Sources and Assessment of Complexity in NPD Projects

When examining the reasons why NPD projects are late, over budget, or why they suffer from performance problems, complexity is often directly linked to the results achieved. While some research has been done in the complexity area, more research is needed to assess the role that complexity plays in the successful development of new products. In this paper complexity is defined and several reasons are examined why this factor can be a significant issue in successfully managing NPD efforts. Several sources of complexity are also examined including technological; market; development; marketing; organizational; and intraorganizational complexity, i.e., one company partnering with another to develop a new product or technology. A template is then constructed to help product developers evaluate complexity in their development projects. Finally, the paper concludes with suggestions of how the complexity template can be applied by development managers and their teams