Full citation

Salomo, S.R., Weise, J., & Gemunden, H.G. (2007). NPD Planning Activities and Innovation Performance: The Mediating Role of Process Management and the Moderating Effect of Product Innovativeness. Journal of Product Innovation Management, 24(4), 285-302.

Format: Peer-reviewed article

Type: Research — Non-experimental

Experience level of reader: Fundamental

Annotation: The paper asserts that 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.

Setting(s) to which the reported activities/findings are relevant: Large business, Small business (less than 500 employees)

Knowledge user(s) to whom the piece of literature may be relevant: Manufacturers

Knowledge user level addressed by the literature: Organization

This article uses the Commercial Devices and Services version of the NtK Model

Primary Findings

Methods:

  • 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.
    Occurrence of finding within the model: Step 4.3, Step 4.13
  • To capture the actual activities of product innovation, it is necessary to distinguish between two types of planning: 1) Pre-decision business planning and 2) Post-decision project planning. At the beginning of the NPD process, information is gathered with the aim of evaluating the innovative idea and developing an initial understanding of the business case. This early-stage planning involves a number of scanning and analyzing activities that can be subsumed under the term business planning.
    Analysis of data collected from 132 NPD projects.
    Occurrence of finding within the model: Stage 1, Stage 2, Stage 3, Stage 4

Secondary Findings

Method: The fuzzy front end of NPD entails all activities prior to the time that a business unit commits to the funding and launch of a NPD project or decides not to do so (i.e., go/no-go decision). This decision to fund or not fund an NPD project is typically made after the business case has been evaluated to assess the project's likely financial returns and after some degree of project and risk planning has been carried out. (Khurana & Rosenthal [1998])
Occurrence of finding within the model: Gate 4