Introduction

The new-product development (NPD) Program Definition Phase (also referred to as the Definition Phase) elaborates the purpose, philosophies, policies, and guidelines of the NPD program. It defines the plans, practices, and performance measures for managing the NPD process and the related program aspects from conceptualization to commercialization. The purpose of the Program Definition Phase is to formulate and articulate a management framework that highlights the essential requirements; identifies the activities, actions, and decision making elements; and spells out the expected outcomes. The aim is to provide a clear understanding of the flow of the NPD process for all participants and to ensure that the organization has or can obtain the necessary capabilities and resources to complete the NPD program.

Given the enormous variations in new-product types and market characteristics, the NPD process has to be tailored to the business situation, the organization, and its capabilities and requirements. The scope of the NPD program and the methods employed are generally based on the established practices of the organization as they relate to the business environment. However, for most companies, the NPD process is well defined and is used from program to program with only small modifications arising from lessons learned and insights gained about the business environment.

Program management usually relates to decision making authority and the integration of the elements through the alignment of the participants and resources. It sets the stage for planning, communications, execution, and control.