Read, download or print this Chapter as a single document: Chapter 8: Improving the product development process (0.922 MB) This is an Adobe Acrobat PDF file - to view it you need to have downloaded and installed the free Adobe Acrobat Reader Click the underlined file name to view the Chapter in your browser, or right-click and "Save Target As" to save the file to your local disk. To print, click on the "Print" button in Acrobat Reader.

   8.1 Key messages

      8.1.1 Link to overall business strategy
      8.1.2 Balanced product development portfolio
      8.1.3 Clearly defined product development strategy
      8.1.4 Appropriate systems and processes for project management
      8.1.5 Appropriate human and physical resources
      8.1.6 Committed and supportive organisational climate
      8.1.7 Understanding the consumer, customer, market and society
                 Think Break

   8.2 Evaluating product development

      8.2.1 What is benchmarking?
      8.2.2 Basic steps for benchmarking product development
                 Think Break

   8.3 Innovation metrics

      8.3.1 Timing of information
      8.3.2 The holistic dimension
                 Think Break
      8.3.3 Metric selection criteria
      8.3.4 Integrating innovation metrics into the business
                 Think Break

   8.4 Striving for continuous improvement

      8.4.1 Steps in continuous improvement
      8.4.2 Product development project
      8.4.3 Product development programme
      8.4.4 Product development and business strategies
                 Think Break

   8.5 References

Best practice in product development is a dynamic target. Not only are new practices being developed and refined but the differences in organisations demand the tailored application of these practices. There are eight basic principles and four basic stages in product development which are true for all companies, all projects and at all times. But the company philosophy, knowledge, skills and assets change; and these changes cause changes in the types of product innovations and the activities in product development. Successful companies recognise that product development is an important strategic issue that demands constant attention. There is a need to evaluate the product development performance and the product development success rate (product development efficiency and effectiveness), and then combine this evaluation with the company's strategic direction to determine and organise improvements in both the effectiveness and efficiency in the future. This is not simple because creativity and criticism are two opposing thought processes. Creativity, vital to product innovation, goes into the unknown and makes mistakes; the product development evaluation looks for mistakes and criticises them. Emphasis on mistakes leads to conservative product development; emphasis on creativity leads to wild product development; the successful companies intertwine the creativity and the evaluation in the project.

Product development is unique to the company and is related to the company's history, philosophy and knowledge, but the company's position relative to the best practice in the related industry and market is an indicator of the company's past and present product development effectiveness and efficiency. From this evaluation can be built up strategic plans for improving product development. As shown in Fig. 8.1, product development effectiveness and efficiency are improved together to give the strategic product success indicated by the company top management. Product development effectiveness and efficiency are inextricably linked.

Fig. 8.1 Evaluating and improving product development.
(- click to enlarge)