New Product Introduction (NPI)
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| − | The new product introduction (NPI) plays an important role in the business growing since it is a process of idea transformation from R&D stage into a launch product. As a first mover to adopt a new product into the market, it will improve profit and key competitor of the business. Yet, one professor at Harvard Business School alarmingly suggests that 30,000 new products hit the market each year, but as many as 95% fail. This is a real cause for concern for businesses because more than a quarter of their revenue and profits are generated from the launch of new product. | + | The new product introduction (NPI) plays an important role in the business growing since it is a process of idea transformation from R&D stage into a launch product. As a first mover to adopt a new product into the market, it will improve profit and key competitor of the business. Yet, one professor at Harvard Business School alarmingly suggests that 30,000 new products hit the market each year, but as many as 95% fail. This is a real cause for concern for businesses because more than a quarter of their revenue and profits are generated from the launch of new product. <ref name=''name''> ''link/title'' </ref> |
| − | The NPI processes requires a dedicated project manager to ensure that the team is communicating effectively so the design, prototyping, engineering and manufacturing stages go as smoothly as possible. It is highly encouraged to develop the NPI plan in the beginning stage, the more efficient process will be. The process cover varies aspects which will bring the benefit to the organisation. The cost reductio in development stage can be avoid due late design changes, such as the material sourcing and other valuable resources on unnecessary prototypes. The NPI process also incorporates tools targeted at ensuring the product meets customer need and the process is capable of producing quality product, this will improve the product quality. | + | The NPI processes requires a dedicated project manager to ensure that the team is communicating effectively so the design, prototyping, engineering and manufacturing stages go as smoothly as possible.<ref name=''name''> ''link/title'' </ref> It is highly encouraged to develop the NPI plan in the beginning stage, the more efficient process will be. The process cover varies aspects which will bring the benefit to the organisation. The cost reductio in development stage can be avoid due late design changes, such as the material sourcing and other valuable resources on unnecessary prototypes. The NPI process also incorporates tools targeted at ensuring the product meets customer need and the process is capable of producing quality product, this will improve the product quality. |
Revision as of 22:04, 12 February 2022
Contents |
Abstract
The new product introduction (NPI) plays an important role in the business growing since it is a process of idea transformation from R&D stage into a launch product. As a first mover to adopt a new product into the market, it will improve profit and key competitor of the business. Yet, one professor at Harvard Business School alarmingly suggests that 30,000 new products hit the market each year, but as many as 95% fail. This is a real cause for concern for businesses because more than a quarter of their revenue and profits are generated from the launch of new product. [1]
The NPI processes requires a dedicated project manager to ensure that the team is communicating effectively so the design, prototyping, engineering and manufacturing stages go as smoothly as possible.[2] It is highly encouraged to develop the NPI plan in the beginning stage, the more efficient process will be. The process cover varies aspects which will bring the benefit to the organisation. The cost reductio in development stage can be avoid due late design changes, such as the material sourcing and other valuable resources on unnecessary prototypes. The NPI process also incorporates tools targeted at ensuring the product meets customer need and the process is capable of producing quality product, this will improve the product quality.
This article discussed the NPI methodology including the different phases to implement NPI and the optimization for framework design of new product introduction management. The implication for the NPI process including the need of better understanding of inter-functional coordination are discussed.
Big Idea
Application
Limitations
Annotated Bibliography
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