Performance typologies of new product projects
Article Abstract:
New product success is a vital but elusive goal for many firms. The last two decades have witnessed numerous studies into new product successes and failures in an attempt to uncover what makes a winner. Indeed, myriad characteristics, factors, and practices have been found that appear to discriminate between successful and unsuccessful new products. With few exceptions, much of this research has tended to view new product performance on a unidimensional continuum, usually financial performance (e.g., profitability). Whereas immediate profitability is no doubt an admirable goal, there are other ways of looking at a new product's performance - for example, degree of technical success, time-to-market, and its overall impact on the company. The current investigation takes a broader view of new product success. A number of measures of new product performance were captured, rather than just the single measure continuum; this resulted in a performance map with two major and quite independent underlying dimensions of performance. A typology of performance was then developed - a classification of new product projects by how well they performed: five scenarios or clusters of projects are identified on this map, each with its unique performance characteristics. We then investigate in detail each project type and probe what drives the performances of these five different clusters of projects: that is, what makes for new product success of these five project types, when success is measured in different ways. The study was undertaken in world class multinationals in the chemical industry in four countries, but its results appear to have validity across a broad spectrum of industry. (Reprinted by permission of the publisher.)
Publication Name: Industrial Marketing Management
Subject: Business, international
ISSN: 0019-8501
Year: 1995
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New-product success in the chemical industry
Article Abstract:
What separates new-product winners from losers? An understanding of what distinguishes new-product successes from failures is vital to improving new-product performance. Evidence supports the notion that the new-product process - events, actions, and directions that take place in a new-product project from idea to launch - is fundamental to new-product success. Indeed, process issues are potentially more critical to success than the nature of the project. For example, new product process issues are more important than synergies, market attractiveness, or the competitive situation. New-product success factors were investigated through an in-depth study of 103 new industrial product projects in one industry (the chemical industry) and on an international basis. All products studied had been launched into the market and included both winners and losers. A conceptual model of the factors that impact on success was used from previous studies and led to the identification of six blocks of characteristics that capture factors related to the new-product process. (In addition to blocks of variables that captured the new-product process, characteristics that captured the nature of the project were also investigated, however, those results are beyond the scope of this article.) The results of this study revealed a clear pattern to success. Provocative differences emerged between successful and unsuccessful new-product projects. These results led to guidelines for improving the way the new-product process is managed. (Reprinted by permission of the publisher.)
Publication Name: Industrial Marketing Management
Subject: Business, international
ISSN: 0019-8501
Year: 1993
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New product processes at leading industrial firms
Article Abstract:
This article is about game plans for new products. The strategic importance of product development coupled with high risks and failure rates has led many companies to reconsider the way they go about conceiving, developing, and launching new products. Some firms have adopted a formal new product process or "stage-gate system" for moving new product projects from idea to launch (1). This article reports the performance results that a handful of leading firms - IBM, 3-M, GM, Northern Telecom, and Emerson Electric - have had with implementing such new product game plans. (Reprinted by permission of the publisher.)
Publication Name: Industrial Marketing Management
Subject: Business, international
ISSN: 0019-8501
Year: 1991
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