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The Life Cycle Dimension Of New Product Development Performance Measurement

Author

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  • PETRI SUOMALA

    (Tampere University of Technology, Cost Management Center, Finland)

Abstract

This paper is concerned with comprehensive performance measurement (PM) of new product development (NPD). The idea of "life cycle conscious" NPD performance measurement is introduced by conducting a conceptual analysis combining product life cycle (PLC) thinking and NPD Performance Measurement (NPD PM). The empirical base of the paper is six case studies that focus on product life cycles and their characteristics within different industrial environments.The paper indicates that there are several ways that NPD PM would benefit from life cycle thinking. Life cycle orientation would provide companies with a feasible framework for constructing the performance measures of NPD, and the framework is likely to reduce the short-termism typically associated with NPD PM. In addition, life cycle could provide help for weighting the criteria and the measures utilized in NPD, for finding a balance for the measurement system, and for directing proper attention towards the comprehensive effects of new products.

Suggested Citation

  • Petri Suomala, 2004. "The Life Cycle Dimension Of New Product Development Performance Measurement," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 8(02), pages 193-221.
    • Handle: RePEc:wsi:ijimxx:v:08:y:2004:i:02:n:s1363919604001039
    DOI: 10.1142/S1363919604001039
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    References listed on IDEAS

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    Cited by:

    1. Giuseppe Volpato & Andrea Stocchetti, 2008. "Managing product life cycle in the auto industry: evaluating carmakers effectiveness," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 8(1), pages 22-41.
    2. Emmi Tervala & Teemu Laine & Tuomas Korhonen & Petri Suomala, 2017. "The role of financial control in new product development: empirical insights into project managers’ experiences," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(1), pages 81-106, February.
    3. Szutowski Dawid, 2019. "Management Control Systems and Innovation Process Efficiency. A Conceptual Model," Folia Oeconomica Stetinensia, Sciendo, vol. 19(2), pages 160-175, December.
    4. Volpato, Giuseppe & Stocchetti, Andrea, 2006. "Product-line variety and innovation along product life-cycle in car market: are carmakers’ policies really effective?," MPRA Paper 29312, University Library of Munich, Germany.
    5. Markus Plewa, 2017. "Long-Run Dynamics Between Product Life Cycle Length And Innovation Performance In Manufacturing," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(01), pages 1-20, January.

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