Identify and Analysis of Factors Affecting the Success of New Product Development by Using System Dynamics Approach

Abstract

The companies for their growth and survival in competitive domains must develop new products; however, innovation required for this process is a risky and costly enterprise. Most of the scholars have considered the factors leading to success as static and they have not taken into account their dynamic nature. Since the relationships among the influential factors which can lead to the success of developing new products have various dynamics and feedbacks, tools for the identification of dynamics in such systems are among the most useful tools which can be used for investigative purposes in this domain. In the present study, which aimed at identifying and analyzing the dynamics of factors affecting the success of new product development, the key variables for the development of new products were identified based on the theoretical backgrounds and the ideas of experts in the industry and then the causal relationships among them were drawn. Subsequently, the mathematical relationships among these variables were determined based on the existing relationships among them in the literature and as a practical step the intended system was simulated in Nooshin Azar Food Company in the time span of 1384 to 1404. For improving the performance of the companies, policies like increased management support, more investment in research and development and improvement of product development planning were suggested and the results which can be derived by applying these scenarios were simulated as well.

Keywords

• system dynamics
• success factors
• new product development