Developing New Products On Time, In Time

OVERVIEW:Accelerated product development is key to new product success. But most prescriptions for cycle time reduction are based on little hard evidence. This article reports the results of an extensive study of 103 new product projects, with a particular focus on the drivers of both reduced cycle time (on-schedule performance and time-efficient developments) and profitability. The use of a true cross-functional team, undertaking solid up-front homework before development began, a strong market orientation (building in “the voice of the customer”), quality of execution, and getting sharp, early product definition were some of the common ingredients of projects that were both on time and fast-to-market. While profitability and speed were linked, there was not the one-to-one relationship that many imagine. Finally, developing a unique, superior product which delivered real value to the customer was no less time efficient than developing “me-too” products.