SATISFY CUSTOMERS WHILE SPEEDING RESEARCH-AND-DEVELOPMENT AND STAYINGPROFITABLE

Studies of innovation management effectiveness pinpoint specific pract ices that will allow companies to increase customer satisfaction and p ursue a strategy of speedy R&D-without compromising profitability. The two practices that accomplish this end, when used moderately (althoug h not universally), are Quality Function Deployment for project select ion and Stage-Gate Tracking for controlling development. Companies tha t use Internal Rate of Return as a criterion for project selection hav e also been found to be move profitable.