new product development - urenio · 2015-11-24 · new product development from a system-driven...
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New Product Developmentfrom a system-driven perspective
Nicos Komninos
Postgraduate Programme “Advanced Design: Innovation and Transdisciplinarity in Architectural Design”
24 November 2015
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Innovation systemTerritorialInstitutionalCyber-physicalPlanned
Identify the systemExploit resourcesConsider competition
InnovationNew product developmentProcess innovationOrganisational innovation
Social innovation (means and ends): Climate change; poverty; violence; governance
Innovation: Systemic perspective Innovation: Systemic perspective
Company(ies) &
Organisations
Supliers
Supliers
Supliers
Supliers
Government Regional policy; Strategic
planning; Business associations; Regional
stakeholders
FinancingBanks, Business Angels,
Venture Capital, Regional Incentives, Crowdfunding
Technology and Information Intermediaries
•Technology transfer agencies; Consultancy; Tech Networks;
Patents; Standards; Market watch
Public R&D
Private R&D
Customers
Customers
Users
University R&D
Business sectors
Business clusters
Business Model Design
Stage-Gate Product Design
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Contents
1. A systemic approach to innovation
2. NPD state-gate model
3. URENIO NPD S-G roadmap
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4
Design for the business model Design for the business model
Business models serve important objectives: Place product design and development within a systemic perspectiveCreate value by defining a series of activities from raw materials to the final product Capture a portion of this value by establishing a competitive advantage
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5
BUSINESS MODELInnovation
processIP
1 Undifferentiated: no differentiation, hard
work, but can't attract capital, cannot scale
None NA
2 Differentiated: advantages over performance,
ad hoc innovation, but hard to sustain
Ad hoc Reactive
3 Segmented: serves multiple segments, more
volume, lower costs, but still internally focused
Planned Defensive
4 Externally aware: harnesses external sources
of knowledge to complement internal capabilities
Externally supportive
Enabling asset
5 Integrated: External sources routinely utilized,
unused internal ideas flow outside , systemsintegrator of internal and external technologies
Connected Financial assets
6 Platform: Ultimate stage of open innovation,
benefits from others investments in the platform, an ecosystem is created
New business
opportunities
Strategic assets
Business models: maturity stages Business models: maturity stages
Sources: Chesbrough 2006 and 2008 http://www.slideshare.net/SiliconValleyST/business-model-innovation-by-h-chesbrough
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6
BUSINESS MODELBLOCK
CHANGES ADVANTAGES
INFRASTRUCTURE (Suppliers & partners)
Crowdsourcing skills, ideas, competences over platforms and virtual networks
Increase the skill base and innovation capability of the company
OFFER(Value proposition, product design)
Turn products to smart. Use smart object-components
Turn products to hybridManage hybrid identities
Connect products to IoTReal time operation assess Tracking components
CUSTOMER(Channels and market segments)
Use other companies as distribution channels
Create collaborative marketplaces
Turn customers to producers
Increase customer base Increase customer loyalty Scale down marketing and distribution costs
FINANCE(Costs and revenue)
Leasing infrastructure and services over the cloud
Maintain data and services on the cloud
Reduce initial investments Reduce operational costs Scaling up/down hardware and services
Business models within cyber –physical systems Business models within cyber –physical systems
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1. A systemic approach to innovation
2. NPD state-gate model
3. URENIO NPD S-G roadmap
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http://www.stage-gate.com/resources_stage-gate.php
Stage-Gate literatureStage-Gate literature
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Stage-Gate processStage-Gate process
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Open Innovation Stage-Gate by R. Cooper Open Innovation Stage-Gate by R. Cooper
http://www.stage-gate.com/resources_stage-gate_openinnovation.php
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S-G models and process loops S-G models and process loops
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1. A systemic approach to innovation
2. NPD state-gate model
3. URENIO NPD S-G roadmap
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Contains 7 Levels (stages) and 7 Assessments (gates) Three blocks: (1) concept, (2) business model, (3) detailed design
URENIO Stage-Gate roadmapURENIO Stage-Gate roadmap
Problem or
Challenge
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Stage presentation
Software tools Books
Web links
Articles
Case studies
Contents of each level
NPD ROADMAP
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Roadmap Levels
Level 1: Idea GenerationLevel 2: Idea ScreeningLevel 3: Concept Development & TestingLevel 4: Business AnalysisLevel 5: Product TestingLevel 6: Technical ImplementationLevel 7: Product Commercialisation
Level Description
Methods &Techniques
Level Assessment
NPD ROADMAP
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Level 1: Idea Generation
Idea generation is a process in which creative thinking is used to produce a large amount of ideas for new products.
Produce as many ideas as possible
Record all ideas. Avoid criticism for other people ideas
Analyze ideas, organize groups and clusters, hierarchize, define components and dimensions
NPD ROADMAP
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Level 1 MethodsMethod Techniques / process
Brainstorming(individual / group)
Affinity Diagrams (interviews, statements, groups, clusters)Osborne’s checklist (uses, modify, L, S, substitute, reverse)Software: ParaMind; Brainstorming toolbox
Competitive intelligence
Business intelligence capabilities. SoftwareCompetitive benchmarkingReverse engineering
Conjoint analysis P=Σa: Attributes; values per attribute; combination; analysis
Delphi From forecasting to info gatheringRoadmap: Coordinator; rounds of Qs; synthesis
Morphological charts
List product functions. Potential solutions per function. Chart combinations
Six thinking hats Thinking based on: white-data; red-intuition; black-negative; yellow-optimistic; green-creativity; blue-control
Triz(NPD as invetive problem)
Altshuller's theory of Inventive Problem Solving: the solution causes another problem to appear. Previous solutions. Analogous solutions. Matrix of 40 principles.
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Level 1 Assessment
Assessment L1 evaluates the way and the tools used for idea generation.
According to the answers a user gives to the following questions a GO, HOLD or KILL decision is provided for further progression in the roadmap at Level 2.
Assessment factors: number of ideas; source of ideas; competitors ideas; methods used; components analysis; clustering.
Assessment of use of tools
Check that ideas were produced
Decision: Go or Run again
NPD ROADMAP
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Level 2: Idea Screening
Once all viable ideas are gathered and managed, they must be further developed, examined, prioritised and evaluated so that a single product idea is selected for further development into a product concept.
This whole process is called screening and is the main problem to solve in this Level by using different tools and techniques
NPD ROADMAP
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Level 2 MethodsIdea screening methodologies and tools
Qualitative research Screening ideas against strategy Screening ideas against sales & profitability min Screening ideas against key customers and buyers
Failure Mode & Effects Analysis
Identification and analysis of routes of product failure. Best for product re-design & next version
Dot Sticking Ideas selection based on voting. Limited number of votes per person. Define 5 best ideas. Round 2.
SWOT Analysis SWOT Analysis (Strengths / Weaknesses / Opportunities / Threats) per product idea
PMI Analysis (Plus / Minus / Implications)
Assessment process giving values to pros and cons variables of each idea. Sum pros and cons. Note implications
NPD ROADMAP
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Level 2 Assessment
Evaluates the way the generated ideas were screened so that a single idea is produced for further development.
A GO, Hold (repeat) or KILL decision is issued for proceeding to the next level depending on the given answers to a set of questions.
Assessment factors: number of reviewers; number of methods used; identification of a single product idea; fuzzy outcome
Assessment of use of tools
Check that a singleIdea was selected
Decision
NPD ROADMAP
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Level 3: Concept Development
As soon as a single product idea is selected (Levels 1 and 2), a product concept is to be developed so that a complete product takes shape.
The product should be an innovative solution. The concept development involves the evaluation of several product concepts, which are based on the same product idea.
The product concept selected should must be the best-one from many quasi-similar concepts stemming from a single product idea.
NPD ROADMAP
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Level 3: Concept Development
The concept development defines the key attributes of a product idea.
Involves a first account of the environment of the new product
Definition of target market and customers
Identifications of the competition and formation of a competitive strategy
Preliminary product technical development and testing scheduling
Estimation of product development required effort
Creation of a preliminary business plan
Product Idea
ProductConcept 1
ProductConcept 2
ProductConcept 3
NPD ROADMAP
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Level 3: MethodsMethods Refinement process 1: alternative concepts
Controlled Convergence (1) Identify 5-10 concepts; (2) Assessment matrix; (3) predominant concept compare all; (4) merge
Force Field Analysis (forcing agreement)
List alternative concepts as decisions to make. Per decision, define forces for change and against change. Assign values. Sum-up for and against values. https://www.mindtools.com/pages/article/newTED_06.htm
Relevancy Concepting An elitist approach. The 80 (vol.) by 20 (users) rule. Identify heavy users. Interviews. Assess concepts for heavy users only.
New Tech Commercialization
In case of new technology based products. Segmentation of users: “Innovation Acceptors” vs. “Wait and See”. Work with IA for concept assessment.
Risk Management Analysis
Per concept, identify, analyse, prioritize risks, formulate contingency plans and adapt product features
NPD ROADMAP
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Method Refinement process 2: Bottom-up definition of qualities
QualityFunctional Deployment
THE HOUSE OF QUALITY1. Customer demand, variables2. Engineering design variables (measurable)3. Correlation between the design variable (++, +, -, - -)4. Correlation matrix customer / design variables
(strong, medium, low, none)5. Insights within the product development teamhttps://www.youtube.com/watch?v=tO6gmWX-cp4
KANO Diagrams Decide about critical qualities / characteristics of a product idea: 1. Interviews, product qualities2. Assess “have” / “not-have” quality behaviours with “Like”, “Must”, “Do not care”, “Can-live without”, “Dislike”3. Plot customer curves. Property mixhttps://www.youtube.com/watch?v=iuOrEIBVQX4
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Level 3 Assessment
The L3 assessment looks at the way a selected product idea is turned into a product concept so that a new product is produced for further development and how this concept was evaluated.
A GO, Hold (run again) or KILL decision is issued for proceeding to the next level depending
Assessment factors: number of concepts analyzed / refined; number of customers interviewed; number of qualities added; product development team satisfaction
Assessment of use of tools
Check that a single Product concept is selected
Decision
Check that the ProductConcept is the right one
NPD ROADMAP
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Level 4: Business AnalysisSince a product idea has been
chosen, the product concept has been developed, and the market seems promising, the next step is to check the financial aspects of the refined concept.
This includes the detailed scheduling and calculation of production and marketing costs, revenues, profits, cash-flow, sources of funding, stakeholders roles.
NPD ROADMAP
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Level 4 Methods
NPD ROADMAP
Methodologies Tools
Scheduling Gantt ChartsCritical Path AnalysisPERT (Program Evaluation and Review Technique)
Product Life Cycle Understanding the PLCProduct features change along the PLC
Business Planning Cost-Benefit AnalysisBusiness Plan
StakeholderAnalysis
Stakeholders identificationStakeholders management
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Scheduling
Gantt Charts• List of all activities• Plot duration of tasks• Scheduling• Analysis
Critical Path Analysis• Similar to Gantt• Plus reasons of delay• Re-allocate resources
PERT• Variation of CPA • Estimation shortest (S),
Probable (P), longest time (L)
• Scheduling with the formula: Task time = (S + 4P + L) / 6
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Life Cycle Analysis
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Business Planning
Activity description1. Overview2. Business description3. Organisational plan –
personnel - management4. Production process5. Marketing and sales
6. Financial plan
• Calculation of costs and revenues
• Cost categories• Funding schedule• Sources of funding• Target market• Price estimations• Revenue• Break-even• Profits
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Stakeholder Analysis
Stakeholders identification that can affect the project1. Internal to the business2. External, business3. External, government,
associations, NGOs, users
Stakeholders management• Plan the approach• What is needed by each • Plan messages /
communication
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Level 4 AssessmentA GO, Hold (run again) or KILL
decision is issued for proceeding to the next level
Criteria of assessment
1. An idea for a new product
2. A product concept that is technical feasible and financially profitable
3. An estimation of the funding required for prototyping, producing, and launching the new product into the market
4. The source(s) of funding required
5. Identification of the market(s) and strategies to launch the new product
NPD ROADMAP
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Level 5: Product Testing
Product testing can occur in all levels of the NPD process. In all cases the testing process consists of three components: (1) Creation of a testing strategy (which often includes the creation of test cases), (2) Creation of a testing plan (which includes test cases and test procedures) and (3) Execution of tests.
NPD ROADMAP
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Level 5 Methods
Rapid PrototypingQuick making of prototypes from CAD for testing and communication
Testing Exploratory –early phaseAssessment – preferred
single solutionComparison of
alternativesValidation – later stageISO 9000 – quality
assurance
NPD ROADMAP
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Rapid prototyping
Rapid Prototyping techniques
Stereolithography (plastic prototypes)
Fused deployment modelling (plastic)
Inkjets (plastic)
Laminated object fabrication (paper)
Laser engineered net shaping (melting metal)
3D printing
NPD ROADMAP
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Testing methods
Functionaltests
Alpha tests-Internal -R&D department-Engineers
End-to-endIntegration testsSystem testsPerformanceInstallation Unit testing
Customertests
Beta tests-External-Marketing department-Customers
Customer behaviourFunctionalityUsabilityComparative
Market tests
- Sales wave (free offer)- Simulated (sample choice)- Controlled (a few stores)- Test markets (a few cities)
TrialFirst purchaseAdoptionRepeat frequency
NPD ROADMAP
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Level 5 Assessment
At the end of Level 5 a product prototype is build and that prototype is tested in respect to its functionality and market requirements.
The results of such tests are evaluated with respect to Business Plan assumptions and estimations.
Once again a Go or Kill recommendation is given to proceed into Level 6 of the Roadmap.
Prototype construction
Assess the prototype With respect to BP
Decision Go-Kill
NPD ROADMAP
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Level 6: Technical Implementation
During the Technical Implementation stage, NPD should figure out how produce and deliver the product and provide customer support.
Based on previous testing there is need to prepare the production facilities, supplies, transportation, and distribution.
How the product is produced will influence aspects of design, price, usage, shipping, and warehousing.
NPD ROADMAP
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Level 6 MethodsTechnical design and production
Design for X(Design for specific objective)
Design for manufacture (reduce costs). Design for assembly. D-f-Lifecycle. D-f-Installation. Design-f-reliability. D-f-reuse. D-f-environment. D-f-Speed.
Detailed design for manufacture
* Tolerance specs *Components requirements * Production volume * Performance criteria
Mass customisation
Lean manufacturing Just-in-TimeSupply Chain Management
Major issues in manufacturing
Bill of MaterialsMaterial Requirement Planning
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Level 6 Assessment
At the end of Level 6 the selected concept and the resulting product prototype is finally produced, manufactured in large quantities.
The use of CAD/CAM techniques, production organization, supply chain management, lean manufacturing, mass production and mass customization are taken into consideration and influence the technical design of the product.
Assessment for GO, HOLD or KILL is related to technical specifications and issues coming from detailed manufacturing
Assessment of producibility
Consideration of manufacturingmethods
Decision
NPD ROADMAP
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Level 7: Product Commercialisation
Includes the largest costs to date, related to
Product promotion, advertising, and placement
Product pricing
Distribution channel strategy and selection
Activation of the Marketing Plan
NPD ROADMAP
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Level 7 MethodsMarketing Plan Overall strategy and marketing strategy; market
segmentation; competition; marketing mix. Marketing plan shaping product qualities
Distribution Channels
All organisations from P2C. Types: direct sales, wholesalers, agents, retailers, Web. Strategy.
Pricing Objectives: profit; sales; market share; leaderStrategies: premium; demand analysis; promotion.Methods: Competitors; cost+markup; skimming; rate
Promotion Advertising. Product placement. Selling. Sales promotion (coupons, discount, rebates). Publicity.
Elevator Speech 30’ for the product: The; For; Who; That; Unlike; Our p.
Product on a Page
Single page advert. Product specification sheet. Target. Purpose. Features. Catch phrase. Image.
Digitalmarketing
Social media marketing. Viral marketing. Attention economy. Open marketplaces.
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NPD literatureNPD literature