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… Read More
NPD Glossary
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… Read More
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… Read More
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… Read More
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… Read More
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… Read More
Optimism Bias
Optimism bias, also known as unrealistic or comparative bias, leads a person to believe that when faced with risk that s/he will achieve a better outcome with a less negative… Read More
Market Share
Market share is the percentage of sales of a given product or for a particular firm relative to the total market. Market share may be measured in monetary or volume… Read More
Affinity Diagram
Also called an affinity chart, the affinity diagram provides new product development and project management teams a way to group together related ideas. The affinity diagram is a “bottom-up” technique to discover… Read More
Surveys
Surveys are a market research technique used in new product development (NPD). A survey is a fixed set of questions asked of a certain set of respondents. In many cases,… Read More