RISK MANAGEMENT IN NEW PRODUCT DEVELOPMENT PROJECTS: TAKING CREATIVITY INTO CONSIDERATION

Innovation or New Development Product (NPD) corresponds to the application of new and creative ideas. The innovation process is always a rhythm of search and selection, exploration and synthesis, cycles of divergent thinking followed by convergence. It typically involves creativity, but is not identical to it: innovation involves acting on the creative ideas to make some specific and tangible difference in the domain in which the innovation occurs. Many NPD projects deviate from their initial target due to modifications or changes to customer needs as well as internal or external constraints. Other NPD projects may be simply stopped due to uncontrolled parameters and unidentified constraints arising from various processes within the NPD project such as the product design process or the supply chain design. In addition, since innovation is a function of creativity, NPD projects success or failure is dependent on creativity. This paper aims to establish a risk management procedure for NPD projects, including the risk due to creativity, in order to facilitate decision-makings of senior managers and also improve global performances of companies.