The role of information processing in NPD strategy

In an increasingly global economy, new product development (NPD) is critical for the innovativeness of companies. Due to the globalization, companies are outsourcing their production to Eastern Europe and Asia to lower cost and to stay competitive. This means that currently Denmark is loosing 5000 jobs annually (www.velfaerd.dk). Hence, if Denmark is to prevent increasing unemployment, Danish companies must compete on innovativeness and specialized knowledge securing high quality products rather than low cost. The development of high quality products is closely linked to the processing of information from the environment and, thus, competent information processing will enhance Danish companies’ innovativeness making them valued partners in a global economy. The future most important competitive parameter of Denmark lies in knowledge and innovation. In Denmark product development is primarily customer-driven in the sense that the innovative competence of Danish companies rests on the ability to turn information about customers and technology into innovative products, services and processes of higher quality and higher effectiveness than others. Thus, society compels companies to master processing of information in order to ensure innovativeness.
This research project will examine how companies acquire information and analyze it to determine the proper actions for fulfilling their NPD strategy, which contributes to the sustainability of the innovative competence of Danish companies.