Managing new product development processes: an innovative approach for SMEs

Many companies are currently focusing on how to stay innovative, how to innovate and how to create an innovation climate in their companies. Why is innovation vital to companies? New Product Development (NPD) can be a key factor in this regard. Companies believe that NPD is their life blood; it can be the better way to survive firmly and be more competitive. In addition, the strategy of how to manage NPD process effectively and efficiently is becoming a powerful way of achieving a competitive edge. As Small and Medium Enterprises (SMEs) play a significant role in South African economic development, it is critical for companies especially (SMEs) to seek an ideal way to manage innovation productively. However, to be innovative is not easy for any organization and it should be managed effectively.The effective management of innovation and NPD in SMEs is investigated in this study. Innovation and NPD has already become the key drivers of sustainability and competitiveness for many companies especially SMEs.Innovation and NPD as the main subjects that are carefully studied, discussed and understood in larger corporations and multinational enterprises. It would appear that the same cannot always be said when it comes to SMEs.The following research questions can be asked: • How does the current body of knowledge regarding innovation and NPD influence and impact on innovation and NPD in a SME? • How does a SME cope with relatively limited resources when attempting to develop a new product? • How does the informal nature of a SME impact on NPD? • Does a SME use a structured process to manage NPD?In the current dynamic manufacturing environment, SMEs must innovate successfully if they wish to maintain a competitive advantage. It is therefore this study attempts to answer the research questions the study comprises: • an applicable literature survey in the areas of managing innovation and new product development, • an investigation into the business environment and interaction typical SMEs encounter during new product innovation, • the development of a proposed model for the NPD process in SMEs, • an industry acceptability survey of the proposed NPD model and • a case study of the development of a new product, mapped onto the developed alternative NPD process.Exploring the literature and discovered: • a lack of addressing the impact of innovation and NPD on SMEs • a lack of practical and appropriate guidelines to ensure successful innovative product development in SMEs.The study proposed a basic NPD management model, which takes the key components of NPD management such as management commitment, employee involvement, product lunching strategy, quality assurance, customer satisfaction, and feedback of new products.