Product Development and Management Body of Knowledge

The Product Development and Management Association (PDMA) is a global community of thousands of members whose skills, expertise, and experience power the most recognized and respected innovative companies in the world. PDMA's unique triad of members include product development and management practitioners, academics, and service providers in a variety of industries and knowledge areas, including new product process, strategy innovation, market research, tools and metrics, organizational issues, and portfolio management.

About the Authors vii

Acknowledgments ix

Introduction xi

1 Management

1.1 What is Product Innovation? 4

1.2 Managing Product Innovation 9

1.3 The Product Manager 11

1.4 The Product Life Cycle 15

1.5 Managing the Product Life Cycle 19

1.6 The Chasm in the Product Life Cycle? 23

1.7 Roadmaps Used in Product Innovation 30

1.8 Project Management 34

1.9 Risk Management 37

1.10 Metrics and Key Performance Indicators 39

1.11 In Summary 46

2 Strategy

2.1 What is Strategy? 60

2.2 Establishing the Organization’s Direction 62

2.3 Business and Corporate Strategy 65

2.4 Preparing a Business Strategy 68

2.5 Innovation Strategy 74

2.6 Innovation Strategy Frameworks 77

2.7 Strategies that Support the Innovation Strategy 83

2.8 Open Innovation 97

2.9 Sustainable Innovation 100

2.10 In Summary 105

3 Portfolio

3.1 What is a Product Innovation Portfolio? 114

3.2 Portfolio Value Maximization 116

3.3 Portfolio Alignment with Strategy 135

3.4 Balancing the Portfolio 137

3.5 The Right Number of Projects 139

3.6 New Product Portfolio Management: A Dynamic Process 143

3.7 Portfolio Governance 146

3.8 Portfolio Management Benefits 148

3.9 In Summary 149

4 Process

4.1 Introduction to Product Innovation 156

4.2 The Product Innovation Charter (PIC) 161

4.3 Specific Product Innovation Processes 164

4.4 Comparing Product Innovation Process Models 194

4.5 Product Innovation Process Control and Management 197

4.6 In Summary 199

5 Design & Development

5.1 Design and Development Process Steps 208

5.2 Introduction to Design 209

5.3 Introduction to Development 226

5.4 In Summary 244

6 Market Research

6.1 How Market Research Contributes to Product Innovation 252

6.2 Selecting the Right Market Research Methodology 254

6.3 Primary Vs. Secondary Market Research 256

6.4 The Quality of Market Research Data 258

6.5 Market Research Methods 261

6.6 Multivariate Research Methods 274

6.7 Product Use Testing 278

6.8 Market Testing and Test Marketing 280

6.9 Market Research and Voice of the Customer: Integral to Product Innovation 282

6.10 Market Research at Specific Stages of Product Innovation 284

6.11 Market Research Metrics and Key Performance Indicators 289

6.12 In Summary 291

7 Culture and Teams

7.1 Product Innovation Culture and Climate 298

7.2 Management Responsibilities 301

7.3 Product Innovation Team Structures 303

7.4 Team Development 309

7.5 Team Leadership 315

7.6 Virtual Teams 318

7.7 Incentivizing Product Innovation 323

7.8 In Summary 325

Appendix A Glossary of Terms 331

Appendix B The BoK in Practice Cases 359

Appendix C Examples of Product Innovation Best Practice from PDMA’s Outstanding Corporate Innovators’ (OCI) Awards 387

Index 397