|PDMA BoK, Second Edition|
PDMA Body of Knowledge, 2nd Edition
PDMA is excited to announce the release of a fully-revised second edition of the popular PDMA Body of Knowledge (BOK) — A Guidebook for Training and Certification. This book is for all product managers to enhance knowledge and skills and particularly for those preparing for the New Product Development Professional (NPDP) certification exam.
In-depth chapters include the following:
The chapter on strategy covers various types of strategy from corporate, through business and functional strategies. An emphasis is placed on the innovation strategy, particularly as it sets out the framework, and provides direction, for product innovation. The benefits and limitations of specific innovation strategic frameworks are discussed. The role of supporting strategies from technology, marketing, platforms, intellectual property, and capability are presented, both as being directed by higher level business strategy and in their mutual contribution to the overall business strategy.
The portfolio management chapter relates strategy to project selection. A product portfolio is defined as the set of current and potential new products that can form the basis for a program of product innovation including product improvement, cost reductions, line extension, and new-to-the-company products. Methods for project selection are presented, both as a means of assessing project potential and of achieving strategic alignment with regard to individual project prioritization and balance across specific categories of product innovation. Portfolio management is presented as a cross-functional activity that encompasses the development of new products through to launch, and the ongoing review of existing products to ensure optimal alignment with strategy and resource availability.
Product Innovation Process
Rapid changes in technology, communication, and market demands have placed considerable pressure on companies to become more effective and efficient in their product innovation. Greater understanding of the success factors for new product innovation has resulted in the application of a range of new product processes to specific contexts. This chapter outlines many of these processes — including Stage-Gate®, Concurrent Engineering, Integrated Product Innovation, Lean, Agile, and Lean Startup. The benefits and limitations of each process are discussed and specific contexts for application are recommended. Although not specifically included in this chapter, reference is made to the tools and metrics that are required to underpin a successful new products process.
Product Design & Development Tools
A wide range of tools is required at all levels of product innovation — strategy formation, portfolio management, new product process, design, life cycle management, etc. Some of these tools are applicable across a range of industries and products, while others are more specific in their application. In this chapter, we focus on descriptions of a range of generic product design and development tools applied to ideation, concept development, embodiment, fabrication and assembly, sustainability, service, and post-service. Specific tools for strategy development, portfolio management, market research, and innovation management are included in their respective chapters. The discussion of the various tools is intended to provide their potential application and value to product innovation and product management. It is not possible to provide detailed explanations on how to apply the various tools. Direction is provided to further reference sources for those who seek a more in-depth understanding.
Market Research in Product Innovation
Market research is required to provide market-related information and data to underpin decision-making in all aspects of strategy development, portfolio management, the new products process, and life cycle management. Certain market research techniques are more appropriate for specific purposes; for example, exploratory customer needs analysis, product concept testing, and product sales potential. The application of market research extends across the full cycle of product innovation, from initial idea generation to final product launch and post-launch reviews. This chapter covers a range of market research tools including secondary research, qualitative vs. quantitative, focus groups, customer site visits, ethnography, consumer panels, social media, big data, crowdsourcing, alpha and beta testing, and market testing. The benefits and limitations of each tool are discussed together with their potential application at various stages of the new product process. Specific emphasis is placed on the accuracy and reliability of the various tools, and in turn, their value in decision making at various stages of product innovation.
Culture, Teams, & Leadership
It is widely recognized that new product innovation cannot be successful through good processes alone. Success is dependent on people, on the culture of the company, and the environment that is created to foster innovation. This chapter outlines the characteristics of an innovative culture. It also focuses on the requirements for a high-performing team and of team structures to support cross-functional teams in an innovative environment and in different project contexts. Management roles and responsibilities at various levels and within different stages of product innovation are also discussed.
Product Innovation Management
This chapter is divided into three parts. The first part addresses the role of product innovation management. The second part focuses on the product life cycle and how product innovation is managed through this life cycle. It outlines the stages of the product life cycle — introduction, growth, maturity, and decline — and discusses product management and product innovation strategies for each stage. Significant emphasis is placed on a discussion of the introduction stage of the life cycle, with reference to case study examples. The third part describes some of the key tools for managing product innovation including feasibility analysis, sales and demand analysis, financial analysis, and project management. It also presents performance metrics as a basis for continuous improvement in product innovation.