NewProdTM Study Results on NPD Success (102 successes, 93 failures,

102 companies)• Product has to offer unique benefits and

superior value for money to customers

• Market orientation leading to marketing research and launch tasks done well

• Leveraging technology capabilities and executing well

Stanford Innovation Project Study Results on NPD Success (86 successes

and 86 failures)• Strong R&D with strong interface with both

manufacturing and customer

• Technically superior and unique products

• Positive market environment: first to market and growing market

• Significant value to customers

• Leverage capabilities and resources

Booz-Allen & Hamilton Study Results on NPD Success (700

firms)• Operating philosophy- internal growth• Organizational structure- greater cross-

functional influence and interactions• Manage the experience effect• Adaptive management style depending on

type of new product– entrepreneurial- new to the world– collegial- new businesses and new lines– managerial- closely related new products

Hewlett-Packard success factors

• understanding user needs

• strategic alignment

• competitive analysis and product superiority

• regulation compliance

• priority decision criteria list

• risk assessment

• product positioning

• product channel and support

• project endorsement by upper management

• total organizational support

Critical success factors

• Top three drivers– high-quality NPD

process

– defined NPD strategy

– adequate resources and commitment to R&D

• Important other drivers– use of high-quality

cross-functional teams– senior management

commitment– an innovative climate

and culture– senior management

accountability

Fifteen Critical Success Factors

Five ways to improve cycle time profitably

• Do it right the first time

• homework and definition

• organize around a true cross-functional team

• employ parallel processing

• prioritize and focus

Seven Goals of a NPD (similar to the requirements for speeding up

cycle time)• Quality of execution• Sharper focus, better prioritization• fast-paced parallel processing• true cross-functional team• strong market orientation and hard wired voice of

customer• better homework up front• products with competitive advantage

Managing complex risky decisions

• Break into smaller decisions

• each decision process should reduce the risk of the next stage

Managing risk

• Lessen the amounts at stake– if the uncertainties are high keep the amount at

stake low– as the uncertainties decrease the amount at

stake can be increased– incrementalize the decision process– be prepared to pay for relevant information to

reduce risk– provide for bail-out points