Identifying New

Product Development
Best Practice

Submitted by : Group 09
20PGP022 ANIRUDH PARMAR
20PGP047 BHARAT MOHLA
20PGP085 GIRIDHARAN JK
20PGP091 S GOUTHAM VIGNESH
20PGP116 MIHIR P MEHTA
20PGP163 VETRI SELVAN G
20PGP178 ROHIT PETER XALXO
20PGP232 SINGANJUDE ANKUR RAMESH
20PGP244 VENKATESAN D
 Article overview NPD Practices – Overview
In this article we are going to discuss regarding the below
subparts which deeply covers about the NPD best practices Assumptions
 Challenges which create the need for best practices
 NPD Practices – Overview The firms will evident and sustain the following
 Multidimension nature of NPD practices  Adams-Bigelow, 2005 - Establishing an NPD Best Practices Framework
 Poor and Best NPD practices  Barczak et al., 2009 - Trends and Drivers of Success in NPD Practices
 Framework to implement NPD Best practices  Cooper et al., 2002, 2004a. 2004b, 2004c
 Flaws in benchmarking process with Industrial examples

Highlights
Challenges which create the need for best practices
 These Dimensions were authenticated though Delphi Methodology

Competitive  The dimensions have been divided 100% importance across all the
market seven dimensions
Structure

Delphi Methodologies
Inappropriate
technique or Challenges Internal
Process  The results of the Delphi approach led to changes to the original six dimensions.
methodologies
Model Commercialization has been included as a seventh dimension. The people
Failures component was split into two dimensions: Project Climate and Company Culture, as
it was deemed too broad.
 Company culture handled cross-company values and extra-company alliances and
Changes in
consumer collaborations, whereas project climate addressed intra-company and project-
need specific personnel difficulties.
 NPD MULTIDIMENSION AND ITS RELATIVE IMPORTANCE

Strategy Research
- R&D Methodologies to study and understand customers,
18% Defining and planning- Technology Management 16% Competitors and macroenvironmental factors in marketplace
- Product Development Effort e.g. – Focus groups, electronic survey

Commercialization Process
The process of implementation from concept to launch which
15% Marketing activities such as campaign, product launch and post 15% facilitate activities that enables knowledge management across
launch management
project

Project Climate Company Culture

The involvement of firm culture in NPD, How well establish
13% Ways of establishing product development intro company 13% product development thinking, collaboration with external
integration at individual and team level
partners

Metrics and Performance Measurement

10% Measurement and Tracking the product development project
and program performance to report the same
 Poor and best practices Examples:
• Example of a customer-oriented approach
• Works backward from target market
Poor Best • Press release is written, honed till language is made simple
• Example of platform/derivative strategy
• Product driven
Strategy • Unclear NPD Goals • NPD goals are clearly defined
• First create product then find market
• Non-alignment with the • The NPD goals are clearly aligned • Believes customers willingness to pay premium
Company’s mission/strategic plan with that of the Company’s •
mission/strategic plan Focus on optimizing existing offerings
• Relies on brand loyalty

Research • Non-involvement of • Consumers are the integral part of • Technology driven, "to solve big problems"
Customer/user in the NPD the NPD process • Market oriented, favors growth for everyone
process • Results of testing (concept,
• No real evaluation of testing product, market) formally • Optimizes for growth not revenue
(concept, product, market) result evaluated • A consistent market leader
is performed
• Product innovation strategy via partnerships
Commercialization • Marketing budget decisions can • Launch team is cross-functional in • Conceded Smartphone to rivals, invested in AI and cloud
dramatically change up to the nature
point launch • Decisions regarding manufacturing, • Leading open-source contributor by 2017
logistics, marketing sales by cross- • Offers discrete products instead of user data like Google, Twitter and Facebook
functional team
• Profit and margin driven, maximize adoption and retention
Process • NPD process is non-existent • Clear NPD process exists •
• Limited documentation exists • NPD process is visible and well Core offer is a subscription, monthly retention is a key metric
documented • High quality content to keep eyeballs hooked to the screens
• Relies on a strong, trustable brand
• Difficult for competitors to duplicate strong brand, ease of use and
Project Climate • No project leader • Each project has got an identifiable personalization
• Lack of identifiable project group leader
• Every project has got a cross-
functional team • Entirely focused on consumers
• Rolled out juices, organic tea and coconut water as per consumer demand
• Listen and respond to consumer's voice
Company Culture • NPD is not the priority of the • NPD process is continuously
management supported by the top management
• Ideas come from within the • Involvement of customers in • Low cost at a consistent level of quality 
company developing new solutions • Initially leased out equipment and provided training 
• Re-organized supply chain to manage large volumes 
Metrics/Performance Measurement • Non-existence of standard criteria • Core competency is in supply chain management 
for the evaluation of the project
• No real evaluation of testing • Strategy of divest and acquire
(concept, product, market) result
is performed • Need to divest its cereal brand to move to serve consumers better in future
• Sold off Kebler & Amos cookies brand, acquired health brands like RXBAR
following a strategy of acquisition and divestment
 Implementing the best practice framework
Getting to the best NPD practices
Methodology:
 100 questions to be asked by the company to itself • The questions in the framework are asked based out of
 Audit team – personnel from different department many different functions of a New Product.
 Possible responses: “No”, “Possibly/Partially true”, “Yes” (example given below) • Based on the score of the Company we can determine if the
 Weightage: “-1”, “0”, “1” respectively to above responses New product is developed with best practices or poor
 Total score range: -100 to 100 practices.
 Negative score – “Deficient NPD effort”, Zero score – “Marginal NPD effort”, Positive • A positive score indicates good practices whereas a negative
score – “Enabling NPD effort” score indicates poor practices.
 For each dimension – number of questions is equal to its importance • There can be more questions on dimensions which are
 Audit can be performed at Dimension and company NPD effort level more important for the new product development.
 Descriptive Assessment – ask “Why” to questions with negative reply
Using the results:
• The dimensions with least scores are the ones that deserve
most attention.
• The dimensions with good score indicate good practices
• Overall, the scores and their weightage help us identify and
understand which parts of the New Product Development
deserve more attention w.r.t the company goals

In Summary:
This NPD Audit:

Questionnaire for Metrics & Performance Measurement • Easy to deploy

• Helps identify and prioritize
Advantages: • Provides direction practice
 Granular report for assessing NPD effort • Root Cause Analysis tool
 Helps to identify & prioritize areas of improvements • Extrapolation of results
 Relatively easy to deploy, cost saving
 RECOMMENDATIONS & CONCLUSION 
3 Level Framework 
Critical Analysis  Cross Industry Examples  (Cooper et al. 2019)

 Highlights seven dimensions, but the dimensions and their

relative weightage can vary with industry and organization 
Ø The framework ignores external factors like
competitor’s reaction, regulatory framework etc. that might L3-
impact the NPD process  Systems
Ø The benchmarking framework tries to give structure to a process And Processes
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of innovation which can be best achieved through exploration L2-Org. and
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Ø The framework can essentially kill the self-learning process in an
Strategic Drivers

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organization by eliminating or reducing the risk of failure L1-Individual Drivers of NPD
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Ø Acc. To  Cooper et al. (1991) using a framework like this has
potential problems like - more bureaucracy, tighter controls that
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might  thwart  creativity
Ø Time to market is 6620e8605594
an important aspect of a Product which this
framework overlooks along with directive on how to improve
efficiency of the processes
Ø Focuses on Perfection, which might not always be achievable Learnings from the IT Industry
and advisable • A slightly tweaked version of agile for B2B physical products
Sprints to build a product8&cid
Ø Collaboration between both external parties and internal teams
• between a “virtual product” <-->
is indispensable for the success of a NPD process, framework
“ready-to trial” prototype
has ignored this Integration dimension

Conclusion
The framework may be a good starting point for firms exploring NPD for the first time, but it lacks implementation related aspects  which are critical to the
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success of NPD process