Step 4.3

Outline preliminary business case that is based on path to market outlined in Step 1.5.

Primary findings

Secondary findings

Primary findings

Barriers

A firm requres value-capturing abilities in order to commercialize the outcomes of product development.
Literature review findings
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Developed knowledge and processes around a current practice can create a form of lock-in where new innovation has to provide advantage above a threshold before sustained change occurs. 
Case study findings
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The market value of new medical technology varies based on need. 
Case-based research
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Carriers

The relative advantage a technology provides over incumbent practice or technology impacts adoption and risk in terms of return on investment or the cost of failure. 
Case study findings
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Collaboration via hubs creates innovation and solves problems faster, speeding up development cycles and reducing project costs. 
Literature review and case study.
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Face-to-face contact helps overcome documentation constraints that might preclude a laboratory technologist or acquisition development specialist from elaborating about possible impediments, if any, to successful transition.
Interviews with senior personnel.
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Models

NPD process needs more examination of Product Characteristics, Marketplace Characteristics, Strategy Synergy, and Product Quality as predictors of new product performance.
Literature review of 815 NPD articles published in the 10 leading marketing, management, NPD and R&D journals from 1989 to 2004.
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The product definition is refined in real-time using customer information resulting in improvements in the product's attractiveness and sales potential. Risk aversion of the firm is modeled using the certainty equivalent of the firm's profit. Using this model, it is found that early definition is optimal only in a limited set of situation: when the market conditions do not experience significant uncertainty, the firm is not risk-averse, its development team is inflexible, the specifications have high integration needs, and the market is price (not performance) sensitive. If any of these conditions do not hold and the firm forces an early definition, it would earn less than optimal profits and considerably lower margins.
Case Study. Researchers developed model of real time definition.
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Methods

Evaluating technological innovation systems for their ability to support development and diffusion will identify factors that can hinder adaptation and market success. 
Case study findings
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By using templates, the time required for new product development is drastically reduced. At the same time incorporating computer-aided process planning into the system gives the designer a better understanding of the cost implications of the modified design with respect to manufacturing. The major challenge in implementing of such system is that any changes in the manufacturing facility have to be incorporated in the process plans stored. This can be a tedious job but can be overcome by using hybrid process planning approach instead of variant based approach.
Author experience
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Conduct market research, business analysis, prototype development and trials to reduce uncertainty, acquire information and ultimately increase new product development success.
Literature Review
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Identify the purchase decision-maker within the customer stakeholder group — A full understanding of the path to market requires input from all relevant stakeholders up front, followed by close coordination among cross-functional team members downstream.
Conclusions drawn from case studies and experience.
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Organizations should have coherent administrative procedures, including information-gathering systems reviewing new opportunities; flexible capital budgets that extend beyond two years; up-to-date capital budgeting manuals; full time capital budgeting staff; regular reviews of hurdle rates; and a capital appropriation committee to vet projects.
Survey with significant findings
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Performance Drivers: One is the Quality of Execution. Eight activities distinguish best from worse performers: 1) Conducting a post-launch review (8.2); 2) Assessment of product's value to business (2.1); 3) Test market or trial sell to a limited set of customers (7.13); 4) Concept testing to determine customer reaction to product and gauging purchase intent before Development begins (4.11); 5) Idea Generation (1.3); 6) Customer tests of products under real-life conditions (6.3); 7) Detailed market study/research or Voice of the Customer (4.3, 4.13); 8) Pre-launch business analysis (7.7, 7.8, 7.9).
A quantitative survey of 105 business units, supported by team's experience in NPD modeling, consultation, application and analysis.
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Sound evaluation methods are needed for new product success, including strategic screenings of new product proposals; utilization of market research; and primary and secondary valuation using a variety of methods such as net present value or Payback.
Survey with significant findings.
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The firm involved in NPD should consider its ability to conduct the necessary work from three perspectives: 1) Paths — the future options still open given the constraints introduced by previous choices such as mergers and or acquisitions of resources; 2) Positions — the assets of the organization in terms of ownership, technology, industrial systems, finance, organizational structure, market position and organizational boundaries. 3) Processes — management and organizational mechanisms which enable co-ordination and integration, learning and reconfiguration.
Case studies of five firms.
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Thorough business planning at the beginning of an NPD project creates a basis for proficient project and risk planning. Business planning proves to be an important antecedent of the more development-related planning activities.
Analysis of data collected from 132 NPD projects.
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Utilization of market research early in the new product development process, and continuing throughout the entire development phase is critical to ensuring success.
Survey data.
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Tips

Competitive “business plan” styled matching fund grants help would-be producers to overcome hurdles to entering the market. 
Case study findings
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Higher levels of sophistication in capital budgeting are associated with new product development success.
Survey with significant findings.
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Secondary findings

Barriers

Despite an abundance of academic and scientific expertise, biotechnology firms suffer from a lack of management skill and knowledge. This lack of skills and knowledge impacts on the firm’s ability to manage NPD as well as to secure the funding required for sustained performance.
Source: Ernst_&_Young (2001), Department of Industry Science and Resources and Ernst & Young (1999). In: Frahm, J., Ireland, D.C., & Hine, D. (2007)

Financial evaluation dilemma- Flimsy data may result in the elimination of potentially successful projects. However, failure to evaluate at an early stage (using any and all available data) results in new product development failure.
Source: Hayes & Abernathy, 1980; Hayes & Garvin, 1982; Pearson, 1986. In: Neale, C.W. (1994)

Two studies identified the principal causes of new product failure as ineffective product marketing and poor market research.
Source: Hopkins, 1980; Cooper, 1975. In: Zirger, B.J., & Maidique, M.A. (1990)

Methods

For demand articulation, dialogue between end-users and producers of knowledge and information, as well as other relevant stakeholders, should take place throughout the innovation process.
Source: Douthwaite et al (2001). In: Klerkx, Laurens & Leeuwis, Cees (2007)

Some areas of innovation lend themselves better to participatory development than others, and different types of innovation (incremental vs. radical) call for particular competences on the part of participating end users.
Source: Sumberg et al (2003); Lettl (2007). In: Klerkx, Laurens & Leeuwis, Cees (2007)