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Problem

In fast-changing high-tech industries, some firms have a better record in developing new products than others. Describe the critical factors that drive the new product performance of firms.

Step-by-step solution

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Step 1/3

Critical factors that drive the new product performance of firms:

By comparing with some standards three critical success factors are identified which drive a firm’s new product performance-

• New Product Development Process- Most of the organizations work on the concept that the new product development process should be of high quality.

The development process should have complete information about the key concept of product, benefits through product, decision points, target customers and target market before the actual development work start.

New product development process should b flexible enough to make certain changes during actual development.

Step 2/3

• Resource Commitment- Research & Development budget, necessary manpower and all the other resources required to fulfill the organization’s objective will be invested in new product development.

Step 3/3

• New Product Strategy- Most of the organizations set new product performance goals like profit impact of new product on organization.

Through new product strategy organizations can save time, money and other resources because new product strategy will help organizations to maintain product planning.