Bestpracticeinproductdevelopmentisadynamictarget.Notonlyarenewpracticesbeingdevelopedandrefinedbutthedifferencesinorganisationsdemandthetailoredapplicationofthesepractices.Thereareeightbasicprinciplesandfourbasicstagesinproductdevelopmentwhicharetrueforallcompanies,allprojectsandatalltimes.Butthecompanyphilosophy,knowledge,skillsandassetschange;andthesechangescausechangesinthetypesofproductinnovationsandtheactivitiesinproductdevelopment.Successfulcompaniesrecognisethatproductdevelopmentisanimportantstrategicissuethatdemandsconstantattention.Thereisaneedtoevaluatetheproductdevelopmentperformanceandtheproductdevelopmentsuccessrate(productdevelopmentefficiencyandeffectiveness),andthencombinethisevaluationwiththecompany’sstrategicdirectiontodetermineandorganiseimprovementsinboththeeffectivenessandefficiencyinthefuture.Thisisnotsimplebecausecreativityandcriticismaretwoopposingthoughtprocesses.Creativity,vitaltoproductinnovation,goesintotheunknownandmakesmistakes;theproductdevelopmentevaluationlooksformistakesandcriticisesthem.Emphasisonmistakesleadstoconservativeproductdevelopment;emphasisoncreativityleadstowildproductdevelopment;thesuccessfulcompaniesintertwinethecreativityandtheevaluationintheproject.Productdevelopmentisuniquetothecompanyandisrelatedtothecompany’shistory,philosophyandknowledge,butthecompany’spositionrelativetothebestpracticeintherelatedindustryandmarketisanindicatorofthecompany’spastandpresentproductdevelopmenteffectivenessandefficiency.Fromthisevaluationcanbebuiltupstrategicplansforimprovingproductdevelopment.AsshowninFig.8.1,productdevelopmenteffectivenessandefficiencyareimprovedtogethertogivethestrategicproductsuccess8Improvingtheproductdevelopmentprocessindicatedbythecompanytopmanagement.Productdevelopmenteffectivenessandefficiencyareinextricablylinked.8.1KeymessagesThereisnosinglerecipeforsuccessfulproductdevelopment.Duringthepreviouschapters,anumberofbasicprincipleswereidentifiedwhicharecommontoallsuccessfulproductdevelopmentasshowninTable8.1.8.1.1Linktooverallbusinessstrategy‘Doingtherightthings’mustalwaysbecentraltoanyproductdevelopmenteffort.Theproductdevelopmentstrategymustbeinharmonywiththeoverallbusinessstrategy.Itshouldbothreceiveandprovidedirectiontothebusinessstrategy.Thebalanceofreactivitytoproactivitywilldependonthenatureoftheorganisationanditsoverallgoals.Fig.8.1Evaluatingandimprovingproductdevelopment.Table8.1BasicprinciplesofproductdevelopmentLinktooverallbusinessstrategyBalancedproductdevelopmentportfolioClearlydefinedproductdevelopmentstrategyAppropriatesystemsandprocessesforprojectmanagementAppropriatehumanandphysicalresourcesCommittedandsupportiveorganisationalclimateUnderstandingtheconsumer,customer,marketandsocietyImprovingtheproductdevelopmentprocess3498.1.2BalancedproductdevelopmentportfolioThebusinessgoalsandstrategyshoulddefinethekeycriteriatobeusedinpreparingtheproductdevelopmentportfolio.Theseinclude:•degreeofnoveltyornewness;•leveloftechnology;•targetmarket;•levelofrisk;•desiredreturnoninvestment;•timeframe.Preparingabalancedportfolioofnewproductdevelopment,consistentwithbusinessaims,isacriticalpartofproductdevelopmentmanagement.8.1.3ClearlydefinedproductdevelopmentstrategyTheproductdevelopmentstrategyshouldprovide:•totalclarityabouttherelationshipbetweentheportfolioofproductdevelopmentprojectsandtheoverallbusinessstrategy;•cleardefinitionoftheportfolioofnewproductdevelopmentprojectsrelativetobusinessselectioncriteria;•indicationofthecostsandtimeframesinvolvedtoachievethedesiredoutcomesoftheportfolio;•indicationoftheresourcesrequiredtoachievethedesiredoutcomes–whatresourcesarerequiredinternallyandwhatshouldbeout-sourced.Theproductdevelopmentstrategyislinkedto,andindeedisthebasisfor,thetacticalstrategythatorganisestheproductdevelopmentprogrammeandtheindividualproductdevelopmentprojects.Inanumberofcompaniesthereisoftenacommunicationblockagebetweentheproductdevelopmentstrategyandthetacticalstrategythatdeterminestheworkofthedesigners,engineers,marketers,productionandotherpersonnelinvolvedintheproject.Thiscanreduceboththeeffectivenessandefficiency.8.1.4AppropriatesystemsandprocessesforprojectmanagementHavingdecidedonwhatthingstodo(theportfolio),itisimportanttohavetheappropriatesystemsandprocessestosupportindividualprojects–‘doingthingsright’.TherearefourclearlyidentifiedbasicstagesinthePDProcess–productstrategydevelopment,productdesignandprocessdevelopment,productcommercialisation,productlaunchandevaluation.Buttherearedifferencesintheactivities,decisionsandoutcomesinthedifferentprojects,althoughtherearesignificantonesthatoccurinmanyprojects.AlthoughthePDProcessisimportanttothesuccessfulcompletionofprojectsontime,inbudgetandinlinewiththeinitialtarget,itwouldbewrongtoforceallprojectsintoastandardprocess.ThePDProcessisuniquetothecompany,350Foodproductdevelopmentlevelofinnovation,andtheleveloftechnologicalknowledge.ThecompanycandesigndifferentPDProcessesforproductimprovementsandmajorinnovations,forconsumerproductsandindustrialproducts,andalsomakesomechangesbetweenproduc