Which statement is most likely true about idea generation in the new product development process?
A) Idea generation is most effective when it occurs after idea screening.
B) Most companies set a limit for the number of ideas generated to simplify the process.
C) Intrapreneurial programs enable customers to contribute to the idea generation process.
D) Idea generation is usually followed by procedures that reduce the total number of ideas.
E) A company can either develop ideas through internal or external sources but not through both.
The correct answer and explanation is :
The correct answer is D) Idea generation is usually followed by procedures that reduce the total number of ideas.
Explanation:
Idea generation is a crucial first step in the new product development (NPD) process, but it is not typically the only step. After generating a wide array of ideas, companies need to follow specific procedures to refine, filter, and evaluate them to ensure they align with strategic goals, market needs, and resource availability. These procedures help reduce the total number of ideas to a manageable and viable set that can be further developed and tested.
Here’s a breakdown of why option D is correct:
- Idea Generation Process: This phase focuses on brainstorming, creativity, and innovation. During idea generation, a wide variety of ideas are proposed, often through various methods such as individual brainstorming, group brainstorming, or leveraging external inputs like customer feedback or market research. At this point, the goal is to be as broad and expansive as possible to capture a range of potential product concepts.
- Screening and Evaluation: Once ideas are generated, the next steps in the NPD process involve screening and evaluating those ideas. During screening, companies assess each idea based on feasibility, market potential, alignment with company strategy, and cost considerations. The goal is to narrow down the list and select the most promising concepts for further development.
- Efficiency: Reducing the total number of ideas after the generation phase helps focus resources on the most viable ideas. Not every idea generated will be suitable for development due to limitations in budget, time, or technical capability. Therefore, it’s a common practice for companies to employ structured procedures like scoring models, feasibility studies, and focus groups to evaluate and eliminate less promising ideas.
Why the Other Options Are Less Likely:
- A) Idea generation should typically occur before idea screening. Screening is the process of filtering and assessing ideas, and it’s logically placed after the generation phase, not before.
- B) Most companies encourage as many ideas as possible in the idea generation phase to explore all possibilities. Limiting the number of ideas upfront could stifle creativity and reduce the potential for innovative solutions.
- C) Intrapreneurial programs enable employees to develop ideas within the company but don’t necessarily involve customers directly in the generation phase, though they may later provide feedback.
- E) Companies often rely on both internal (employees, R&D) and external (customers, suppliers) sources for generating ideas. It is not limited to just one source.
Therefore, option D is the most accurate statement about the idea generation process in new product development.