Are Companies Becoming More Risk Averse in New Product Development (NPD) Decisions?

This is an important question to consider for any company engaged in new product development. Every project is unique. Product extensions tend to be lower risk while radical, new-to-the-market products are usually higher risk. While lower risk projects are easier to manage, higher risk projects might provide a much more significant payoff if successful. In today’s economy with fierce global competition, a focus on only lower-risk projects might not be the best decision for long-term company success. Continue reading

The Product Manager and New Product Development (NPD) Success

Product ManagerA key organizational role in the new product development (NPD) process is commonly referred to as a product manager. There are many definitions of this role, depending on the size of the company and the type of technology. Here we will focus on the position in the context of small to mid-sized firms who manufacture highly engineered products. In some organizations, a product manager may have P&L responsibility, but for the purposes of this discussion, it is assumed they do not. Continue reading