Accidental Discovery

New designs, ideas, and developments different from that originally hoped for from research.

Alpha Test

In-house testing of pre-production products to find and eliminate the most obvious design defects or deficiencies, either in a laboratory setting or in some part of the developing firm's regular operations. See also beta test. 

Architecture

See "product architecture."

As-Is Map

A version of a process map depicting how an existing process actually operates. This may differ substantially from documented guidelines.

Assumptions

A short set of relevant factors that can have a negative or positive impact.  Your assumptions define the "playing field"

Awareness

A measure of the percent of target customers who are aware of the new product's existence. Awareness is variously defined, including recall of brand, recognition of brand, recall of key features or positioning.

Baton-Passing Process

See "Relay Race" Process.

Benchmarking

A process of studying successful competitors (or organizations in general) and selecting the best of their actions or standards. In the new product program it means finding the best development process methods and the best process times to market and setting out to achieve them.

Benefit

A product attribute expressed in terms of what the user gets from the product rather than its physical characteristics or features. Benefits are often paired with specific features, but they need not be. They are perceived, not necessarily real.

Beta Test

An external test of pre-production products. The purpose is to test the product for all functions in a breadth of field situations to find those system faults that are more likely to show in actual use than in the firm's more controlled in-house tests before sale to the general market. See also alpha test.

Bill of Materials (BOM)

A listing of all subassemblies, intermediate parts and raw materials that go into a parent assembly showing the quantity of each required to make an assembly. 

Brainstorming

A group method of problem-solving used in product concept generation, there are many modifications in format of use, each variation with its own name.

Brand

 A name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. The legal term for brand is trademark. A brand may identify one item ,a family of items, or all items of that seller.

Brand Development Index (BDI)

A measure of the relative strength of a brand's sales in a geographic area. Computationally BDI is the percent of total national brand sales which occur in an area divided by the percent of US households which reside in that area.

Breadboard

A proof-of-concept modeling technique that represents how a product will work, but not how a product will look.

Business Analysis

An analysis of the business situation surrounding a proposed project. Usually includes financial forecasts in terms of discounted cash flows, net present values or internal rates of returns.

Business Case

The results of the business analysis, or up-front homework. Ideally defined just prior to the "go to development" decision (gate), the case defines the product and project, including the project justification and the action or business plan. 

Business Management Team

Top functional managers and business unit head who work together throughout the design of the decision-flow component of a stage-gate process.

Business Model

The ways and means selected by your company to make a profit
It is the mechanism by which a company generates revenue, profits and serves its customers and owners

Business-to-Business

 Non-consumer purchasers such as manufacturers, resellers (distributors, wholesalers, jobbers and retailers, for example) institutional, professional and governmental organizations. Frequently referred to as "industrial" businesses in the past.

Buyer

The purchaser of a product, whether or not they will be the ultimate user. Especially in business-to-business markets, a purchasing agent may contract for the actual purchase of a good or service, yet never benefit from the function(s) purchased.

Buyer Concentration

The degree to which purchasing power is held by a relatively small percentage of the total number of buyers in the market. 

Cannibalization

When the demand for a new product arises at least in part by eroding demand for (sales of) a current product the firm markets. 

Capacity Planning

A forward-looking activity which monitors the skill sets and effective resource capacity of the organization.

Category Development Index (CDI)

A measure of the relative strength of a category's sales in a geographic area. Computationally it is the percent of total national category sales which occur in an area divided by the percent of US households which live in that area. 

Champion

A person who takes an inordinate interest in seeing that a particular process or product is fully developed and marketed. The role varies from situations calling for little more than stimulating awareness of the opportunity to extreme cases where the champion tries to force a project past the strongly entrenched internal resistance of company policy or that of objecting parties. 

Change Equilibrium

A balance of organizational forces that either drives or impedes change.

Charter

Is the document that officially starts an initiative, a program or a project.  The document outlines the team members, the common purpose that brings them together, the performance goals to ensure progress and outcomes.  Also the desired approach to ensure completion.  And finally the roles, responsibilities and authority.  The Charter must be fully supported by Management and serve as the unwavering source of 

Checklist

A memory-jogger list of items used to remind an analyst to think of all relevant aspects. It finds frequent use as a tool of creativity in concept generation, as a factor consideration list in concept screening, and to ensure that all appropriate tasks have been completed in any stage of the product development process.

Chunks

The building blocks of product architecture. They are made up of inseparable physical elements. Other terms for chunks may be modules or major subassemblies.

Classification

A systematic arrangement into groups or classes based on natural relationships.

Co-location

The physical locating of project personnel in one area, enabling more rapid and frequent communication among them.

Computer Assisted Design

A technology that allows designers and engineers to use computers for their design work. 

Computer-Enhanced Creativity

 Using specially-designed computer software which aid in the process of recording, recalling and reconstructing ideas to speed up the new product development process.

Concept

A clear written and possibly visual description of the new product idea which includes its primary features and consumer benefits

Concept Generation

The act by which new concepts, or product ideas, are generated. Sometimes also called idea generation or ideation.

Concept Optimization

A research approach that evaluates how specific product benefits or features contribute to a concept's overall appeal to consumers. Results are used to select from the options investigated to construct the most appealing concept from the consumer's perspective.

Concept Statement

A verbal or pictorial statement of a concept that is prepared for presentation to consumers to get their reaction prior to development. 

Concept Study Activity

The set of product development tasks in which a concept is given enough examination to determine if there are substantial unknowns about the market, technology or production process. 

Concept Testing

The process by which a concept statement is presented to consumers for their reactions. These reactions can either be used to permit the developer to estimate the sales value of the concept or to make changes to the concept to enhance its potential sales value. 

Concurrency

Carrying out separate stages of the product development process at the same time rather than sequentially.

Concurrent Engineering

When product design and manufacturing process development occur concurrently or simultaneously rather than sequentially. Also called simultaneous engineering.

Conjoint Analysis

A quantitative market research technique which determines how consumers make trade-offs between a small number of different features or benefits.

Consumer

The most generic and all-encompassing term for a firm's targets. The term is used in either the business-to-business or household context and may refer to the firm's current customers, competitors' customers, or current non-purchasers with similar needs or demographic characteristics. The term does not differentiate between whether the person is a buyer or a user target. Only a fraction of consumers will become customers. 

Consumer Market

The purchasing of goods and services by individuals and for household use (rather than for use in business settings). Consumer purchases are generally made by individual decision-makers either for themselves or others in the family.

Consumer Need

A problem the consumer would like to have solved. What a consumer would like a product to do for them.

Consumer Panels

Specially-recruited groups of consumers whose longitudinal category purchases are recorded either by hand or via scanner technology.
Some times called Panel of Experts

Continuous Improvement

The review, analysis and rework directed at improving practices and processes. 

Continuous Learning Activity

The set of product development tasks involving an objective examination of how a product development project is progressing or how it was carried out to permit process changes to simplify its remaining steps or improve the prod 

Contract Developer

An external provider of product development services.

Controlled Store Testing

A method of test marketing where specialized companies are employed to handle product distribution and auditing rather than a company's normal sales force.

Convergent Thinking

A technique generally performed in the initial phase of ideas generation to help funnel the high volume of ideas created through divergent thinking into a small group or single idea on which more effort will be focused.

Coordination Matrix

A summary chart that identifies the key stages of a development project, their goals, and key activities within each stage.

Core Benefit Proposition (CBP)

The central benefit or purpose for which a consumer buys a product. The CBP may come either from the physical good or service performance, or it may come from the augmented dimensions of the product. 

Core competencies

The few things that you do that:
1. Your customers find exceptionally valuable
2. You do better than your competitors
3. Your competitors find difficult to imitate
4. You would never “outsource” to anyone
5. You can transfer to other industries as part of your growth plan
The skills, processes, technology and knowledge that:
Contribute significantly to the perceived benefits of your end products (offering)
Gives you an enduring competitive advantage
Could provide access to other markets

 

Core team

A small group that is chartered and empowered to guide the implementation and completion of an initiative.  Core Teams are very useful in fast-changing environments where distractions abound.  A small group can focus attention and energy to ensure clean execution.
 

Cost of Goods Sold (COGS)

The direct costs associated with producing a product. 

Criteria

Statements of standards used by gate-keepers at each gate and related to all organizational functions. The criteria necessary to achieve or surpass for product development projects to continue in development. In the aggregate, these criteria reflect a business unit's new product strategy.

Critical Path Scheduling

A project management technique, frequently incorporated into various software programs, which puts all important steps of a given new product project into a sequential network based on task interdependencies.

Cross Sections

An explanation of a part that is referenced by slicing through the area that needs to be explained. 

Crossing the Chasm

Making the transition to a mainstream market from an early market dominated by a few visionary customers.

Culture

A mosaic of interrelated elements, and their collective day-to-day interaction
For example:
Management behavior
Customs and norms
Ceremonies, rituals and events
Rewards and consequences
Physical environment
Rules and policies
The company culture is defined when corporate values are followed for a number of years.
Culture Consists Of A Shared, Commonly Held Body Of General Beliefs And Values That Define The "Shoulds" And The "Oughts" Of Life (Kluckhohn)


 

Customer

The person or organization that decides the “value” of your product
Any external user or buyer of your product. One who purchases or uses your firm's products or services.

Customer Satisfaction

The ability to understand and internalize customer behavior as to anticipate their future needs.
The customers’ feeling about the value that was received as a result of using a particular organization’s offering, in a specific use situation (Paraphrased from: Woodruff and Gardial).
The positive or negative evaluation or feeling that results from comparing the expectations the offering with the actual experience

Customer value

The overall benefit perceived in the solution ― at the price the customer is motivated to pay
The customer’s perception of the net benefits she will derive from your offering at a particular price, situation and use
The customer’s perception of what they want to have happen in a specific use situation, in order to accomplish a desired purpose or goal ― And with the help of a product and service offering (Paraphrased from (Woodruff and Gardial)

 

Customer Value Added Ratio

The ratio of WWPF (worth what paid for) for your products to WWPF for your competitors' products. A ratio above 100% indicates superior value compared to your competitor

Customer Value Drivers

The attributes related to the decision making process that are perceived by the customer to be the most important to the buying process (Jean-Claude Balland Ph. D.)
 

Customer-based Success

The extent to which a new product is accepted by customers and the trade. 

Customer-driven

The “urge” to grow a business culture committed to the relentless creation of superior value  for the customer.
Organization-wide generation of market intelligence about current and future customers
Active dissemination of intelligence across the enterprise
Consensual interpretation
Organization wide responsiveness to it (Paraphrased from: Kohli and Jaworski)
A set of values that put the customers’ interest first in order to develop a long-term profitable enterprise — while not excluding those of other stakeholders (Paraphrased from Narver and Slater)
The development of superior skills in understanding and satisfying current and future customers in order to achieve one’s business objectives

Data

Measurements taken at the source of a business process.

Database

An electronic gathering of information organized in some way to make it easy to search, uncover and manipulate.

Decline Stage

The fourth and last stage of the product life cycle. Entry into this stage is generally caused by technology advancements, consumer or user preference changes, global competitive on environmental or regulatory changes.

Deliverable

The completed end result or outcome of a series of tasks.

Delphi Processes

A technique which uses iterative rounds of consensus development across a group of experts to arrive at the most probable outcome for some future state. 

Derivative Product

A new product based on changes to an existing product that modifies, refines or improves some product features without affecting the basic product architecture or platform. 

Development Change Order (DCO)

A document used to implement changes during product development. It spells out the desired change, the reason for the change and the consequences to time to market, development cost and to the cost of producing the final product

Discounted Cash Flow Analysis

One method for providing an estimate of the current value of future incomes and expenses projected for a project.

Discrete Choice Experiment

A quantitative market research tool used to model and predict customer buying decisions.

Distribution

The method and partners used to get the product (or service) from where it is produced to where the end user can buy it.

Divergent Thinking

Technique performed early in the initial phase of idea generation which expands thinking processes to record and recall a high volume of new or interesting ideas.

Early Adopters

For new products, these are customers who, relying on their own intuition and vision, buy into new product concepts very early in the life cycle. For new processes, these are organizational entities which were willing to try out new processes rather than just maintaining the old.

Economic Value Added (EVA)

The value added to or subtracted from shareholder value during the life of a project.

Engineering Design

A function in the product creation process where a good is configured and specific form is decided. 

Engineering Model

The combination of hardware and software intended to demonstrate the simulated functioning of the intended product as currently designed. 

Enhanced Product

A form of derivative product. Enhanced products include additional features not previously found on the base platform which provide increased value to consumers.

Entrance Requirement

The documents) and reviews required before any phase of the development process can be started. 

Event

Marks the point in time when a task is completed. 

Event Map 

A chart showing important events in the future which is used to map out potential responses to probable or certain future events. 

Exit Requirement

The document's) and reviews required to complete a stage of the development process. 

Extrusion

A manufacturing process that utilizes a softened billet of material which is forced through a shape (or die) to allow for a continuous form much like spaghetti. 

Factory Cost

The cost of producing the product in the production location including materials, labor and overhead.

Failure Rate

The percentage of a firm's new products which make it to full market commercialization, but which fail to achieve the objectives set for them. 

Feasibility Activity

The set of product development tasks in which major unknowns are examined to produce knowledge about how to resolve or overcome them or to clarify the nature of any limitations. Sometimes called exploratory investigation.

Feature

The solution to a consumer need or problem. Features are the way benefits are provided to consumers. The handle feature allows a laptop computer to be carried easily. Usually any one of several different features may be chosen to meet a customer need. For example, a carrying case with shoulder straps is another feature which allows a laptop computer to be carried easily.

Field Testing

Product use testing with users from the target market.

Financial Success 

The extent to which a new product meets its profit, margin, and return on investment goals.

Firm-level Success

The aggregate impact of the firm's proficiency at developing and commercializing new products. Several different specific measures may be used to estimate performance. 

First-to-Market

The first product that creates a new product category or a substantial subdivision of a category. 

Flexible Gate

A permissive or permeable gate in a stage-gate process that is less rigid than the traditional "go-stop-recycle" gate. Flexible gates are useful in shortening time-to-market. A permissive gate is one where the next stage is authorized although some work in the almost-completed stage has not yet been finished. A permeable gate is one where some work in a subsequent stage is authorized before a substantial amount of work in the prior stage is completed. 

Focus Groups

A qualitative market research technique where 8 to 12 market participants are gathered in one room for a discussion under the leadership of a trained moderator. Discussion focuses on a consumer problem, product or potential solution to a problem. The results of these discussions are not projectable to the general market.

Framework

Is a system of interconnected tools, methods, approach, and philosophy that when embraced and used consistently provide an envelope of performance to achieve an end-result.  The framework provides the background or context to enable the achievement of results
 

Functional Elements

The individual operations that a product performs. These elements are often used to describe a product schematically. 

Functional Pipeline Management

Optimizing the flow of projects through all functional areas in the context of the company's priorities. 

Functional Schematic

A schematic drawing that is made up of all of the functional elements in a product. It shows the product's functions as well as how material, energy and signal flows through the product.

Functional Testing

Testing either an element of or the complete product to determine whether it will function as planned and as actually used when sold.

Fuzzy Front End

The messy "getting started" period of product development processes following the formation of a germ of an idea, but before a firm begins development.
The beginning of a program where much is not  known, and a high level of confusion exists.  All program and projects have this phase, it is a natural occurrence.
It is also the best opportunity to influence the long term success of the program
Initially, this term was defined as the period of time where the development of a new technology was not clear (fuzzy).  The meaning has been extended to include the start of a product development project where much confusion exists, i.e. more questions than answers. 

Gantt Chart

A horizontal bar chart used in project scheduling that shows the start date, end dates and duration of tasks within the project. Sometimes used in conjunction with a network diagram. 

Gap Analysis

The difference between projected outcomes and desired outcomes. In product development, the gap is frequently measured as the difference between expected and desired revenues or profits from currently-planned new products if the corporation is to meet its objectives. 

Garage Bill Scheduling

A scheduling tool that details every task, no matter how small, that must be completed to achieve a deliverable. 

Gate

The decision point, often a meeting, at which a management decision is made to allow the product development project to proceed to the next stage, to recycle back into the current stage to better complete some of the tasks, or to terminate. The number of gates varies by company.

Gatekeepers

The group of managers who serve as advisors, decision-makers and resource allocators in a stage-gate process. They use established criteria to review product development projects at each gate. This multifunctional group is generally most visible at these gate meetings. 

Goal

A general direction of achievement — Not measurable, but felt
 

Gross Rating Points (GRP's)

A measure of the overall advertising exposure of consumer households.

Growth Stage

The second stage of the product life cycle. This stage is marked by a rapid surge in sales, market acceptance and overall opportunity for the good or service. 

High Performance Team

A small number of people with complementary skills, who are committed to a common purpose, performance goals and approach for which they hold themselves mutually accountable — and are deeply committed to one another’s personal growth and success
 

Hurdel Rate

The minimum return on investment or internal rate of return percentage a new product must meet or exceed as it goes through development. 

Idea Exchange

A divergent thinking technique that provides a structure for building on different ideas in a quiet, non-judgmental setting that encourages reflection

Idea Generation

All of those activities and processes that lead to creating new product or service ideas that may warrant development. 

Idea Merit Index

An internal metric used to impartially rank new product ideas. 

Implementation Team

A team which converts the concepts and good intentions of the "should-be" process into practical reality. 

Incremental Improvement

A small change made to an existing product that serves to keep the product fresh in the eyes of customers. 

Industrial Design (ID)

. The professional service of creating and developing concepts and specifications that optimize the function, value, and appearance of products and systems for the mutual benefit of both user and manufacturer [Industrial Design Society of America]. 

Information

Knowledge and insight, often gained by examining data. 

Initial Screening

The first decision to spend resources (time or money) on a project. The project is born at this point. Sometimes called "idea screening." 

Injection Molding

A process that utilizes melted plastics injected into steel or aluminum molds which ultimately result in finished production parts. 

Innovation

In a for-profit business, is the ability to deliver new value to a customer A new idea, method or device. The act of creating a new product or process. The act includes invention as well as the work required to bring an idea or concept into final form. 

Innovation Engine

The creative activity and people that actually think of new ideas. It represents the synthesis phase when someone first recognizes that customer and market opportunities can be translated into new product ideas. 

Innovative Problem Solving

Methods that combine rigorous problem definition, pattern-breaking generation of ideas, and action planning which results in new, unique, and unexpected solutions. 

Integral Architecture

A product architecture in which most or all of the functional elements map into a single or very small number of chunks. It is difficult to subdivide an integrally-designed product into partially-functioning components. 

Internal Rate of Return (IRR)

The discount rate at which the present value of the future cash flows of an investment equals the cost of the investment. The discount rate with a net present value of 0. 

Introduction Stage

The first stage of a product's commercial launch and the product life cycle. This stage is generally seen as the point of market entry, user trial, and product adoption.

ISO-9000

A set of 5 auditable standards of the International Standards Organization that establishes the role of a quality system in a company and which is used to assess whether the company can be certified as compliant to the standards. ISO-9001 deals specifically with new products. 

Launch

The process by which a new product is introduced into the market for initial sale. 

Lead Users

Users for whom finding a solution to one of their consumer needs is so important that they have modified a current product or invented a new product to solve the need themselves because they have not found a supplier who can solve it for them. When these consumers' needs are portents of needs that the center of the market will have in the future, their solutions are new product opportunities.

Line Extension

A form of derivative product that adds or modifies features without significantly changing the price. 

Long-term Success

The new product's performance in the long run or at some large fraction of the product's life cycle.

M Curve

An illustration of the volume of ideas generated over a given amount of time. The illustration often looks like two arches from the letter M. 

Maintenance Activity

That set of product development tasks aimed at solving initial market and user problems with the new product or service. 

Manufacturability

The extent to which a new product can be easily and effectively manufactured at minimum cost and with maximum reliability

Manufacturing Assembly Procedure

Procedural documents normally prepared by manufacturing personnel that describe how a component, subassembly or system will be put together to create a final product.

Manufacturing Design

The process of determining the manufacturing process that will be used to make a new product. 

Manufacturing Test Specification and Procedure

Documents prepared by development and manufacturing personnel that describe the performance specifications of a component, subassembly or system that will be met during the manufacturing process, and that describe the procedure by which the specification will be assessed

Market

A group of "self-referencing" customers.

Market Conditions

The characteristics of the market into which a new product will be placed, including the number of competing products, level of competitiveness, and growth rate.

Market Development

Taking current products to new consumers or users. This effort may involve making some product modifications.

Market Segmentation

The act of dividing an overall market into groups of consumers with similar needs, where each of the groups differs from others in the market in some way. 

Market sensing

Beyond understanding customer needs, the act of sensing the market involves the deep understanding of the forces acting on a market to enable the development of a vision of the future.  Sensing the market is generally the responsibility of the Senior staff, and involves deep participation in the affairs of a market place

Market Share

A company's sales in a product area as a percent of the total market sales in that area. 

Market Testing

The product development stage when the new product and its marketing plan are tested together. A market test simulates the eventual marketing mix and takes many different forms, only one of which bears the name test market.

Market-driven

A commitment to serve the needs of a market.
Allowing the marketplace to direct a firm's product innovation efforts.   

Mating Part

A general reference to one of two parts which join together. 

Matrix Converger

A convergent thinking tool that uses a matrix to help synthesize data into key concepts with numbered ratings. 

Maturity Stage

The third stage of the product life cycle. This is the stage where sales begin to level due to heavy competition, alternative product options or changing buyer or user preferences. 

Metrics

A standard of measurement. Metrics will directly measure our progress toward achieving the organization mission and group’s objectives.
A prescribed set of measurements to track product development and allow a firm to measure the impact of process improvements over time. These measures generally vary by firm, but may include measures characterizing both aspects of the process, such as time to market, and duration of particular process stages, as well as outcomes from product development such as the number of products commercialized per year and percentage of sales due to new products. 

Mission

The specific task in which our entire group is engaged — It describes what we do, for whom we do it and the reason we do it

Modular Architecture

A product architecture in which each functional element maps into its own physical chunk. Different chunks perform different functions. 

Monitoring Frequency

The frequency with which performance indicators are measured. 

Multifunctional Team

A group of individuals brought together from more than one functional area of a business to work on a problem or process which requires the knowledge, training and capabilities across the areas to successfully complete the work.

Needs Statement

Summary of consumer needs and wants, described in customer terms, to be addressed by a new product. 

Net Present Value (NPV)

Method used in comparably evaluating investments in very dissimilar projects by discounting the current and projected future cash inflows and outflows back to the present value based on the discount rate, or cost of capital, of the firm. 

Network Diagram

A graphical diagram with boxes connected by lines that shows the sequence of development activities and the interrelationship of each task with another. Often used in conjunction with a Gantt chart. 

New Product

A term of many opinions and practices, but most generally defined as a product (either a good or service) new to the firm marketing it. Excludes products that are only changed in promotion. 

New Product Idea

A preliminary plan or purpose of action for formulating new products or services. 

Nominal Group Process

A process which allows members of a group to participate in group discussion in writing instead of verbally. 

Non-Product Advantage

Elements of the marketing mix which create competitive advantage other than the product itself. These elements can include marketing communications, distribution, company reputation, technical support and associated services. 

Objective

A particular, definable and measurable end-result

Offering

A set of products, services and intangibles offered to satisfy particular customer problem
 

Operations

A term that includes manufacturing but is much broader, usually including procurement, physical distribution and for services, management of the offices or other areas where the services are provided. 

Operator's Manual

The written instructions to the users of a product or process. These may be intended for the ultimate customer or for the use of the manufacturing operation. 

Outcome

The measurable outputs of an action, project or program.  The measurement of the actual results
 

Pareto Chart

A bar graph with the bars sorted in descending order used to identify the largest opportunity for improvement. Pareto charts distinguish the "vital few" from the "useful many." 

Payback

The time, usually in years, from some point in the development process until the commercialized product or service has recovered its costs of development and marketing. While some firms take the point of full-scale market introduction of a new product as the starting point, others begin the clock at the start of development expense. 

Perceptual Mapping

A quantitative market research tool used to understand how customers think of current and future products. 

Performance Indicators

Criteria with which the performance of a new product in the market can be evaluated. 

Performance Measurement System

The system which enables the firm to monitor the relevant performance indicators of new products in the appropriate time frame. 

Phase Review Process See

Relay Race" process.

Physical Elements

The components that make up a product. These can be both components (or individual parts) in addition to minor subassemblies of components. 

Pilot Gate Meeting

A trial, informal gate meeting usually held at the launch of a stage-gate process to test the design of the process and familiarize participants with the stage-gate process. 

Pipeline Alignment

The balancing of project demand with resource supply. 

Pipeline Inventory

Production of a new product which have not yet been sold to end consumers, but which exist within the distribution chain. 

Pipeline Management

A process that integrates product strategy, project management, and functional management to continually optimize the cross-project management of all development-related activities. 

Pipeline Management Enabling Tools

The decision-assistance and data-handling tools which aid managing the pipeline. The decision-assistance tools allow the pipeline team to systematically perform trade-offs without losing sight of priorities. The data-handling tools deal with the vast amount of information needed to analyze project priorities, understand resource and skill set loads, and perform pipeline analysis. 

Pipeline Management t Process

Consists of three elements; pipeline management teams, a structured methodology and enabling tools. 

Pipeline Management Teams

The teams of people at the strategic, project and functional levels responsible for resolving pipeline issues. 

Plan

A detailed formulation of a program of action
A written sets of tasks, schedules and resources with defined end-dates — and an assessment of any barriers which might put the schedule at risk

 

Platform Product

The design and components which are shared by a set of products in a product family. From this platform, numerous derivative products can be designed. 

Policy

In a for profit business is a defined course or method of action to guide and determine the present and future decisions
Policies should be "inviolate"
Generally, policies in the context of government refers to strategies

Portfolio Criteria

The set of criteria against which the business judges proposed product development projects to create a balanced and diverse mix of ongoing efforts.

Portfolio Management

A business process by which a business unit decides on the mix of active projects, staffing and dollar budget allocated to each project. See also pipeline management. 

Preliminary Bill of Materials (PBOM)

A forecasted listing of all the subassemblies, intermediate parts, raw materials, and engineering design, tool design and customer inputs that are expected to go into a parent assembly showing the quantity of each required to make an assembly. 

Pre-Production Unit

A product that looks like and acts like the intended final product, but is made either by hand or in pilot facilities rather than by the final production process. 

Procedure

A written series of value-added steps followed in a regular manner to accomplish a specific task in reproducible manner.  Very similar to the definition of a process
 

Process Champion

The person responsible for the daily promotion of and encouragement to use the process throughout the organization. They are also responsible for the ongoing training, innovation input and continuous improvement of the process. 

Process Managers

The operational managers responsible for insuring the orderly and timely flow of ideas and projects through the process. 

Process Map

A documented, sequential set of activities that if properly executed provide a product to a customer, in some organizations the term customer applies to internal as well as external customers.
A workflow diagram which uses an x-axis for process time and y-axis which shows participants and tasks.

Process Mapping

The act of developing a process map, generally performed by a team with the help of a facilitator. 

Process Owner

The executive manager responsible for the strategic results of the process. This includes process throughput, quality of output and participation within the organization.

Process Re-engineering

A discipline to measure and modify organizational effectiveness by documenting, analyzing, and comparing an existing process to "best-in-class" practice, and then implementing process improvements or installing a whole new process. 

Product

Term used to describe all goods and services sold. Products are bundles of attributes (features, functions, benefits and uses) and can be either tangible as in the case of physical goods, or intangibles such as those associated with service benefits or a combination of the two. 

Product and Process Performance Success

The extent to which a new product meets its technical performance and product development process performance criteria.

Product Architecture

The way in which the functional elements are assigned to the physical chunks of a product and the way in which those physical chunks interact. 

Product benefit

The anticipated positive outcomes or results that an offering promises a customer.  A compelling description of how your product will solve a customer's problem
 

Product Definition

Defines the product, including the target market, product concept, benefits to be delivered, positioning strategy, prices point, and even product requirements and design specifications. 

Product Development

The overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product. 

Product Development & Management Association (PDMA)

A not-for-profit professional organization whose purpose is to seek out, develop, organize and disseminate leading edge information on the theory and practice of product development and product development processes. The PDMA uses local, national, and international meetings and conferences, educational workshops, a quarterly newsletter (Visions), a bi-monthly scholarly journal (Journal of Product Innovation Management), research proposal and dissertation proposal competitions, and this handbook to achieve its purposes. 

Product Development Check List

A pre-determined list of activities and disciplines responsible for completing those activities used as a guideline to ensure that all the tasks of product development are considered prior commercialization. 

Product Development Portfolio

The collection of new product concepts that are within the firm's ability to develop, are most attractive to the firm's customers and deliver short- and long-term corporate objectives, spreading risk and diversifying investments. 

Product Development Process

A disciplined and defined set of tasks and steps which describe the normal means by which a company repetitively converts embryonic ideas into salable products or services. 

Product Development Strategy

The strategy that guides the product innovation program.

Product Development Team

A multifunctional group of individuals chartered to plan and execute a new product development project. 

Product Discontinuation

A product or service which is withdrawn or removed from the market because it no longer provides an economic, strategic or competitive advantage to include it in the firm's portfolio of offerings. 

Product Discontinuation Timeline

The process and timeframe in which a product is carefully withdrawn from the marketplace. The product may be discontinued immediately after the decision is made, or it may take a year or more to implement the discontinuation timeline, depending on the nature and conditions of the market and product. 

Product Failure

A product development project that does not meet the objective of its developers. 

Product Family

The set of products which have been derived from a common product platform. Members of a product family normally have many common parts and assemblies. 

Product Interfaces

Internal and external interfaces impacting the product development effort, including the nature of the interface, action required, and timing. 

Product Life Cycle

The four stages that a new product is thought to go through from birth to death introduction, growth, maturity and decline. Controversy surrounds whether products go through this cycle in any predictable way. 

Product Line

A group of products marketed by an organization to one general market. The products have some characteristics, customers and uses in common and may also share technologies, distribution channels, prices, services and other elements of the marketing mix. 

Product Manager

The person assigned responsibility for overseeing all of the various activities that concern a particular product. Sometimes called a brand manager in consumer packaged goods firms. 

Product Plan

Detailed summary of all the key elements involved in a new product development effort such as product description, schedule, resources, financial estimations and interface management plan. 

Product Platforms

Underlying structures or basic architectures which are common across a group of products or which will be the basis of a series of products commercialized over a number of years. 

Product Rejuvenation

The process by which a mature or declining product is altered, updated, repackaged or redesigned to lengthen the product life cycle and in turn extend sales demand. 

Product Requirements Document

The contract between, at a minimum, marketing and development describing completely and unambiguously the necessary attributes of the product to be developed. 

Product Superiority

A product differentiated from those offered by competitors by offering consumers benefits and value for money above what other products offer. This is one of the critical success factors in commercializing new products. 

Program Management

Is the management of multiple projects connected to a shared business objective (M. Thiry).

The business function that assures the clean execution of corporate strategies (Campos and Milosevic).
 

The coordinated management of interdependent projects over a finite period of time to achieve a set of business goals (Milosevic, Russell and Waddell)
 

Program Manager

A person with the skills, knowledge and abilities to lead a cross functional team in the development of a product with a successful outcome such as profit, time to market, Etc.
 

Project

A temporary endeavor undertaken to create a unique product, service or result.

Project Management

The application of knowledge, skills, tools and techniques to project activities in order to meet project requirements (PMI). 
Both a process and set of tools and techniques concerned with defining the project's goal, planning all the work to reach the goal, leading the project and support teams, monitoring progress, and seeing to it that the project is completed in a satisfactory way. 

Project Pipeline Management

Fine-tuning resource deployment smoothly for projects during ramp up, ramp down, and mid-course adjustments. 

Project Sponsor

The authorization and funding source of the project. The person who defines the project goals and to whom the final results are presented. Typically a senior manager. 

Protocol

A statement of the attributes (mainly benefits, features only when required) that a new product is expected to have. A protocol is prepared prior to assigning the project to the technical development team. The benefits statement is agreed to by all parties involved in the project.
An agreement or covenant agreed by the team to perform certain activities within the project, for example, a decision making protocol or a communication protocol

Prototype

A physical model of the new product concept. Depending upon the purpose, prototypes may be non-working, functionally working or both functionally and aesthetically complete. 

Psychographics

Characteristics of consumers which, rather than purely demographic, measure their attitudes, interests, opinions, and lifestyles

Q-Sorts

A process for sorting and ranking complex issues. 

Qualitative Market Research

Consumer research conducted with a very small number of consumers, either in groups or individually. Results are not representative of consumers in general or projectable. Frequently used to gather initial consumer needs and obtain initial reactions to ideas and concepts. 

Quality

The relentless pursuit for total customer satisfaction; in short, Quality is whatever your customer says it is.  
Quality is not the same as a quality standard.

Quality Control Specification and Procedure 

Documents that describe the specifications and the procedures by which they will be measured which a finished subassembly or system must meet before judged ready for shipment. 

Quality Function Deployment (QFD)

A structured method employing matrix analysis for linking what the market requires to how it will be accomplished in the development effort. This method is most valuable during the stage of development when a multifunctional team agrees on how customer needs relate to product specifications and features which deliver those By explicitly linking these aspects of product design, QFD limits the chance of omitting important design characteristics or interactions across design characteristics. QFD is also an important mechanism in promoting multifunctional teamwork. 

Quality-by-Design

The process used to design quality into the product, service or process from the inception of product development. 

Quantitative Market Research

Consumer research, often surveys, conducted with a large enough sample of consumers to produce statistically reliable results which can be used to project outcomes to the general consumer population. Used to determine importance levels of different customer needs, performance ratings of and satisfaction with current products, probability of trial, repurchase rate, and product preferences. These techniques are used to reduce the uncertainty associated with many other aspects associated with product development. 

Rapid Prototyping

Any of a variety of processes which avoids tooling time in producing prototypes or prototype parts and therefore allows (generally non-functioning) prototypes to be produced within hours or days rather than weeks. These prototypes are frequently used to test quickly the product product's technical feasibility or consumer interest. 

Realization Gap

The time between first perception of a need and the launch of a product that fills that need.

Relay Race Process

A staged product development process in which first one function completes a set of tasks, then passes the information they generated sequentially to another function which in turn completes the next set of tasks and then passes everything along to the next function. Multifunctional teamwork is largely absent in these types of product development processes, which may also be called phase review or baton-passing processes. 

Render

Process that industrial designers use to visualize their ideas by putting their thoughts on paper with any number of combinations of color markers, pencils and highlighters. 

Reposition

To change the product positioning, either on failure of the original positioning or to react to changes in the marketplace. Most frequently accomplished solely through changing the marketing mix. 

Resource Matrix

An array that shows the percentage of each non-managerial person's time that is to be devoted to each of the current projects in the firm's portfolio.

Resource Plan

Detailed summary of all forms of resources required to complete product development, including personnel, equipment, time and finances. 

Responsibility Matrix

This matrix indicates the specific involvement of each functional department in each task or activity in each stage. 

Return on Ideas

Reflects the potential value of an idea. 

Return on Investment (ROI)

A standard measure of project profitability, this is the discounted profits over the life of the project expressed as a percentage of initial investment. 

Rigid Gate

A review point in a stage-gate process at which all the prior stage's work and deliverables must be complete before the next stage can commence. 

Rugby Process

A product development process in which stages are partially or heavily overlapped rather than sequential with crisp demarcations between one stage and its successor. 

Scanner Test Markets

Special test markets which provide supermarket scanner data from panels of consumers to help assess the product's performance. 

Senior Management

That level of executive or operational management above the product development team which has approval authority or controls resources important to the development effort.

Services

Products, such as an airline flight or insurance policy, that are intangible or at least substantially so. If totally intangible, they are exchanged directly from producer to user, cannot be transported or stored and are instantly perishable. Service delivery usually involves customer participation in some important way, cannot be sold in the sense of ownership transfer, and have no title. 

Short-term Success

The new product's performance shortly after launch, well within the first year of commercial sales. 

Should-Be Map

A version of a process map depicting how a process will work in the future. A revised "as-is" process map. The result of the team's re-engineering work. 

Simulated Test Market

A form of quantitative market research and pre-test marketing in which consumers are exposed to new products and to their claims in a staged advertising and purchase situation. Output of the test is an early forecast of expected sales or market share, based on mathematical forecasting models, management assumptions, and input of specific measurements from the simulation. 

Situation analysis

Current “snap shot” of the situation confronting the team or project
Those facts and assumptions that can influence, positively or negatively, the outcome of your project.  These facts should be limited to fewer than seven.  They should capture key “influencers” of high relevance to your program or project.  

Slip Rate

Measures the accuracy of the planned project schedule according to the formula
Slip Rate = [(actual schedule/planned schedule) -1] * 100%.

Specification

A detailed description of the features and performance characteristics of a product. For example, a laptop computer's specification may read as a 90 megahertz Pentium, with 16 megabytes of ram and 720 megabytes of hard disk space, 3.5 hours of battery life, weighing 4.5 pounds, with an active matrix 256 color screen. 

Sponsor

An informal role in the product development project, usually a higher-ranking person in the firm who is not personally involved in the project (compared to the champion) but ready to extend a helping hand if needed, or provide a barrier to interference by others. 

Stage

One group of concurrently-accomplished tasks, with specified outcomes and deliverables, of the overall product development process. 

Staged Product Development Activity

The set of product development tasks commencing when it is believed there are no major unknowns and that result in initial production of salable product, carried out in stages. 

Stage-Gate Process

A widely-employed product development process form managing product development that divides the effort into distinct time-sequenced stages separated by management decision gates. Multifunctional teams must successfully complete a prescribed set of related cross-functional tasks in each stage prior to obtaining management approval to proceed to the next stage of product development. The framework of the stage-gate process includes work-flow and decision-flow paths and defines the supporting systems and practices necessary to ensure the process's ongoing smooth operation. 

Standard Cost

See factory cost. 

Stop Light Voting

A convergent thinking technique by which participants vote their idea preferences using colored adhesive dots.

Strategic alignment

Is the endeavor to align all stakeholders on a single strategic direction such that their day-to-day activities fully support the end-point.  This is different from strategy formulation or strategizing which is the process of synthesizing and articulating a particular strategy.

Strategic Balance

Balancing the portfolio of development projects along many dimensions such as focus versus diversification, short versus long term, high versus low risk, extending platforms versus development of new platforms. 

Strategic Initiative

is a program that, when completed, will deliver visible results in clear support of an overall strategy.  It is defined to clearly move the organization towards the achievement of the corporate or group strategic direction.
Generally, it is assigned to a small team who is given a clear charter, including deliverables, and metrics.
Periodic reviews are included to ensure progress and accountability
Strategic initiatives are fulfilled through programs and projects
 

Strategic New Product Development (SNPD)

The process which ties new product strategy to new product portfolio planning.

Strategic Pipeline Management

Focuses on achieving strategic balance, which entails setting priorities among the numerous opportunities and adjusting the organization's skill sets to deliver products. 

Strategy

The approach we chose to achieve a set of business objectives
The “approach” which guides the choices that determine the behavior and direction of an organization, which will achieve the business objectives of the company
A set of behaviors that will ensure the achievement of our mission, vision and objectives
 In broad terms, Strategy is a set of behaviors that will ensure the achievement of the mission, vision and business objectives of the company.
Specifically, It is the vision of the company with a set of Strategic Initiatives which are made up of programs, and projects that, when implemented will fulfill the vision of the company.  It is; therefore, the ability to connect everyone’s day-to-day activities to the vision of the company.

Subassembly

A collection of components that can be put together as a single assembly to be inserted into a larger assembly or final product. Often the subassembly is tested for its ability to meet some set of explicit specifications before inclusion in the larger product. 

Success Dimensions

Product development success has four dimensions. At the project level, there are three dimensions financial, customer-based and product and process performance. The fourth dimension of product development success is measured at the firm level. 

Support Service

Any organizational function whose primary purpose is not product development, but whose input is necessary to the successful completion of product development projects. 

System Hierarchy Diagram

The diagram used to represent product architectures. This diagram illustrates how the product is broken into its chunks. 

Systems and Practices

Established methods, procedures and activities that either drive or hinder product development. These may relate to the firm's day-to-day business or may be specific to product development. 

Systems and Practices Team

Senior managers representing all functions who work together to identify and change those systems and practices hindering product development and who establish new tools, systems and practices for improving product development.

Target Market

The group of consumers or potential customers selected for marketing. A market segment of consumers. 

Task

The smallest describable unit of accomplishment in completing a deliverable.

Team

That group of persons who participate or manage the participation in the product development project. Frequently each team member represents a function, department, or specialty, and together they provide the full set of capabilities needed to complete the project, in which case they are referred to as a multifunctional team. 

Team Leader

The person leading the new product team. Responsible for ensuring that milestones and deliverables are achieved, even though they may not have any authority over project participants. 

Technology-Driven

A new product or new product strategy based on the strength of a technical capability. Sometimes called "solutions in search of problems." 

Test Markets

The launching of a new product into one or more limited geographic regions in a very controlled manner, and measuring consumer response to the product and its launch. When multiple geographies are used in the test, different advertising or pricing policies may be tested and the results compared. 

Think Links

Stimuli used in divergent thinking to help participants make new connections using seemingly unrelated concepts from a list of people, places or things.