Approachment of New Product Introduction (NPI) for Defense Industry

By Mesut Gözütok & Oğuzhan Şereflişan, R&D and Technical Directorate at Havelsan,

Issue 67 - April 2016

New Product Introduction (NPI) and development activities are carried out with different methods based on market and customer needs analysis by companies that develop products to consumer markets. But, the defense industry market has different dynamics and characteristics compared to the civilian consumer market. In this market, in order to develop products, defense industry companies are being directed by customers in a specific manner. On the other hand, it is a general expectation that these products should not only be mature and common in our local defense market, but also they have a significant share and commonality in the international defense markets. Therefore, it is evaluated that customer-specific solutions and products developed for the local defense market should take into account more broad customer needs in order to take a market share in the international defense markets. 

In this report, the new product development processes and methodologies are studied and a process proposal was developed for the Defense Industry companies. In the scope of work; New Product Introduction activities have been examined for all phases from idea evaluation, to the stage it is placed on the market as an initial product, critical stages and control points have been determined in the NPI process and relations between functional units of a generic company and product development activities are analyzed and described in terms of roles and responsibilities. The Stage-Gate methodology which is widely accepted and used in this domain, is chosen as a reference model and an applicable process proposal is developed for the New Product Introduction. Activities related to the product life cycle are assessed as they are not to be part of the new product development process and have not been addressed in the scope of this study.