New_Product_Development

NewProductDevelopmentStrategy,Tactics&ProcessStrategy,Tactics&ProcessAnandSubramaniam“Knowledgespeaks,butwisdomlistens.2-JimiHendrixHighlights
NPD-Strategy
NPD-Design
NPD-Types
NPD–Process3
NPD–Process
NPD-LeversReasonforNewProductFailures
Overestimatingmarketsize
Poormarketingresearch
Designproblems
Excessivedevelopmentcosts4
Excessivedevelopmentcosts
Incorrectlypositioned,priced,oradvertised
CompetitivereactionNewProductDevelopmentStrategyNewProductDevelopmentStrategyNewProductDevelopmentStrategy
Originalproducts
Acquisition
Productimprovements
Productmodifications6
Productmodifications
Newbrandsthroughthefirm’sownR&Defforts.NPD-ValueAddNEWPRODUCTDEVELOPMENT7GROWTHPRODUCTIVITYIMPROVEMENTBRANDMAINTENANCEQUALTITY•LineExtensions•NewProducts•NewPackages•ReduceCost•Formulas•Packages•Manufacturing•QualityofDesign•Conformance•SpecialSituations•Regulatory•Environmental•SpecificationsNPDStrategy-PlanningLevelsMissionObjectivesMissionObjectivesPRODUCTSTRATEGYBusinessUnitsIdentityCompanyStrategy8STRATEGY•TechnicalCompetencies•StrategicPrinciples•Organisation•Alliances•ProjectMix•Milestones•ResourceLevelsPRODUCTPORTFOLIOSTRATEGY•ResourceAllocations•TechnicalApproaches•Timing•DeliverablesPRODUCTDEVELOPMENTSTRATEGYCategoriesBrandsProjectsBusinessStrategyPortfolioStrategyProjectStrategyCrossFunctionalTeamTechnology&QualityPackagingEngineering/ProcessEngineeringQuality&SafetyResearch&DevelopmentMarketingMarketingResearchSales9Research&DevelopmentIndustrialEngineerMechanicalEngineerLegalAffairsManufacturingOperationsLogisticsProcurementSupplyChainQualityControlFinance&AdminNewProductDevelopmentDesignNewProductDevelopmentDesignProductDesignSpecificationPatentsEnvironmentMaterialsShelflifePackingCompetitionWeightQuantitySafetyTestingLegalMaintenancePolitics11DisposalShippingSizeProcessesCustomerTimescaleErgonomicsAestheticsInstallationPerformanceServicelifePlantStandardsQualityassuranceStorageDESIGNCORENewProductDevelopmentTypesNewProductDevelopmentTypesProductDevelopmentTypesGeneric(MarketPull)TechnologyPushPlatformProductsProcessIntensiveCustomisationDescriptionThefirmbeginswithamarketopportunity,thenfindsanappropriatetechnologytomeetcustomerneeds.Thefirmbeginswithanewtechnology,thenfindsanappropriatemarket.Thefirmassumesthatthenewproductwillbebuiltaroundthesametechnologicalsubsystemasanexistingproduct.Characteristicsoftheproductareconstrainedbytheproductionprocess.Newproductsareslightvariationsofexistingconfigurations.DistinctionsAdditionalinitialConceptBothprocessandSimilarityof13DistinctionswithrespecttothegenericprocessAdditionalinitialactivityofmatchingtechnologyandmarket.Conceptdevelopmentassumesagiventechnology.Conceptdevelopmentassumesatechnologyplatform.Bothprocessandproductmustbedevelopedtogetherfromtheverybeginning,oranexistingproductionprocessmustbespecifiedfromthebeginning.Similarityofprojectsallowsforahighlystructureddevelopmentprocess.Developmentisalmostlikeaproductionprocess.ExamplesSportinggoods,furniture,tools.SyntheticFabricsConsumerelectronics,computers,printers.Snackfoods,cereal,chemicals,semiconductors.Switches,motors,batteries,containers.NewProductDevelopmentProcessNewProductDevelopmentProcessNewProductDevelopmentProcessConceptScreening*OpportunityIdentificationIdeaGenerationConceptDevelopment“TheFuzzyFrontEnd”15TestMarketing*ProductDevelopmentPositioningDevelopmentCommercial-isation*”StageGates”MarketingPlanDevelopmentOpportunityIdentification
Internalsources
Companyemployeesatalllevels
Externalsources16
Externalsources
Customers
Competitors
Distributors
Suppliers
OutsourcingIdeaGeneration(Ideation)
CrossFunctionalTeam
GenerateIdeas•Brainstorming•Suspendjudgment•Encouragecreativity17•Encouragecreativity
IdentifyOpportunityAreas•Problemsolvingtobringnewideastothetable•Sketchingorprototype•Ideaprioritisation
GenerateNewProductConceptsandevaluateagainstasetofcompanycriteriafornewproducts.ConceptDevelopment
DonebyMarketingand/orAdvertisingAgency
Conducting“FocusGroups”
Objectives18
Objectives
Judgewhethertheconceptfitstheopportunityarea,andconstraints
Refineand/ordescribetheproductconcept•Whatitis:•Whatbenefit(s)willitdelivertotheuser•Keyinformation–size,varieties,package,priceMarketResearchOptionsQualitativeDepthInterviewsFocusGroupsExpertJudgment19Pre-PrototypePost-PrototypeQuantitativeSurveysConceptTestsPerceptualMapsConjointAnalysisProductUseTestsLabTestMarketTestMarketConceptScreening/Testing
ProduceaConceptBoard
Conductasurvey
RepresentativesampleofendusersviaInternet,Panel
Showconceptandaskbuyingintent,uniqueness,value20
Analysetheresults
Comparescorestointernalcriteria,benchmarks,norms
Forecast“Trial”
Ifendusershowsinterestintryingtheproductduringthetrialforecast,thentheconceptqualifiesfordevelopment–Itclearsthefirststagegate.ProductDevelopment
Initialstageswithbroaddesignparameters
Produceearlyprototypes
Showandobtainfeedbackfromendusers
Refinedesign21
Finetune&finalisedesign
Varyformulationsonkeyingredients
Conductproducttestingamongstendusers
Experimentaldesignsoffermostpowerfullearning
Opti