New Product Development:

Learning Objectives:

Examine the relationship between new products and

prosperity
o New products (less than 5 years old) increasingly take a
larger slice of sales
o Lifecycles of products become increasingly shorter as a
result
o Clearly evident in the mobile phone industry

Recognize the range of product development

opportunities that can exist
 Recognize that a new product is a multi-dimensional
concept

Identify the different types of models of NPD

o Departmental-stage models
o Activity-stage models and concurrent engineering
o Cross-functional models
o Decision-stage models
o Conversion-process models
o Response models
o Network models

Provide an understanding of the importance of external

linkages in the new product development process

5 basic decisions to be made within concept development

1. What are the target values of the product attributes?
2. What will the product concept be?
3. What variants of the product will be offered?
4. What is the product architecture?
5. What will be the overall physical form and industrial design
of the product?

Regarding the supply chain, these are important questions:

1. Which components will be designed specifically for the
product?
2. Who will design and produce the product?
3. What is the configuration of the physical supply chain?
4. What type of process will be used to assemble the product?
5. Who will develop and supply the process equipment?