My deepest gratitude goes to my wife and children for standing by me during the process that led to the completion of this thesis. The purpose of this study is to provide an insight into the New Product Development (NPD) process as it is used within the context of the residential property development industry in South Africa. The nature of the case study approach allows for much more in-depth and broader investigation than would be possible in a quantitative study.
The specific case under review (SajDev (Pty) Ltd) was chosen because of the company's involvement in the full spectrum of housing construction in South Africa. In addition, the company showed an openness and willingness to share its experiences and processes, which is not normally found in this particular industry. Most importantly, the company offered the author the opportunity to work for them to gain the necessary first-hand experience and knowledge that would be needed to conduct the study.
The company also provided the author with access to all of their professional team members and to all of their internal documents to assist with the research. Guiding Principles for the Company's Strategic Plan (Financial) Guiding Principles for the Company's Strategic Plan (Strategic) The SafDev Business Model.
CHAPTER ONE
- Introduction
- Background of the Research
- Motivation for the Research
- Value ofthe Project
To make this happen, a great deal of understanding within the company is needed for the importance of new product development, as well as the new product process. A secondary benefit of the study is the fact that it can provide useful insight into new product development in the property development market, in general. To gain in-depth knowledge of new product development and the new product process through a thorough review of the literature on the subject.
The sample population includes all individuals who have been involved in the new product development process at SajDev during the past year. The specific time period is used as indicated because the focus of the research is on the smart development process of new products. In addition, the company's formal training and operational guidelines will be used to identify the fundamental processes involved in defining the new product process within the company.
This chapter provides a thorough survey, in the form of a comprehensive review of the literature, theories and models of new product development. From the chapter outline above, it is clear that the study will begin with a thorough review of the available literature on new product development and the new product process.
CHAPTER TWO
Introduction
- Ideation/Opportunity Selection and Identification
- Concept Generation
- Concept/Project Evaluation
- Development
The Marketing screen is designed to determine the acceptability of a new concept in a marketing context. The first involves the technical development of the product and the second involves the development of the marketing strategy to be used. At the end of the development stage, the balance of activities usually shifts towards the marketing function.
The technical design of the product may involve several different steps and procedures, depending on the nature of the product. An extremely important element in the development phase that is often overlooked is the development team or group. The launch phase of the NPD process begins when the management of the organization makes the decision to market a new product.
Guiding Decisions: These are the product decisions that are made early in the NPD process. These are usually contained in the PlC that is drawn up during the initial phase of the NPD process. Finally, product knowledge plays an important role in either increasing/decreasing development costs or the development time of a product.
Minimizing time to market is one of the two most critical objectives of product development defined by Schilling & Hill (1998).
CHAPTER THREE
The financial management approach adopted by SafDevis is based on limiting the company's overhead costs and limiting the company's financial risk. Real estate development in the broadest sense is defined as the company's strategic focus. Generally, however, the company does not operate outside the boundaries of the Gauteng province.
However, the merits of these various Joint Venture funds are evaluated in dozens of specific needs of the company in a particular one. If a residence application has been submitted, it is important to determine the exact nature of Propel's current Zoning. First, it is important to confirm the correct description of the property and the credentials of the registered owner of the property.
Fourth, the developer must identify all those aspects that may limit the use of the property. In addition, the developer must have a clear understanding of the external environment in the area. This requires the developer to analyze the competitive environment to determine the competitive strength and weakness of the proposed product.
An initial feasibility can be completed based on the preliminary figures as identified during the process feasibility phase. The feasibility study is one of the most important steps to be carried out in a project. The goal behind feasibility is to ensure that all facets of the project are known to minimize the risk associated with the development business.
By continuously taking note of feasibility, managers can ensure that a project remains within the parameters used for feasibility. Indirect costs are the costs incurred by the company in the ongoing operation of the management structure. The risk in these developments lies in the initial phase, because the developer must pay for the construction of the infrastructure.
CHAPTER FOUR
Conclusion
The advantage of using the Vahakyla model to analyze NPD in a given company is the fact that it takes a holistic view that includes the process as well as the related success criteria. If a more simplistic or one-dimensional model were to be used, it is very likely that the results would be different. In the SajDev case, for example, the difference between receiving a good and a bad report may depend on the specific factor used.
If product effectiveness was used as the only metric, SajDev would look good, while if communication was used, SajDev would look bad. As the above analysis shows, there are elements of NPD that have been executed very well, but at the same time there are also elements that require a lot of attention. The real test of SajDev's NPD success may not come until the housing market stagnates or begins to decline, as only then will it become clear whether SajDev's business success can be attributed to NPD or the current market environment.
This uncertainty in itself, however, should raise alarm bells and prompt a company to explore all possible ways to improve its NPD approach. The final chapter of this study will review the results of the above analyzes and provide a number of practical recommendations on how SajDev can improve its NPD approach. The Vahakyl model will once again serve as a framework within which the recommendations will be discussed.
CHAPTER FIVE
Conclusion
Success at SafDev, like most organizations, depends heavily on how well it manages its new product projects and pipeline. Using VahakyHi's model, however, it quickly becomes clear that much of this success is based on the current favorable atmosphere in the market rather than the successful implementation of the Stage-Gate NPD process at SafDev. In a more difficult market environment, SafDev may find it more difficult to succeed unless its NPD process is more clearly defined and all the success criteria are in place.
In terms of project success, SafDev has developed and implemented an acceptable general framework for NPD, but has not yet paid sufficient attention to the various elements and details of the framework. Implementing an efficient new manufacturing process like Stage-Gate is only the first step. As Vahakyla's model suggests, successful NPD is not only about adopting the process, but also about ensuring that all the necessary peripheral success criteria are in place and that there is genuine commitment within.
The more controlled the process becomes and the stricter the criteria are met, the greater the chance of NPD success. A single factor or oversight, such as misunderstanding the needs of the market, can easily destroy an entire project and cost the company millions. Once the process is in place and the success criteria are addressed, the next step is to ensure that a culture of continuous improvement is also adopted in relation to the process and criteria.
