New Product Development
New Product Development & Launch is arguably the most complex value stream in a business. Here, you will find not only our insights, but a range of other resources which we find helpful.
Product Development Excellence
The STL Ethos PDE | 80.3 Framework
Amplify the return on your investment in new product development.
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Companies spend significant amounts of money in developing and launching new products. The product development pipeline drives future revenues and yet companies often struggle to understand or operate against best practice, resulting in far lower levels of productivity than they should be able to achieve.
In 2008 we tackled the problem of how to apply Lean thinking to New Product Development & Introduction (NPDI). Drawing inspiration from work done on the systems dynamic modelling of complex projects, a framework was developed against which we proved that increasing levels of maturity led to increasingly positive outcomes.
In 2023 STL Ethos has further enhanced the framework, taking insight and learnings from the last 15 years to create a new model for Product Development Excellence; PDE | 80.3
What is the benefit of applying the Product Development Excellence Framework?
Increase productivity by 80%. This is significant. It is intended to provoke thought, but if a company struggles with NPDI, then 30% more product launches with 30% fewer people is often achievable. You can take the benefits in a way that suits you, but however you look at it, that's potentially a greater than 80% productivity gain.
Deliver the productivity growth over 3 years. This is a long time. Again, this is intended to provoke thought. Some companies have achieved the result in half that time, but the point is, it's not a quick win. Improvements are systemic and can take time.
The PDE | 80.3 framework.
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Strategy & Leadership is concerned with the strategic approach to NPDI. It considers technology, manufacturing and supplier strategy as well as the understanding of customer value and the impact of company culture.
The Governance Framework considers best practices in Program Management Office (PMO) and a range of Project Management capabilities.
The NPDI Delivery Framework looks at the ubiquitous gateway process - how it's defined and how it's used. Too often, businesses have processes that are factually accurate but too complex to be helpful.
Training & Development is concerned with how the company develops and appraises its team members working on NPDI projects.
Enabling Capabilities looks at some of the key processes that underlie NPDI activity, such as requirements management, cost optimization or prototyping, etc.
Facilities for Collaboration looks briefly at the type of working environment the teams operate within and the extent to which the environment supports collaboration.
Workflow and Integrated IT finally considers the use of advanced IT systems to drive efficiency and enhance capability.
When all these elements work together, significant gains can be achieved but businesses must remain vigilant. New Product Development remains one of the hardest business processes; it is technically difficult, cross functional and often hard to track. A highly performing capability is easily destabilized by factors such as business growth, a shift in the market or an organization redesign. It is therefore essential to be alert to changes in performance so that you keep NPDI productivity high.
Complete your maturity profile to do a health check on your PDE capability . . .
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