Abstract
This report presents the results of the 1998 Global New Product Development Survey, carried-out by the Warwick Manufacturing Group at the University of Warwick (UK). The survey is based on a questionnaire addressed to 637 firms with turnover greater than £ 30 million ($ 45 million), operating in the UK across key industrial sectors and engaged in New Product Development (NPD). Response rate was of 8%.
Global NPD practices include product standardization, the strategy used to allocate NPD centers (related to business units and geographically), the level of centralization of tasks, the level of NPD outsourcing, the use of external collaboration and the use of Information Technology (IT) applications to support the NPD process. It was found that firms with products designed for global markets have about an 8 times greater potential to export than those firms who only standardize core components. Firms that collaborate more with external entities implement universal products more easily. Based on the “pretax profit in the last four years of business activity”, the respondent firms with losses have an average of 7 business sectors, whereas the top ten profitable firms have an average of only 4 business sectors, this relationship also applies to NPD activities. It was found that firms manage the collaborative ventures through either team members or team leaders and that top management involvement is only on a small scale. IT communication tools (e-mail and video-conferencing), followed by administration tools (project-planning and presentation software) are the main priorities in firms with widely distributed teams.