NPD Risk Management: Proposed implementation to increase new product success

Innovation is one of the cornerstones of European manufacturing industry. For small and medium-sized (SMEs) enterprises NPD projects are very often a “win or lose” game. Due to the limited availability of resources, the risk of failure in a single project can endanger the survival of the whole company. SMEs have to deal with the following problems when undertaking the development of new products: (1) lack of information, (2) lack of a risk management methodology, and (3) lack of decision aiding tools. This paper recognises the need of acquiring suitable information and focuses on Risk Management as a critical process to increase the success of New Product Development. A staged implementation plan composed of 3 steps is proposed: Business Intelligence System, Risk Management System and Optimisation of Decision Making Process. Currently implemented systems and steps are commented, as well as future action points, in order to increase the competitiveness of companies.