The Drivers and Implications of Fast Track New Product Development

Abstract

More and more today, companies are striving to shorten product development cycles. While we know that some companies are faster at development cycles than others, we know very little about how a given company can change and expedite their new product development (NPD) efforts. This research explores the notion of Fast Track NPD, defined as the shortening of product development cycles relative to past organizational norms. This work addresses several questions, including: What are the factors influencing new product development speed?, Are there different general approaches to expediting NPD?, and What are the consequences of this fast-tracking for innovation and firm performance? Based on depth interviews with product development managers across multiple consumer goods sectors, this study uses a grounded theory-building approach to develop a 2 x 2 typology and a conceptual model that aids in explaining the drivers and consequences of these Fast Track development efforts. The results highlight four general approaches to Fast Track NPD (crisis, change, revolution, and evolution) which are determined based on the motivation for change and the magnitude of change. As the model explores, the proper choice of these methods is influenced by both internal and external drivers: competitive pressures, changing regulations, cost/differentiation goals, and technology/scientific advances. The consequences of Fast Tacking are explored in terms of product outcomes: innovation and overall firm performance. Several interesting empirical relationships are explored in this work, including the notion that various approaches to fast-tracking can significantly influence the nature of the firm's performance and how certain forms of fast-tracking are more conducive to radical innovation. This research will propose empirical efforts to test the typology and conceptual model, including design, methods, and procedures for planned data collection and analysis. Implications for NPD managers as for future research in this area are discussed.