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Antecedents & consequences of new product development

BY, DEEPAK MALIK , Student # 100875896 SONICA PALLEMONI , Student # 7050558. Antecedents & consequences of new product development. s ubmitted to Professor Shervin Shirmohammadi in partial fulfillment of the requirements for the course ELG 5100. Conspectus .

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Antecedents & consequences of new product development

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  1. BY, DEEPAK MALIK , Student # 100875896 SONICA PALLEMONI , Student # 7050558 Antecedents & consequences of new product development submitted to Professor Shervin Shirmohammadi in partial fulfillment of the requirements for the course ELG 5100

  2. Conspectus • Definition of New Product Development (NPD) • Project Management in NPD • NPD Practices, Software tools. • Conceptual Framework. • Case Study : IT Usage and NPD • Lessons Learned • Improvements and Future work • References

  3. Definition of “NPD” CUSTOMER NEEDS INSTITUTIONAL STRENGTHS • New Product Development is the complete process of bringing a new product to the market. • Successful companies focus more on “PRODUCT VALUE” rather than merely on product costs. • NPD is used to generate “SUPERIOR PRODUCTS” COMPETITIVE POSITIONING

  4. Project Management in “NPD” CLIENT NEEDS MANAGEMENT RESPONSE MARKET RESEARCH

  5. POPULAR NPD PRACTICES(integrated product development approach)

  6. NPD Software ToolsIT applications to accomplish development tasks

  7. SOFTWARE TOOLS AND THEIR IMPACT ON AN NPD TEAM • Automation of Tasks for Idea generation and Concept testing. • Improving Team Communication. • Improving Team Co-ordination and overall Co-operation. BENEFITS: • Increases Developer Productivity. • Reduction of Cost and Time. • Higher Product Quality.

  8. PROJECT PERFORMANCE OVERALL MARKET SUCCESS

  9. NPD Project Context • Uncertainty • NPD Practices alone • Customer facing IT • Design/Validation tools • Scope • Supplied facing IT • Complexity • Communication/Teamwork tools • Manufacturing Plant facing IT • NPD Practices and Software tools

  10. NPD Project Context Overall Market Success

  11. Antecedents and Consequences

  12. Using IT in New Product Development (NPD) • t Speed Productivity Collaboration, Communication, C0-ordination Versatility Knowledge Management Decision Quality Product Quality

  13. IT usage and NPDConceptual Framework (Gloria et.al.)

  14. IT usage and NPD“Case Study” Data Collection • 1371 PDMA members in US and Canada. • Method : Survey through Mailing List • Respondents were asked to check the tools used for each activity across three stages of the NPD process: fuzzy front end, development and testing, and launch. • To determine : Measure of IT usage.

  15. Data Analysis • Scale of measure (Correlation < .01 - Data eliminated) • Uni-dimensionality : Eigen Value < 1.0 and Factor loadings <0.25 • Reliability : Coefficient alpha < 0.7 • Validity : CFA model • Single factor Analysis: Harman’s one factor test

  16. IT usage and NPDHypothesis based on Antecedents • Project Risk The greater the risk of the product being developed, the higher the IT usage in NPD projects. • Champion The more likely the existence of a champion for specific IT tools, the higher the IT usage in NPD projects. • Autonomy The greater the autonomy of the team, the higher the IT usage in NPD projects. • Innovative climate The more innovative the climate of the firm, the higher the usage of IT in NPD projects. • IT infrastructure The greater the sophistication of the IT infrastructure and the greater the extent to which it supports distribution of IT tools, the higher the IT usage in NPD projects. • IT embedded-ness The greater the embedded-ness of IT in the firm, the higher the IT usage in NPD projects.

  17. IT usage and NPDHypothesis based on NP Performance measures • Speed to Market Greater usage of IT tools during the development of a new product project will lead to faster speed to market. • Market Performance Greater usage of IT tools during the development of a new product project will lead to higher market performance.

  18. IT usage and NPDValidation and Examination of Hypothesis • Projectrisk, existence of a champion, and IT embedded-ness have a significant, positive relationship with IT usage. • Whereas autonomy, innovative climateand IT infrastructure doesn’t impact IT usage. • No positive impact of IT usage on “Speed to Market” , rather increases it. • Greater usage of IT in a particular product development effort will lead to greater market success.

  19. Improvements and Future workOur perspective... • Validating results from cross-sectional data. • Examining same issues in time series panel data. • Multi respondent surveys. • Impact of more software tools and NPD practices. • Conducting studies on industry specifics. • IT usage and Speed to Market.

  20. Lessons learned • NPD practices are positively associated with all five project-level performance metrics. • Design/validation tools are positively associated with only three project-level performance metrics. • Communication/teamwork tools are insignificantly associated with the project-level performance metrics. • NPD practices appear to be more important than software tools in driving NPD outcomes. • Time-to-market, cost control, and performance quality have the strongest associations with market success. • IT infrastructure should be examined before making investment in NPD practices and software tools to achieve their full potential.

  21. REFERENCES: • A. Menon, J. Chowdhury, and B. A. Lukas, “Antecedents and outcomes of new product development speed: An interdisciplinary conceptual framework,” Ind. Marketing Manage., vol. 31, no. 4, pp. 317–328, 2002 • M. V. Tatikonda and S. R. Rosenthal, “Technology novelty, project complexity, an product development project execution success: A deeper lookat task uncertainty in product innovation,” IEEE Trans. Eng. Manag.,vol. 47, no. 1, pp. 74–87, Feb. 2000 • G. Barczak, F. Sultan, and E. J. Hultink, “Determinants of IT usage and new product performance,” J. Prod. Innov. Manage., vol. 24, no. 6, pp. 600–613, 2007. • A. Rangaswamy and G. L. Lilien, “Software tools for new product development,” J. Marketing Res., vol. 34, no. 1, pp. 177–184, 1997. • A. M. S´ anchez and M. P. Per´ ez, “Cooperation and the ability to minimize the time and cost of new product development within the Spanish automotive supplier industry,” J. Prod. Innov. Manage., vol. 20, no. 1, pp. 57–69,2003. • R. D. Banker, I. R. Bardhan, and O. Asdemir, “Understanding the impact of collaboration software on product design and development,” Inf. Syst.Res., vol. 17, no. 4, pp. 352–373, 2006

  22. Questions

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