Measuring success in
New Product Development (NPD) is not quite as easy as it is in sports, since there is no universal "score". Scoring a
success in NPD depends on many things, but first the firm has to decide on exactly what is
"success". Each firm and each individual on the
NPD Team are likely to define
"success" in personal and professional terms, that may not overlap with the definitions of
"success" of other team members or of the team.
For example, consider the definition of "success" by several
NPD Team members.
Mary, an R&D Engineer supporting the development of the prototype defines success, "There are no major revisions between the prototype and the final commercial product."
John, the Marketing Advisor for the NPD project calls the project a success if, "Market penetration of the new product reaches 40% within one year."
Finally, Judy, the division manager intends to call the NPD project a success if, "The NPV (Net Present Value) of the project is greater than $10,000,000."
Apparently, each individual on the team has chosen a different measure of success, ranging from personal goals to specific financial goals ($10M NPV).
Read about the six common NPD metrics here. (Approximately 7 minutes reading time.)
