Innovation Strategies of New Product Development (NPD)

Abstract

Current literature indicates a high rate of New Product Development (NDP) failure. Many believe that the main reason behind such failures is the way the NPD process is managed. This includes a lack of clear project definition, too much focus on internal processes and procedures ignoring customer needs and requirements, lack of communication and knowledge transfer among various people within the organization, etc. The current study provides an analytical tool in the form of a two dimensional matrix that maps various stages of the NPD process to the existing innovation strategies. This analytical tool can then be used by business analysts to assess the degree of innovativeness of various activities involved in NPD process, as a basis for enhancing the effectiveness of the overall product development initiatives.