"N" & "O" Flashcards
Needs Statement
Summary of consumer needs and wants, described in customer terms, to be addressed by a new product. (See Chapter 14 of The PDMA HandBook 2nd Edition).
Net Present Value (NPV)
Method to evaluate comparable investments in very dissimilar projects by discounting the current and projected future cash inflows and outflows back to the present value based on the discount rate, or cost of capital, of the firm.
Network Diagram
A graphical diagram with boxes connected by lines that shows the sequence of development activities and the interrelationship of each task with another. Often used in conjunction with a Gantt Chart.
New Concept Development Model
A theoretical construct that provides for a common terminology and vocabulary for the Fuzzy Front End. The model consists of three parts: the uncontrollable influencing factors, the controllable engine that drives the activities in the Fuzzy Front End and five activity elements: Opportunity Identification, Opportunity Analysis, Idea Generation and Enrichment, Idea Selection, and Concept Definition. (see Chapter 1 of The PDMA ToolBook 1.)
New Product
A term of many opinions and practices, but most generally defined as a product (either a good or service) new to the firm marketing it. Excludes products that are only changed in promotion.
New Product Development (NPD)
The overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product. Also frequently referred to just as “product development.”
New Product Introduction (NPI)
The launch or commercialization of a new product into the marketplace. Takes place at the end of a successful product development project. (See Chapter 30 of The PDMA HandBook 2nd Edition.)
New Product Development Process (NPD Process)
A disciplined and defined set of tasks and steps that describe the normal means by which a company repetitively converts embryonic ideas into salable products or services. (See Chapters 4 and 5 of The PDMA HandBook 2nd Edition.)
New Product Development Professional (NPDP)
A New Product Development Professional is certified by the PDMA as having mastered the body of knowledge in new product development, as proven by performance on the Certification test. To qualify for the NPDP certification examination, a candidate must hold a bachelor’s or higher university degree (or an equivalent degree) from an accredited institution and have spent a minimum of two years working in the new product development field.
New Product Idea
A preliminary plan or purpose of action for formulating new products or services.
New-to-the-World Product
A good or service that has never before been available to either consumers or producers. The automobile was new-to-the-world when it was introduced, as were microwave ovens and pet rocks.
Nominal Group Process
A brainstorming process in which members of a group first write their ideas out individually, and then participate in group discussion about each idea.
Non-Destructive Test
A test of the product that retains the product’s physical and operational integrity.
Non-Product Advantage
Elements of the marketing mix that create competitive advantage other than the product itself. These elements can include marketing communications, distribution, company reputation, technical support, and associated services.
Operational Strategy
Operational Strategy is an activity that determines the best way to develop a new product while minimizing costs, ensuring adherence to schedule, and delivering a quality product. For product development, the objective is to maximize the return on investment and deliver a high quality product in the optimal market window of opportunity. [can the portfolio implications of operational strategy be incorporated?]
