Factors that contribute to the success of new product development
• Teamwork: New product development is most effective when there is teamwork among research and development, engineering, manufacturing, purchasing, marketing and finance departments from the very beginning. The product idea must be researched from the marketing point of view, and a specific cross-functional team must guide the project through out its development.
• The company should have a unique and superior product. For example, higher quality, new features, higher value in use and so forth. Products with a high product advantage have an excellent success rate.
• There should be a well defined product concept prior to development:
– The company must carefully define and assess the target market. The new product’s market size must not be overestimated.
– Product requirements must also be correctly estimated so that development costs do not become higher than expected.
• There should be quality in executing all the stages of the new product development. Quality personnel are needed to ensure that the best action is taken at each stage. Such personnel must be objective so as not to push through ‘pet ideas’ despite negative research findings.
• Another factor is a good understanding of customer needs.
• The new product should have a fast development time so that it is introduced ahead of competition. Many competitors are likely to get the same idea at the same time and victory goes to the swiftest.
• Top management support is another key success factor.