New Product Development - Chapters 1-5 Review

This set of flashcards covers key concepts, strategies, and statistics from Chapters 1-5 of New Product Development focused on innovation, process phases, stakeholder analysis, and problem-solving techniques.

What is the key statistic about new product success rates among the best firms?

Best firms achieve over 75% success rates in new product development.

What is the purpose of a Product Innovation Charter (PIC)?

The PIC is a strategic document that prevents scope creep and defines the focus for the development team.

How many categories do new products fall into and what percentage is new-to-world?

There are six categories of new products; new-to-world products account for 10%.

What are the five phases of the New Products Process?

1. Opportunity ID 2. Concept Generation 3. Evaluation 4. Development 5. Launch.

What is the core principle behind the Problem Find-Solve approach?

Start with real problems to increase the likelihood of success in product development.

What does open innovation involve?

Open innovation involves using both internal and external ideas to drive product development.

What is the definition of disruptive innovation according to Christensen?

Disruptive innovation refers to lower-quality products that appeal to new or low-end customers and can eventually dominate established markets.

What criteria should be included in a concept statement?

Target user, problem addressed, product form, technology, key benefit, point of difference.

List the five problem-finding techniques discussed in the lecture notes.

1. Scenario Analysis 2. Dimensional Analysis 3. Relationship Analysis 4. Lateral Thinking 5. Big Winner Approach.

What is the role of stakeholder analysis in new product development?

Stakeholder analysis identifies different parties involved, such as end users, buyers, and other relevant groups.

What are the four objectives of portfolio management?

1. Strategic alignment 2. Portfolio value 3. Project balance 4. Resource balance.

What are the three strategic elements of product development?

1. Product Innovation Charter (PIC) 2. New Products Process 3. Portfolio Management.

How do best firms compare to average firms in terms of having a Product Innovation Charter (PIC)?

86% of best firms have a PIC compared to 69% of average firms.

What are the limitations and benefits of using AI in new product development?

AI can aid in trend analysis and flavor profiling but cannot replace human creativity.

Define 'jobs-to-be-done' in the context of product development.

Focus on what customers want to accomplish rather than just on product features.

What are the key components of a dual-drive strategy in innovation?

A dual-drive strategy involves focusing on one technology and one market simultaneously.

What is the key statistic about new product success rates among the best firms?

Best firms achieve over 75% success rates in new product development.

What is the purpose of a Product Innovation Charter (PIC)?

The PIC is a strategic document that prevents scope creep and defines the focus for the development team.

How many categories do new products fall into and what percentage is new-to-world?

There are six categories of new products; new-to-world products account for 10%.

What are the five phases of the New Products Process?

1. Opportunity ID 2. Concept Generation 3. Evaluation 4. Development 5. Launch.

What is the core principle behind the Problem Find-Solve approach?

Start with real problems to increase the likelihood of success in product development.

What does open innovation involve?

Open innovation involves using both internal and external ideas to drive product development.

What is the definition of disruptive innovation according to Christensen?

Disruptive innovation refers to lower-quality products that appeal to new or low-end customers and can eventually dominate established markets.

What criteria should be included in a concept statement?

Target user, problem addressed, product form, technology, key benefit, point of difference.

List the five problem-finding techniques discussed in the lecture notes.

1. Scenario Analysis 2. Dimensional Analysis 3. Relationship Analysis 4. Lateral Thinking 5. Big Winner Approach.

What is the role of stakeholder analysis in new product development?

Stakeholder analysis identifies different parties involved, such as end users, buyers, and other relevant groups.

What are the four objectives of portfolio management?

1. Strategic alignment 2. Portfolio value 3. Project balance 4. Resource balance.

What are the three strategic elements of product development?

1. Product Innovation Charter (PIC) 2. New Products Process 3. Portfolio Management.

How do best firms compare to average firms in terms of having a Product Innovation Charter (PIC)?

86% of best firms have a PIC compared to 69% of average firms.

What are the limitations and benefits of using AI in new product development?

AI can aid in trend analysis and flavor profiling but cannot replace human creativity.

Define 'jobs-to-be-done' in the context of product development.

Focus on what customers want to accomplish rather than just on product features.

What are the key components of a dual-drive strategy in innovation?

A dual-drive strategy involves focusing on one technology and one market simultaneously.

What are the six categories of new products?

1. New-to-world products 2. New product lines 3. Additions to existing product lines 4. Improvements/revisions to existing products 5. Repositionings 6. Cost reductions.

What are the four key sections of a Product Innovation Charter (PIC)?

1. Background 2. Focus 3. Goals and Objectives 4. Guidelines.

What is the primary goal of the Opportunity Identification phase in the New Products Process?

To generate new product opportunities based on strategic planning and external analysis.

What is the purpose of Scenario Analysis as a problem-finding technique?

Scenario Analysis involves forecasting possible future situations to identify potential problems and opportunities.

What does 'strategic alignment' mean in portfolio management?

Strategic alignment ensures that product development projects are consistent with the overall business strategy.

What is sustaining innovation according to Christensen, contrasting with disruptive innovation?

Sustaining innovation involves improving existing products along dimensions of performance that mainstream customers value.