1 cl npd process evaluation yanyi wang nyu mastering new product and service process fall 2004
DESCRIPTION
3 CL Company vision, mission statement and strategies review Vision Continue to be the world leader in promotional accessories; be perceived as the preferred supplier in our marketplace Mission statement Our sales force and designers offer the leading Beauty brands around the world their own creative and original designs the most innovative and cost effective solutions to meet all their development needsTRANSCRIPT
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CL NPD Process Evaluation
Yanyi WangNYU Mastering New Product and
Service Process Fall 2004
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Table of Contents Company’s vision, mission and strategies
review The current NPD process Evaluation of the process Recommendations The next steps Questions and comments
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CL Company vision, mission statement and strategies review
VisionContinue to be the world leader in promotional accessories; be perceived as the preferred supplier in our marketplace
Mission statementOur sales force and designers offer the leading Beauty brands around the world their own creative and original designs the most innovative and cost effective solutions to meet all their development needs
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CL Company vision, mission statement and strategies review (cont.)
Strategies Increasing the speed of NP to market Mixing our capacity of developing new technology
and competitive manufacturing cost offered by our Asian factories
Increasing industrial presence in Asia, especially China by acquiring manufacturing infrastructures
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Discovery
Gate1 Gate2 Gate3 Gate4
Stage 1
Stage 2
Stage 3
Stage 4
Ideation Scoping Development Testing/
Validation
Production
CL current NPD process
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Evaluation of the current NPD process
What went wrong? NP failed to meet the needs of clients Higher cost than anticipated Technical or production problems Competitors are faster
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Evaluation of the current NPD process (cont.)
24%
16%
14%
10%
9%
8%
6%
13%
0% 5% 10% 15% 20% 25%
Inadequate market analysis
Product problems or defects
Lack of effective marketing effort
Higher cost than anticipated
Competitive strength or reaction
Poor timing of introduction
Technical or production problems
All other
Source: Robert Cooper “Winning at new products”
Main causes of NP failure
“Lack of market information remains the number one cause of product failure!”
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Evaluation of the current NPD process (cont.)
Source: Robert Cooper “Winning at new products”
What is missing in your current NPD process? Predevelopment step
“The greatest differences (between winner and loser) lie in the first few steps of the new product process – the upfront or predevelopment steps.”--Rober G. Cooper
Quality of execution
“Doing projects right” and “Doing the right projects.“ --Rober G. Cooper
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Evaluation of the current NPD process (cont.)
What does it mean? Limited idea generation sources (mainly from designer’s brain) No set up process for ideation system Lack of preliminary business and financial assessment Lack of product benefits to customers Lack of market investigation and study Lack of cost investigation
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Recommendations Companies that follow a multistage, disciplined new product process—a Stage-Gate process—fare much better.
The benefits of using Stage-Gate process: Faster new product introductions Less recycling to redo steps Higher success rate of launched products
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Recommendations
Stage-Gate process
Stage 1
Gate2 Gate3 Gate4 Gate5
Stage 2
Stage 3
Stage 4
Stage 5
Scoping Build
Business
case
Development Testing/
Validation
Go/Kill
Discovery
Gate1
Post
LaunchReview
Launch
Strategy clarification
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Recommendations
Stage-Gate process description Strategy clarification to define focus of
efforts assessing customers industry estimate future trends Conducting internal analysis (SWOT)
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Recommendations Stage-Gate process description
Discovery stage (idea generation)
Voice of customer, lead user Designer Sales force Marketing Competitors Trade publications suppliers
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Recommendations Stage-Gate process description
Gate 1 (idea screen) -- a gentle selection of ideas
in line with our strategic focus? add value to our customers? feasible to manufacturing? fit for market trend?
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Recommendations Stage-Gate process description
Stage 1 (scoping) “spend a little money, gather some information, so that the project can be re-evaluated at Gate 2 in the light of the better information.” Preliminary market assessment (internet searches,internal
reports, key customers, focus group, own people, consulting, advertisements)
Preliminary technical assessment (R&D, engineer, operation)
Preliminary business and finance assessment (find out the investment required, probable annual income, ROI)
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Recommendations
Stage-Gate process description
Gate 2 –repeat Gate 1 with more information gathered in Stage 1 Sales force Customer reaction to the product Legal marketing Technical
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Recommendations Stage-Gate process description
Stage 2 (building business case)—critical define the new product (do we meet the customer’s needs, wants and
preferences; market reaserch) competitive analysis (possible reactions) manufacturing appraisal (manufacturablility, cost and investment
required) detailed business and financial analysis (justification, sensitivity
analysis to look at possible downside risks)
Result: -the product definition (the key to success)-project justification -detailed project plan are developed
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Recommendations Stage-Gate process description
Gate 3 financial analysis result is important criteria Confirm the case Go to the development stage—heavy spend!
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Recommendations Stage-Gate process description
Stage 3 (development) –a prototype Technical work Market analysis and customer feedback work continually Customer assessment and feedback Developing detailed test plan, production plan
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Recommendations Stage-Gate process description
Gate 4 (go to testing decision) Review the product Check consistency with the original definition set at Gate 3 Revise financial analysis with more accurate data Approve test and validation plan for Stage 4 Review marketing plan
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Recommendations
Stage-Gate process description
Stage 4 (testing and validation) pilot module In house testing Customers acceptance for external validation Revise business and financial analysis
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Recommendations
Stage-Gate process description
Gate 5 (go to launch) Focus on result and quality of execution of testing and
validation stage Financial return review
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Recommendations
Stage-Gate process description
Stage 5 (launch) --mass production
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Recommendations
Stage-Gate process description
Post Launch Review review the lastest data on revenues, costs,
expenditures, profits, and timing Post audit of the project’s strength, weakness and
lessons learned How can do better next time
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The next steps
Understand how Stage-Gate process works Assign a project manager for implementation
of the new process
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Questions and comments