More Info Across the 7 stages of the NPD Process, the following metrics are provided or need to be calculated: STEP1: Idea Generation = \# of initial idea generated by SBU in the last year. STEP2: Concept development and screening = \% of ideas abandoned after development \& screening STEP3\&4: Marketing strategy development \& business analysis =% of screened ideas abandoned after strategy and business analysis STEP5: Technical development =% of ideas abandoned after technical development fails STEP6: Test marketing =% of developed plans that fail after test marketing STEP7: Commercialization =# of products fully commercialized You can calculate the number of products that will be commercialized by using the following equation: Commercialization(#)=(IdeaGeneration#)(1STEP2[%])(1STEP3&4[%])(1STEP5[%])(1STEP6[%]) Thus, the Commercialization rate (\%) is simply: [Commercialization (\#)]/[Idea Generation (\#)] Another way the aforementioned equation can be used is to help determine how many ideas that need to be generated in order to each X number of commercialized products. The equation for this is a simple rearrangement: Idea Generation \# = ( Commercialization [#])/((1 STEP2[\%] )(1 STEP3\&4[\%] )(1 STEP5[\%]] )(1 STEP6[\%] )) More Info Mini Case: Assessing the New Product Development Process of Strategic Business Units You are the CMO of a large multinational corporation. Your company has 4 distinct strategic business units (SBUs). Each SBU is responsible for developing lots of new products every year, and each SBU manages its new product development process in different ways. You would like to assess how each SBU is performing on its NPD process. Click the icon to view the information about the metrics provided or needed to be calculated under the NPD process. Click the icon to view the additional equations. Click the icon to view the provided metrics. Which SBU is commercializing the fewest products? with corresponding commercialization number of . (Round to one decimal place.)