Gaining Efficiency in the Product Development Process

Study Overview

This study is focuses on examining speed and efficiency factors that impact the product development process. Specifically, this survey takes a cross-industry perspective to identify potential areas for product development process improvement through benchmarking. It will give product development managers unique insights into key trends in the following areas:

I. Structure
II. Roles and Responsibilities
III. Project Management
IV. Performance Management

Key Metrics

• Type of organizational structure
• Frequency and amount of formal project reviews
• Percentage of outsourced budget
• Level of decision-making authority
• Prioritization of project evaluation criteria
• Frequency of tool usage
• Frequency of key measure usage

Key Findings

• The vast majority – 90% – of benchmarked organizations do not employ centralized/compartmented product development function structures. More than half the organizations employ some form of decentralized structures.
• Almost 50% of benchmarked organizations allocate less than 5% of their budget to outsourced activities. The remaining companies allocate greater than 10% of their budget to outsourced activities. In part, the difference in allocation can be attributed to the nature of the business, i.e., global companies tend to outsource more than local companies.
• At more than half (62%) of benchmarked organizations process execution and improvement tend to be shared by multiple organizations.

Methodology

This research originated from a Best Practices, LLC Internet Benchmarking Exchange. It was conducted for a Global Benchmarking Council member and was based on surveys with 29 benchmark partners across several industries.

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