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Volume 4, Issue 4, Summer2005

New Product Development and Its Applications in Textiles

Wonseok Choi, Ph. D. Student


Nancy B. Powell, Associate Professor
Nancy L. Cassill, Professor
NCSU College of Textiles
North Carolina State University
2401 Research Drive
Raleigh, N.C. 27695-8301

ABSTRACT

New product development is one of the riskiest, but most critical strategies in any competitive
industry (Cooper, 2001). Many companies have built competitiveness and obtained tremendous
profits through new product development. Global competition in the textile and apparel industry
has become more intense due, in part, to the changes in regulation of world trade. To compete in
the future of textiles and apparel, firms will need to be innovative, while reducing cycle times and
cutting costs. New product development methods will contribute or enhance the marketing of
innovative products. The purpose of this paper is to review the nature of new product
development (NPD) and explore diverse NPD processes identifie d by previous researchers. This
paper will also introduce several examples of new product development process models and
strategies of companies and products in the textile and apparel industry. This research will be of
interest to academicians and industrial personnel in the textile and apparel field through a
review of NPD literature.

Keywords: New product development, innovation, NPD process, textiles and apparel

1. Introduction industry, creating diverse marketplace


opportunities and challenges.
Today, the world is characterized by macro-
and micro-environmental influences. These The following list shows many of the major
influences include the rapid evolution of trends currently affecting the global textile
socio-cultural patterns and life styles, self- and apparel industry:
awareness and decisional autonomy of
• China dominates apparel and
consumers, a rising significance of mass textiles.
production and distribution systems, an
incessant introduction of technological and • High-tech and smart fabrics
managerial innovations, increasing levels of proliferate.
competition and globalization dynamics
(Ciappei & Simoni, 2005). These influences • Supply chain management (SCM)
are impacting the textile and apparel evolves to serve the global market.

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• The vast majority of shoes sold in 2. Definition of New Product
the U.S. are now made in China. Development

• Bricks, clicks, catalogs and living 2.1 New product


rooms.*
A new product concept, as defined by
• Discount clothing retailers see Crawford and Di Benedetto, is “a statement
promise in designer lines. about anticipated product features (form or
technology) that will yield selected benefits
• Haute couture designers experience
conflicts over costs and control. relative to other products or problem
solutions already available” (Crawford & Di
• Mass designers and retailers speed Benedetto, 2003, p. 184). According to
up for fast fashion. Belliveau, Griffin and Somermeyer (2002),
a new product is defined as “a product
• European strategies force U.S. (either a good or service) new to the firm
department stores to rethink their marketing it. It excludes products that are
business models. only changed in promotion” (p. 450).
Cooper (2001) explains that a new product
• Specialty retailers look forward, and is defined as new if it has been on the
to the past, for new ideas. market for five years or less, and includes
Source: Plunkett Research, Ltd. (n.d.). extensions and major improvements.
Retrieved June 30, 2005, from According to Cooper (2001), Crawford et al.
http://www.plunkettresearch.com. (2003), and Kumar and Phrommathed
(2005), a new product can be classified into
several different categories. Booz-Allen and
* ‘Bricks, clicks, catalogs and living rooms’ Hamilton (1982) have identified
refers to a traditional retail store, home approximate percentages of new product
shopping through a TV cable network and types (See Figure 1).
mail order catalogs, and electronic
The followings are commonly accepted new
commerce through the internet.
product categories.
In order for companies to effectively build
and sustain competitiveness in the global 1) New-to-the-world products: Products
textile and apparel industry, they are that are innovations
implementing several strategies. One key
strategy is to develop capabilities in product “New -to-the-world products revolutionize
innovation and new product development existing product categories, or define wholly
(NPD). It is also evident that companies new ones” (Crawford et al., 2003, p. 12).
require a clearly defined and effective new These new products may include an
product development process to compete in innovative technology and require consumer
the global industry. instruction. Cooper (2001) states that these
new products are the first of their kind and
create an utterly new market. This category
This paper defines new product represents only 10 percent of all new
development (NPD), and reviews the key products. For example, new -to-the-world
issues in NPD, and several representative products are Polaroid® camera, rayon fiber,
NPD process models. In addition, examples and Sony Walkman®.
of new product development processes and
strategies in the textile industry are 2) New category entries (New product
presented. lines): Products, not new to the world, that
take a firm into a new category

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The new category is an imitation of an 5) Repositioning: Products that are
existing product (“me-too”) and provides targeted for a new use or a new application
entrance into new markets for a company.
Even though the product already exists in Repositioning, a new application for an
the market, if a firm introduces the identical existing products, is selecting a new market
product into the market, it can be considered place, solving a new problem and/or serving
a new product. About 20 percent of all new another market need. Aspirin, for instance,
products fit into this category (Cooper, was the standard headache and fever
2001). This category, for instance, includes reliever. However, since a new medical
Procter and Gamble’s first shampoo, benefit was discovered for aspirin, aspirin is
Hallmark gift items, AT&T Universal card, now positioned as a headache reliever as
and Luvs® diapers. well as a preventer of blood clots, strokes
and heart attacks (Cooper, 2001). As one
3) Addition to product lines: Products that example in the textile field, the American
are line extensions Fiber & Yarns Company applied
polypropylene fiber, whose main application
According to Cooper (2001), these has been upholstery and industrial textiles,
categories are new items to the firm, but into new market segment, the knitted
they fit within an existing product line that apparel market. This repositioned category
the firm already produces. Kumar and accounts for about 7 percent of all new
Phrommathed (2005) report that these products (Cooper, 2001).
categories are the new products that
supplement the firm’s established product 6) Cost reductions: Products that are
lines. Thus, this category contains products designed to replace existing products at
that are line extensions or flankers such as lower cost
Tide™ liquid detergent, Bud Light™,
Apple’s Mac IIsi® (Crawford et al., 2003), New products that provide a cost reduction,
and DKNY®. This category is one of the can replace existing products in the line, but
largest categories of new products and can offer similar benefits and performance at
accounts for approximately 26 percent of all a lower cost. They represent 11 percent of
new product launches in 1982 (Cooper, all new product launches in 1982 (Cooper,
2001). 2001). Examples of this category are
eMachines® desktop computer, Flying
4) Product Improvements: Current product Tiger® hand knitting machine, and acrylic.
made better For instance, acrylic fiber that approximates
the hand of wool can replace wool (Hoechst,
Practically, every product on the market 1990) and is offered at a lower cost in the
today has been improved. These “not-so- market.
new” products can be replacements of
existing products in a company’s product
line. However, they provide enhanced
performance or greater perceived value over
the old product (Crawford et al., 2003).
These products make up 26 percent of all
new products (Cooper, 2001) and examples
include Honda Civic Hybrid, Microsoft®
Windows® XP, Netzero® high-speed 3G,
and Shima Seiki’s First® seamless knitting
machine.

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Figure 1. Categories of New Products
Source: Cooper R. G. (2001). Winning at New Products (3rd ed.). New York: Addison-Wesley. p. 16.

Recently, Kumar et al. (2005) surveyed five generation, product and marketing plan
new product categories including new -to- creation and evaluation, and
the-world, new -to-company, addition to commercialization of a new product” (p.
existing lines, repositioning, and cost 450).
reduction. The study’s results found that
31.68 percent of launched products fall into New product development can be rewarding
‘addition to existing lines’ category (Kumar and is critical to maintain a healthy
et al., 2005). The cost reduction category organization. Cooper (2001) indicates,
was in second place with 22 percent of all “New product development is one of the
new launches, followed by new -to-company, riskiest, yet most important, endeavors of
market repositioning, and new -to-the-world the modern corporation” (p. 4). Successful
consecutively (Kumar et al., 2005). new product development allows market
expansion, increases profits, and enhances
2.2. New Product Development creativity and leadership. But, new products
failure rates are considerable, and cost of
New product development is essential for failure is high. According to Booz-Allen
exceptional corporate performance, and and Hamilton (1982), the failure rate of new
research about what leads to new product products introduced into the market
success and failure has been carried out for remained in the 33 percent to 35 percent
both goods and services (Brentani, 2001). range between 1963 and 1981 (Urban &
Ulrich and Eppinger (2004) describe New Hauser, 1993). More recently, Crawford et
Product Development (NPD) as “the set of al. (2003) reported that around 40 percent of
activities beginning with the perception of new products fail. The foremost reasons for
market opportunity and ending in the new product failure is “no need for the
production, sale, and delivery of a product” product”, and “there was a need, but the new
(p. 2). According to Belliveau et al. (2002), product did not meet that need” (Crawford
new product development is “the overall et al., 2003, p. 7). Failures also can be
process of strategy, organization, concept linked to poor market research, poor

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positioning, inadequate support from the planning, screening, and testing through
distribution channel, poor timing, launch (Bruce et al., 1995).
competitive response, and major changes in
technology (Urban et al., 1993). 2) Design

New product development can also be The design function also plays a pivotal role
costly. Enormous investments in research in defining the physical form of the product
and development (R&D), engineering, to satisfy customers’ needs. The design
market research, marketing development, function includes engineering design such as
and testing are made before the product is mechanical, electrical, software, and
launched (Urban et al., 1993). These are industrial design such as aesthetics,
major investments or major resource ergonomics, and user interfaces (Ulrich et
allocations for a company including capital al., 2004).
resources and human resources; and with
today’s global competitive marketplace, In manufacturing, industrial design has
many companies are closely watching become a key factor in differentiating
expenditures. products from their competitors by
providing them a coherent identity or higher
2.3. Key NPD Functions and Cross levels of perceived value (Bruce et al.,
Functional Integration 1995). Engineering design has a critical role
in the development of products in the
Development of new products is an manufacturing industry, solving technical
interdisciplinary activity requiring problems using available technology in the
contribution from nearly all the functions of most efficient method, and integrating
a company (Ulrich et al., 2004). The product development with the requirements
following functions are consistently of effective production (Rothwell & Gariner,
essential to new product development 1984).
projects:
3) Manufacturing
1) Marketing
Manufacturing is responsible for creating
The functions of marketing mediate the and operating production systems in order to
interactions between the firm and its produce new products. However, broadly
customers. Marketing facilitates the defined, the manufacturing function also
recognition of product opportunities, the often involves purchasing, distribution, and
definition of market segments, and the installation (Ulrich et al., 2004).
identification of customers’ needs (Ulrich et Manufacturing capability can be one
al., 2004). Marketing also arranges for technical success factor, and it relates to
communication between the firm and its whether the company has internal or
customers, sets target prices, and oversees external capability to manufacture higher
the launch and promotion of the product quality products to satisfy the customer
(Ulrich et al., 2004). demand (Crawford et al. 2003).

The latest market research has been 4) Finance


recognized as important to the success of
new product development. It is essential to Another key function that influences the
identify early market requirements and to success of the new product development
understand the market place. Marketing is process is financial activity. Projects need
related to all stages of the new product to be suitably supported; yet checks on cost,
development process, from product profit margins and return on investment
must be part of the process (Hopkins, 1981).

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Many companies utilize phase reviews to research and development must also design
keep a check on the progress of the projects, a product that can be manufactured at high-
the budget and the authorization to spend quality levels and low cost. Research and
(Bruce et al., 1995). development (R&D) and engineering must
work to innovate the process of
2.3.1. Cross-Function Integration manufacturing as well as design new
products. Finally, finance interacts with
Cagan and Vogel (2002) and Urban and R&D, manufacturing, and marketing when
Hauser (1993) comment that a true financial resources are required (Urban et
integration of engineering, industrial design, al., 1993).
marketing and finance is important as well.
Figure 2 depicts cross-functional integration It is necessary to note that boundaries
with arrows showing the major interactions. between the functions are not always clear.
According to Urban and Hauser (1993), All the functions must work together, and all
marketing must offer research and activities share the responsibility to produce
development (R&D) correct customer need successful products.
inputs, and R&D must design a product to
fit customers’ requirements. However,

Figure 2. Cross-Function Integration

Figure 2. Cross-Function Integration

Source: Urban, G. L. & H auser, J. R. (1993). Design and Marketing of New Products (2nd ed,).
New Jersey: Prentice-Hall. p. 33.

2.4. Successful New Product Management (Bruce et al., 1995). The inputs that
contribute to the value of new products tend
The main issues of new product to conflict with each other, but there are
development relate to the need for synergies (Crawford et al., 2003, See Figure
interdisciplinary inputs, for quality input, for 3).
cost input and for speed in the process

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Quality

Value

Time Cost

Figure 3. The Conflicting Masters of New Products Management


Source: Crawford, M. & Di Benedetto, A. D. (2003). New Products Management (7th ed.).
New York: McGraw-Hill. p. 15.

• Product Quality: Successful product required to attain profits (Ulrich et


development depends upon how al., 2004).
good the product is, whether the • Development Time: How rapidly the
product satisfies customers’ needs, team completes the product
and whether the product is robust development effort is also an
and reliable. Product quality is important issue. “Development
ultimately reflected in market share time determines how responsive the
and the price that customers are firm can be to competitive forces
willing to pay (Ulrich et al., 2004). and to technological development,
• Product Cost: Successful product as well as how quickly the firm
development also relies on the receives the economic returns from
manufacturing cost including the team’s efforts” (Ulrich et al.,
spending on capital equipment and 2004, p. 2-3).
tooling as well as the incremental • Value: The inputs of quality, cost,
cost of producing each unit of the and time contribute to the value of
product. Product cost determines product. The challenge is to
how much profit accrues to the firm optimize the set of relationships in
for a particular sales volume at a each new product situation to get
particular sales price (Ulrich et al., higher value of the products
2004). (Crawford et al., 2003).
• Development Cost : Successful
product development also depends 2.4.1. Critical Success Factors for New
on how much the firm has to spend Product Development
to develop the product.
Development cost is usually a The most important issue in the success of
critical portion of the investment new product development is to understand
the voice of the customer in terms of

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perceived requirements and to set up a segmentation before the significant activity
relationship between the customer input and of designing and producing a product.
how products are designed, produced, and Sun and Wing (2005) summarized critical
managed (Urban et al., 1993). Voice of the success factors for new product
customer (VOC) has been examined by development identified by previous
several researchers (Cooper, 2001; Crawford researchers as seen in Table 1. In general,
et al.; 2003; Ulrich et al., 2004; Urban et al., common factors across the four studies
1993). Products can be sold when include top management support for the
customers find them to be superior, of team, long term strategy with innovation
higher value, or unique, and when a firm can focus, and a structured new product
deliver the perceived benefits more development process. However, the factors
effectively than competitors. Success in proposed by the four different studies are
new product development also depends on not all exactly the same. For example,
whether the target market segment is Cooper (1999) has pointed out the
sufficiently large and competition is significance of “go/kill decision point into
manageable (Urban et al., 1993). Therefore, the NPD process” as one of the critical
it is crucial to identify the target market success factors while others did not.

Table 1. Critical Success Factors for NPD Identified by Previous Researchers


Source : Sun, H. & Wing, W. C. (2005). Critical Success Factors for New Product Development in the
Hong Kong Toy Industry. Technovation. 25. p. 295.

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Sources used:
Cooper, R. G. (1999). From Experience: The invisible Success Factors in Product Innovation. Journal of
Product Innovation and Management. 16(2).
Lester, D. H. (1998). Critical Success Factors for New Product Development. Research Technology
Management. 41(1).
Lynn, G. S., Abel. K. D., Valentine, W. S., & Wright, R. C. (1999). Key Factors in increasing speed to
market and improving New Product Development Rates. Industrial Marketing Management. 28.
Poolton, J. & Barclay, I. (1998). New Product Development from Past Research to Future Application.
Industrial Marketing Management. 27.

2.5. Key Research Issues in New Product and interfunctional coordination (Tyler et al,
Development 2002).

New Product Development researchers have 1) Customer Orientation and Competitor


examined key research issues such as market Orientation
orientation, innovation management, supply
chain management, project risk According to Tyler et al. (2002), customer
management, globalization, alliances, time- orientation and competitor orientation
to-market management, and cost analysis. include all of the activities involved in
Three main research issues (market acquiring information about the customers
orientation, innovation management, and and competitors in the target market and
time-to-market management) recognized as disseminating it throughout the business.
most important new product success factors Whereas proactive firms identify and
will be discussed. respond to long-term customer needs and
thus become more customer-oriented,
2.5.1. Market Orientation reactive firms identify and respond to
competitor’s actions and thus are more
Researchers (Langerak, Hultink & Robben, competitor-oriented (Frambach, Prabhu &
2004; Tyler & Gnyawali, 2002; Wren, Verhallen, 2003). However, Naver, Slater,
Souder & Berkowitz, 2000) have explored and MacLachlan (2000) point out, “A
the role of market orientation in determining market orientation, whether reactive or
new product success. According to Wren et proactive, is the foundation for a firm’s
al. (2000), “Market orientation is the set of innovation effort” (p. 11).
cross-functional processes and activities
directed at creating and satisfying customers 2) Interfunctional Coordination
through continuous needs assessment” (p.
602). Tyler et al. (2002) defined market Interfunctional coordination, positively
orientation as “the organization-wide related to market orientation and new
generation of market intelligence pertaining product success, is a structural aspect of an
to current and future customer needs, organization facilitating communication and
dissemination of the intelligence across coordination between firm’s differ ent
departments, and organization wide functions (Tyler et al., 2002).
responsiveness to it” (p. 260). Through
proper market orientation, the firms can gain 2.5.2. Innovation Management
a better understanding of customer needs
and wants, and a great knowledge of Brentani (2001) states, “Innovation involves
competitor activities and market trends the creation of a new product, service or
(Wren et al., 2000). Naver and Slater (1990) process” (p. 170). Although innovation is
have conceptualized market orientation as a very risky and uncertain, and requires
composite of three behavior components: expensive endeavors (Cormican &
customer orientation, competitor orientation, O’Sullivan, 2004), it plays a vital role in

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increasing organization’s competitive communication an essential necessity for
power. Many researchers (Astebro & product innovation especially when team
Michela, 2005; Cormican et al., 2004; De members are geographically distributed
Brentani, 2001; McDermott & O’Connor, (Cormican et al., 2004).
2002) have identified the need for
innovation management in new product 3) Planning and Selection
development. Key factors that were found
to facilitate innovation management consist A rational planned innovation effort is also
of strategy and leadership, information and important for company’s success. It is
communication, and planning and selection. necessary to effectively plan and select
projects, which are customer focused and
1) Strategy and Leadership linked to the new product strategy and goals
(Cormican et al., 2004). Because
Strategy and leadership have been identified contemporary organizations must be
as the first critical success factors to enable customer driven (Cooper, 1999), it is critical
effective innovation management. to clearly understand user needs, and all
According to Cormican and O’Sullivan plans and selections should fit with the
(2004), a product strategy should define the customer needs or projected future needs.
aims and objectives of the product
innovation effort related to the company’s 2.5.3. Time-to-Market
overall business strategy. A product
strategy should also focus and integrate team Researchers (Bayus, 1997; Cooper &
effort and permit delegation (Cormican et Kleinschmidt, 1994; Skerlj & Prasnikar,
al., 2004). While every member in the 2005; Smith, 1999) also have documented
project team has an input into product the importance of time-to-market in new
innovation, leaders appear to have an product development. According to the
imperative impact on product innovation researchers, how fast a new product can be
initiatives. A leader’s role is to create a developed and brought to market determines
vision and effectively communicate it by its ultimate success or failure. McGrath
setting obvious objectives (Cormican et al., (2004) comments that decreased time-to-
2004). market provides numerous benefits such as
gaining higher productivity, reducing the
2) Information and Communication costs of many projects, and enabling time-
based competition.
Another key factor identified for successful
innovation management is organizational 1) NPD Cycle Time
information and communication process
(Van Riel, Lemmink, & Ouwersloot, 2004). Reducing new product development (NPD)
Scholars (Allen, 1985; Clark & Fujimoto, cycle time can create relative advantages in
1991; Souder, 1992) in the field of market share, profit, and long-term
innovation have traditionally viewed competitiveness (Sanchez & Perez, 2003).
innovation as an information processing How then do companies reduce NPD cycle
activity (Moenaert, Caeldries, Lievens, & time in product innovation? According to
Wauters, 2000). The innovation team Griffith (1993), “Decreasing product/project
attains information on markets, complexity and the introduction of a
technologies, competitors, and resources, systematic new product process significantly
and translates the information into a product reduce cycle times” (Cooper et al., 1994, p.
design and strategy (Moenaert et al, 2000). 382). Smith (1999) comments that skipping
Thus, innovation success is related to how steps can be one of the tools of rapid
well companies gather and diffuse development. In the fashion apparel
information (Van Riel et al., 2004), making industry, firms that concentrate on

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producing copies referred to as knockoffs, or Table 2 is a summary of the previously
adaptations of products already on the presented new product development
market, can reduce the amount of time processes. For organizational purposes as
required to complete the process (Keiser & well as illustrating how complex new
Garner, 2003) because they skip some of product development process have become,
NPD processes (steps) including opportunity Urban and Hauser’s process was selected as
identification and design and development the first product development process in
processes. Table 2, and each of the activity categories
of other new product development processes
2) First-to-Market are aligned vertically.

Companies with ‘first to market’ products However, it is important to note that “in
capture the market, enjoy a high market practice many of activities of the phases will
share, create barriers to entry for the be going on simultaneously, and interaction
competition and create brand awareness for will be common” (Urban et al., 1993, p. 50).
their product (Prasnikar et al., 2005). Compared to the sequential process,
Carrillo and Richard (2004) state, “An simultaneous (overlapping) phases of
innovating first entrant gains a monopoly development reduce time to market and
that yields premium price until a smooth the transition between phases.
competitor’s eventual entry drives prices Therefore, it is critical to be aware that the
down. Conversely, delays in bringing product development process is a multi-
products to market can be devastating” (p. cross-functional program, where all
2). functions work together to accomplish the
required task (Crawford et al., 2003).
3) Quick Changes in both Technology and
Customer Needs Each new product development process
model in Table 2 consists of the different
How quickly the product can be changed to process arrangements. For example, Urban
fit with technology and customer needs is and Hauser (1993) describes a five step
also an important issue in new product decision process model while Trott’s (2002)
development (Cooper et al., 1994). NPD process is composed of eight-steps.
Especially, in the textile and apparel Nevertheless, all new product development
industry, it is critical to effectively recognize process (NPD) models have similarities in
and adapt to quickly changing trends in the the key activities and functions. Even
market (Keiser et al., 2003). though all new product development process
models use the different step terminologies,
3. New Product Development Processes the process begins with perception of market
opportunities and typically involves
A new product development process (NPD identification of customers’ needs, design
Process) is defined as “a disciplined and development process, product and market
defined set of tasks and steps that describe testing, and market launch. In addition, all
the normal means by which a company the processes or activities are
repetitively converts embryonic ideas into multidisciplinary within different company
salable products or services” (Belliveau et organizations.
al., 2002). Ulrich et al. (2004) state, “A new
product development process is the Many other researchers (Barclay, Holroyd &
sequence of steps or activities that an Poolton, 1995; Cooper & Kleinschmidt,
enterprise employs to conceive, design, and 1986; Erhorn & Stark, 1994; Gruenwald,
commercialize a product” (p.12). Several 1992; Hart & Baker, 1994; Himmelfarb,
researchers have developed new product 1992; Rosenthal, 1992; Saren, 1994) also
processes for use with assorted products. have developed new product processes

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which are reviewed in May-Plumlee (1999). similarities to those detailed here.
These NPD process models also have

1 2 3 4 5

Urban and Life Cycle


Opportunity Identification Design Testing Introduction
Hauser Management

Ulrich and Concept System -Level Testing and


Planning Detail Design Production Ramp-up
Eppinger Development Design Refinement

Crawford Opportunity Concept/


Concept
and Di Identification & Project Development Launch
Generation
Benedetto Selection Evaluation

Testing and Post Launch


Cooper Discovery Scoping Build Business Case Development Launch
validation Review

Concept
Bruce and Idea Screening Marketing Business Product
Develop Market Testing Commercialization
Biemans Generation Strategy Analysis Development
ment

Idea Idea Concept Product Commercialization Monitoring and


Trott Business Analysis Test Marketing
Generation Screening Testing Development Evaluation

Table 2. New Product Development Processes

Author : Choi, W. (2005).

Sources used :
Urban, G. L. & Hauser, J. R. (1993). Design and Marketing of New Products (2nd ed.). New Jersey:
Prentice-Hall.
Ulrich, K. T. & Eppinger, S. D. (2004). Product Design and Development (3rd ed.). New York: McGraw-
Hill.
Crawford, M. & Benedetto, A. D. (2003). New Products Management (7th ed.). New York: McGraw-Hill.
Cooper R. G. (2001). Winning at New Products (3rd ed.). New York: Addison-Wesley.
Bruce, M. & Biemans, W. G. (1995). Product Development – Meeting the Challenge of the Design-
Marketing Interface. New York: John Willey & Sons.
Trott, P. (2002). Innovation Management and New Product Development (2nd ed.). London: FT Prentice
Hall.

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4. New Product Development in Textiles luxury yachts (Glen Raven Inc., 2005, See
and Apparel Figure 4). Currently, Glen Raven is
organized with divisions including
Examples of new product development in Technical Textiles, the Filament Fabric
textiles and apparel exist with several group, Sunbrella® and International
companies and products with diverse textile (through Dickson® acquisition).
end uses. Research and trade literature
identified various new product development Glen Raven, Inc., recently, has earned the
processes and strategies. The following 2005 Textile World Innovation Award
illustrations are examples of new product through empowering its associates to be
development processes in the global innovators, developing a culture of market-
marketplace. driven innovation and carefully building a
global approach to business (Borneman,
4.1. Glen Raven, Inc. 2005). The Sunbrella® brand of
performance fabrics focuses on innovation
Glen Raven, Inc., a North Carolina – based for awnings, furniture, marine and
company, is one of the world’s largest convertible car tops. Glen Raven Technical
technical textile specialists. Glen Raven is Fabrics markets performance fabrics for
privately held with continuous family automotive, protective apparel, military and
ownership over 125 years in the textile marine applications (Glen Raven, 2005).
industry (McCurry, 2004). Since its Glen Raven’s success depends on a
founding in 1880, the company has proactive strategy including aggressive
successfully developed numerous new investment for marketing strategy and
textile products including 100% solution- innovation as well as global expansion.
dyed acrylic fabric and the first pantyhose Sections 4.1.1 to 4.1.4 present how the
(tights). The company also has produced company has repeatedly retooled and
products for diverse end use such as realigned itself to maintain its profitability
awnings, automotive textiles, patio furniture and viability for over 100 years in the textile
seat covers, advertising graphics or sails on industry.

Figure 4. Numerous Glen Raven’s Applications

Source: Glen Raven Inc. (n.d.). Retrieved June 22, 2005, from http://www.gleraven.com

4.1.1. Innovation (McCurry, 2004). In recent years, the


company implemented a program called
Allen Gant Jr., President of the company “GlenOvation” (Rivas, 2005). According to
points out, “The key to innovation is lack of Rivas (2005), the “GlenOvation” program,
fear” (Rivas, 2005, p. A1). The company an internal program designed to involve
has heavily invested the latest technology every associate in the innovation process,
and has a penchant for innovation rewards workers for any innovative ideas
Article Designation: Scholarly 13 JTATM
Volume 4, Issue 4,Summer 2005
that they offer. John Coates (2005), marketing strategy programs (Borneman,
Director of Research and Development at 2005).
Glen Raven Inc., comments, “We have seen
tremendous commitment from our associates The company learned how to expand
around the world, and we are now funding globally when they acquired Dickson S.A.,
several new ideas that have great potential in France, and recently embarked on building a
their intended markets. As we continue to plant in China (Borneman, 2005). From a
nurture these ideas and have market success, global perspective, it was the action that
we feel the momentum will continue to gave the company a more global emphasis
grow in support of GlenOvation” than anything else it had ever done. Now,
(Borneman, 2005, www.textileworld.com). the company has about 40 percent of their
Glen Raven is aware of the importance of operations outside the United States within
creative ideas for new product development. different cultures (Borneman, 2005).

4.1.2. Marketing Strategy 4.1.4. Voice of the Customer

Marketing strategy plays a critical role at In particular, Glen Raven considers the
Glen Raven, not just in supporting significance of the voice of the customer
successful brands, but in understanding (VOC) for their products. The company
markets and guiding Glen Raven’s endeavors to identify customers’
investment direction (Borneman, 2005). requirements and to develop the high quality
Borneman (2005) explains, “Few textile product that exceeds customer expectations
companies understand and act on market (Glen Raven, 2005). To satisfy customers’
data the way Glen Raven does to continually expectations, the R&D team at Glen Raven
reposition assets and make tough decisions spends time with sales force, attends trade
on entering and exiting markets” (p. 20). shows, and interacts with customers.
The company has the capability to adjust to
change that has kept it alive through good 4.2. Freudenberg Nonwovens
times and bad (Rivas, 2005). Glen Raven
Inc., as recently as six years ago, was 50 Freudenberg Nonwoven Group, a wholly
percent apparel, and today it is less than 3 owned family enterprise headquartered in
percent apparel. It shows that the company Germany, is the world’s largest
does not get bound up in tradition or past manufacturer of nonwoven goods. The
successes (Borneman, 2005). company retained number one world
ranking in annual sales of nonwoven
The company’s aggressive investment in industry in 2003, at an estimated 1.4 billion
supporting its marketing strategy is reflected dollars (Bitz, 2004). Freudenberg Group
in various examples including research and consists of 17 production facilities located in
development, and testing. A few years ago, 12 different countries including Argentina,
the company invested one million dollars in Brazil, China, Germany, Italy, Japan, South
improving its testing facilities to become Africa, South Korea, Spain, Taiwan, the
fully certified to test fabrics (McCurry, UK, and the USA (Bitz, 2004). The
2004). company employs the five core divisions –
interlinings, filtration, hygiene/medical,
4.1.3. Globalization technical nonwovens and tuft (Nonwovens
Industry, 2003), and its divisions involve
Currently, Glen Raven, Inc. has expanded to numerous markets from apparel interlinings,
127 countries around the world (Borneman, automotive interior trims, hygiene products,
2005). The company searches for healthy to carpet backings. Freudenberg’s five
and growing markets with room for Glen divisions are now independently responsible
Raven to succeed. It builds brands and for product development, marketing, sales
barriers to entry by competitors, and and services as well as for its own
thoroughly defends those markets with production, plants and production lines
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(Nonwovens Industry, 2004). Thus, each our customers” (Nonwovens Industry,
division is capable of operating 2004).
independently while they still profit from the
advantages of a large company such as 4.2.2. Global Alliances and Partnership
technology, purchasing power, financial aid,
and human resources (Nonwovens Industry, Freudenberg has a long successful tradition
2003). of global cooperation, alliances and
partnership which enable better serve
4.2.1. Value for customers and Innovation customers as well as strength its competitive
position (Freudenberg, 2005). According to
Freudenberg’s key focus is to anticipate, Deeds and Rothaermel (2003), successful
understand and meet customers' needs and management of strategic alliances and
expectations (Freudenberg, 2005). In order partnership has become vital to firms’ new
to satisfy customers’ demands, the company product development and eventually to firm
concentrated on modernizing the product performance. Freudenberg has experienced
line and a corporate restructuring program numerous alliances and joint ventures with
(Bitz, 2004). The restructuring program was international partners. For instance, in the
designed to enable the company to react interlining division, Freudenberg has
more quickly to customers’ requirements achieved a long term relationship with the
and market trends (Bitz, 2004). The Japan Vilene Company. This relationship
company believes that it is essential to has allowed Freudenberg to match its
provide innovative products and a high level capacity in Asia to the market needs, and to
of value added service to customers to maintain a production cost structure
remain competitive in the market comparable with local producers
(Freudenberg, 2005). (Nonwovens Industry, 2004).

Freudenberg is also aware of the importance In July 2001, Freudenberg and Frisby
of supplying innovative products. They Technologies formed a joint venture. Under
consider that constant innovation in the joint venture agreement, Freudenberg
everything they do is critical for their long created nonwoven material whereas Frisby
term financial success (Freudenberg, 2005). was responsible for product manufacturing
For example, in the filtration division, the and marketing (Bitz, 2004). In June 2003,
company identified demands for fine Freudenberg acquired a 100% share of
filtration products that help to improve the ComfortTemp® products from Frisby
environment and public health. They then Technologies based in Winston-Salem,
developed and expanded filters North Carolina, USA (Bitz, 2004). In May
(MicronAir™ cabin air filters) for the 2004, in order to enhance competitiveness in
removal of odors available for household, the filtration market in China, there was
automotive and industrial end use (Bitz, another joint venture between Freudenberg,
2004). Freudenberg plans to invest in the Japan Vilene, and local Chinese partners.
construction of a new line for making The joint venture supplies motor and cabin
MicronAir™ cabin air filters in Germany air filter housing as well as filter elements to
(Bitz, 2004). Freudenberg invested 40 leading automotive manufacturers in North
million dollars to build new product and Western China (Nonwovens Industry,
development lines for total five different 2004). The international joint venture
divisions (Bitz, 2004). Stephan Tanda, a provides numerous benefits to the company
president and CEO, states, “Success for us and its partners such as sharing relevant
will come through differentiated technology technologies, increasing companies’
and tremendous diversity both when it capacity of their industry and enhancing the
comes to roll good production, finishing, bargaining power (Nakamura, 2005).
and converting. We use our broad set of
industry expertise to follow the growth of

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4.3. Herman Miller Aeron Chair

Herman Miller, Inc., founded in 1923, is a


leading provider of office furniture and
services worldwide. The company
headquarters is located in Zeeland,
Michigan, and Herman Miller operates U.S.
subsidiaries in Atlanta, Georgia, and Lake
Mills, Wisconsin. The company enhances
the working environment through the
design, manufacture and distribution of
furnishings, interior products, and related
services (Herman Miller, 2005). Net sales
of $262,000 in 1923 grew to $1.34 billion in
fiscal year 2004 (Herman Miller, 2005).

The Herman Miller Aeron Chair is a unique Figure 5. Herman Miller Aeron Chair
product combining ergonomics, aesthetics,
Source : Herman Miller Inc. (n.d.). Retrieved
material and manufacturing innovation, and
June 27, 2005, from
mechanical invention (Herman Miller, http://www.hermanmiller.com
2005). It was a main departure from the
competing solutions to office seating. While 4.3.1. Opportunity Identification
Aeron Chair was a significant change, it was
quickly accepted as a suitable solution to the The two designers began the product
needs of current office workers (Cagan & development process without any
Vogel, 2002). Although the retail price of assumption about form or material, but with
the Aeron chair is expensive (approximately some strong convictions about what a chair
800 US dollars), the Aeron has witnessed a is required to do for a person (Herman
high degree of success in the market (Cole, Miller, 2005). They recognized new areas
2003). The next section illustrates what Bill of stress on the body from the effects of
Stumpf and Don Chadwick, designers of the spending long periods of time seated in the
Aeron Chair, saw that no one else did, and same position. They looked at issues of
why Herman Miller was willing to invest in body temperature, blood circulation, and
such an untested seating concept. spinal compression (Cagan et al., 2002).
They also recognized that the light and open
aesthetic trend had not been applied to
seating design. Office seating had been
traditionally used as a way to denote the
class structure of the office (Cagan et al.,
2002). The Aeron endeavored to shift the
emphasis from hierarchy to comfort.

Herman Miller was aware that economic


issues associated with the kinds of illness
and reduced performance was also important
(Cagan et al., 2002). Nowadays, keeping
employees healthy and functioning has
become a big challenge in business. Thus,
Herman Miller saw that retaining employees
and helping them function at their fullest is
more profitable and stable for companies
than constantly replacing with new people
(Cagan et al., 2002).
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negative effects that most workers face
4.3.2. Process (Cagan et al., 2002).

The project was initiated by a team In design, the Aeron chair is the type of
(including marketers, designers, an design that no one would have predicted and
ergonomic research group, and engineers), yet when it debuted everyone responded to it
who began a potential seat design to replace in a positive way. It anticipated the shift
the existing recliners used by senior away from the need to make people feel
executives. An early emphasis on important by rank to the need to make them
ergonomic research of anthropometrics, and feel comfortable by design. The Aeron chair
issues related to sitting down and getting out was developed to fit equally well in a
of chair was studied (Cagan et al., 2002). renewed loft space and in new action-
oriented open office designs. It also looks
The team focused on new research studies elegant in combination with other furnishing
that identified issues related to long-term in high-end office decor and meeting rooms.
seating in weight distribution and heat As a result, the aesthetic and technical
transference. This focus led to the proposal uniqueness does not allow competitors to
for breathable seating surface design that imitate the chair without looking like they
allows people to retain an even heat are making a direct rip-off (Cagan et al.,
distribution in the front and back of chair. 2002). Randy Brown, a Herman Miller
After the concept proposal, the team tried to product manger, (2003) states, “The Aeron
develop the material that prevents heat build success story required an exhaustive
up from the body. However, the team collaboration among several individuals
recognized that they had to find the right with diverse talents, as well as more
supplier to make the fabric (Cole, 2003). patentable ideas than any previous Herman
Herman Miller found the Quantum Group Miller undertaking” (Cole, 2003, p. 14).
Inc. who was able to create a material to
meet Herman Miller requirements. 4.4. American Fibers and Yarns
Quantum Group, however, overcame Company
manufacturing obstacles in the fabric
development through special extrusion American Fibers and Yarns Company
methods and other manufacturing methods (AF&Y) was established in 1965 as Phillips
not typically used in most textile Fibers Corporation, developing and
manufacturing plants (Cloe, 2003). Finally, producing polypropylene filament yarn for
this fabric supplier successfully developed home furnishings and other products.
an engineered form-fitting material, which is American Fibers and Yarns Company has
a weave of elastomeric -based specialty now become the largest supplier of
fibers. polypropylene filament yarns in the United
States (Rodie, 2004). Headquartered in
The open weave that was developed has the Chapel Hill, North Carolina, AF&Y
capability to meet the performance demands maintains a technology center that
of a breathable interface between the body specializes in engineering filament yarn in
and the chair. It also provides ergonomic innovative combinations not available from
solutions and unique aesthetics (Cagan et al., other suppliers (AF&Y Co., 2005). Based
2002). The Aeron Chair offers people a on its success in the core residential contract
sense of security and safety from a health and industrial fabric markets, AF&Y is now
view point. Office workers feel that they are setting its sights on other applications and
sitting in a chair designed to fit their body markets which include repositioning
and one which will support them in the products towards knit apparel applications
variety of tasks they must perform. (Gross, 2005).
Therefore, it provides less chance of injury
and diminishes potential for the long term- American Fibers and Yarns Company has
had success in the home furnishing market
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by emphasizing the inherent performance products giving the consumer easy care
properties of polypropylene fiber. Innova®, characteristics such as stain resistance and
developed by AF&Y, is a fiber with washability. We are also looking at
characteristics such as light weight, quick sweaters and dress socks with all the same
drying, durability, resistance to bacteria, the characteristics” (Gross, 2005, p. 58). In
lowest thermal conductivity, abrasion order to easily identify gaps between what
resistance, and low cost (AF&Y, 2005). customers want and what the characteristics
Recently, the company penetrated the knit of products are, the company has utilized a
apparel market by promoting the benefits of matrix described as a radar chart (Apperson,
polypropylene (Gross, 2005). 2004). The radar chart effectively
demonstrates what benef its or properties
James T. Morelli, an executive vice have been found to be important to the home
president at AF&Y, says, “What we have furnishing customer. It also illustrates
got there is the exact same technology with benchmarking of the home furnishing
the same characteristics adapted for the competition, as well as the opportunities for
apparel market. We looked at how to improvement (See Figure 6).
replace cotton, rayon, polyester with these

Figure 6. Radar Chart


Source: Apperson, M. (February 12, 2004). Interviewed at headquarter of American Fibers and
Yarns Company in Chapel Hill, NC. Promotional material AF&Y

In 1999, AF&Y established the Technology technology” (Rodie, 2004, p. 24). He


Center in Bainbridge, Georgia., where a continues, “Our technology includes
team of engineers and technicians perform proprietary chemistry as well as proprietary
research and development using state-of-the- texturing techniques and processes. We rely
art equipment (Rodie, 2004). Morelli states, on our supplier relationships to continue to
“Technology development has been an develop new technologies for our product
active process for the past three years. lines, and enlist suppliers to help us bring
Moving forward, it is the foundation of the new technologies to market” (Rodie, 2004,
future of our business” (Rodie, 2004, p. 23). p. 24).

In the last three years, the company has


invested about 3 million dollars in research
and development (Gross, 2005). Morelli
mentions, “American Fibers & Yarns is one
of the few yarn producers investing in
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4.5. Bandage Group 4.5.1. New Product Development Process

Barnes and Bruce (2000) introduced the Figure 7 illustrates the procedure flowchart
Bandage case study, which mainly provides for NPD at Bandage. However, in reality
a study of requirement capture and new their NPD process does not follow formal
product development within an organization. stages. For example, in theory, the project
The Bandage Group was founded by an teams have responsibility for preparing
entrepreneur in the 1950s, when he business plans, forecasts, and design stages
developed ideas to market tubular bandage as part of the NPD process. The information
(Barnes et al., 2000). Since the 1970s, the fed into the NPD committee from the project
group has developed its international teams should then allow the committee to
network and their product has been make go/kill decisions at the each stage-
expanded, with acquisition and development gate. In realty, the stage-gate process is not
of associated healthcare products, covering followed at Bandage. Rather, it is viewed as
several major therapy fields, and continence largely subjective and emotive process
care (Barnes et al., 2000). However, the (Barnes et al., 2000).
new product development at Bandage is not
formal. This case study shows how different
the theory and reality of new product
development may be.

Figure 7. NPD Procedure Flow Chart at Bandage


Source: Bruce, M. & Cooper, R. (2000). Creative Product Design. New York: Wiley. p. 143.

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4.5.2. Requirement Capture for Bandage made by the North Carolina manufacturing
specialist, as the “Rolls Royce” of the sector
“Although there is a form of a phase review (McCurry, 2003). Section 4.6.1 illustrates
system in the NPD process at Bandage how Thorlo wrote a success story in the sock
(Figure 7), in reality this system does not market.
work” (Barnes et al., 2000, p. 150). In the
idea generation stage, although anybody at 4.6.1. Opportunity Identification
Bandage can generate an idea for new
products, there is no formalized way of Twenty-five years ago, Jim Throneburg, a
establishing idea generation. Anybody who chairman of Thorlo, Inc., was in his early
has an idea for a new product approaches an 40s, overweight and having trouble with the
NPD manager, who will assess the idea exercise routine he had begun. He
informally (Barnes et al., 2000). Formalized recognized that the problem was caused by
idea generation techniques include his feet which hurt from miles of walking
brainstorming sessions, market needs and jogging. He and a design engineer
established through market research, and developed a new kind of extra-cushiony
technical focus meeting. However, there sock that had padding placed to absorb
may be numerous ideas from these processes shock and prevent friction (Wireback, 2005,
that never make it into a formal procedure See Figure 8). This story shows the
(Barnes et al., 2000). Because of the fact successful start of a new industry, the sport-
that requirement capture is not recognized as specific sock. Throneburg (2005) states,
a process in itself, there is no information “We take it to a level nobody else does. The
gathering that is specific to this process at rules of hosiery industry and the rules we
Bandage. play by are totally different” (Wireback,
2005, p. A1).
Any requirement capture activities at
Bandage are informal, dependent on the Throneburg’s rules are related to the design
project concerned, and carried out on an ad and development of special products for
hoc basis. Although there have been many every activity where comfort and
successful new products launched by performance are important. The
Bandage, they have been designed primarily merchandising campaign for these
towards a short-term market. Barnes and engineered socks reflects the matching of
Bruce (2000) point out, “In order to improve product features to the demands of the sport
long-term growth through new product or other activities (Wireback, 2005).
launches, reduce time to market, decrease
cost of development and improve the
chances of new products, they need to
implement a tighter NPD process and
develop a model of requirement capture” (P.
151).

4.6. Thorlo, Inc.

Thorlo, the initiator of the activity specific


sock, is a family owned company that
manufactures sock products for hiking,
hunting, snow sports to tennis (Thorlo,
2005). For the past twenty-three years, the
company has dedicated itself to Figure 8. Throlo Hiking Socks
understanding customer needs and designing Source: Campmore.com. (n.d.). Retrieved
comfortable and protectable sock products July 20, 2005, from
fit with its user benefits (Thorlo, 2005). http://www.campmor.com.
Many customers today regard Thorlo socks,
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4.6.2. Product Benefits and the mean number of company
employees was 87.6 (Ciappei & Christian,
Thorlo started out producing socks designed 2005).
for running, golf and hiking. They now
have expanded production of socks for five 4.7.1. Proposition for New Product Success
competitive sports, four outdoor pursuits,
such as hunting, two snow sports, four First, they proposed that new product
phases of military life and three levels of success of the companies located in
civilian lifestyle (Wireback, 2005). They Montebelluna depends upon the following
sell from $10.99 to $12.99 per pair. four main areas:
However, many customers have been (1) Networking: The development of
willing to pay for it because the Thorlo sock relationships with external
offers numerous core benefits to the individuals or companies, both
customers such as comfort, breathability, customers and suppliers, that a firm
added protection against blistering and involves in product innovation;
abrasion, firm fit and reinforced heel (2) Organization: The way a company
(Wireback, 2005). In practice, blister is organized for new product
prevention and moisture control are development (NPD) (i.e. NPD team,
common goals throughout the highly cross-functional integration vs
competitive outdoor sock supply chain functional approach, senior
(McCurry, 2003). Throneburg finds out management support and
what works not by asking researchers, but commitment, characteristics of the
by staying in close contact with the team leader);
customers who buy his product. He says (3) Information and communication
that he only enters a market if he can design technologies: The use of advanced
a sock with a combination of cushioning, technologies (computer-aided and
wicking and other factors that the consumer rapid prototyping technologies) to
considers benefits (Wireback, 2005). To support and increase the
achieve the core product benefits, the effectiveness of the NPD process;
company has invested millions of dollars in and
medical and sports performance research (4) Time-reducing efforts: The set of
(Thorlo, 2005). initiatives a company undertakes to
reduce the time-to-market (Ciappei
4.7. Italian Sport Shoe Cluster & Christian, 2005, p. 23).

Although many companies individually 4.7.2. Major Success Factors for NPD
undertake new product development,
companies can group together to enhance Based on the four main factors, Ciappei and
competition. Montebelluna is located in Christian (2005) proposed 17 hypotheses
Northeast in Italy and has the largest cluster and attained three major results that provide
of sport shoe companies in the world. This a positive influence on new product success
region is known for privately held small in the sport shoe industry:
sport shoe companies, who are innovative in
design and styling. (1) Team approach: A systematic use of
NPD teams is required, but not
Ciappei and Christian (2005) researched enough to differentiate between the
main success factors engrained in the new top performers and the other
product development practices of Italian companies. Although companies
sport shoe companies in the Montebelluna need to adopt a team approach for
cluster. They surveyed 20 companies out of NPD to survive, it alone does not
420 companies located in the Montebelluna lead to success (Ciappei &
cluster in Italy. Mean annual sales for the Christian, 2005). However, in
surveyed companies were 28 million Euros order to accomplish high levels of
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Volume 4, Issue 4,Summer 2005
new product success, the NPD team related to use of technical sport
must not be simply multi-functional. shoes, and to closely contact one of
The most effective NPD teams the main sources of product
include representatives of many innovation (Ciappei et al., 2005).
functions and also customers or lead
users. According to PDMA, “Lead (3) Technology: It is very critical for
users are users for whom finding a sport shoe manufacturers to use
solution to one of their consumer advanced information and
needs is so important that they have communication technologies
modified a current product or including computer-aided
invented a new product to solve the technologies because the
need themselves because they have technologies reduce costs and time
not found a supplier who can solve for new product development
it for them” (PDMA, 2005). The (Ciappei et al., 2005).
NPD team must then be wide open
to put together the valuable Ciappei and Christian (2005) finally
contribution of external sources of suggested, “Sports shoe (and other clothing
innovation and knowledge (Ciappei and apparatus) manufacturers that want to
et al., 2005). improve their NPD capability should
proactively develop close relationships with
(2) Customer Orientation: The their customers, not just for pushing their
involvement of customers at diverse sales, or for communicating their brand
stages of new product development image, but most of all to better understand
process encourages sport shoe the customer needs, to absorb their
manufacturers to directly bring in knowledge and combine it with that of their
their preferences, limiting employees, to be ready to catch early and
distortions and filtering effects weak signs of new sports, emerging needs
related to market research and data and trends, and to monitor innovating ideas
analysis (Ciappei et al., 2005). In that lead users might be developing” (p. 36).
order to effectively enhance new
product success, a company should 5. Future of New Product Development
integrate lead users into the process,
as it contributes to the anticipation Urban et al. (1993) have introduced the
of requirements that will eventually critical success factors that have
be shared by the mass market, to characterized the new -product development
more easily recognize the problems changes in emphasis over time (Table 3).

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Volume 4, Issue 4,Summer 2005
1970s 1980s 1990s

Market and benefit Portfolio theory Total quality


segmentation
Premarket forecasting and Customer satisfaction
Product proposition and conjoint analysis
perceptual mapping Time to market
Decision support systems
Critical Success Stochastic forecasting and UPC scanner data Manufacturing integration
Factors model with R&D and marketing
Technology/marketing
Creative group model integration and lead users Worldwide strategy and
alliances
Idea Screening Competitive strategy and
sustainable competitive
advantage

Table 3. Critical Success Factors for NPD

Source: Urban, G. L. & Hauser, J. R. (1993). Design and Marketing of New Products (2nd ed.).
New Jersey: Prentice-Hall. p. 664.

According to Urban et al. (1993), in the productivity-based competition” (McGrath,


future, the challenges will be greater as 2004, p. 20).
technology advances more quickly, global
competition becomes fiercer, customer Figure 9 depicts the four generations of
needs become more refined and subject to product development management.
change, and as amazing social, political and According to McGrath (2004), in the R&D
organizational changes occur. New Productivity Generation, the new product
approaches and new techniques will be development process will be transformed
continuously developed and existing into a highly efficient, highly automated,
concepts will be incessantly improved. The and highly integrated enterprise-wide
environment also will be changing rapidly, process that will operate at an extraordinary
so the firm must learn to effectively adapt performance level. The next generation
and evolve to succeed under new challenges goes beyond the primary focus on project
and new goals (Urban et al., 1993). management of the previous generation to
involve comprehensive resource
McGrath (2004) describes the next management, an integrated portfolio, and
generation of new product development as product strategy; and introduce more
the Research and Development (R&D) management practices than the previous
Productivity Generation. “Just as the Time- generation (McGrath, 2004). However, the
to-Market (TTM) Generation of the 1990’s next generation of productivity-based gains
gave rise to strategies for time-based needs integrated systems to allow the new
competition, the R&D Productivity practices (McGrath, 2004).
Generation will give rise to development-

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Figure 9. Four Generations of Product Development Management
Source: McGrath, M. E. (2004). Newt Generation Product Development: How to Increase
Productivity, Cut Cost and Reduce Cycle Times. New York: McGraw-Hill. p. 4.

5.1. Future of NPD in Textile and Apparel Another issue is the development of
Industry innovative technology and the effective
adoption of technical changes to be
Global competition in the textile and apparel competitive in the global textile and apparel
industry has become more intense due, in industry. The product development
part, to the changes in regulation of world structure has been improved through the
trade. To compete and survive in the future adoption of integrated computer systems,
of textiles and apparel, firms will need to be where all functions are capable of being
innovative in new product development, accessed and using all data on a real time
while reducing cycle times and cutting costs. basis (Senanayake & Little, 2001). The new
Indeed, in a time competitive environment, technology and technical advances will
companies will be most successful if their enable retailers and consumers to take a
development times are shorter and if their proactive role in the product development
products are generated faster than its process. Additionally, the improved
competitors (Filippini, Salmaso, & technologies including CAD/CAM
Tessarolo, 2004). More textile and apparel technologies are expected to allow faster
companies have been forming strategic response to the customers’ requirements at a
alliances in order to reduce the time and lower cost.
improve flexibility and responsiveness
(Senanayake & Little, 2001). These Governments are taking an active role in
strategic alliances also relate to the supporting new product development
effectiveness of innovation strategies initiatives. For examples, the government of
(Faems, Looy, & Debackere, 2005). Hong Kong has challenged its industries to
American Fibers and Yarns Company, for implement innovative product development
example, have had the strategic alliances efforts with the following foci:
with their suppliers to develop innovative
technology for the product lines and join 1) materials technology to produce
suppliers to help them bring new innovative and novel fibers, fabrics,
technologies to market (Rodie, 2004). and related product treatment and

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finishing processes such as nano- materials is increasing. The use of technical
technology; textiles such as three dimensional
2) product design including feature construction, nano-technology, and
design and functional design for the electronic integration, is expected to bring
textile, clothing and footwear high added value to product application in
industry; and apparel, medical, automotive, and other
3) prototyping technology to produce markets.
samples in a quick and responsive
manner with the use of CAD/CAM To strengthen competitiveness in the global
technology and advanced textile and apparel industry, new product
manufacturing system (Hong Kong development has become a key strategy.
Government, 2001). Yet this strategy requires a detailed process,
which takes into account market, design,
In future markets, the growth potential for technology, and finance.
textiles as components in composite

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