New Product Development

Challenge

Our client, a large multi-national corporation had a big problem. New product sales were almost non-existent despite spending millions of dollars a year on engineering and marketing. They also had an out of date, extremely complex new product development process that had over 400 steps. This helped to grind all progress to a halt. As a result, the organization found ways to circumvent the process. This, of course caused many issues including the misallocation of capital and resources, quality and warranty problems, major financial disappointments, and a “pet project” mentally with no strategy, schedules accountability.

Engagement

We recommended a portfolio management approach that reduces risk and improves return on new product development. We installed a new simplified development process and NPD portfolio management tools with a robust financial component. While garnering buy-in from cross functional leadership throughout the organization, we put in place a metrics package with a baseline and stretch goals with an eye towards a continuous improvement. Training on the process and tools was provided across all relevant functions.

Results

  • A faster and more reliable product development cycle
  • A more predictable stream of new product revenue
  • Multi-generational 3 year product roadmaps
  • Robust metrics & operational cadence for NPD investment portfolio
  • Top to bottom organization commitment- NPD is everyone’s job!
  • Automated approval work-flow and document management
  • Project plans, schedules, and accountability for every project
  • Financial modeling and data- based decision making

The new NPD system was launched in North America and will be exported by the client internationally to create one standard best practice for this global corporation.