Marketing Strategy for Small- to Medium-Sized Manufacturers

To Kill or Not to Kill—Effective Valuation Criteria

The earlier section in this chapter about effective business practices mentioned criteria by which to assess the viability of an NPD project so that a go-kill decision could be made in the event that periodic reviews indicate red flags. Cooper’s studies reveal that many companies engaged in NPD either do not have such criteria or fail to act on data that indicate a project will not produce the desired ROI. Graph12 showing deficiencies in NPD processes illustrates this in the Evaluative section—50% of companies either poorly executed financial evaluation or omitted it. The absence of or failure to abide by evaluation criteria is one of the factors contributing to new products’ high failure rate, ...