New Product Development Process ─ How many of your new ideas are worth to put money into?

By: Hector Olvera, MBA, Certified Projects Director - PMP

They say that new products are the blood of a company. If the firm is not introducing new ideas and products─new product development process─, sooner or later their clients will be looking for someone else that satisfy their need of something new.

The New Product Development (NPD) Process, is a company's formal process for controlling the flow of new product launches. But you have to be selective of which baskets to put new eggs.

A client may say, "sure, I like my laptop, but, can you make it smaller and able to play blu-ray?

The NPD is a structured process with the following typical objectives:

  1. Encourage and facilitate the review of a large number of new ideas or concepts.
  2. Through rigorous analysis and decision making at specific review points─gates─, prioritize these to a few appropriately resourced programs with the highest likelihood of market success.
  3. Minimize the number of products that are cancelled, killed, in the later ─most expensive─ development stages or are released with unsuccessful results.
  4. Accelerate time to market and reduce break-even times for the product program.
  5. Continuous improvement of the development process. 

The process can be visualized as a funnel with a large number of new product ideas entering the concept stage, narrowing to a fewer number of fully resourced product programs in subsequent stages. Some ideas are left behind of put-off until more money iv available.

There is never enough money for all the new ideas. That is way the firm must be very selective in which basket to put their eggs. Normally, the ones that take these decisions is upper management, that integrate a Change Control Board, called Gate Keepers.

Separating each stage is a gate or phase review where a decision is made to kill the product, enter into the next stage or redirect back to a previous stage for additional work.

A typical new product development process is shown below, depending on your product industry, it may be different.

Program Review Board or Gate Keepers.

The decision making team at the stage reviews are senior executives who have the authority for approving and staffing new programs, or Kill them.  

They are also called Gatekeepers of New Product Development

This team normally consists of the lead executive in the organization and leaders of key functional areas, including marketing, engineering, product management and manufacturing.  

Through these decisions, the Product Review Board manages the development pipeline, authorizes new programs, sets and communicates priorities, and allocates the necessary resources. 

Libro El Director de Proyectos Práctico -

Un Método probado de 28 Pasos para completar tu Proyecto Exitosamente


Por fin ─ un libro sencillo con un método paso a paso para completar tu proyecto.

¡Y sin tener conocimiento previo sobre administración de proyectos!

Toda la "paja" de la metodología de dirección de proyectos fue eliminada, dejando solo lo que es absolutamente útil para completar la tarea.

El Director de Proyectos Práctico, Project Management for Small Projects. 

Un libro pensado en el líder de proyectos empírico que salió ganador de la rifa del tigre. Pues ya tiene la responsabilidad de un proyecto, pero que no sabe ni por donde empezar. Necesita una receta ABC para seguir.

Contiene 260 páginas perfectamente detalladas con ejemplos e ilustraciones, que te llevan de la mano hasta completar tu proyecto.

Pruébalo, síguelo, ten éxito. O sigue haciendo lo mismo... :(

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Entrega inmediata.

BONO ADICIONAL:  El libro incluye todos los templates─plantillas─que necesitas, listos para ser usadas. No necesitas comprar nada mas.

COPYRIGHT © 2007-2012 por Hector Olvera Padilla 1853071. Reproduction in whole or in part, or translation without written permission is prohibited. "PMP®", "PMBOK®", and "PMI®" are registered marks of the Project Management Institute, Inc.