Critical Success Factors for New Product Development

Abstract

OVERVIEW:The success of a new product development effort hinges on 16 critical factors in five areas: 1) Senior management commitment, which is a key prerequisite for success; 2) Organizational structure and processes that support the venture; 3) Attractive new product concepts being available for development; 4) Venture teams with appropriate staffing and resources, able to communicate effectively with management and markets; 5) Project management able to focus on reducing uncertainties as early as possible. Attention to these factors during the early stages of new product development allows managers to save significant time and money while reducing delays and risks.