product development - entrepreneurship 101 (2013/2014)

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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 ©2013 Panacis Inc.

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Converting an idea or a lab prototype into a real, customer-ready product is no simple task. Learn how to turn your idea into a successful product by improving your team and company focus and properly defining what your product is. Learn how to differentiate between the steps of product development, including capturing market requirements as well as research, design, implementation, testing, verification, validation, operations and maintenance.

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Page 1: Product Development - Entrepreneurship 101 (2013/2014)

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 ©2013 Panacis Inc.

Page 2: Product Development - Entrepreneurship 101 (2013/2014)
Page 3: Product Development - Entrepreneurship 101 (2013/2014)

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 (2013/2014)

Today’s Presentation – Product Development

How to take an IDEA and make it a REALITY

&

How to make sure that REALITY aligns with the original IDEA!

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Page 5: Product Development - Entrepreneurship 101 (2013/2014)

Role of the Visionary

The Visionary drives the product idea at a high level.

Visionaries often have trouble communicating their ideas in a way

that can be acted upon to make them real.

We will use a Flashlight as an example

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Page 6: Product Development - Entrepreneurship 101 (2013/2014)

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 7: Product Development - Entrepreneurship 101 (2013/2014)

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 8: Product Development - Entrepreneurship 101 (2013/2014)

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 9: Product Development - Entrepreneurship 101 (2013/2014)

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 10: Product Development - Entrepreneurship 101 (2013/2014)

Development Models

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Waterfall Model

Agile Software Model

Spiral Development Model

Custom

Corporate-Centric ?

Page 11: Product Development - Entrepreneurship 101 (2013/2014)

Development Models

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How do you Choose?

  Do members of your team have a preference?

  Some models fit certain people better, your project lead is most important to fit

  Some models fit certain industries better (military, medical, low-risk consumer, high-risk consumer)

  Are you more interested in RAPID development, LEAN development or PERFECT development?

  Models often have strengths and weaknesses that must be matched to your product, financial health and team size

  Example: the Spiral method often delivers a superior product, but takes longer and costs more to get there

Page 12: Product Development - Entrepreneurship 101 (2013/2014)

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 13: Product Development - Entrepreneurship 101 (2013/2014)

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 14: Product Development - Entrepreneurship 101 (2013/2014)

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 15: Product Development - Entrepreneurship 101 (2013/2014)

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 16: Product Development - Entrepreneurship 101 (2013/2014)

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 17: Product Development - Entrepreneurship 101 (2013/2014)

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 18: Product Development - Entrepreneurship 101 (2013/2014)

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 19: Product Development - Entrepreneurship 101 (2013/2014)

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 20: Product Development - Entrepreneurship 101 (2013/2014)

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

It doesn’t matter which development model you use – the names may change but the fundamentals remain the same.

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Most Important

Page 21: Product Development - Entrepreneurship 101 (2013/2014)

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 disappointing

  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 against to know that volume production matches what you designed

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Page 22: Product Development - Entrepreneurship 101 (2013/2014)

Customer / Market Requirements

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

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

  Generally NOT technical

  Can be used to test the market

  Rarely has quantitative measurements

Example: The Bright Warrior is ready to shed light on any situation, it won’t fail when thrown in your luggage, dropped in a lake, or used as a hammer.1

1- use as a hammer not recommended, nails sold separately, please hammer responsibly.

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Page 23: Product Development - Entrepreneurship 101 (2013/2014)

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 24: Product Development - Entrepreneurship 101 (2013/2014)

Customer / Market Requirements

Examples of market requirements:

  Durable for situations the road-warrior faces

  Light weight and small to fit anywhere

  Bright, even illumination

  Good battery life

  Price is a moderate consideration (not cheap)

  Should have an appealing look and feel

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Page 25: Product Development - Entrepreneurship 101 (2013/2014)

Customer / Market Requirements

Examples of market requirements:

  Durable for situations the road-warrior faces

  Light weight and small to fit anywhere

  Bright, even illumination

  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 26: Product Development - Entrepreneurship 101 (2013/2014)

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 27: Product Development - Entrepreneurship 101 (2013/2014)

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 28: Product Development - Entrepreneurship 101 (2013/2014)

Functional Requirements

Put QUANTITATIVE goals on QUALITATIVE market requirements

  This document does NOT give details of how 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 29: Product Development - Entrepreneurship 101 (2013/2014)

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 30: Product Development - Entrepreneurship 101 (2013/2014)

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 31: Product Development - Entrepreneurship 101 (2013/2014)

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 32: Product Development - Entrepreneurship 101 (2013/2014)

Product / Engineering Specification

Balance and Compromise will be required – iteration against the Functional and Market requirements may occur.

  Example: We will achieve light weight by using AAA Batteries

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AA 23 grams

AAA 12 grams

Page 33: Product Development - Entrepreneurship 101 (2013/2014)

Product / Engineering Specification

Balance and Compromise will be required – iteration against the Functional and Market requirements may occur.

  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 34: Product Development - Entrepreneurship 101 (2013/2014)

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 feels the balance of features isn’t quite right – Gut Feel is important!

Cost/Speed - It is better to iterate at this stage than waiting until a prototype is completed (V-Model)

Risk/Market – It is better to go ahead and build a prototype for market acceptance testing at this stage and iterate later (Spiral Model)

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Page 35: Product Development - Entrepreneurship 101 (2013/2014)

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 36: Product Development - Entrepreneurship 101 (2013/2014)

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 37: Product Development - Entrepreneurship 101 (2013/2014)

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 38: Product Development - Entrepreneurship 101 (2013/2014)

A Unified Approach

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Page 39: Product Development - Entrepreneurship 101 (2013/2014)

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 40: Product Development - Entrepreneurship 101 (2013/2014)

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

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