Lecture 9: Managing the new product development process Flashcards
Benefits of Championing
- Senior executives have power to fight for project
- They can gain access to resources
- They can communicate with multiple areas of a firm
Risks of Championing
- Role as champion may cloud judgement about project
- may suffer from escalating commitment
- Others may fear challenging senior executives
=> Firms may benefit from developing “anti-championsW and encourage expression of dissenting opinion
What is championing?
= senior executives are used to champion their NDP projects
What are the 5 myths about project champions?
- Projects with champions are more likely to be successful in the market
- Champions get involved because they are excited about the project rather than from self-interest
- Champions are more likely to be involved with radical innovation projects
- Champions are more likely to be from high/low levels in the firm
- Champions are more likely to be from marketing
Why is involving customers in innovation beneficial?
= Customers often are best able to identify the maximum performance capabilities and minimum service requirements of a new product
= Customers may be involved on the NPD team
What is crowdsourcing?
= Firms can open up an innovation task to the public, where people voluntarily contribute their ideas or efforts
What is the four-step process through which outsourcing challenges go through?
- Need Translation: A clear, concise and compelling need statement is articulated
- Connecting: The innovation challenge is broadcasted to the network of potential solution providers
- Evaluation/Selection: Proposals review in depth, and the most interesting ones are selected
- Acquisition: The firm engaged with the solution provider and negotiates an agreement to exchange knowledge, intellectual property, and compensation
Wha is it beneficial to include suppliers in the development process?
= can improve product design and development efficiency
= suppliers can suggest alternative inputs that reduce costs or improve functionality
Steps for Quality Function Deployment (QFD)
- Team identifies customer requirements
- Team assigns weights to requirements in terms of relative importance
- Team identifies engineering attributes that drive performance
- Team enters correlations between different engineering attributes
- Team indicates relationship between engineering attributes and customer requirements
- Team multiplies customer importance rating by relationship to engineering attribute and then sums for each attribute
- Team evaluates competition
- Using relative importance ratings for engineering attributes and scores for competing products, team determines design targets.
- Team evaluates the new design based on the design targets
What is the “Failure Modes and Effects Analysis”?
= The FMEA is a method by which firms identify potential failures in a system, classify the according to their severity, and create a plan to prevent them
-> Potential failure modes are evaluated in three criteria of risk:
1. Severity
2. Likelihood
3. Inability if controls to detect failure
Why is measuring New Product Development (NPD) performance important?
= Measuring performance of NPD process can help company improve its strategy and process
= Measures of NDP Performance can help management
-> identify which projects met their goals and why
-> benchmark the organization’s performance compared to that of competitors, or to the organization’s own prior performance
-> improve resource allocation and employee compensation
-> refine future innovation strategies
= Important to use multiple measures to provide fair representation
What are NPD process metrics?
- What was the average cycle time foe development projects? How did the cycle time vary for projects characterized as breakthrough, platform, or deviate projects?
- What percentage of development projects undertaken within the last five years met all or most of the deadlines set for the project?
- What percentage of development projects undertaken within the last five years stayed within budget?
- What percentage of development projects undertaken within the last five years resulted in a completed product?
What are the overall Innovation Performance measures?
- What is the firm’s return on innovation?
-> This measure assesses the ration of the firm’s total profits from new products to its total expenditures, including research and development costs, costs of retooling and staffing production facilities, and initial commercialization) - What is the percentage of projects that achieve their sales goals?
- What percentage of revenues are generated by products developed within the last five years?
- What is the firm’s ratio of successful projects to its total project portfolio?
