Full citation

Shum, P., & Lin, G. (2007). A World Class New product Development Best Practices Model. International Journal of Production Research, 45(7), 1609-1629.

Format: Peer-reviewed article

Type: Research — Non-experimental

Experience level of reader: Fundamental

Annotation: The authors utilized previous research studies to identify key factors related to firms' financial performance in new product development. They then surveyed approximately 81 companies via a mail survey questionnaire and follow up interviews to gather data to support their claims. Four statistically significant key factors were identified, including strategic fit and shared vision, market orientation, stimulus and slack time, organization for collaboration and communication.

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, Policy Makers

Knowledge user level addressed by the literature: Organization

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

Primary Findings

Tips:

  • The following factors related to market orientation have been observed: the process begins with identification of customer needs; customer knowledge drives innovation; customers should be integrated into the new product development process; cross functional teams provide diverse viewpoints- should have a minimum of two employees from marketing and technical; top management must commit to investing in collecting and using market information for R&D.
    Best practices observed at innovative companies
  • The following factors related to organization for collaboration and communication have been observed in best practice companies: make use of cross-functional teams in new product development; information is widely disseminated throughout an organization; internal champions can lead projects to success; provide the space and an environment for employees to meet and share ideas informally.
    Best practices observed at innovative companies
  • The following factors related to strategic fit and Shared Vision have been observed in best practice companies: Innovation is a strategic objective; vision is shared by all employees; product development initiatives must be linked with corporate strategy; must have innovation performance objectives; must also integrate market knowledge with technical competencies; customer focus internalized by all employees; leverage resources; sell the new challenge and vision to every employee; make everyone an active participant in the innovation journey; and clear cut metrics, objectives and strategy.
    Best practices observed at innovative companies
  • The following factors related to slack resources and stimulus have been observed in best practice companies: new product development projects are adequately resourced and funded; the idea database and other resources are shared; managers are transferred across departments; business integrators or advisers travel from one branch to another to exchange ideas and diffuse best practices; all employees have access to and share knowledge, information, and technology resources.
    Best practices observed at innovative companies

Secondary Findings

Models:

  • Organizations that have a clear picture of their current and future business and the ways to get there are more likely to succeed. (Cooper, 1990)
    Occurrence of finding within the model: Step 1.5
  • Teams would be more effective when members come from diverse backgrounds and perspectives, and were facilitated by a collaborative structure and processes. (Cougherty & Hardy, 1996; Kim & Maugorgne, 1999)
  • Companies adopting market orientation understand deeply the explicit and latent needs of their customers, share this information widely throughout the company, and coordinate activities to create superior customer value. (Shapiro, 1988; Kohli & Jaworski, 1990; Narver & Slater, 1990; Deshpande et al, 1993)
    Occurrence of finding within the model: Stage 1, Stage 2