Pass the PDMA NPDP Certification NPDP Questions and answers with CertsForce

When considering a portfolio in terms of market risk and technology risk, the most desirable combination is usually low market risk and low technology risk. This combination indicates that the product is based on well-established technology and addresses a market with proven demand, reducing the overall risk associated with product development and commercialization.

References:

Cooper, R. G., Edgett, S. J., & Kleinschmidt, E. J. (2001). Portfolio Management for New Products. Basic Books.

Kahn, K. B. (2012). The PDMA Handbook of New Product Development. John Wiley & Sons.

Gates are defined as decision points based on deliverables, criteria, and outputs in the context of project management and product development processes. The outputs of gates typically include decisions such as go (proceed with the project), kill (terminate the project), hold (put the project on hold), or recycle (revisit and revise the project plan). These decisions help ensure that resources are allocated efficiently and that projects align with strategic goals.

References:

Cooper, R. G. (1990). Stage-Gate Systems: A New Tool for Managing New Products. Business Horizons, 33(3), 44-54.

Griffin, A. (1997). PDMA Research on New Product Development Practices: Updating Trends and Benchmarking Best Practices. Journal of Product Innovation Management, 14(6), 429-458.

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.

Ideation refers to the creative process of generating, developing, and communicating new ideas. It is a fundamental part of the innovation process where basic elements of thought, whether visual, concrete, or abstract, are conceived and explored. Ideation encompasses techniques like brainstorming, mind-mapping, and sketching to facilitate creativity and problem-solving. Reference: Kelley, T., & Littman, J. (2001). The Art of Innovation: Lessons in Creativity from IDEO, America's Leading Design Firm. Currency/Doubleday.

To identify a gap in the products offered to a market, the best quantitative market research tool to use is any appropriate multivariate technique. Multivariate techniques, such as cluster analysis, factor analysis, and multidimensional scaling, are used to analyze data that involves multiple variables. These techniques can help identify distinct segments within the market and highlight gaps in the current product offerings by revealing unmet needs or preferences within those segments.

References:

Malhotra, N. K. (2010). Marketing Research: An Applied Orientation. Pearson.

Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate Data Analysis. Pearson Prentice Hall.

One of the most crucial success factors in product development projects is cross-functional representation. This means having team members from various departments (e.g., marketing, engineering, finance, and design) involved in the project. Cross-functional teams bring diverse perspectives and expertise, which helps in identifying potential issues early, generating innovative ideas, and ensuring that all aspects of the product development process are considered.

References:

Cooper, R. G., & Edgett, S. J. (2008). "Maximizing Productivity in Product Innovation". Research-Technology Management.

Griffin, A., & Hauser, J. R. (1996). "Integrating R&D and Marketing: A Review and Analysis of the Literature". Journal of Product Innovation Management.

A platform strategy is defined as "a set of systems and interfaces that form a common structure from which a stream of derivative products can be effectively developed and manufactured". This strategy enables companies to create a variety of products based on a shared platform, which can lead to cost savings, faster development times, and consistent quality across products. The platform approach is particularly effective in industries like automotive and electronics, where modularity and scalability are key competitive advantages.

"Net present value versus return on investment" is not a common pair of variables in visual bubble chart displays of the balance of a portfolio. Bubble charts typically display variables such as risk versus reward, cost versus benefit, and ease versus attractiveness. These pairs help in visualizing trade-offs and strategic decisions in a portfolio. NPV and ROI, while important financial metrics, are less commonly paired in bubble charts because they are both measures of financial return rather than orthogonal attributes like risk, cost, or ease.

The most appropriate role for the marketing team member in technical product development is to stay informed about technical progress by attending team meetings and maintaining open communication with the technical team. This ensures that marketing decisions are well-informed by the latest technical developments, and it facilitates alignment between the marketing and technical aspects of the product development process. Leading the team or making decisions without technical input can create disconnects and reduce the effectiveness of the development process. References: Cooper, R. G. (2001). Winning at New Products: Accelerating the Process from Idea to Launch. Basic Books.

The purpose of the Scoping Stage in the new product development process is to conduct a quick, preliminary investigation of the project. This stage involves mostly desk research (secondary research) to gather initial information about the market, competition, technical feasibility, and potential risks. The goal is to assess the viability of the project before committing significant resources to more detailed development activities.

Thus, the correct answer is A: True.

References:

Cooper, R. G. (2011). Winning at New Products: Creating Value Through Innovation. Basic Books.

Ulrich, K. T., & Eppinger, S. D. (2015). Product Design and Development. McGraw-Hill Education.