𝗿𝗼𝗷𝗲𝗰𝘁𝘀 = the right amount off projects for the available resources

Question 16

Name & describe the 3 dimensions of decision making effectiveness

(Kester 2014)

Answer 16

𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗺𝗶𝗻𝗱𝘀𝗲𝘁 = The firm has a complete overview of the entire portfolio and has in-depth
knowledge about each project, interdependencies & relations to company goals

𝗙𝗼𝗰𝘂𝘀 = focus effort on projects important to the company’s long term goals

𝗔𝗴𝗶𝗹𝗶𝘁𝘆 = how quickly a firm can make & implement changes to it’s portfolio composition

Question 17

trade-off effect

(Package 6 - Summary)

Answer 17

A decrease in one variable leads to an increase in another variable or vice versa

-> Two variables

trade off effects only occur after reaching the ‘efficient frontier’

Question 18

Off-setting effect

Answer 18

A positive effect of one variable is ofsett by a negative effect of another variable

This can only occur with 3 or more variables (spyder chart)
CT-costs-sales
CT-quality-sales

Question 19

Efficient frontier

Answer 19

The point at which improvements are no longer possible without compromising somewhere else (trade-off effects occur)

Question 20

Describe the 2 types of launch decisions for products (industrial & consumer)

Answer 20

𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 =
- include the nature of the new product to be developed (product strategy)
- the nature of the market into which it will be launched (market strategy)
- competitive position of the new product (competitive stance)
- firm’s overall orientation toward NPD efforts (firm strategy)
(They occur prior to launch and are difficult to change)

𝗧𝗮𝗰𝘁𝗶𝗰𝗮𝗹 = central to the marketing aspects of the actual commercialization of the new product -> are about the marketing mix (4P’s)

differences exist in (successful) launch decision for industrial & consumer goods

See summary page - 42 for pictures

Question 21

Market defense strategies (definition)

Answer 21

initiatives of established competitors to deter or slow the entry of potential competitors in their market

Question 22

name & describe the 3 strategic process aspects (and relation shape)

(Influence of characteristics of the new product introduction process on firm value)

(Package 6 - Sharma 2018)

Answer 22

𝗣𝗮𝗰𝗲 = speed of product introductions ( ∩ )

𝗜𝗿𝗿𝗲𝗴𝘂𝗹𝗮𝗿𝗶𝘁𝘆 = lack of rhythm or consistency in product introductions ( ╲ )

𝗦𝗰𝗼𝗽𝗲 = spread of products across different markets ( ∩ (non-complex))

Strategic emphasis -> negative influence on irregularity and product scope.

Product complexities -> negative influence on irregularity and product scope.

Question 23

Absorbative capacity

Answer 23

Firms are bound in terms of cognitive scope & rationality and thus in terms of the amount of the information that can be processed & utilized

Question 24

Time compression disecenomies

Answer 24

The time to acquire a skill or resource trough learning, experience or training cannot be compressed endlesly without performance losses (trade-off effects)

Question 25

Time diversification

Answer 25

Portfolio risk declines as the investment horizon grows (time in market > timing the market)

Question 26

launch decisions

Answer 26

Decisions that help increase the proficiency of a new product launch trough dedication of sufficient relevant resources that support the introduction of a new product or service

Question 27

incumbent inertia

Answer 27

The larger a firm is, the slower & less intense the reaction of that firm is to entry of competitors.

(Larger incumbents, zittende partijen, retaliate less strongly and more slowly)

Question 28

name the 3 brand types & explain them

Answer 28

𝗯𝗿𝗮𝗻𝗱 𝗲𝗾𝘂𝗶𝘁𝘆 = differential effect of brand knowledge on consumers response to the
marketing of a brand (customers pay more if positive brand equity)

𝗯𝗿𝗮𝗻𝗱 𝗮𝘄𝗮𝗿𝗲𝗻𝗲𝘀𝘀 = the strength of a brand in the consumer’s memory

𝗯𝗿𝗮𝗻𝗱 𝗶𝗺𝗮𝗴𝗲 = brand associations that consumers retain

Question 29

name the 4 price promotion tactics

Answer 29

𝗿𝗮𝗽𝗶𝗱 𝘀𝗸𝗶𝗺𝗺𝗶𝗻𝗴 = high promotion, high price

𝘀𝗹𝗼𝘄 𝘀𝗸𝗶𝗺𝗺𝗶𝗻𝗴 = low promotion, high price

𝗿𝗮𝗽𝗶𝗱 𝗽𝗲𝗻𝗲𝘁𝗿𝗮𝘁𝗶𝗼𝗻 = high promotion, low price

𝘀𝗹𝗼𝘄 𝗽𝗲𝗻𝗲𝘁𝗿𝗮𝘁𝗶𝗼𝗻 = low promotion, low price

Question 30

NPD cycle time

Answer 30

time from idea generation to market introduction

Question 31

name the 4 types of gate decisions & explain them

Answer 31

𝗚𝗼; to next stage

𝗥𝗲𝗰𝘆𝗰𝗹𝗲; in current stage

𝗛𝗼𝗹𝗱; put project on hold

𝗦𝘁𝗼𝗽; the project definitively

You cannot hold a decision & motivate people after killing a project

Question 32

name some gatekeepers rules & explain their importance

Answer 32

1) gatekeepers must attend in person
2) gatekeepers must review the deliverables & presentation before the meeting
3) serious concerns should be communicated before the meeting (no surprise attacks)
4) no cross-examination allowed
5) final vote must be unanimous
6) you cannot hold a decision, otherwise team has to wait (however project can be set on hold)
7) continue decision means adequate resources come with it
8) decisions to be made based on gate criteria, not own opinion
9) gatekeepers cannot require and/ or base decisions on info outside of the scope of the stage being reviewed

As gatekeepers are part of a multi-disciplinary decision-making team they have to be governed, if they are too vicious there won’t be any new projects in the future.

Question 33

which 3 things should be considered when deciding on a formal vs. cultural front end?

Answer 33

𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗰𝗼𝗻𝘁𝗲𝘅𝘁 = incremental vs. radical

𝗺𝗮𝗿𝗸𝗲𝘁 𝗰𝗼𝗻𝘁𝗲𝘅𝘁 = B2B vs. B2C & leadership v.s. new market

𝗼𝗿𝗴𝗮𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗰𝗼𝗻𝘁𝗲𝘅𝘁 = compatibility between roles of core team & senior management

Question 34

name the 2 internal & 3 external team dynamic factors

Answer 34

𝗦𝗼𝗰𝗶𝗮𝗹 𝗰𝗼𝗵𝗲𝘀𝗶𝗼𝗻 = degree to which teams have personal connections (introduce ideas freely)

𝗦𝘂𝗽𝗲𝗿𝗼𝗿𝗱𝗶𝗻𝗮𝘁𝗲 𝗶𝗱𝗲𝗻𝘁𝗶𝘁𝘆 = degree to which members identify with the team and it’s goals (promotes cooperation & holistic view)

𝗺𝗮𝗿𝗸𝗲𝘁-𝗯𝗮𝘀𝗲𝗱 𝗿𝗲𝘄𝗮𝗿𝗱 𝘀𝘆𝘀𝘁𝗲𝗺 = incentive system to reward teams based on long term market based outcome (intrinsic motivation)

𝗣𝗹𝗮𝗻𝗻𝗶𝗻𝗴 𝗽𝗿𝗼𝗰𝗲𝘀𝘀 𝗳𝗼𝗿𝗺𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻= degree to which rules & procedures (bad for creativity*)

𝗘𝗻𝗰𝗼𝘂𝗿𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝘁𝗼 𝘁𝗮𝗸𝗲 𝗿𝗶𝘀𝗸𝘀 = degree to which management encourages risks (unique ideas)

Question 35

name the 4 barriers to cooperation

Answer 35

• Poor communication
• Insensitivity towards eachother
• Lack of senior management support for integral NPD approach
• Differences in cultures & personalities

Question 36

explain the difference between a gate dominant approach & a portfolio dominant approach

Answer 36

𝗴𝗮𝘁𝗲 𝗱𝗼𝗺𝗶𝗻𝗮𝗻𝘁 = project evaluated on pre-determined gate criteria and project decision is made. The project’s overall gate score is used to benchmark it against other projects and portfolio decision is made
(More used in stable markets where projects can be judged according to criteria that remain constant over time)

𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗱𝗼𝗺𝗶𝗻𝗮𝗻𝘁 = all projects are up for auction and considered together. Review is rarer & replaces gates. The gates only serve as checks on project finances & schedule.
(Used in more turbulent and dynamic markets

stable markets vs. turbulent markets
best to use both

Question 37

What are some advantages of pioneering? (6)

Answer 37

• Favorable awareness & reputation effects
• Locking in customers
• Economies of scale
• Learning effects
• Patents
• Price skimming possibilities

Question 38

in which 5 dimensions can retaliation be conceptualized? & explain why it is important to anticipate the reactions of competitors.

(Kuester, Homburg, Robertson, 1999)

Answer 38

1. 𝗜𝗻𝘀𝘁𝗿𝘂𝗺𝗲𝗻𝘁𝗮𝗹 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻 = type of 4P used for reaction, using the same instrument; reciprocal retaliation (type of marketing instrument)
2. 𝗜𝗻𝘁𝗲𝗻𝘀𝗶𝘁𝘆 = the weight placed behind the marketing instrument
3. 𝗕𝗿𝗲𝗮𝗱𝘁𝗵 = the number of marketing instruments used to retaliate
4. 𝗦𝗽𝗲𝗲𝗱 = the time lag between competitive threat and response (immediate vs delayed)
5. 𝗗𝗼𝗺𝗮𝗶𝗻 = the market in which the incumbent firm counter-attacks

The way a firm responds to competitive actions can add substantially to it’s ability to sustain or enhance competitive advantage and may determine its ultimate organizational performance.

Retaliation: wraak (sort of declaration of war)

Question 39

Name the 5 target market strategies

(Summary - page 42)

Answer 39

𝘀𝗶𝗻𝗴𝗹𝗲-𝘀𝗲𝗴𝗺𝗲𝗻𝘁 = only serve 1 segment (small business)

𝘀𝗲𝗹𝗲𝗰𝘁𝗶𝘃𝗲 𝘀𝗽𝗲𝗰𝗶𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 = multiple segments, only change promotion (baggage options)

𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝘀𝗽𝗲𝗰𝗶𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 = specialize in specific product across different segments (shoes)

𝗺𝗮𝗿𝗸𝗲𝘁 𝘀𝗽𝗲𝗰𝗶𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 = offer multiple products to the same market (healthcare)

𝗳𝘂𝗹𝗹 𝗺𝗮𝗿𝗸𝗲𝘁 𝗰𝗼𝘃𝗲𝗿𝗮𝗴𝗲 = attempt to serve the entire market (Unilever)

Question 40

When should you aim to pioneer?

Answer 40

high sales growth rate; be first with high-performance

long window of opportunity & flat development costs; be first with high-performance or follow with even better performance

Question 41

agile artefacts

Answer 41

Agile is a project management method from software development:

sprints
daily scrums
retrospective meeting - reflection after sprint, before new sprint

Question 42

agile tools

Answer 42

Agile is a project management method from software development:

sprint/product backlogs
scrum board
burndown chart

Question 43

agile roles

Answer 43

Agile is a project management method from software development:

product owner
scrum master
development team

Question 44

NPD integration

Answer 44

𝗖𝗼𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻= alignment of interests vs. opportunistic behaviour
𝗖𝗼𝗼𝗿𝗱𝗶𝗻𝗮𝘁𝗶𝗼𝗻 = alignment of actions due to lack of (accurate) shared knowledge

integration is needed to utilize functional diversity

Question 45

Name the (1+)5 stages of the stage-gate model

Answer 45

𝗜𝗱𝗲𝗮 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻= value proposition & first evaluation

𝗦𝗰𝗼𝗽𝗶𝗻𝗴= product definition & resource+milstone planning

𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗰𝗮𝘀𝗲= market & technology proven, economics evaluated

𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁= product & production equipment developed

𝗧𝗲𝘀𝘁𝗶𝗻𝗴 & 𝘃𝗮𝗹𝗶𝗱𝗮𝘁𝗶𝗼𝗻= testing of new product

𝗟𝗮𝘂𝗻𝗰𝗵 (+𝗽𝗼𝘀𝘁𝗹𝗮𝘂𝗻𝗰𝗵 𝗿𝗲𝘃𝗶𝗲𝘄)= production ramp-up & review

Definition = breaking down the traditional new product development process into a set of discrete and identifiable stages

Question 46

Describe 6 dimensions/types along which NPD projects can classified & describe the importance of NPD project classification

Answer 46

New to the world (NTW) = New products that create an entirely new market.

New to the company (NTC) = New products that, for the first time, allow a company to enter an established market.

Additions to existing product lines (AEL) = New products that supplement a company’s established product lines.

Product improvements (PI) = New products that provide improved performance or greater perceived value and replace existing products.

Product repositioning (PR) = Existing products targeted to new markets or market segments.

The project strategy is compared on a; newness to firm - newness to market continuum.

different projects require different; actions, resources, success measures etc. This way firms can position project’s market strategies (strategic aspect) and technology aspects (product & process) accordingly.

+ Know the figure! (X-axis = Newness to the market, Y-axis= Newness to the firm)

Question 47

Describe 5 characteristics in which Front-end innovation differs from the development & commercialization stages of the new product development process & explain why it is important to recognize these differences

Answer 47

𝗡𝗮𝘁𝘂𝗿𝗲 𝗼𝗳 𝘄𝗼𝗿𝗸 - Experimental & creative V.S. Disciplined & controlled
𝗦𝘁𝗮𝘁𝗲 𝗼𝗳 𝗮𝗻 𝗶𝗱𝗲𝗮 - Fuzzy & easy to change V.S. Specific & difficult to change
𝗽𝗲𝗼𝗽𝗹𝗲 𝗶𝗻𝘃𝗼𝗹𝘃𝗲𝗱 - individual / small team V.S. multifunctional development team
𝗯𝘂𝗱𝗴𝗲𝘁 - none/small V.S. large & designated
𝗻𝗮𝘁𝘂𝗿𝗲 𝗼𝗳 𝗶𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 - Qualitative V.S. Quantitative
Measure of progress - Strengthened concept v.s. Milestone achievement
Budget - Small/ none v.s. Large/ designated

Managers should recognize these differences as they require a different approach. Different characteristics also have different success measures

Question 48

what is 𝗱𝗶𝗳𝗳𝘂𝘀𝗶𝗼𝗻 & which factors make a 𝗱𝗶𝗳𝗳𝘂𝘀𝗶𝗼𝗻 𝗰𝘂𝗿𝘃𝗲?

(Theory package 5 - Summary page 40)

Answer 48

The spread of a new product from its source of creation to its ultimate adopters over time.

The diffusion curve depends on:
- Rate of diffusion -> speed at which sales occur
- Pattern of diffusion -> shape of the diffusion curve
- Penetration level -> max. cum. adoption over time

Question 49

who are the typical attendees at a gate review and identify if they recommend or vote

(Package 1 - Summary)

Answer 49

CTO (asking for project)
CFO (pay for project)
MT (pay for project)
Team members (only recommend a decision)
Experts (only recommend a decision)

Question 50

name 5 bad gatekeeper behaviors

Answer 50

• Executive pet projects getting a special treatment
• Single person gate decisions
• Gate meeting cancelled because of no-show gatekeepers
• No decision made or postponed
• Go/ Kill decision based on opinion rather than facts

Question 51

name 5 common mistakes when using a stage-gate process

Answer 51

• Bad gatekeeper behaviors
• Misapplying cost-cutting models
• Portfolio management without stage-gate process
• Deliverables overkill
• Too much reliance on software

Question 52

name 5 improvements for the stage-gate model

Answer 52

𝗙𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆 (no activity or deliverable is a must)
𝗘𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝘁, 𝗟𝗘𝗔𝗡 & 𝗿𝗮𝗽𝗶𝗱 𝘀𝘆𝘀𝘁𝗲𝗺 (use value stream analysis)
𝗠𝗼𝗿𝗲 𝗲𝗳𝗳𝗲𝗰𝘁𝗶𝘃𝗲 𝗴𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 (gates with teeth & scorecards)
𝗼𝗽𝗲𝗻 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝘀𝘆𝘀𝘁𝗲𝗺
𝗮𝗴𝗶𝗹𝗲-𝘀𝘆𝘀𝘁𝗲𝗺

Question 53

holistic front end

Answer 53

Linking product strategy, product definition, project definition & organizational roles (Front-end succes factors)

this can be achieved either with a formal or a cultural approach

Question 54

What are the advantages of the hybrid idea generation process?

Answer 54

The hybrid process generates more, unique & better ideas
Still hybrid teams suck at selecting good ideas

Question 55

what 5 factors makes the usage of intuition in selecting creative ideas worse?

Answer 55

incremental projects
inexperienced team members
multiple goals
rational decision culture
hierarchal or democratic rules

intuition (+rationality) is good for selecting early creative ideas, but not later when finances or strict criteria are used. use intuition for radical; more complex patterns & ambiguity

Question 56

in which 3 (+1) ways can NPD start?

Answer 56

𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆= business or technology gap that exists between the current situation and an envisioned future
𝗜𝗱𝗲𝗮= embryonic form of an envisioned situation to solve a problem
𝗖𝗼𝗻𝗰𝗲𝗽𝘁= has a well-defined form, both written & visual description that includes customer benefits combined with an understanding of the technology needed

or

Problem or threat

Question 57

What are the 3 must-meet criteria for idea selection

Answer 57

𝗢𝗿𝗶𝗴𝗶𝗻𝗮𝗹𝗶𝘁𝘆= (novelty) product should have a unique advantage
𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗯𝗲𝗻𝗲𝗳𝗶𝘁= (meaningfulness) meet customer needs & create benefit
𝗙𝗲𝗮𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝘆= (meaningfulness) of technology, costs, timeframe etc.

Question 58

3 types of market signals

(Package 6 - Summary 48)

Answer 58

1. 𝗛𝗼𝘀𝘁𝗶𝗹𝗶𝘁𝘆 𝘀𝗶𝗴𝗻𝗮𝗹= extent to which the incumbent firm views the launch by an entrant as hostile (gewelddadig)
   -> strong, but not fast reaction
2. 𝗖𝗼𝗺𝗺𝗶𝘁𝗺𝗲𝗻𝘁 𝘀𝗶𝗴𝗻𝗮𝗹= extent to which the incumbent firm views the entrant firm to be committed to its product
   -> strong, but not fast reaction

3.𝗖𝗼𝗻𝘀𝗲𝗾𝘂𝗲𝗻𝗰𝗲𝘀 𝘀𝗶𝗴𝗻𝗮𝗹= Incumbent’s perception (forecast) of the new product’s launch on its own competitive position
-> fast, but not strong response from incumbent

Question 59

NP & MP creativity

Answer 59

NP= new product
MP= marketing plan
creativity= novelty & meaningfulness

only NP creativity leads to improved PCA

Question 60

what is the difference between market entry-timing strategy & window of opportunity?

Answer 60

The market entry timing decision is about getting the moment of entry right in terms of the new product’s window of opportunity

Question 61

Describe 4 myths about stage-gate & explain how stage-gate should be applied

Answer 61

not a 𝗹𝗶𝗻𝗲𝗮𝗿 𝘀𝘆𝘀𝘁𝗲𝗺= inside stages a lot of looping, stages are allowed to overlap
not a 𝗱𝗮𝘁𝗲𝗱 𝘀𝘆𝘀𝘁𝗲𝗺= evergreen system that is always updated with best practices
not a 𝗯𝘂𝗿𝗲𝗮𝘂𝗰𝗿𝗮𝘁𝗶𝗰 𝘀𝘆𝘀𝘁𝗲𝗺= objective is a systematic, streamlined process
not 𝗽𝗿𝗼𝗷𝗲𝗰𝘁 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁= Stage-gate is a macro process, project management tools should be used inside the stages

stage gate is a conceptual map for moving NPD projects from idea to launch. It’s a blueprint to improve NPD efficiency & effectivity

Question 62

product mortality curve

Answer 62

the product mortality curve represents the progressive rejection of projects throughout the development stages

By changing different stages you can change the mortality curve

Question 63

explain why & how dividing up an NPD project into several feasible shorter-term objectives helps to better achieve a project’s long term objective (3)

Answer 63

-tangible short term goals are easier to reach
-clear objectives allow a team to work more efficiently
-forced reduction of uncertainty

Question 64

Describe 4 cultural challenges associated with applying stage-gate & how 3 ways how solve this

(Package 1 - Summary)

Answer 64

perceive constant stopping as;
𝗽𝗲𝗿𝘀𝗼𝗻𝗮𝗹 𝗳𝗮𝗶𝗹𝘂𝗿𝗲
𝗱𝗶𝘀𝗿𝘂𝗽𝘁𝗶𝘃𝗲 𝗮𝗻𝗱 𝘂n𝘀𝗮𝘁𝗶𝘀𝗳𝘆𝗶𝗻𝗴 (constantly starting new projects not finish)
𝘁𝗵𝗿𝗲𝗮𝘁 𝘁𝗼 𝗷𝗼𝗯 𝘀𝗲𝗰𝘂𝗿𝗶𝘁𝘆 (killing projects implies an insecure position)
𝘀𝘁𝗿𝗲𝘀𝘀 𝗮𝘁 𝗿𝗲𝘃𝗶𝗲𝘄 𝘁𝗶𝗺𝗲 (insecure what is success and excellence)

1)if a project is stopped it should not be perceived as failure but as trying to be effective
2)prepare for stage-gate
3)motivate people after a killed project; trying=good!

Question 65

Describe 3 types of portfolio management decision-making criteria & describe their (dis)advantages

(Package 4 - Summary)

Answer 65

𝗘𝘃𝗶𝗱𝗲𝗻𝗰𝗲; objective judgement & easily judged 𝗩.𝗦. favours incremental & hard to achieve strategic alignment

𝗣𝗼𝘄𝗲𝗿; Quick decision-making 𝗩.𝗦. often not in the best interests of the firm

𝗢𝗽𝗶𝗻𝗶𝗼𝗻; Quick, long-term & higher risk projects 𝗩.𝗦. inappropriate decision when not an expert

𝗣𝗼𝘄𝗲𝗿 & 𝗼𝗽𝗶𝗻𝗶𝗼𝗻; quick & innovative not disadvantaged 𝗩.𝗦. overfull portfolio, hard to achieve strategic allignment
𝗘𝘃𝗶𝗱𝗲𝗻𝗰𝗲 & 𝗼𝗽𝗶𝗻𝗶𝗼𝗻; both incremental & radical projects + strategic alignment 𝗩.𝗦. time consuming & resource intensive

Summary page 31 for advantages and disadvantages

Question 66

Name the 4 marketing instruments

Answer 66

Price
Promotion
Place
Product

Question 67

Name 4 generic dimensions on which a gate deliverable is typically being evaluated by the gate committee.

Answer 67

Market
Technology
Time
Resources

Question 68

what is 𝗲𝘀𝗰𝗮𝗹𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗰𝗼𝗺𝗺𝗶𝘁𝗺𝗲𝗻𝘁

Answer 68

When someone or a group face increasingly negative outcomes from a decision, action, or investment and nevertheless continues to keep going with the project or behavior

Question 69

portfolio management

Answer 69

set of managerial activities that allows a firm to select, develop and commercialize a range of new products

Question 70

The benefits of unconscious processing for FFE decision making. (4)

(Eling, 2014 - Package 2)

Answer 70

Traits (Onderscheidende kenmerken)
𝗛𝗶𝗴𝗵 𝗰𝗮𝗽𝗮𝗰𝗶𝘁𝘆= taking large amounts of information into account
𝗔𝗰𝗰𝗲𝘀𝘀 𝘁𝗼 𝗶𝗺𝗽𝗹𝗶𝗰𝗶𝘁 &𝘁𝗮𝗰𝗶𝘁 𝗸𝗻𝗼𝘄𝗹𝗲𝗱𝗴𝗲= taking relevant experiences into account
O𝗽𝗲𝗻𝗻𝗲𝘀𝘀= reconsidering decisions when things change
Precise weighting = The unconscious weights information and decision attributes
M𝗮𝘁𝗰𝗵𝗶𝗻𝗴 𝗰𝗼𝗺𝗽𝗹𝗲𝘅 𝗽𝗮𝘁𝘁𝗲𝗿𝗻𝘀= recognizing situations & patterns

Processes
Making new associations = Unconscious processing combines stimuli from the environment with stored knowledge into new and meaningful patterns or interpretations.
Matching complex patterns = The unconscious recognizes complex decision situations by matching environmental stimuli with stored patterns and schemas.

Question 71

What are 3 disadvantages of unconscious processing?

(Eling, 2014 - Package 2)

Answer 71

𝗻𝗼𝘁 𝘂𝗻𝗶𝘃𝗲𝗿𝘀𝗮𝗹𝗹𝘆 𝗮𝗽𝗽𝗹𝗶𝗰𝗮𝗯𝗹𝗲= wrong when using strict criteria
𝗻𝗼 𝗽𝗿𝗼𝗰𝗲𝘀𝘀 𝗮𝘄𝗮𝗿𝗲𝗻𝗲𝘀𝘀= under high fuzziness, intuition may be wrong (see article) -> equivocality
𝗵𝗮𝗿𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝘂𝗻𝗶𝗰𝗮𝘁𝗲= intuition is individual (different members might not experience the same intuition) -> reasons supporting an intuition not delivered

Question 72

name 3 conflict management styles

Answer 72

𝗣𝗿𝗼𝗯𝗹𝗲𝗺 𝘀𝗼𝗹𝘃𝗶𝗻𝗴= find a solution that fits both parties
𝗖𝗼𝗺𝗽𝗿𝗼𝗺𝗶𝘀𝗶𝗻𝗴= reach a compromise solution that fits both parties
𝗛𝗮𝗿𝗺𝗼𝗻𝗶𝘇𝗶𝗻𝗴= aim for a superficial solution, for the sake of the group (minimizing the differences between parties)

The first three are functional, the last three are dysfunctional management styles

𝗔𝘃𝗼𝗶𝗱𝗶𝗻𝗴= avoid the disagreeable party
𝗙𝗼𝗿𝗰𝗶𝗻𝗴= impose a solution on parties, even if they don’t want to agree

Question 73

name 3 advantages of following

Answer 73

-lower costs
-use superior 2nd generation technology
-learn from mistakes pioneer

Question 74

name 8 criteria to asses the window of opportunity and identify when they are attractive

Answer 74

Potential penetration level (High)
Length of PLC (Long)
Perceived product advantage (High)
Time to-peak sales (Long)
Sales growth rate (High)
Rate of margin decline during diffusion (Low)
Competitors (relative) marketing strength (Weak)
Competitors (relative) product advantage (Low)

Question 75

what are the differences between a 𝗽𝗿𝗲-𝗮𝗻𝗻𝗼𝘂𝗻𝗰𝗲𝗺𝗲𝗻𝘁 & 𝗿𝘂𝗺𝗼𝘂𝗿𝘀?

Answer 75

𝗿𝘂𝗺𝗼𝘂𝗿;
-unnoficial
-unconfirmed
-uncontrolled

𝗽𝗿𝗲-𝗮𝗻𝗻𝗼𝘂𝗻𝗰𝗲𝗺𝗲𝗻𝘁;
-oficial
-confirmed
-controlled

They both disseminate new product information prior to launch

Question 76

what are 4 antecedents of cycle time reduction?

Answer 76

process charachteristics
team characteristics
firm characteristics
team competences

Question 77

What are three major FFE tasks

(Eling, 2014 - Package 2)

Answer 77

1) Problem definition: basic market and technology analysis and idea or solution generation and selection activities
2) Idea generation: information gathering and analysis and idea or solution generation and selection activities
3) Concept development: refining of the idea into a concrete new product concept, planning of the NPD project, and development of a new product business case

Question 78

How is intuition described in Elling, 2014

(Package 2)

Answer 78

A seemingly unsubstantiated attitude toward a decision alternative or course of action that communicates the result of unconscious processing to the conscious mind of the decision maker

Question 79

Connect different strategies with the different business strategy typologies.

Focus of product development differs across the 4 typologies.

(Package 3)

Answer 79

Prospectors and analyzers = growth through developing new products

• Prospectors, being pioneers, will more frequently seek to develop more innovative products, even at the expense of short term profitability.
• Analyzers are more imitative rather than innovative

Defenders = place less emphasis on product development, but emphasizing line extensions that provide additional market penetration.

Reactors = emphasis on product development varying in response to environmental pressures.

Question 80

Connect the Project-level succes measures with the different project strategies according to Griffin, A. and Page, A.L. (1996)

(Package 3)

Answer 80

New to the world projects = measured by customer acceptance and satisfaction

New to the company projects = measured by profits, product competitive advantage, and market share

Product improvements = measured by profits, competitive advantage, and customer satisfaction

Line extensions = measured by profits and competitive advantage

Product repositioning = measured profit and competitive advantage and customer acceptance

Cost reduction projects = measured by margin (because many overhead and other costs of the project can influence the profit)

These results can be found on page 486 of the article

Question 81

Connect the most useful success measures with the different business strategies according to Griffin, A. and Page, A.L. (1996)

(Package 3)

Answer 81

Prospectors =
- % Profits from products < ‘n’ years old
- Degree today’s products lead to future opportunities
- % Sales from products < ‘n’ years old

Analyzers =
- Degree products fit business strategy
- Development program ROI
- % Profits from products <’n’ years old
- Succes/ failure rate

Defender =
- Development programs ROI
- Degree products to fit business strategy

Reactor =
- Development program ROI
- Succes/ failure rate
- Degree products fit business strategy
- Subjective overall Programm success

Question 82

Define technology and market newness.

(Package 3)

Answer 82

Technology newness = product involves new technologies, engineering and design skills, production processes

Market newness = product targets new markets and requires new sales and customer service infrastructure

Question 83

Define the 10 successful project team management elements that is required for cross-functionality (Successful NPD teams)

(Package 3 - Summary)

Answer 83

1. Early involvement in the project cycle
2. Well defined purpose , work, process & structure
3. Clear interfaces with other parts of the organization
4. Staffing with right number and right expertise
5. Clear reward systems and management support
6. Training in team building and team processes
7. A high-performance image and excitement about goal
8. Clear direction
9. Management of team conflicts and issues
10. Effective internal communication channels

Question 84

Define and describe 4 different project types

(Package 3 - Summary)

Answer 84

Breakthrough = products that are entirely new (autonomous)

Platform = products that form the base for a product family (heavyweight)

Derivative = products that are derived from other products, or extension of the production line (lightweight)

Enhancements = products having minor changes in technology, marketing and processing (functional of lightweight)

Question 85

Define and describe the two different levels of formality

(Package 3 - Summary)

Answer 85

Formal control = the articulation of rules for NPD team members

Informal control = entails the persistent social influence across NPD teams that leads to mutual understanding and commitment to joint development goals

Question 86

Define ‘Innovation portfolio management’ (IPM)

(Package 4 - Meifort)

Answer 86

It addresses the resource allocation across a firm’s portfolio of new product development projects consistent with new corporate strategy

Question 87

Define the consequences of New product development speed (dev. speed on -> …)

Also measures of new product succes

(Package 5 - Cankutaran)

Answer 87

operational outcomes:
- Development costs
- Market entry timing
- Technical product quality
- Product competitive advantage

external outcomes:
- Customer-based outcomes
- Financial outcomes

Can be measured at different levels (project, team, SBU, organization)

Question 88

Define ‘cycle time’

(Package 5 - Summary)

Answer 88

The time that elapses between the initial development, which includes conception and definition, and commercialization.

(important concepts: time to market, speed to market)

Question 89

Define and explain the MRW hierarchy to shorten the development time.

(Package 5 - Summary page 38)

Answer 89

1. Simplify
2. Eliminate steps
3. Parallel processing
4. Eliminate delays
5. Compress activities

(Look at summary page 38 for explanation)

Question 90

Define the moment of entry

(Package 5 - Summary page 40)

Answer 90

The firm’s ability to exploit the new product’s window of opportunity by balancing the risks of premature and missed opportunity to late entry

Question 91

What is the difference between a rumor and pre announcement?

(Package 6 - Summary page 45)

Answer 91

Rumor: (e.g. online blogs to shape expectations, steering rumors in favorable direction)
- Unofficial
- Unconfirmed
- Uncontrolled

Pre announcement:
- Official
- Confirmed
- Controlled

Question 92

What is the difference between price skimming and penetration?

(Package 6 - Summary page 45)

Answer 92

• Price skimming sets prices higher to attract customers most interested in the product or service to maximize short-term profits
• Penetration pricing uses lower prices to build a customer base for new products or services

Question 93

What does price elasticity mean? (Difference between high and low)

(Package 6 - Summary page 46)

Answer 93

Measure of the sensitivity of a change in the price of a good to the quantity demanded of that good.

If high -> demand is greatly influenced by a price change

Question 94

Describe the term ‘Market signaling theory’.

Answer 94

Argues that the scope, intensity and competitiveness of a new product launch generate a set of market signals that explain competitive reaction from incumbents.

Scope: narrow vs. broad
Intensity: low vs. high
Competitiveness: competitive vs. non-competitive

Question 95

Remedies to overcome critique on stage gate (5)

Answer 95

Fluidity: overlapping stages
Fuzziness: conditional/ situational decisions instead of absolute
Flexibility: scalable process, not all stages are required for every project
Focused: building in portfolio decisions
Agility: Spiral or Agile-Hybrid-Stage-Gate-Models

(See TP1 slide 25)

Question 96

Describe the advantages of integrating agile (scrum version) into stage-gate, by keeping the stages and gates and applying agile in some of the stages. (5)

Answer 96

Observed advantages of first trials:
- More adaptive response to changing customer needs
- Voice of the customer all the way through the process
- Better in-team communication
- Improved development productivity
- Faster to market

(Package 1 - Cooper and Sommer, 2016)

Question 97

Define product advantage factors for both radical and incremental products.

(Package 1 - Summary page 4 and 5)

Answer 97

Rogers (Radical):
- Observability +
- Triability +
- Relative advantage +
- Compatibility +
- Complexity -
- Risk -

Cooper & Calantone (Incremental):
- Uniqueness +
- Superiority +
- Innovativeness +
- Quality +
- Durability +
- Lower costs +

Question 98

What are the advantages of using a stage-gate type of process? (5)

(Package 1 - Summary page 5)

Answer 98

• Tangible shorter-term goals for each NPD project
• Forced education of market and technical uncertainty
• Resource commitment to projects with continued succes potential only
• Effective decision making at the gates, based on technology, market, cost and timing criteria
• Better portfolio management and coordination between projects

Question 99

What doe Agile brings as a project management method to the process?

(Package 1 - Cooper 2016)

Answer 99

Agility
Adaptability
Speed

Question 100

What are the two most important drivers for product vs service succes?

Answer 100

Services:
- Launch proficiency: proficiency with which a firm launches and communicates the new service
- Absorptive capacity: The process through which a firm recognizes the value of new information, assimilates it, and applies it to performing development activities

Products (goods):
- Product advantage:
- Market orientation: Degree of orientation towards its internal, competitor, and customer environments