Project risk planning in high-tech new product development

Abstract

Purpose The purpose of this paper is to present the implementation and testing of a modified project risk management framework that integrates PMI’s framework with Monte Carlo simulation to improve the effectiveness in high-tech new product development (NPD) projects. Design/methodology/approach The modified framework considers three bodies of knowledge: project management, risk management, and Monte Carlo simulation to produce an enhance project risk management framework. Its application is shown through a case study. Findings Using the integrated framework in a recent case study project and prior NPD projects measures (as benchmarks), it was shown that it could help to enhance risk responses caused by task durations and costs’ uncertainties. The framework proved to be better than segregated generic best practices and was key in providing insight to the issue of early project risk assessment. Research limitations/implications More experimental replications are required for enhancement effectiveness assertions of the framework, through the application of the framework to similar case studies. Furthermore, this could improve its reliability and soundness. Practical implications Future directions for research could include case and empirical studies that include hypothesis’s testing, and the integration of optimization procedure for improved NPD project’s planning and execution. Originality/value This paper outlines a way to close the gap of project risks management planning in NPD’s initiatives. It was motivated by a relatively new tendency in exploring integrated frameworks to deal with complex project risks issues.

The role of innovation capability in the relationship between marketing capability and new product development: evidence from the telecommunication sector

“…Since firms are subject to great uncertainty in the introduction of new products (Ortega et al, 2017), NPD projects may face a wide variety of risks (Ayala-cruz, 2016;Colombo et al, 2015;Kohli and Jaworski, 1990). For example, depending on firms' commercialization capabilities (Lang et al, 2012), new products reaching the market may face low entry barriers or strong competitive alternatives (Ayala-cruz, 2016;Liu and Rong, 2015).…”

“…Since firms are subject to great uncertainty in the introduction of new products (Ortega et al, 2017), NPD projects may face a wide variety of risks (Ayala-cruz, 2016;Colombo et al, 2015;Kohli and Jaworski, 1990). For example, depending on firms' commercialization capabilities (Lang et al, 2012), new products reaching the market may face low entry barriers or strong competitive alternatives (Ayala-cruz, 2016;Liu and Rong, 2015). Innovationoriented firms can align different market insights to develop new products (Mu, 2015) with synergy with their existing products, thus promoting their ability to effectively commercialize their new products in new markets while remaining technology-driven (Barczak, 1994;Morgan et al, 2015).…”

Identification and prioritization of construction projects investment risks using a hybrid fuzzy approach

“…Given the uncertain nature of projects and the necessity of using resources optimally, risk management is undeniably important. Ayala‐Cruz () by literature notes that risks are caused by uncertain elements within the tasks, task interdependencies, and the projects structure. They refer to the events such as deviations in task, durations, cost overruns, and inadequate resources allocations, which could stem from both internal and external sources.…”

Desempenho Organizacional: Integração do Modelo Valor, Raridade, Imitabilidade e Organização com a Gestão de Projetos

“…Estabelecer um arcabouço de Gerenciamento de Riscos é a forma de garantir uma política para atenuar os riscos negativos e/ou alavancar os riscos positivos, transformando-os em oportunidades. Isso implica determinar meios para identificar, qualificar, quantificar, planejar e controlar os eventos de riscos (Rabechini Junior & Carvalho, 2013;Paquin, Tessier, & Gauthier, 2015;Ayala-Cruz, 2016). Desse modo, é possível orientar o curso dos projetos e esperar um resultado que atenda às expectativas das partes interessadas.…”