Download - Product Camp New Products
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“Innovate or Die”New Product Development Process
Prepared for Product Camp St. Louis 2012Selected SlidesTom HorlacherApril 21, 2012
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Today’s Presentation
New Product Development Process
•Value of Innovation
•Critical Success Factors
•Selecting the Right Project
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Innovate or Die
• Dow Jones Index & Fortune 500 Constantly Changing
• Product Life Cycles Are Shorter– PDAs now Smartphones– SUVs now Hybrids– DSL now Wi-Fi
• 60% of Apple’s sales are from products that did not exist 3 years ago
• According to Gartner by 2015 – 50% of web sales will be via social presence and mobile applications
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Various Types of New Products
• New to the World – iPad, Sega, Segway, Walkman, TiVo
• New Product Lines – Hybrid Cars, Scroll Compressor, Xbox
• Additions to Product Lines – Mich Ultra, Roundup Ready®
• Improvements/Enhancements – Tide, PS2, Bud Select
• Repositioning – Arm & Hammer Uses for Baking Soda
• Cost Reductions
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Where Do New Product Ideas Come From - Everywhere
Internal• Research & Development• Sales & Marketing• Production Workers
External• CUSTOMERS – Most Important Spot• Competitors• Inventors, Universities• Suppliers
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Critical Success Factors Do the Project Right
1. Seek Differentiated, Superior Products2. Market Research Pays Off3. Build In The Voice Of The Customer4. Sharp, Stable, And Early Product Definition5. Plan And Resource The Market Launch6. Build Go/Kill Decision Points Into The Process7. Organize Around Cross-functional Teams8. Leverage From Your Core Competencies9. Build An International Orientation Into The
Process10. Top Management Is Critical To Success
Source : Bob Cooper, Product Development Institute
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Seeking New Product Ideas
• Look Everywhere – Broaden Your Exposure
• Generate As Many Ideas As Possible• Let Go Of Assumptions • Be Willing to Fail – Test Concepts Early
in Process
Creativity Is A Game Changer
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What’s in a Product Spec
Be sure to include• A target market
definition• A product concept
– Benefits of product– Written in the language
of the customer
• Positioning strategy• Product specification
– Features– Performance
requirements
Don’t allow or include
• Unstable specs• Project scope creep
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Stage Gate Process
Project Selection Tool to Focus on Winning Projects
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Screen Criteria – Stage 2
Market Attractiveness• Approximate Size And Growth Rate• Competitors – How Many And Relative Strength• Price Sensitivity/Probable ProfitabilityCapability • Manufacturing Capability• Engineering CompatibilityStrategic Issues• Fit With Corporate Strategy• Potential Leverage With Other Products• Defend/Strengthen A Leadership Position
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Doing the Right Projects
Portfolio Management• Maximizing The Value Of The Portfolio• Achieving The Right Balance Of
Products• Strategic Alignment• Resource Balancing
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Value Selection
Combine financial models with scoring models
• Topics to score– Strategic Fit– Product Advantages– Market Attractiveness– Leverage Capability– Technical Feasibility– Financial Return
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Project Balance
• High/low risk• Long/short term• Product Platforms• Type of Program
Risk
Low High
Long
Short
DevTime
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Providing Intelligence for Growth
Tom M. HorlacherManaging Principal
• Thank You For Attending Today• Selected Slides Only Included Here
– Contact WBA for Complete Presentation