product development - entrepreneurship 101 (2012/2013)

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Converting an idea or even a lab prototype into a real, customer-ready product is no simple task. Learn how to turn your idea into a successful product by following the “V-model” of concept development and how to differentiate the steps of product development.

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Page 1: Product Development - Entrepreneurship 101 (2012/2013)
Page 2: Product Development - Entrepreneurship 101 (2012/2013)

A trusted supplier of advanced, high performance, integrated battery systems for mission critical applications

Tell us what you need. We thrive on challenges.

All images in this presentation ©2012 Panacis Inc.

Page 3: Product Development - Entrepreneurship 101 (2012/2013)

Company Background

§  Founded in 2002 §  Privately owned by high-tech investor base §  Located in Ottawa, Ontario, Canada §  R&D, prototyping, NPI, product design, and manufacturing

§  Focused on Lithium ion rechargeable energy storage systems since 2007

§  Off-the-shelf products and custom/semi-custom development for demanding applications

§  Global customer base §  Strong IP portfolio

§  Covers multiple aspects of advanced energy systems including safety, manufacturing, control and applications

§  Security clearance for international military contracts

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Page 4: Product Development - Entrepreneurship 101 (2012/2013)

Role of the Visionary

The Visionary drives the product idea at a high level.

How do you get that vision to the market?

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Page 5: Product Development - Entrepreneurship 101 (2012/2013)

Product Development Path

It doesn’t matter how simple or complex the product is, the same basic path can be followed.

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Page 6: Product Development - Entrepreneurship 101 (2012/2013)

Product Development Path

It doesn’t matter how simple or complex the product is, the same basic path can be followed.

§  Failure to have a PLAN will result in wasted time, effort and money (and possibly result in the loss of opportunity if the product fails)

§  The PLAN will result in easier development of a quality product that meets the market expectations

§  Additional benefits of a good PLAN are easier financing, recruitment and market entry.

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Page 7: Product Development - Entrepreneurship 101 (2012/2013)

Unify the Team Every good product requires a team to bring it to market

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§  The team must have a COMMON VISION

Page 8: Product Development - Entrepreneurship 101 (2012/2013)

Development Models

There are many different product development models, software and planning tools

§  Most plans have common steps, different names, different breakdowns, but the same basic goal of documenting the product development path

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V-Model

Cycle Model

Phase-Gate Model

Page 9: Product Development - Entrepreneurship 101 (2012/2013)

What Are You Trying To Do?

Before starting the plan, ask a few questions about what you are trying to do.

§  Who Wants It?

§  Walmart, Road Warriors or Stocking Stuffer?

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Page 10: Product Development - Entrepreneurship 101 (2012/2013)

What Are You Trying To Do?

Before starting the plan, ask a few questions about what you are trying to do.

§  Who Wants It?

§  Walmart, Road Warriors or Stocking Stuffer?

§  What Is It For?

§  Serious Lighting or Fun?

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Page 11: Product Development - Entrepreneurship 101 (2012/2013)

What Are You Trying To Do?

Before starting the plan, ask a few questions about what you are trying to do.

§  Who Wants It?

§  Walmart, Road Warriors or Stocking Stuffer?

§  What Is It For?

§  Serious Lighting or Fun?

§  Who Pays?

§  Consumer, Industrial, Government?

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Page 12: Product Development - Entrepreneurship 101 (2012/2013)

What Are You Trying To Do?

Before starting the plan, ask a few questions about what you are trying to do.

§  Who Wants It?

§  Walmart, Road Warriors or Stocking Stuffer?

§  What Is It For?

§  Serious Lighting or Fun?

§  Who Pays?

§  Consumer, Industrial, Government?

§  What is YOUR Capability?

§  Distributor, Designer, Manufacturer?

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Page 13: Product Development - Entrepreneurship 101 (2012/2013)

What Are You Trying To Do?

Before starting the plan, ask a few questions about what you are trying to do.

§  Who Wants It?

§  Walmart, Road Warriors or Stocking Stuffer?

§  What Is It For?

§  Serious Lighting or Fun?

§  Who Pays?

§  Consumer, Industrial, Government?

§  What is YOUR Capability?

§  Distributor, Designer, Manufacturer?

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Page 14: Product Development - Entrepreneurship 101 (2012/2013)

What Are You Trying To Do?

We are going to DESIGN a flashlight for ROAD WARRIORS for SERIOUS LIGHTING.

This will be bought by the CONSUMER directly.

We will outsource the manufacturing and distribution.

§  How do we communicate this vision to our team?

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Page 15: Product Development - Entrepreneurship 101 (2012/2013)

Your Product in 4 Easy Steps

Four planning documents can encompass the entire product development in a form that is appropriate for the audience.

§  Customer / Market Requirements

§  Functional Requirements

§  Product / Engineering Specification

§  Test and Verification Specification

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Page 16: Product Development - Entrepreneurship 101 (2012/2013)

Your Product in 4 Easy Steps

Four planning documents can encompass the entire product development in a form that is appropriate for the audience.

§  Customer / Market Requirements

§  Functional Requirements

§  Product / Engineering Specification

§  Test and Verification Specification

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Most Important

Page 17: Product Development - Entrepreneurship 101 (2012/2013)

Your Product in 4 Easy Steps

When a product development effort is launched with only one or two of these documents in place, the end result is usually dissapointing

§  With ONLY Customer / Market Requirements document, the engineering team will tend to iterate “forever” trying to hit the technical points that make the vision match the reality

§  With ONLY Functional Requirements documents, the product may perfectly match every technical goal but will often lack the “special something” that grabs market attention, it will be a “me-too” product

§  Without the Product / Engineering Specification there will be nothing to measure against to know the design is done

§  Without the Test and Verification Specification there will be nothing to measure agaisnt to know that volume production matches the design

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Page 18: Product Development - Entrepreneurship 101 (2012/2013)

Customer / Market Requirements

Focus on what the end customer wants in terms that use emotion, comparisions to other products and qualitative adjectives.

§  Generally NOT technical

§  Can be used to test the market

§  What would YOU say to a CUSTOMER and what would customers say to each other about the product?

§  Rarely has quantitative measurements

§  Example: A road warrior wants a flashlight that is incredibly durable, it can’t fail when repeatedly thrown in their luggage.

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Page 19: Product Development - Entrepreneurship 101 (2012/2013)

Customer / Market Requirements

The Visionary and the Sales or Marketing leader (or business development, distributors, customers, other stakeholders etc.) use this document to come to a common vision for the product.

Describe the product “sales pitch”

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Page 20: Product Development - Entrepreneurship 101 (2012/2013)

Customer / Market Requirements

Examples of market requirements:

§  Durable for situations the road-warrior faces

§  Light weight and small to fit anywhere

§  Bright, even light

§  Good battery life

§  Price is a moderate consideration (not cheap)

§  Should have an appealing look and feel

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Page 21: Product Development - Entrepreneurship 101 (2012/2013)

Customer / Market Requirements

Examples of market requirements:

§  Durable for situations the road-warrior faces

§  Light weight and small to fit anywhere

§  Bright, even light

§  Good battery life

§  Price is a moderate consideration (not cheap)

§  Should have an appealing look and feel

§  What about your “special sauce”, what do you add to this product that makes it really special (integrated USB storage, rechargeable battery, different colors…)

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Page 22: Product Development - Entrepreneurship 101 (2012/2013)

Customer / Market Requirements

What are your competitors doing:

§  As durable as competitor X

§  Lighter than competitor Y

§  Price similar to competitor Z

§  These market requirements will often feel obvious to you, the Visionary, but they are often not obvious to the people that will help you realize the product

§  YOU are the expert in this market, do not make assumptions of other people’s knowledge

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Page 23: Product Development - Entrepreneurship 101 (2012/2013)

Customer / Market Requirements

A good plan inspires confidence in your team:

§  Everyone wants to do a good job

§  It is a great feeling to hear your team quoting the vision:

“we are going to be the lightest, the brightest… the best”

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Page 24: Product Development - Entrepreneurship 101 (2012/2013)

Functional Requirements

Puts QUANTITATIVE goals on the QUALITATIVE statements of the marketing requirements?

§  This document does NOT give details of how all the goals are achieved (but it can give guidance)

§  Provide goals for each requirement

§  Provide stretch goals for as many of the market requirements as possible

§  Some requirements may be difficult or impossible to quantify (example: look and feel) but these requirements can often still be addressed (example: rubber coating on handle to make the flashlight feel great in your hand)

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Page 25: Product Development - Entrepreneurship 101 (2012/2013)

Functional Requirements

The Engineer works with the Visionary and Marketing to define appropriate goals for the development team:

§  Market requirements said “lightweight”

§  Functional Requirements would define “less than 50 grams, with a stretch goal of 40 grams”

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Page 26: Product Development - Entrepreneurship 101 (2012/2013)

Functional Requirements

Beware of feature creep:

§  It is easy to put these goals on paper, but they must be achievable or you will never make it to market and your team will be discouraged

§  It’s OK to ask for the impossible, but do it in the stretch goals

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Page 27: Product Development - Entrepreneurship 101 (2012/2013)

Product / Engineering Specification

Now you know what you want the product to be, how do you get there?

§  Provides technical details and guidance on how the goals (and/or stretch goals) will be achieved

§  Allows Marketing and Visionary to start formulating bullet points of the product brochure

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Page 28: Product Development - Entrepreneurship 101 (2012/2013)

Product / Engineering Specification

Balance and Compromise will be required – iteration against the Functional and Market requriements my occurr.

§  Example: We will achieve light weight by using AAA Batteries

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AA 23 grams

AAA 12 grams

Page 29: Product Development - Entrepreneurship 101 (2012/2013)

Product / Engineering Specification

Balance and Compromise will be required – iteration against the Functional and Market requriements my occurr.

§  Example: We will achieve light weight by using AAA Batteries

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§  AAA Batteries will help hit the light weight stretch goal, but may cause us to miss the battery life goals

AA 23 grams

AAA 12 grams

Page 30: Product Development - Entrepreneurship 101 (2012/2013)

Product / Engineering Specification

The sum of the parts will also be summarized.

§  AAA batteries

§  Use of Titanium housing to reduce weight

§  LED bulb to extend run-time

§  Results in XX grams total weight, YYY minutes of run-time and a cost of $$$$$$$.

Iteration may be required if the Visionary ultimately feels the balance isn’t quite right

It is MUCH better to iterate at this stage than waiting until a prototype is completed

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Page 31: Product Development - Entrepreneurship 101 (2012/2013)

Product / Engineering Specification

The Visionary and the Engineering team will now be aligned.

§  Design can begin

§  Test and Verification specification can also be started

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Page 32: Product Development - Entrepreneurship 101 (2012/2013)

Test and Verification Specification

How do you know the product being designed meets the Quantitative goals set?

§  Prove it!

§  Each measureable parameter is tested

§  Design is tested via the prototypes

§  Can be as simple as “weight it”

§  Anticipate variation, set allowable limits

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Page 33: Product Development - Entrepreneurship 101 (2012/2013)

Test and Verification Specification

This specification has long-term usefulness that goes beyond a first prototype

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§  A subset of this document may be used in production testing

§  The tests can be run on new revisions of the product

§  The tests can be run on products manufactured by a new sub-contractor (or due to obsolete parts)

§  The tests can be used as part of a regression test strategy for new software versions

Page 34: Product Development - Entrepreneurship 101 (2012/2013)

A Unified Approach

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Page 35: Product Development - Entrepreneurship 101 (2012/2013)

Other People, Documents, etc. There is a lot missing in this presentation, your team members will add

their own details and processes.

§  How does QA / QC Fit?

§  What about Budgeting?

§  How do you choose an Engineering partner?

§  How do you choose a Manufacturer?

These topics become easier once you have the foundation of the four documents outlined but are beyond what can be addressed

in a single session

Know your strengths, work with people who will fill out your weak-spots and together, with a unified vision, you will be able to take

on the world

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Page 36: Product Development - Entrepreneurship 101 (2012/2013)

A Final Word on Complexity.

Even something as simple as a flashlight has many parts.

Each part has to be designed or specified, located, bought, tested, integrated and tracked.

Each component may be a project by itself!

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Page 37: Product Development - Entrepreneurship 101 (2012/2013)

Contact: Steve Carkner Founder and CTO Panacis 613-727-5775x727 cell 613-286-2072 skype & twitter: “scarkner”

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