Review Of Npd Management In Company A: Current Practice And Potential Improvement

This study is self-initiated to review the pros and cons of current practices of NPD management in company A based on project experience, technology & innovation management learning from MBA. Potential improvement areas are identified with solutions proposed. This thesis also serves as summary of SGA (small group activity) on project management lead by the author in company A with the aim of making solid proposals to leverage R&D capability by reducing waste and failure in NPD project. It is also the intention to share the learning and benefit those from similar industries.Starting from the startling contrast between input and output of R&D projects, this thesis analyzed the importance of new product development (NPD) project management, reviewed the mainstream concepts, theory and tool for innovation and project management. Based on the characteristics of FMCG industry and FMCG products, with a brief introduction of company A, this thesis further analyzed its current practice in NPD project management and identified potential improvement areas.Key finding are listed as follows:Company A applies strategic approach in NPD management, the fourth generation of project management. It covers defining the right project, running project right and using the right approach to evaluate project. Well designed R&D structure aligns with various NPD activities. Strategic NPD approach enables company A to maintain a good balance between incremental innovation and destructive innovation, between short-term business objective and long-term growth. By respecting the regional difference of consumer habit and preference, this NPD approach allows company A to work locally while taking advantage of global presence/scale.Three key improvement areas are identified after careful evaluation:1) Bring existing innovation within R&D that are either none commercialized or only commercialized in single market into new market or multi-markets. Propose to establish dedicated department to drive this approach so as to make best use of existing valuable R&D assets, shorten NPD delivery timing and improve success probability in the market.2) Improve the decision making process in project and portfolio management, allows internal independent authorities into decision taking for better transparency and objectiveness.3) Raise the awareness of open innovation in NPD and get prepared in case of drastic industry changes. Research limitations and potential learning for other similar industries are also discussed in the end.