4. Definitions
success/failure
• Hopkins (1980: 4)
– it met management’s
original expectations for it
in all important respects
and vice versa.
• In Cooper and
Kleinschmidt’s (1988: 251)
– success and failure are
defined from a profitability
standpoint
5. • Millson and Wilemon (2002: 3)
– how well a new product effort exceeds or falls
short of expectations stipulated by the new
product developing firm
• They examined ‘four measures of new product
market success
– profits, sales, the ability to enter existing markets,
and the ability to create and enter new markets
6. • Griffin and Page (1993) demonstrate different
views ,three independent categories
– consumer acceptance
– financial performance
– and technical success
7. • The above discussion suggests that
there is no clear scale for
measuring new product success
and failure, since there is no single
common measure of success
(Balachandra and Friar, 1997)
• success is a composite of a number
of objective, perceptions,
behavioral and attitudinal
measures (Cohen and Bailey, 1997)
8.
9. • The pioneering Project SAPPHO (Rothwell et al.,
1974) was the first
• The SAPPHO research identifies that successful
companies should have a
– much better understanding of customer needs
– attend more to marketing and advertising
– perform NPD work more effectively
– encourage more use of outside specific expertise
– authorize and promote responsible and experienced
professional employees to senior management levels.
• Their conclusion was that professional employees
and good management techniques are the keys
of success.
10. Rubenstein et al. (1976) concentrate on defining the and facilitators in
the NPD process
there is no one factor governing success, because in
some cases one company’s barrier could be another company’s
facilitator.
formal aspects, such as organisational architecture, control
mechanisms and formal decision-making processes, are shown to
have little effect on new product success.
Individuals
are found to be important at the outset, during the progress
and at the end of a new product project. However, Rubenstein et al.
(1976) categorise both technical and commercial success into three
groups: the market orientation, open communication, and the support
of senior management.
11. The Project Newprod (Cooper, 1979b)
11 factors in terms of three keys to success,
three barriers, three facilitators and two
weakly related factors
12. Cooper and Kleinschmidt (1987a)
• launched into markets with low overall
intensity of competition had more possibility
of being successful.
• identify 11 success- versus-failure factors,
typically including financial measures such as
profitability, sales, relative revenues, and
market share.
14. • Terwiesch et al. (1998)financially successful
NPD cannot guarantee business success,
whereas business failure does not mean NPD
failure.
• emphasise senior management ‘involvement’
not just ‘support.’
15. • senior management
isolation – many
senior executives have
little contact with
conditions in the
factory or with
customers who are
delivered the
outcomes of new
products
• senior management
‘involvement’ is
broader than
‘support’
16. The current studies show New
product success rates at launch to
be less than 60%
– 54.3% for the UK (Edgett, Shipley,
andForbes1992)
– 59% for the USA (Griffin, 1997)
– 59.8% for Japan (Edgett et al., 1992)
– 49% for Spain (Gonz لlez and Palacios,
2002)
17. External business environment and
organization
• Market: customers, competitors, and suppliers
• Technology
• Environment
• Organization
