Questions and Answers
Which of these factors is NOT considered a key objective in successful new product development?
What is the primary benefit of using parallel development processes?
What is a potential risk associated with utilizing project champions?
Which of the following is NOT a benefit of involving customers in the development process?
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What is the purpose of beta testing in new product development?
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Involving suppliers in the development process can help to:
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Which of the following strategies can be used to ensure a new product matches customer requirements?
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Which of the following is NOT a characteristic of the stage-gate model?
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What is the primary purpose of Stage 1 in Exxon Research and Engineering's Stage-Gate system?
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What is the key factor in determining whether a scientific lead is feasible during Stage 1?
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What is a typical characteristic of the Stage-Gate model for managing new product development?
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Which of the following companies is NOT mentioned in the text as utilizing a stage-gate process?
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Why does Corning consider the stage-gate process mandatory for all information system development projects?
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What is the primary purpose of a "project champion" in the context of new product development?
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What is a key objective of the new product development process?
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Which tool helps firms create decision points in the development process?
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Which aspect is NOT emphasized as a goal in the new product development process?
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What can result from a firm not understanding which product features customers value the most?
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Which practice aids in determining customer requirements during product design?
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What often leads to the failure of new product development projects?
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What is a challenge firms face when addressing diverse customer demands?
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Which system helps reduce costs and development time in the product development process?
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Study Notes
Objectives of New Product Development Process
- New product development must achieve three objectives: maximizing fit with customer requirements, minimizing development cycle time, and controlling development costs.
Maximizing Fit with Customer Requirements
- A new product must offer compelling features, greater quality, or attractive pricing to be successful in the marketplace.
- Many new product development projects fail to achieve a good fit with customer requirements due to:
- Lack of understanding of which features customers value most
- Overestimating customers' willingness to pay for particular features
- Difficulty resolving heterogeneity in customer demands
Improving New Product Development Process
- Parallel development processes can shorten development cycle time and increase coordination among functions.
- Project champions can help ensure a project's momentum and improve access to key resources, but also carry risks of escalating commitment and unwillingness to challenge the project.
- Involving customers in the development process can help ensure that new products match customer expectations.
- Involving lead users in the development process can help identify development priorities and is often faster and cheaper than involving a random sample of customers.
- Beta testing can provide customer feedback, exploit external development of the product, and signal the market about upcoming products.
- Involving suppliers in the development process can minimize input costs and improve the quality and timeliness of inputs.
Stage-Gate Process
- A stage-gate process involves dividing the development process into stages with defined deliverables and required resources.
- Each stage is followed by a gate that assesses the project's progress and decides whether to proceed or kill the project.
- Exxon Research and Engineering's Stage-Gate System involves five stages: idea generation, lead identification, proof-of-principle assessment, business case development, and commercialization.
- Nearly 60% of firms, including IBM, Procter & Gamble, 3M, General Motors, and Corning, use some type of stage-gate process to manage their new product development process.
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Description
This quiz covers tools and strategies to improve the effectiveness and efficiency of the new product development process, including stage-gate processes and design for manufacturing.