The PDMA Handbook of New Product Development

2.4. Summary

Building a clear and realistic path of action for transforming a product concept into a successful new product calls for making clear choices about where the product will compete and why it will win. It needs unambiguous explanations why this strategy will create superior value for the customer and capture sustainable value for the BU.

Product developers must work out a strategy for each NPD project before beginning development. Doing this helps the developers match or exceed the performance of the Best firms in translating ideas into successful products. This strategy needs to be aligned with the BU's new product strategy. It must create value for customers and capture enough of that value to produce an economic profit for the BU as the strategy plays out through die product's life cycle.

The Configuration School of thought on strategy-making integrates the teachings of the other nine schools of thought. The Configuration School prizes strategies that preserve a configuration. However, it also recognizes the need for managed transformation to another configuration when that is the best long-term course.

Five guidelines for building a new product's development strategy are recommended for development groups. Devise a strategy for each new product development project. Make sure that the strategy is aligned with the BU's product development strategy. Orient the strategy to create unique benefits and superior value to the target customers. Balance this orientation against ...