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THE PDMA HANDBOOK
OF INNOVATION
AND NEW PRODUCT
DEVELOPMENT
THE PDMA HANDBOOK
OF INNOVATION
AND NEW PRODUCT
DEVELOPMENT
Fourth Edition
Edited by
Ludwig Bstieler
Charles H. Noble
Copyright © 2023 by John Wiley & Sons, Inc. All rights reserved.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any
means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under
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Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750–8400, fax (978) 750–4470, or on the web at www.
copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department,
John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748–6011, fax (201) 748–6008, or online at
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The advice and strategies contained herein may not be suitable for your situation. You should consult with a
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Set in 10.5/13pt ITCNewBaskervilleStd by Integra Software Services Pvt. Ltd, Pondicherry, India
CONTENTS
Introduction ix
1 New Products: What Separates the Winners from the Losers and What
Drives Success 3
Robert G. Cooper
16 How to Leverage the Right Users at the Right Time Within User-Centric
Innovation Processes 315
Andrea Wöhrl, Sophia Korte, Michael Bartl, Volker Bilgram, and Alexander Brem
T hank you for purchasing this book. We are delighted and honored to bring
you the 4th edition of the PDMA Handbook of Innovation and New Product
Development. Our partners at the Product Development and Management
Association (PDMA) and John Wiley & Sons Publishing are as enthusiastic as we
are to see this almost completely new edition of a very popular and useful book
come to life.
The goal of this Handbook, as in prior editions, is to provide an introduc-
tion, a thought-provoking series of essays, and a practical guide for managers
and thought leaders working in new product development (NPD) and innova-
tion. Astute readers of our prior editions may notice that the title has slightly
changed in this 4th edition. We now appropriately highlight innovation as a key
focus of what we are to explore in addition to our continuing emphasis on new
product development.
Our deepest thanks go to the wonderful collection of authors who have con-
tributed to this book and to prior editions. In this collection, they share their
thoughtful insights and broad experiences to bring you a compilation that rep-
resents the state-of-the-art in the field. One of the unique features of this book
series has always been that our authors represent a balance of outstanding prac-
titioners and consultants, and leading-edge academic researchers. Thus, you
will find here both applied, first-hand insights from the field, and findings from
academics who have been studying innovation and new product development
ix
x Introduction
using the latest techniques. These diverse perspectives combine to bring you
knowledge that is powerful, practical, and thought-provoking.
This book is a collection of 32 chapters representing a host of different
voices. The style of the chapters presented here also varies greatly. Some chap-
ters are extremely hands-on and step-by-step, providing practical tools to apply
in your organization. Other chapters may present new concepts, ideas, and
approaches that are meant to stimulate your thinking and to help you find
creative ways to study or apply these thoughts in your workplace or in your
research.
The Handbook has been the most popular publication from the PDMA and
has proved indispensable for many practicing in the field. The chapters we
bring you in this edition revisit familiar topics with fresh approaches and insights
and will likely introduce you to entirely new concepts that take you to the leading
edge of this exciting world of new product development and innovation.
As with prior editions this Handbook is written for two very different groups of
readers. First, we hope to appeal to managers who have a strong interest in
increasing their knowledge of these important topics. This is not “NPD for
Dummies,” and our goal is not to instruct the absolute novice on every detail of
the day-to-day functioning of a new product development unit. We leave that to
other authors and their instructional books. Our primary target for the work
here is the manager who is moderately experienced in new product development
and is looking for pockets of exceptional knowledge that can ultimately lead to
superior performance in the workplace. Second, we also offer this book to aca-
demics researching NPD and innovation. These scholars should find the insights
from both practitioners and other researchers to be thought provoking stimuli
for future research efforts that, we hope, will lay the groundwork for the 5th
edition of this Handbook!
Our goal in organizing this book was to present something that provides the
reader with as much flexibility as possible, understanding that different readers
may look to this book with very different goals in mind. Some readers may
choose to read this cover to cover, and we commend them for that journey!
Others may choose to skim the contents, identifying those topics which pique
their interest most, while perhaps relegating others to a later time. We have
done several things to help the reader determine the best reading strategy. First,
we have organized these chapters into sections that provide a flow and a general
theme for the diverse writing that readers will find within. Also, if readers see
certain topics or concepts highlighted in the Table of Contents that pique their
Introduction xi
interest, the Glossary in the back of this book provides a basic understanding of
those ideas. The Glossary can also serve as an important reference for the active
product manager working in this field.
Section 1 of this handbook includes chapters that are both strategic and foun-
dational. Beginning with Bob Cooper, who many know as the father of the stage
gate concept, he brings fresh ideas that also lay the groundwork for what is to
come. The chapters in the first section cover big issues and important concepts
that any product manager needs to consider. Section 2 examines the new prod-
uct development process and essential tools and concepts such as perspectives
on portfolio management, managing the front end of innovation, gaining
insights from consumers, and other important issues. Section 3 considers topics
that have exploded since the last edition of this Handbook, focused on user par-
ticipation and value creation in the new product development process. We’re
excited to introduce work on open innovation, co-creation, crowdfunding, and
related ideas. In Section 4 we cover what we call transformative forces in new
product development and innovation. This section includes topics related to
digital transformations, artificial intelligence, and design thinking, all of which
are already shaping new product development and innovation in different ways.
Section 5 is also a new offering in this edition of the Handbook with a clear focus
on service innovation concepts, an area that any practicing manager knows has
grown increasingly critical in recent years. Finally, Section 6 on applications in
new product development includes key considerations, tools and techniques to
help managers excel in the practice of NPD and innovation.
The Appendix in this book provides a description and contact information
for the Product Development and Management Association (PDMA). This won-
derful organization is an essential knowledge resource and networking oppor-
tunity for any professional trying to excel in this field. As mentioned earlier, the
Glossary offered in this book should be quite helpful in understanding the
many and changing terms associated with this field.
In summary, the key sections in this Handbook are:
Section 1. Getting started with innovation and new product development.
Section 2. New product development process.
Section 3. User participation and value creation in new product development.
Section 4. Transformative forces of new product development and innovation.
Section 5. Service innovation.
Section 6. Applications in new product development.
Appendix: About the Product Development and Management Association (PDMA)
PDMA Glossary of New Product Development Terms
xii Introduction
Acknowledgments
As with all PDMA projects, this work is done for the good of the field and not for
the individuals involved. This is an all-volunteer project from the writing to the
editing, with many talented people donating numerous hours of effort to create
the resource that you have before you. We are particularly grateful that our
authors have found the time to make these contributions just as the business
world is emerging from the incredible challenges of the COVID pandemic and
the many time and resource drains associated with it. Responsibility for chapter
content lies with the author(s). The editors played a key role in managing the
review process plus shaping the overall direction of this collection. We encourage
readers to consider the many resources that PDMA has to offer to help in their
professional development. These can be found at www.pdma.org and include
the award-winning Journal of Product Innovation Management and various other
publications and online resources that the organization provides. Additional
information on the PDMA is presented in the Appendix. In particular, we would
like to thank the leadership of the PDMA including the former Chair, Mark
Adkins, and Executive Director Eric Ewald, for all that they have done to support
this project. Finally, we appreciate the support that our publisher, John Wiley &
Sons has provided. Their editorial team has provided excellent guidance and
suggestions throughout this process. We hope you find as much enjoyment in
reading this book as we did in working with our outstanding author teams and
curating this collection for you!
I can remember how she sighed when blew the stormy gale;
And how for days she stood to watch the long-expected sail;
Hers was a patient, silent grief; but fears and long delay,
And wakeful nights and anxious days, were wearing her away.
And when the gusty winds were loud, and autumn’s leaves were red,
I watched with heavy heart beside my mother’s dying bed;
Just when her voice was feeblest, the neighbors came to say,
The ship was hailed an hour before, and then was in the bay.
Alas! too late the ship returned, too late her life to save;
My father closed her dying eyes, and laid her in the grave.
He was a man of ardent hopes, who never knew dismay;
And, spite of grief, the winter-time wore cheerfully away.
He had crossed the equinoctial line, full seven times and more,
And, sailing northward, had been wrecked on icy Labrador.
He knew the Spice isles every one, where the clove and nutmeg grow,
And the aloe towers, a stately tree, with clustering bells of snow.
Oh! pleasant were the tales he told, of lands so strange and new;
And in my ignorance I vowed I’d be a sailor too:
My father heard my vow with joy,—so in the early May
We went on board a merchant-man, bound for Honduras’ bay.
There was joy for me in the nightly watch, on the burning tropic seas,
To mark the waves, like living fires, leap up to the freshning breeze.
Right merrily, right merrily, our gallant ship went free,
Until we neared the rocky shoals, within the western sea.
Yet, still none thought of danger near, till in the silent night,
The helmsman gave the dreadful word of “breakers to the right!”
The moment that his voice was heard, was felt the awful shock,
The ship sprang forward, with a bound, and struck upon a rock.
The moment that the wreck went down, my father seized me fast,
And leaping ’mid the thundering waves, seized on the broken mast.
I knew not how he bore me up, my senses seemed to swim,
A shuddering horror chilled my brain, and stiffened every limb.
What next I knew was how at morn, on a bleak and barren shore,
Out of a hundred mariners, were living only four.
I looked around like one who wakes from dreams of fierce alarm,
And round my body still I felt, firm locked, my father’s arm.
And with a rigid dying grasp, he closely held me fast,
Even as he held me when he seized, at midnight, on the mast.
With humble hearts and streaming eyes, down knelt the little band,
Praying Him, who had preserved their lives, to lend his guiding hand.
And day by day, though burning thirst and pining hunger came,
His mercy, through our misery, preserved each drooping frame:
And after months of weary wo, sickness, and travel sore,
He sent the blessed English ship that took us from that shore.
I.
The owl is a bird that flaps along
With a lonely loud halloo;
He has but one unceasing song,
To whit, to whit, to woo.
In dusky light he takes his flight,
The twilight dim is the time for him,
And when the midnight scowls,—
’Tis then he silently prowls,
And hunts the mice and moles.
II.
A lonely owl once built her nest
In the hole of a hollow tree,
And she with a fine young brood was blest
As ever owl could be.
She loved her young, and as they clung
Beneath her downy wing,
She o’er them oft, on a branch aloft,
As they reposed below,
Would shout and sing, while the woods would ring,
To whit, to whit, to woo.
III.
A boy came by that hollow tree,
With a fierce and wild halloo;
And this the birds, all startled heard,
And answered, to whit, to woo.
As the old bird shrieked, the young ones squeaked;
“Oh ho!” said the boy,
In a frantic joy,
“An owl is the bird for me,
And here are its young ones three.”
Then with eager look,
He that bird’s-nest took;
While plaintive and slow,
Rose a note of wo
From the owl in its hollow tree,
To whit, to whit, to woo.
IV.
That boy now took his victims home,
And put them in a cage;
And cooped up there,
In their despair,
They bit and scratched in rage;
They caught his fingers once or twice,
And made him scream with pain;
And then he vowed,
In curses loud,
That they should all be slain.
He tied them to a stake, and got
An iron pin, and made it hot,
To burn out their young eyes.
“Ha, ha!” said he, “you’ll not bite me,
You’ll not bite me again:”
Then in the sky
A wing flapped by
That seemed to stop his breath;
’Twas the old owl, with a heavy scowl,
Lamenting her young ones’ death—
To whit, to whit, to woo.
V.
That boy grew up—became a man,
A cruel man was he,
His heart had grown as hard as stone,
Which none but God could see.
One dreary night,
In the wan moonlight,
Beneath that hollow tree
He vengeful stood, to spill the blood
Of a hated enemy.
With a furious blow, he laid him low,
Then plunged his knife
To take his life,
Deep to its haft,
And wildly laughed,—
“You will not again plague me.”
But yet as he knelt
O’er that foe, he felt
A shudder that quailed all his blood’s full glow;
For oh, he heard,
On the tree that bird,
The same old owl, o’er that murder foul,
Cry, whit, to whit, to woo.
VI.
He fled—the owl’s reproaching cry
Still ringing in his ears;
But ah, ’twas in vain for the wretch to fly,
So loaded with guilt and fears.
He quick was caught,
And to justice brought,
And soon in prison lies.
And oh, while there,
In his deep despair,
In lonely tears and sighs,
He thought of the iron cage!
And he thought of the cruel rage!!
And the red-hot pin, that he once thrust in,
To burn out the young bird’s eyes.
Condemned to die—’twas his destiny
To die on that hollow tree,
And there as he hung,
And there as he swung
In the night-wind to and fro,
That vengeful bird
Was often heard,
When scarcely a breath the forest stirred,
In screamings high,
All the night to cry,
To whit, to whit, to woo.
To whit, to whit, to woo.
“My dear friend, that woman has been talking about you so
again! She has been telling the awfullest lies you ever heard; why,
she railed away about you for a whole hour!”
“And you heard it all, did you?”
“Yes.”
“Well, after this, just bear in mind that it takes two to make a
slander; one to tell it and one to listen to it.”
The Bison, or American Buffalo.
As there has lately been an exhibition of a number of bisons
through New England, and as no doubt many of our readers have
seen them, we think it will amuse them, particularly, to learn
something about the manners, habits and nature of these creatures.
We hope, too, that all others who may look into our pages, may find
it agreeable to read a description of such extraordinary animals.
The bison is very different from the European buffalo,—the latter
having very long, spreading horns. The buffalo is also a more fierce
and daring animal. Our bison is as large as the largest ox, and roams
in vast herds over the prairies of the west. Sometimes several
thousand are seen in a flock, and as they proceed, fighting, lowing,
leaping, and tearing the earth with their horns, the noise is terrific.
The earth at such a time seems to tremble as if shaken by an
earthquake. The bison is not now found east of the Mississippi,
though it probably inhabited in former times, the whole country to
the shores of the Atlantic. It bears considerable resemblance to the
German Aurochs. Its horns are short, and it has a prodigious hump
over the shoulders. The head, shoulders, and upper parts are
covered with long, brownish, woolly hair. The tail is tufted with
black.
These animals, while feeding, scatter themselves over the
country, but when moving, they form a dense column, which, once
in motion, is scarcely to be impeded. Their line of march is seldom
interrupted, even by considerable rivers, across which they swim,
without fear or hesitation, in the order in which they traverse the
plains. They constantly wander about, either from being disturbed
by the hunters, or in search of food. They are very fond of the soft
and tender grass, which springs up after a fire has spread over the
prairie. In winter they scrape away the snow, to reach the grass.
They are timid and fly from man, but when wounded, they become
desperate and dangerous. The Indians make incessant war upon
them for their flesh and skins. Their favorite method of attack, is to
ride up to the fattest of the herd on horseback, and shoot them.
Sometimes they drive them over precipices, by which they are killed.
They also take them in enclosures made of sticks, about a hundred
yards in diameter. The herds are attended by packs of wolves, ready
to fall upon the sick and wounded. Travellers describe the noise
made by the bellowing, the trampling, and galloping of a large herd
of bisons, as impressing the mind with an emotion amounting to
terror. The bison was the only native animal of the ox kind found by
the first settlers in America.