The Role of Consumer Insight in New Product Development and Its Impact on Supply Chain Management: A Swedish Case Study

This paper seeks to explore how a profound consumer understanding may influence the early stages of a new product development (NPD) process. The issue is examined through a qualitative single case study combined with a literature review. The case study shows how the NPD process is structured and executed in a Swedish furniture company as well as the role consumer insight plays in that process. Empirical data have been collected mainly from in-depth interviews with persons representing senior and middle management in the case company. The research reveals that consumer oriented, cross-functional NPD in the case company has a strong impact on internal collaboration, and aligns the goals between different departments and functions within the company. Despite inefficiencies on departmental level, effectiveness on company level is achieved. Early indications show an expected growth in contribution margins by 8 percentage.