NPD Glossary

new product development and project management definitions and terms

Crowdsourcing

Crowdsourcing is a process in which needed services, ideas, or other content is obtained by soliciting contributions from a large group of people (the “crowd”).  This group of people may […]

Value Creation

Value creation goes hand in hand with value capture in understanding the economics of new product development and pricing models.  While value capture measures the perceived benefits less price paid […]

Value Capture

Value capture refers to the perceived value that a customer receives from the benefits of using a new product or service relative to the price that he or she pays for […]

Reservation Price

A customer’s reservation price is the maximum price that s/he is willing to pay for a product or service.  From the seller’s perspective, the reservation price is the minimum price […]

Inverted Innovation

Inverted innovation is a business strategy in which a firm focuses on disruption by reversing the order of conventional sustaining innovation questions.  Instead of asking who the existing customers are, why […]

Mind-Mapping

Mind-mapping is an idea generation technique used to consolidate concepts onto a single sheet of paper to reflect both common themes and divergent alternatives in order to enhance understanding and […]

Business Model

A business model is the plan implemented by a firm designed to generate profits.  Business model innovation entails finding new ways to deliver existing or products and services to customers […]

Deliverable

A deliverable is a result or output (such as test reports, regulatory approvals, working prototypes or market research report) of a project.  Deliverables may be required for a new product development […]

Break-Even Analysis

Break-even analysis is a technique used in financial analysis to measure the point at which the profits from a new product balance the investment cost.  Any revenue received beyond the […]

Profit Margin

Profit margin is the ratio between profit and revenues.  New product development projects will estimate the profit margin over time to ensure the idea is financially attractive. To see more […]