Browsing by Author "McCracken, Kim"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    A study of the factors influencing new product development success in the South African investment sector
    (Stellenbosch : Stellenbosch University, 2011-12) McCracken, Kim; Boshoff, Christo; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Business Management.
    ENGLISH ABSTRACT: Organisations today form part of a global market economy characterised by constant change and a high level of competition. This is especially true for organisations functioning in competitive markets or industries, such as the service industry. New Product Development (NPD) has been recognised as an avenue for organisations to remain relevant and competitive in this constantly changing landscape. A successful new product can potentially do more good for an organisation than anything else that can happen to it. Despite this critical role, the strategic and operational aspects of the product development process are poorly understood, particularly in the service industry. The South African financial services industry is an example of a service industry characterised by a high level of competition, rapid technological advancements, stringent regulations and changing client needs. This is particularly true for the investment sector of the industry, which endeavours to remain relevant and progressive within both a domestic and an international context. As a result, organisations functioning in the investment sector increasingly need to engage in developing and introducing new products to ensure their survival. Against this background, such organisations should realise the importance and potential benefits of an increased understanding of how to improve the success of their NPD efforts. The purpose of this study was therefore to investigate factors influencing the success of New Product Development in the investment sector of the South African financial services industry. Twelve success factors were defined for the purpose of the study. They are: a successful launch, effective NPD management, product superiority, a favourable market environment, good use of communication, effective IT systems, a NPD-friendly corporate culture and the use of a formal NPD process, legislation, distribution of the product, the marketing budget, and the timing of the release of the product. Additionally, nine measures of success were examined, namely: commercial, technical, financial and sales measures, as well as the NPD process followed the level of client satisfaction, and the size, performance and longevity of the product. This study made use of a structured questionnaire, which was developed, based on the literature reviewed and on the feedback from the pilot study. The questionnaire made use of a seven-point Likert scale, and was electronically administered via email to the chosen sample group. The results from this study indicated that 10 of the 12 identified success factors have a significant influence on one or more of the measures of success. The remaining two success factors, namely, the distribution of the product and the marketing budget, were found to have no significant influence on any of the measures of NPD success. It was also revealed that three of the success factors had a significant influence on the overall measure of NPD success (all 9 measures grouped into one), namely, the characteristics of a "superior product"; the implementation of an effective IT system; and the timing of the product release. Furthermore, the implementation of effective IT systems revealed an unexpected negative relationship with three measures of success as well the overall measure of NPD success (all 9 measures grouped into one). A number of implications were suggested and recommendations made, based on the findings. Specific recommendations were made to NPD practitioners, regarding methods which could be implemented to enhance and better manage the influence of the identified success factors in order to increase their product development success. An important recommendation was made regarding the IT system project requirements and associated costs. It was recommended that the IT system requirements be carefully scoped in the infancy stage of the project by consulting with an IT specialist because of its influence on both the overall costs and project success. Specific recommendations were further made regarding a number of the other identified success factors. Finally, based on the findings, several recommendations were made regarding further research.