Cooper, R.G., Edgett, S.J., & Kleinschmidt, E.J. (2004). Benchmarking Best NPD Practices--II.Research Technology Management, 23(2), 117-127.
Format: Peer-reviewed article
Type: Research — Non-experimental
Experience level of reader: Fundamental
Annotation: This article explores new product development success as it relates to strategy implementation and resource allocation. Results of a survey of 105 U.S. businesses reveals that success increases along with the presence of a new product development strategy, which is reflected in spending decisions. Further, best performers tend to undertake more innovative projects and allocate more resources to project teams.
Setting(s) to which the reported activities/findings are relevant: Large business, Small business (less than 500 employees), University
Knowledge user(s) to whom the piece of literature may be relevant: Manufacturers, Researchers
Knowledge user level addressed by the literature: Organization
This article uses the Commercial Devices and Services version of the NtK Model
Method: Six key components are highly correlated with new product development success. 1) The role of the new product development project must be defined in terms of their contribution to achieving organizational goals. 2) Strategic arenas (markets, product areas, industry sectors or technologies) should be clearly identified and defined. 3) Longer term goals for new products should be defined early on. 4) The organization should have a long-term view of its new product development efforts. 5) Earmarking buckets of resources (funds or person days) targeted at different project types helps to ensure strategic alignment of new product development with organizational goals. 6) Product/technology road maps should be in place to help management make sure that the capabilities are in place to achieve their objective when needed.
Survey of 105 U.S. companies
Occurrence of finding within the model: Step 1.5, Step 1.4