New Product Introduction (NPI)
The new product introduction (NPI) plays an important role in the business growth 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 covers varies aspects which will bring the benefit to the organisation. The cost reduction 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 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.
Contents |
Big Idea
What is NPI?
The NPI process (New Product Introduction) is an idea carries out process through various structed phased and result in a finished product being launched to the marketplace. The product could be something tangible, as in the case of a new model automobile, or intangible as in a particular service offered . NPI program involves a large great of collaboration in organization as well as cross-functional communication lead to the succeed.
NPD & NPD
The NPI sometimes can be referred to NPD (New Product Development) which are difference process. The New product development (NPD) is the foundation for NPI which is the process of idea developing to bring a new product to the marketplace. NPD phases required the input from various stage from engineering throughout supply chain partner whereas the NPI process focus on the product from the viewpoint of manufacturing.
Theoretical Framework
Application
New Product Introduction Steps
The NPI approach consists of six steps with five gates:
- Step 1: Ideation
- Step 2: Product Definition
- Step 3: Prototyping
Limitations
Annotated Bibliography
Reference
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