Satisfy Customers While Speeding R&D and Staying Profitable

OVERVIEW:Studies of innovation management effectiveness pinpoint specific practices that will allow companies to increase customer satisfaction and pursue a strategy of speedy R&D—without compromising profitability. The two practices that accomplish this end. when used moderately (although not universally), are Quality Function Deployment for project selection and Stage-Gate Tracking for controlling development. Companies that use Internal Rate of Return as a criterion for project selection have also been found to be more profitable.