PDMA Product Development Professional (NPDP) Certification Exam NPDP Question # 23 Topic 3 Discussion
NPDP Exam Topic 3 Question 23 Discussion:
Question #: 23
Topic #: 3
According to a study by Robert Cooper and IRI (Industrial Research Institute) of 205 member companies, the poor performers predominantly relied on which tool for managing their NPD portfolio?
According to the study by Robert Cooper and the Industrial Research Institute (IRI), poor performers in managing their New Product Development (NPD) portfolios predominantly relied on financial methods. Financial methods, such as discounted cash flow (DCF) and net present value (NPV), often fail to capture the strategic and qualitative aspects of innovation projects. This can lead to undervaluing projects with high strategic importance or potential for breakthrough innovation.
Thus, the correct answer is B: Financial method.
References:
Cooper, R. G., Edgett, S. J., & Kleinschmidt, E. J. (2001). Portfolio Management for New Products. Basic Books.
Cooper, R. G. (1998). Product Leadership: Pathways to Profitable Innovation. Basic Books.
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