Methods for Evaluating New Product Designs in the Portfolio Management Process in the Pre‑Market Phases of Product Life Cycle
DOI:
https://doi.org/10.18778/0208-6018.366.04Keywords:
new product management, portfolio methods, portfolio management, new products, new product development processAbstract
The goal of the paper is to present methods for evaluating new product designs or projects in an integrated new product development process, as well as to propose a new method for optimising the value of new product portfolio management (NPPM) in the pre market phases of product life cycle. The success level of a new product development strategy is significantly dependent on the degree of a company’s competence, firstly in the implementation of the new product development process (NPDP), and secondly in the proper evaluation and selection of new product design concepts (executing the right project). In particular, the latter area of competence is related to the issues of portfolio management in the field of new product development. Thus, we are dealing here with a dynamic decision making process – the Stage Gate Process, according to which the design team is constantly updating, implementing and revising the current set of new product designs. Strategic decisions are also made on the allocation or reallocation of resources between active projects and whether to accelerate their implementation, change the assigned priority or abandon the project. This is a conceptual and methodological paper based on strategic management concepts and applications. It relates to new product development research. Methodological and research limitations identified in this work result from such circumstances as time and financial constraints or information availability. The scientific result of the article is a modified rank resource method of evaluating projects/programmes in the NPDP funnel (a portfolio of projects at individual stages and gates of development process), containing both qualitative and quantitative criteria.
Downloads
References
Ansoff H.I. (1964), Evaluation of Applied R&D in a Firm, Harvard University Press, Cambridge.
Brzozowski M. (2014), Metody zarządzania portfelem projektów, “Studia Oeconomica Posnaniensia”, nr 11(272), pp. 9–24.
Cabała P. (2018), Analiza efektywności portfela projektów, “Zeszyty Naukowe Politechniki Poznańskiej”, no. 77, pp. 17–29. DOI: https://doi.org/10.21008/j.0239-9415.2018.077.02
Chagas Brasil V., Eggers, J.P. (2019), Product and Innovation Portfolio Management, [in:] Oxford Research Encyclopedia of Business and Management, Oxford University Press, https://doi.org/10.1093/acrefore/9780190224851.013.28 [accessed: 25.09.2023]. DOI: https://doi.org/10.1093/acrefore/9780190224851.013.28
Cooper R.G. (1994), Perspective third-generation new product processes, “Journal of Product Innovation Management”, nr 11(1), pp. 3–14. DOI: https://doi.org/10.1016/0737-6782(94)90115-5
Cooper R.G. (2014), What’s Next?: After Stage-Gate, “Research-Technology Management”, vol. 57(1), pp. 20–31. DOI: https://doi.org/10.5437/08956308X5606963
Cooper R.G. (2017), Winning at New Products. Creating Value through Innovation, Basic Books, New York.
Cooper R.G., Edgett S.J. (2009), Product Innovation and Technology Strategy, Product Development Institute, Booksurge Publishing, Charleston.
Cooper R.G., Kleinschmidt E.J. (2010), Stage-Gate Process for New Product Success, Innovation Management U3, Denmark.
Cooper R.G., Edgett S.J., Kleinschmidt E.J. (1999), New product portfolio management: practices and performance, “Journal of Product Innovation Management”, vol. 16(4), pp. 333–351. DOI: https://doi.org/10.1111/1540-5885.1640333
Cooper R.G., Edgett S.J., Kleinschmidt E.J. (2000), New problems, new solutions: making portfolio management more effective, “Research Technology Management”, vol. 45(6), pp. 43–49. DOI: https://doi.org/10.1080/08956308.2000.11671338
Cooper R.G., Edgett S.J., Kleinschmdt E.J. (2001), Portfolio management for new product development: results of an industry practices study, “R&D Management Journal”, vol. 31(4), pp. 361–380. DOI: https://doi.org/10.1111/1467-9310.00225
Crawford M., Di Benedetto A. (2011), New Products Management, McGraw-Hill Irwin, New York.
Crow K. (2015), Benchmarking best practices to improve product development, DRM Associates, USA.
Dąbrowski D. (2022), Szacowanie przewagi konkurencyjnej w procesie rozwoju nowego produktu – ujęcie praktyczne, [in:] P. Cabała, J. Walas-Trębacz, T. Małkus (eds.), Zarządzanie organizacjami w społeczeństwie informacyjnym. Strategie – projekty – procesy, Wydawnictwo TNOIK, Toruń, pp. 67–78.
De Meyer A., Loch C.H., Pich M.T. (2002), Managing project uncertainty: From variation to chaos, “MIT Sloan Management Review”, vol. 43(2), pp. 60–67.
De Reyck B., Grushka-Cockayne Y., Lockett M., Calderini S.R., Moura M., Sloper A. (2005), The impact of project portfolio management on information technology projects, “International Journal of Project Management”, vol. 23(7), pp. 524–537, https://ink.library.smu.edu.sg/lkcsb_research/6748 [accessed: 25.09.2023]. DOI: https://doi.org/10.1016/j.ijproman.2005.02.003
Edgett S.J. (2014), Innovation: A Critical Capability, “The European Business Review”, January – February, pp. 28–30.
Gierszewska G., Romanowska M. (2017), Analiza strategiczna przedsiębiorstwa, PWE, Warszawa.
Hofman M., Spalek S., Grela G. (2017), Shedding New Light on Project Portfolio Risk Management, “Sustainability”, vol. 9(10), 1798. DOI: https://doi.org/10.3390/su9101798
Kettunen J., Gruksha-Cockayne Y., Degraeve Z., De Reyck B. (2015), New product development flexibility in a competitive environment, “European Journal of Operational Research”, vol. 244(3), pp. 892–904, https://ink.library.smu.edu.sg/lkcsb_research/6760 [accessed: 25.09.2023]. DOI: https://doi.org/10.1016/j.ejor.2015.02.016
Kharat V.J., Bhukya K.R.N. (2018), Best Practices in Project Portfolio Management for Dynamic Decision Making, “The Journal of Modern Project Management”, vol. 6(1), https://scholar.google.co.in/citations?view_op=view_citation&hl=en&user=2Ua0UhcAAAAJ&citation_for_view=2Ua0UhcAAAAJ:u-x6o8ySG0sC [accessed: 25.09.2023].
Killen C.P., Hunt R.A., Kleinschmidt E.J. (2008), Project Portfolio Management for Product Innovation, “International Journal of Quality & Reliability Management”, vol. 25(1), pp. 24–38. DOI: https://doi.org/10.1108/02656710810843559
Lahtinen N., Mustonen E., Harkonen J. (2021), Commercial and Technical Productization for Fact-Based Product Portfolio Management Over Lifecycle, “IEEE Transactions on Engineering Management”, vol. 68(6), pp. 1826–1838, https://doi.org/10.1109/TEM.2019.2932974 DOI: https://doi.org/10.1109/TEM.2019.2932974
Lambin J.-J. (2001), Strategiczne zarządzanie marketingowe, Wydawnictwo Naukowe PWN, Warszawa.
Loch C. (2000), Tailoring product development to strategy: Case of a European technology manufacturer, “European Management Journal”, no. 18, pp. 246–258. DOI: https://doi.org/10.1016/S0263-2373(00)00007-4
Matheson D., Menke M.M. (1994), Making excellent R&D decisions, “Research Technology Management”, November–December, pp. 21–24. DOI: https://doi.org/10.1080/08956308.1994.11671006
McNally R.C., Durmusoglu S.S., Calantone R.J., Harmancioglu N. (2009), Exploring new product portfolio management decisions: The role of managers’ dispositional traits, “Industrial Marketing Management”, vol. 38(1), pp. 127–143, https://doi.org/10.1016/j.indmarman.2007.09.006 DOI: https://doi.org/10.1016/j.indmarman.2007.09.006
Meskendahl S. (2010), The Influence of Business Strategy on Project Portfolio Management and its Success – A Conceptual Framework, “International Journal of Project Management”, vol. 28(8), pp. 807–817. DOI: https://doi.org/10.1016/j.ijproman.2010.06.007
Mikkola J.H. (2001), Portfolio Management of R&D Projects: Implications for Innovation Management, “Technovation”, vol. 21(7), pp. 423–435. DOI: https://doi.org/10.1016/S0166-4972(00)00062-6
Montoya-Weiss M.M., Calantone R. (1994), Determinants of New Product Performance: A Review and Meta-Analysis, “The Journal of Product Innovation Management”, vol. 11(5), pp. 397–417, https://doi.org/10.1016/0737-6782(94)90029-9 DOI: https://doi.org/10.1111/1540-5885.1150397
Nakata C., Di Benedetto C.A. (2012), Forward to the Future: The New Knowledge Needed to Advance NPD – Innovation Theory and Practice, “Journal of Product Innovation Management”, vol. 29(3), pp. 341–343. DOI: https://doi.org/10.1111/j.1540-5885.2012.00903.x
Olsen F. (1955), The Control of Research Funds, Coordinating, Control and Financing of Industrial Research, Kings Crown Press, Columbia University, New York.
Rutkowski I.P. (2013), Zmodyfikowane metody analizy portfelowej i ich zastosowanie do oceny projektów innowacji produktowych, “Nauki o Zarządzaniu / Uniwersytet Ekonomiczny we Wrocławiu”, no. 4(17), pp. 109–122.
Rutkowski I.P. (2016), Metody innowacji produktu: macierzowo-sieciowe metody pomiaru dojrzałości procesu innowacji produktu, Wydawnictwo Uniwersytetu Ekonomicznego w Poznaniu, Poznań.
Rybicki J.M. (2000), Wielowymiarowy model analizy portfelowej jako narzędzie formułowania strategii rynkowej przedsiębiorstwa, Wydawnictwo Uniwersytetu Gdańskiego, Gdańsk.
Stabryła A. (2015), Zarządzanie projektami ekonomicznymi i organizacyjnymi, Wydawnictwo Naukowe PWN, Warszawa.
Stark J. (2018), Product Lifecycle Management (vol. 3): The Executive Summary, Springer International Publishing, Cham, https://doi.org/10.1007/978-3-319-72236-8 DOI: https://doi.org/10.1007/978-3-319-72236-8
Stevens S.S. (1946), On the theory of scales of measurement, “Science”, no. 103, pp. 677–680. DOI: https://doi.org/10.1126/science.103.2684.677
Trott P. (2011), Innovation Management and New Product Development, Prentice Hall, Pearson Education, Harlow.
Urban G.L., Hauser J.R. (2005), Design and Marketing of New Products, Prentice Hall, Englewood Cliffs.





