Maximizing Productivity in Product Innovation

Recent evidence suggests that productivity in new product development (NPD) is declining; that is, we are seeing less output (measured in terms of impact on the business) for the same relative spending level. This article outlines seven practices or principles which, according to studies of NPD prac...

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Bibliographic Details
Published in:Research technology management 2008-03, Vol.51 (2), p.47-58
Main Authors: Cooper, Robert G., Edgett, Scott J.
Format: Article
Language:English
Subjects:
Business development
Business structures
Consumer goods industries
Customers
FEATURES
Homework
Lean manufacturing
lean product development
NPD productivity
Open innovation
Optimization
Pharmaceutical industry
Portfolio management
Principles
Product development
Product innovation
Productivity
Profitability
R&D
Research & development
Research & development expenditures
Stage-Gate
Technology
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Summary:Recent evidence suggests that productivity in new product development (NPD) is declining; that is, we are seeing less output (measured in terms of impact on the business) for the same relative spending level. This article outlines seven practices or principles which, according to studies of NPD practices and performance, will increase NPD productivity after they are embraced. These principles include familiar concepts such as building in the voice of the customer, front-end loading projects, and taking a more holistic approach to product innovation. However, while they are familiar, it is surprising how many firms have yet to embrace them. Other, less familiar, principles include: relying on spiral rather than linear development; building in metrics, team accountability and continuous improvement; and portfolio management techniques to yield higher value projects. Finally, a number of best performers are redesigning their idea-to-launch processes, moving to the next-generation Stage-Gate® system; they employ methods borrowed from lean manufacturing to remove waste from their development processes, and they also make their processes scalable, flexible, adaptable, and more open to the external environment.
ISSN:0895-6308
1930-0166
DOI:10.1080/08956308.2008.11657495