The PDMA Handbook of New Product Development

1.4. Strategic Critical Success Factors

1.4.1. A Product Innovation and Technology Strategy for the Business

We live in turbulent times. Technology advances at an ever-increasing pace, customer and market needs are constantly changing, competition moves at lightening speed, and globalization brings new players and opportunities into the game. More than ever, businesses need a product innovation and technology strategy to help chart the way (Cooper, 2000).

Having a new product strategy for the business is clearly linked to positive performance (APQC, 2003; Cooper, 2003). The ingredients of such a strategy with the strongest impact on performance include:

1. The role of NPD in achieving the overall businesses goals: Strategists recommend that one should link the NPD goals of the business to the overall business goals, so that the role of NPD in achieving business goals is clearly articulated.

2. Clearly defined NPD goals: Best practice suggests that a business should clearly define its longer-term goals for new products—for example, what percentage of the business's sales or profits or growth will come from new products over the next three or five years.

3. Definition of strategic arenas—areas of strategic focus on which to concentrate NPD efforts: Focus is the key to an effective NPD strategy! Here, businesses typically do a solid job, with the majority designating strategic arenas—markets, product areas, industry sectors, or technologies—in order to help focus their NPD efforts.

4. Strategic ...