THE LIFE CYCLE DIMENSION OF NEW PRODUCT DEVELOPMENT PERFORMANCE MEASUREMENT

This paper is concerned with comprehensive performance measurement (PM) of new product development (NPD). The idea of "life cycle conscious" NPD performance measurement is introduced by conducting a conceptual analysis combining product life cycle (PLC) thinking and NPD Performance Measurement (NPD PM). The empirical base of the paper is six case studies that focus on product life cycles and their characteristics within different industrial environments. The paper indicates that there are several ways that NPD PM would benefit from life cycle thinking. Life cycle orientation would provide companies with a feasible framework for constructing the performance measures of NPD, and the framework is likely to reduce the short-termism typically associated with NPD PM. In addition, life cycle could provide help for weighting the criteria and the measures utilized in NPD, for finding a balance for the measurement system, and for directing proper attention towards the comprehensive effects of new products.