Product Development is not R&D - some tips for on-time product launch

A lot of organizations use the terms New Product Development (NPD) and Research & Development (R&D) interchangeably, but there are some key differences, and understanding them could be the key to balancing meaningful innovation with a steady stream of new product launches. While the topic of getting product development projects on track cannot be fully reviewed in one article, this discussion in particular may be a good start.

Summary of the Article

• NPD is different than R&D – if a technology doesn't already exist, it may be inappropriate to include it in the design requirements for an NPD project
• NPD is a skill set – the team should include technical specialists, but also at least one member who is versed in the NPD process and skilled in T.C.O.B. (taking care of business)
• NPD timelines are predictable, R&D is not – if there is uncertainty in the timeline, consider if all "must have" features are readily available, or if some should be tracked through an R&D process and integrated in gen 2 or 3

Separate your innovation engine from the product development process

First and foremost, what are you trying to do with each activity? R&D is the creation of some new and spectacular technology. It’s tinkering, failing, learning, improving – a never-ending process that can disrupt entire industries and lead to fantastic new things. The output, though, is not a product. It’s a cool new “something.” Ideally, that something will form the backbone of many products.

Product development is different. It’s the integration of known technologies into a product that meets customer requirements, and can be repeatably manufactured and sold. That’s not to say it’s not creative. In fact, taking varying technologies and integrating them into a product that people may actually pay for is equally challenging. But it’s different.

Look at one of my favorite purchases – Bose wireless headphones. Did the product development team have "develop Bluetooth technology" in the project plan? Did the team that launched my smart watch also develop the touch screen, or any of the other bits and pieces that make up the product? Certainly not as part of the 12- to 18-month project timeline. Although not everything is as complex as my examples, a lot of companies build features into their must-haves list that don’t currently exist and aren’t easily developed in 6 months or less.

To be effective, innovation should be a constant endeavor, in line of course with organizational goals and an innovation strategy, but not tied to a specific product launch schedule. Product development efforts can be timed along with expected R&D outputs, but in general should be more predictable to ensure a steady flow of new products to the market.

Make sure your team includes a product development "expert"

Recognizing that the goals of R&D vs. NPD are different, it stands to reason that the skill sets needed to accomplish each are different as well. Why then do so many companies stack product development teams with technology specialists? While these people are important, there needs to be at least one person on the team whose greatest skill is TCOB (taking care of business). That doesn’t mean a complete outsider. In fact, the best PD people I’ve worked with have had technical backgrounds and have themselves developed great products. You don’t need a PMP certificate to lead a PD project.

You do need to be able to accurately forecast what it will take to complete a project, what obstacles the team will face, and when those obstacles arise, the best ways to keep the team on track and focused. Lastly, you need to know when to stop. A primary killer to NPD projects is the team working beyond the requirements, shooting for perfection. A good team leader knows when the job is done.

NPD is predictable - hold yourself (and your team) accountable

One of the biggest differences that companies must recognize is that NPD follows predictable timelines, R&D doesn’t (and shouldn’t).

Let’s talk about R&D first. By no means is it a free-for-all. The company must set a strategy for innovation, some basic boundaries for the R&D team to work within. And there should of course be goals and timelines that are reasonable for the project. But there also needs to be allowance. R&D is about discovering, which means trying, failing, and learning. To tell the team to not only develop a completely new technology, but also create it within the boundaries of customer requirements and an aggressive launch date, will undercut the effort and limit the company’s ability to truly do something great.

Product development, on the other hand, should be held to a stricter standard. There are definite boundaries, and based on those boundaries, the team should be able to predict an end date. Too often projects kick off on a hope and a dream, with the team knowing that the launch date is not achievable. Product development professionals should be able to articulate what will happen in each stage of the project, and why, and know that within some margin of error, their product will launch on time.

Closing thoughts

Nothing here is groundbreaking. NPD and R&D are different, and therefore should be treated differently. Innovation can't be locked in too tightly, with ground-breaking new technology expected to roll off of a production line every 3 months. At the same time, companies cannot become product development engines by launching products at irregular and infrequent time periods. Like anything, a healthy balance can lead to success.