Full citation

Carbonell-Foulquie, P., Munuera-Aleman, J. L., & Rodriguez-Escudero, A. I. (2004). Criteria employed for go/ no-go decisions when developing successful highly innovative products. Industrial Marketing Management, 33(4), 307-316.

Format: Peer-reviewed article

Type: Research — Non-experimental

Experience level of reader: Fundamental

Annotation: A survey of successful new products developed by 77 Spanish manufacturing companies was conducted to identify the go/ no-go decision criteria employed throughout the new product development process. Findings indicate that the priority of various criteria change throughout the process, although marketing inputs were critical at all times.

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: Brokers, Manufacturers

Knowledge user level addressed by the literature: Organization

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

Primary Findings

Measures:

  • Strategic fit criteria are primarily employed for go/no-go decisions at the concept definition stage. Criteria may include product quality, sales volume, project total cost, alignment with the firm's strategy, and window of opportunity.
    Survey of 77 manufacturing companies
    Occurrence of finding within the model: Gate 1, Gate 2
  • Technical feasibility criteria are typically employed for go/no-go decisions during the development stages of activity. Criteria may include project total cost, product quality, availability of resources, and customer satisfaction.
    Survey of 77 manufacturing companies
    Occurrence of finding within the model: Gate 3, Gate 4, Gate 5, Gate 6
  • Market opportunity criteria are typically employed for go/no-go decisions early in the process and again after launch. Criteria may include customer satisfaction, market acceptance, product quality and sales volume.
    Survey of 77 manufacturing companies
    Occurrence of finding within the model: Gate 1, Gate 8, Gate 9
  • Customer acceptance criteria is primarily sought for go/no-go decisions later in the process, and may include product quality, sales volume, availability of resources, and customer satisfaction.
    Survey of 77 manufacturing companies
    Occurrence of finding within the model: Gate 6, Gate 7

Secondary Findings

Method: Keeping in mind objectives and resource limitations, begin to develop evaluation (go/no-go) criteria that will be used at the various gates. (Rochford, 1991)
Occurrence of finding within the model: Tip 1.3

Tips:

  • Market potential criteria used after launch to evaluate success or failure. (Henard & Szymanski, 2001)
    Occurrence of finding within the model: Gate 8, Gate 9
  • Utilize financial criteria in go/ no-go decisions, including payback period and discounted cash flow. (Cooper, 2001, Hart et al., 2003, & Ronkainen, 1985)
    Occurrence of finding within the model: Gate 6, Gate 7, Gate 8, Gate 9
  • Customer acceptance criteria are important at all gates, particularly after launch. (Hart, et al., 2003)
    Occurrence of finding within the model: Gate 1, Gate 2, Gate 3, Gate 4, Gate 5, Gate 6, Gate 7, Gate 8, Gate 9