Harmancioglu, N., McNally, R.C., Calantone, R.J., & Durmusoglu, S.S. (2007). Your New Product Development (NPD) is Only as Good as Your Process: An Exploratory Analysis of New NPD Process Design and Implementation. R&D Management, 37(5), 399-424.
Format: Peer-reviewed article
Type: Research — Non-experimental
Experience level of reader: Fundamental
Annotation: The article explores four NPD design elements: 1) Senior management involvement; 2) Business Case content; 3) Customer interactions; 4) Cross-functional integration. The analysis concludes that the level of industry competitiveness and firm characteristics influence the four design elements, which leads to variations in process design and divergence in productivity achieved.
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
- The higher the level of unpredictability of customer requirements and competitor strategies in high-tech industries, requires: 1) Use of a step-wise NPD process; 2) Establishment of a stable if not exhaustive Business Case; 3) Full integration of customers; 4) Higher specialization of teams rather than cross-functional integration.
Three intensive case studies.
- The amount of flexibility applied within the NPD process design, depends on organizational characteristics and level of market competition. The more dynamic and uncertain the market environment, the more formal, centralized and inflexible is the NPD Stage-Gate process. The formal process is seen as a mechanism to reduce uncertainty and achieve timely market response.
Three intensive case studies.
Barrier: Centralization and senior-level involvement may positively impact NPD by providing supervision for project uncertainties, yet centralized decision-making tends to repress the creativity, brainstorming and experimentation acknowledged to promote innovation. (Damanpour )
Occurrence of finding within the model: Stage 3, Stage 4, Stage 5
- Proficiency in executing NPD processes is important because it determines the degree to which businesses can meet and/or exceed demand, and thus succeed. (Kleinschmidt & Cooper )
- The manage NPD effectively, managers are recommended to use a step-wise approach such as a stage-gate process. (Cooper & Kleinschmidt )
- Stage-Gate process models facilitate action across functions and projects by providing a common language and framework to enhance communications. (Engwall et al )
- Stage-Gate approaches seek to manage risk and increase efficiency through adherence to a structured NPD process. (Calantone & Di Benedetto )
- NPD processes involve a series of stages aimed at delivering a functional commercial benefit to customers. (Calantone et al )
- In a stage-gate model, required tasks, their sequences and task forces are specified explicitly. (Griffin )