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Evaluating Your NPD Projects |
Post-Launch Reviews Improve All NPD Results
One of the most overlooked, but most important, reviews in the New Product Development Process is the Post-Launch Review (PLR).
An audit of the NPD Process and of the project itself will measure whether effective gate reviews have been conducted, will determine whether the new product or service is delivering the promised revenues, and will help you assess if your strategy and its execution is on target.
PLRs allow an open discussion of what went right, what went wrong, and what can be improved for the next NPD project that is bearing down the pipeline. Additionally, financial models are effectively checked against the benchmark metrics during a thorough Post-Launch Review after the new product has been commercialized for 6-18 months.
We encourage a first pass check on the NPD process with a PLR conducted about one month after the new product or service is commercialized. Financial product performance can be evaluated with additional PLRs completed as market data becomes available.
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Greetings!
By May, we find that most new product development efforts for the year are in full swing. Samples are passing between labs and quality inspectors, factory trials are in the planning phases, and computer programmers are adding the new SKU numbers to supply charts.
New Product Innovation | But, wait! What is our new product? Are we sure that the market needs, or wants, our product? Have you done your up-front homework and Market Research? In previous issues of the The Village, we've discussed the importance of Strategic Alignment, Portfolio Management, and using an efficient NPD Process. But, how do you know if you are developing a technology with a market need? Depending on the industry, between 50% and 75% of all new products fail. What can you do to improve this dismal statistic in your NPD efforts? This month, we take a look at early Market Research and how can get ahead of the competition with a little bit of early stage planning. As well, as a chance to improve the success of your NPD efforts. |
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Innovation Fun Fact | |
Welcoming Summer with Ice Cream
Wonderful creamy textures, chocolate, vanilla, strawberry, and our particular favorite, chocolate chip cookie dough!
 ICE CREAM can trace its roots to the Roman Emperor Nero, who in the 4th Century BC ordered his slaves to bring ice from the mountains and mix it with fruit toppings. Today, we'd probably call Nero's concoction "sorbet". In the 13th Century, legend holds that Marco Polo brought a Chinese recipe to Europe combining ice and milk.
A major breakthrough in the creation of ice cream as we know it came when salt was combined with ice to lower and control the temperature of the mix of ingredients. A Baltimore company first marketed wholesale ice cream in 1851 and with the later advent of mechanical refrigeration, ice cream became an icon of American culture.
Did you know that one of the most popular brands of ice cream was started in 1978 after one of the founders  ordered a $5 correspondence course? To see how pints of the creamy stuff are manufactured and shipped from Ben & Jerry's in Vermont, click on the cow to the right for a 10-minute tour of the Waterbury factory.
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| We Already Know Our Customers.... | |
So, Why Worry About Market Research?
In New Product Development, we often hear the mantra of "Do Your Up-Front Homework." Yet, data shows that less than 20% of firms study what customers need or want in the marketplace. Meanwhile, success rates of 50% are considered among "the best".
 Market Research allows the organization to evaluate whether a technology will be salable for economic gain. Too many companies are caught in the trap of developing a technology without a market.
In our busy, fast-paced world where speed to market is an important driver for NPD projects, it's easy to skip the Market Research. A litany of reasons exist:
The last of these is especially dangerous in rapidly growing global markets. Market Research allows to verify the impact your new product will have in the market. Customer-centric companies demonstrate a competitive advantage over competitors.
Finally, Market Research is not that difficult. Talk to your customers, but more importantly LISTEN to your end-users.
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| What's New | |
Visit our newly updated NPD Glossary with common terms in New Product Development. Check back often as we are constantly updating the glossary to keep it current.
Reading Recommendation
We highly recommend AG Lafley and Ram Charan's book called "  ". This is a must read for any Product Development Manager. |
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