new product development lecture 4

8/8/2019 New Product Development Lecture 4

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New ProductNew ProductDevelopmentDevelopment

Hammad Ashraf Hammad Ashraf

Crawford, New Products Management, 2003Crawford, New Products Management, 2003


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S ummaryS ummaryConcept generation in NPD*.Concept generation in NPD*.Creativity & innovation:Creativity & innovation:

Creative people.Creative people.

Genius thinking strategies.Genius thinking strategies.Managerial role.Managerial role.

Concept generation:Concept generation:

Form.Form. Technology.Technology. Benefit.Benefit.

Dimensions of innovation process.Dimensions of innovation process.


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C oncept GenerationC oncept GenerationO pportunity identification to conceptO pportunity identification to conceptgeneration.generation. Creating new product ideas.Creating new product ideas.

Product concepts rely on opportunityProduct concepts rely on opportunityidentification.identification. O pportunity: people moving theirO pportunity: people moving their

families over long distances.families over long distances. Concept generation: Study thoseConcept generation: Study those

people, their problems, find solutions bypeople, their problems, find solutions bygenerating product concepts (productgenerating product concepts (productbriefs).briefs).


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R ight PeopleR ight People

Creative. Unconventional thinking.Creative. Unconventional thinking. O ne half of thirteen is thir.O ne half of thirteen is thir.

O

ne half of 13 is 1.O

ne half of 13 is 1.Two main kinds of creative people.Two main kinds of creative people. Engineers versus artist.Engineers versus artist. Left versus right side of the brain*.Left versus right side of the brain*.

NPD requires both.NPD requires both.


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M anagerial R oleM anagerial R ole

Training sessions.Training sessions.Encouraging through freedom.Encouraging through freedom.

Creating sense of competition.Creating sense of competition.Rewarding according toRewarding according toachievements*.achievements*.

Ready to accept mistakes*.Ready to accept mistakes*.


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F ormF orm

Physical thing being created.Physical thing being created.O ther important components areO ther important components are

included:included: Hardware, software, people, procedure.Hardware, software, people, procedure. Mobile phone service.Mobile phone service.

Focus of engineers andFocus of engineers andmanufacturing department.manufacturing department.


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TechnologyTechnology

Source by which the service/productSource by which the service/productwill be created.will be created.

Technology: power to do work.Technology: power to do work.O ne clear technology is always at theO ne clear technology is always at thebase of an innovation.base of an innovation.

Steel alloy: steel, chemicals, science of Steel alloy: steel, chemicals, science of metallurgy, product forming machines...metallurgy, product forming machines...


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B enefitB enefit

Product has value if it provides aProduct has value if it provides abenefit to the consumer.benefit to the consumer.

At least one market aspect has toAt least one market aspect has tomatch for new productmatch for new productdevelopment*.development*.The new product should clearly passThe new product should clearly passthe commercialization stage and bethe commercialization stage and beprofitable.profitable.


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Innovation Process: ThreeInnovation Process: Three

DimensionsDimensionsFirm hasFirm has technologytechnology that it matches tothat it matches togiven marketsgiven markets needneed, which is then met by, which is then met bya particulara particular formform of product.of product.Firm envisions aFirm envisions a formform of product, which isof product, which isthen created usingthen created using technologytechnology, then given, then givento customers to see if it has anyto customers to see if it has any benefit benefit. .

Customer has aCustomer has a need need. Firm uses. Firm usestechnologytechnology to produce ato produce a formform of productof productthat is then sold...that is then sold...


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The Ideal Process!!!The Ideal Process!!!

Business examples of all differentBusiness examples of all differentdimensions.dimensions.

Difference between success andDifference between success andfailure.failure.Putting benefit last is very risky.Putting benefit last is very risky.

Customers need should be givenCustomers need should be givenpreference for achievement of preference for achievement of organizational goals & objectives.organizational goals & objectives.


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The End.The End.

new product development lecture 4

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