New Product Management

problem analysis: general procedure

determine product or activity category for study identify heavy users gather set problems associated with product category sort and rank the problems according to severity or importance

stage for the finite form

development

opportunity identification/selection=

direction, where should we look?

market test

dress rehearsal for launch

build-test-feedback-revise process

early non-working prototype tested with customers customer feedback obtained on what needs to be changed based on the feedback, the next prototype is prepared and the cycle continues

problem analysis: sources and methodologies

experts published sources contacts with your business customers or consumers

T/F new product development process begins with a EUREKA moment

false

serial innovator process (no steps or fixed order)

finding a problem important to customers check potential market size and revenue stream understand the problem: technology solutions, competition, customer requirements determine if the problem is interesting to customers and to the firm invent solution to problem and check customer acceptance with a prototype get the product into development and gain market acceptance for it

discovery-driven planning

forecasts and plans evolve as more information becomes available

concept/project evaluation =

full screen, should we develop it?

first three stages of new product process (strategic planning, concept generation, concept/project generation) is often called

fuzzy front end

methods for accelerating time to market

have a clear product innovation charter have a third-generation new products process that permits overlapping phases use a new product portfolio and careful project selection to allocate scarce resources focus on quality: "get it right the first time" have an empowered cross-functional team

concept generation =

initial review, is the idea worth screening

problem find=

solve approach

phase 1: opportunity identification/selection

active and passive generation of new products opportunities as spinouts of the going business operation

product protocol

agreement between the various groups on core product benefits not features

online communities

any group that interacts using online social networking or a similar medium

what does serial innovator contribute

can bridge the gap between technology and market, in interactive fashion begin understanding customer problem then discover technical solutions to those problems oscillate between customer need and technology solution can also bring in market information

full screen

combination of technical input and concept test

phase 5: launch

commercialize the plans and prototypes from development phase, begin distribution and sale of the new product and manage the launch program to achieve the goals and objectives set in the PIC

successful NPD is

cross-functional

gathering the problems

internal records direct inputs from technical and marketing departments problem analysis with customers

incubation stage

involves customer and market interaction as well as technical development tolerate failure but learn from it longer and much more expensive than typical business development, but required for breakthrough opportunities

spiral development

many interactions between firm and customer. Useful for new-to-the-world products

launch=

market testing, should we market it?

role of the serial innovator

mid-level, technical employees who think and work differently and follow their own new products process critical to firms being able to launch radical innovations successfully and repeatedly over a longer period of time challenge: identify, manage, and properly reward the serial innovator

Lickety-stick interative process

non-linear, more flexible process in which dozens of prototypes may be tried before settling on one that customer will liek

what are the activities that feed strategic planning for new products?

ongoing marketing planning ongoing corporate planning special opportunity analysis

additional techniques for accelerating time to market

organization intensifying resource commitments design for speed rapid manufacturing rapid marketing

phases of the new product process

phase 1: opportunity identification/selection phase 2: concept generation phase 3: concept/project evaluation phase 4: development phase 5: launch

phase 4: development (marketing tasks)

prepare strategy, tactics, and launch details for marketing plan, prepare proposed business plan and get approval for it, stipulate product augmentation and prepare for it

fuzzy front end

product concept can be fuzzy, by the end of the project the fuzz should be removed

development=

progress reports, have we developed it?

avoid omniscient proximity

rate importance of benefits and levels of satisfaction

stages of concepts/project evaluation

screening concept testing full screen project evaluation

phase 2: concept generation

select a high potential/urgency opportunity, and begin customer involvement. Collect available new product concepts that fit the opportunity and generate new ones as well

phase 4: development (technical tasks)

specify the full development process, and its deliverables. Undertake to design prototypes, test and validate prototypes against protocol, design and validate production process for the best prototype, slowly scale up production as necessary for product and market testing

recognizing serial innovators

systems thinking high creativity curiosity in several areas of interest a knack for intuition based on expertise a sincere desire to solve customer problems

evaluate new product concepts on

technical, marketing, financial criteria

the NPD process ends when

the new product is successfully commercialized not when its launched

drawbacks to online communities

they are hard work costly and time consuming takes time for the community to mature organizing the content so it is easy for the members to find member privacy, confidentiality, content ownership, and other legal issues

example of concept generation

travel sized toiletries

sources of identified opportunities

underutilized resource a new resource external mandate internal mandate

phase 3: concept/project evaluation

value new product concepts (as they begin to come in) on technical, marketing, and financial criteria. Rank them and select the best two or three. Request project proposal authorization when have product definition, team, budget, skeleton of development plan, and final PIC

concept testing

what do potential customers think?