As mentioned, the different diffusion paths of innovation have an effect on diffusion speed of innovation. The type of innovation determines the diffusion path (incremental or radical). NPD processes could be adapted accordingly to improve speed to market or TTM. For this research the focus is on the B2B environment of TTM. Time to market, product development time, innovation time, lead time, project completion time and total time also denote the same concept in NPD speed. The preference is to move innovation quickly from ideas to actual products. Time-to- market refers to the time it takes to bring a product to market from the first market exploration onwards. Market exploration is measured when there is an agreement with at least one lead customer. Bringing a product to market is measured at the point when innovation controllers start counting commercial sales. Sales could start before this point; however these products could be for R&D purposes and not commercial sales. It is important to note that in this thesis TTM is defined up to the point of high volume production of the product, this means the product has become successful, not just ready to be launched into the market.
Literature reveals that clear project goals, process concurrency, number and frequency of design iterations, effective leadership, team experience and dedication and internal integration have the greatest effect on speed. The product competitive advantage is closely related to product quality to the extent that a new product is perceived by costumers as being superior with respect to benefit and innovativeness. Customer based outcomes depend on the firm’s ability to transform customer needs into products that are perceived by customers as delivering value. The relationship between dimensions of innovation strategy and project success varies with level and source uncertainty, where speed leads to success primarily in a more predictable context. This means, fast-paced innovation strategy is best ‘when you know where you are going’. In the literature there is a relationship between innovativeness (innovativeness to the firm and to the market) and TTM. For example, TTM has a less positive impact on profit for highly innovative to the firm products compared with less innovative to the firm products. Being conscious of the projects’ level of innovativeness is important. When developing different types of new products firms should use different NPD acceleration approaches.
Source: Cankurtaran, 2013, “Consequences of New Product Development Speed: A Meta-Analysis”.
Source: Kessler, 2002, “Is Faster Really Better? An Empirical Test of the Implications of Innovation Speed.”.
Source: Langerak, 2008, “The effect of new product development acceleration approaches on development speed: A case study.”.
Source: Mallick, 2005, “An integrated framework for measuring product development performance in high technology industries”.
Source: Stanko, 2012, “Speed to Market for Innovative Products: Blessing or Curse?“.