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New Product Development: Trade-offs, Metrics, and Successes

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Creating Values with Operations and Analytics

Part of the book series: Springer Series in Supply Chain Management ((SSSCM,volume 19))

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Abstract

This chapter reviews Morris Cohen’s scholarly contributions to new product development (NPD) and the other areas at the interface of marketing and production. Specifically, we examine how Morris and his co-authors’ pioneering work in NPD has generated follow-up work by a number of scholars, demonstrating the frequent tension between the marketing and production functions. The authors provide rigorous support for performance metrics used by practitioners in the NPD process. Their work on a data-driven decision support system shows the usefulness of their research to industry. In summary, this work on NPD reveals who Morris Cohen is as a scholar—someone with the rare ability to link rigorous research with practical implementation.

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Notes

  1. 1.

    HP successfully reduced break-even-time by one-half for new products through the effective use of metrics. Four key metrics they adopted are break-even-time (BET), time-to-market (TM), break-even-after-release (BEAR), and return factor (RF). BET is a measure of the total time until the break-even point on the original investment is reached. TM is the total development time spent from the start of product development to manufacturing release. BEAR is the time from manufacturing release to when project investment costs are recovered in the form of profit from a product. RF is a calculation of profit dollars divided by investment dollars at a specific point in time after a product has moved into manufacturing and sales.

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Author information

Authors and Affiliations

  1. National University of Singapore, Singapore, Singapore

    Teck-Hua Ho

  2. Global Asia Institute, National University of Singapore, Singapore, Singapore

    Dayoung Kim

  3. Department of Management, California State University at Fullerton, Fullerton, CA, USA

    Dayoung Kim

Authors
  1. Teck-Hua Ho
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  2. Dayoung Kim
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Corresponding author

Correspondence to Teck-Hua Ho .

Editor information

Editors and Affiliations

  1. Graduate School of Business, Stanford University, Stanford, CA, USA

    Hau Lee

  2. McDonough School of Business, Georgetown University, Washington, DC, USA

    Ricardo Ernst

  3. WHU-Otto Beisheim School of Management, Vallendar, Germany

    Arnd Huchzermeier

  4. McDonough School of Business, Georgetown University, Washington, DC, USA

    Shiliang Cui

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Ho, TH., Kim, D. (2022). New Product Development: Trade-offs, Metrics, and Successes. In: Lee, H., Ernst, R., Huchzermeier, A., Cui, S. (eds) Creating Values with Operations and Analytics. Springer Series in Supply Chain Management, vol 19. Springer, Cham. https://doi.org/10.1007/978-3-031-08871-1_3

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