Chapter 11

Question 1

Importance of NPD

Answer 1

• Industries like technology, telecom, and electronics depend on products launched in the past five years for over 50% of sales.
• Despite its importance, over 95% of NPD projects fail to deliver economic returns.
• Success depends on three goals: maximizing customer fit, minimizing cycle time, and controlling costs

Question 2

Maximizing Fit with Customer Requirements

Answer 2

• Products must align with customer needs and preferences.
• Misaligned features or overpricing often lead to market failures

Question 3

Minimizing Cycle Time

Answer 3

• Faster time-to-market captures competitive advantages like brand loyalty and customer switching costs.
• Risks include quality trade-offs and overburdened teams

Question 4

Controlling Costs

Answer 4

Balancing ambitious development goals with cost efficiency ensures profitability

Question 5

Strategies for Effective NPD

Answer 5

1. Streamlined Processes:
   
   • Parallel Development: Overlapping stages reduce delays and improve coordination.
   • Stage-Gate Models: Incremental reviews at key stages to reduce risks.
2. Stakeholder Involvement
3. Project Champions

Question 6

performance metrics

Answer 6

1. Development Process Metrics: Cycle time, budget adherence, and project completion rates.
2. Innovation Performance Metrics: Return on innovation, new product revenue, and project success rates.