product development principles

S15: Product Development Principles

Technology and Innovation

Contents 1 Introduction

2 New Product Development Funnel

3 Stage 1: Idea Generation & Opportunity Evaluation

4 Stage 2: Product Concept Development

5 Stage 3: Concept Testing

6 Stage 4: Design and Engineering Products

7 Stage 5: Prototype Development and Testing

8 Summary of the Principles

9 References

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• New product development is the complete process of bringing a new product or service to market

Introduction

• New product development may be done to develop an item to compete with a particular product or may be done to improve an already established product

https://www.youtube.com/watch?v=3ocvBg_-wjw


New Product Development Funnel


Stage 1: Idea Generation & Opportunity Evaluation

Capturing consumers, suppliers and employees point of view

Most challenging part is to capture the voice of the customer, assess customer needs, measure preferences, and predict new product purchase behavior


Sparking Innovation through Empathetic Design

Conducting the proper research to target empathic design not only can build this connection but also can help a company innovate new products or solutions for problems the user never asked for or never thought could be solved. Ex. Empathetic design techniques are most essential while designing web products HP Example https://www.youtube.com/watch?v=pXtN4y3O35M&feature=youtu.be


The more different

“spaces” are explored,

the higher the probability

that the best ideas will

be good ideas that can

position the organization

to satisfy customer

needs in new and

creative ways.

Available at Amazon.com

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Brainstorming & Brainwriting

The Idea Game

Morphological Analysis

Stage 2: Product Concept Development

Brainstorming • Shared problem solving • Contribute ideas including

unrealistic ideas • Key rule: criticism forbidden

Brainwriting

• Write down ideas instead of calling them out in front of the group

• Use of index cards • Reads the ideas; either tries

to elaborate on them, or tries to use them to generate additional ideas

• Cards are repeatedly & continuously passed around the group

• Web based methods • Participants can post

ideas, expand ideas, and comment on ideas at their convenience from anywhere in the world

• Ideas are organized in threads so that participants can easily build upon other ideas

• Incentives are balanced so that respondents think hard and post only those ideas that are new, different, and incremental

• Example: Crowdsourcing

• Method for identifying and investigating the total set of interesting new combinations of product attributes and features

• Lists the key attributes of the given product or service

• Team creates a table using each of these attributes as column headings

• Generates as many existing and potential variations of each individual attribute

• It entails randomly selecting one item from each column and investigating the novelty, plausibility and applicability of each combination.


Forced Relationships

Systems Approaches

Varied Perspectives

• Relies upon the creation of a forced relationship between two or more normally unrelated products or ideas

• Example: The ongoing series of innovations coming from cell phone manufacturers

• Using cell phones as credit cards – replacing the need to carry and use plastic credit cards when purchasing goods and services

• Attention on how the product or service fits into the overall life of the user

• This approach is based on the premise that there exists in life a universal “system” of organization that underlies the whole of our experiences

• The NPD team’s ability to listen to customers’ needs and generate product/service ideas designed to satisfy them can be greatly enhanced by understanding how the firm’s offerings fit into the lives (systems) of its customers.

• Members of a product design team often have diverse creative perspectives

• DeBono’s six hats model represents the variety of different member perspectives

• White hat - information, Red hat - feelings, Black hat - caution, Green hat - creative energy hat , Blue hat - thinking process itself, and the Yellow hat - benefits of a suggestion

• Analyze the idea from the perspective of each one of the six hats so as to improve communications and foster creative exchange.


Archival Analysis Incentive Templates

• Involves critically and judiciously gathering and analyzing the ideas of others who have solved problems in other domains

• Document and summarize all solutions to problems that are relevant to the firm or the NPD team

• Creates a universal table or template that lists possible solutions to potential problems facing the NPD team

• The Kano model characterizes product features according to their relationship to customer expectations

• Ideation is more effective when the NPD team focuses on well-defined schemes that are derived from an historical analysis of new products.

• Systematic change between an existing solution and a new solution and provide a method by which the PD team can make these changes in a series of smaller steps called “operators:”

• Exclusion, inclusion, unlinking, linking, splitting, and joining.

• For example, how a new car concept was developed by creating a dependency between color and the location of a car’s parts. Specifically, Volkswagen’s “Polo Harlequin” features differently colored parts and has become quite popular in Europe even though it was initially intended as an April Fools’ joke


Stage 3: Concept Testing

Definition: Concept testing (or market testing) is the process of using quantitative methods and qualitative methods to evaluate consumer response to a product idea prior to the introduction of a product to the market.

Evaluations on such measures as consumer relevance (how important is the consumer need being addressed by the innovation), consumer purchase interest, and dissatisfaction with currently available products are used to prioritize ideas for further testing, evaluation, and funding.

Steps in Concept Testing:

• Concept Definition

• Concept Evaluation

• Forecasting


Voice Of Customer


Concept Presentation Describe the concept completely. Use graphics, videos, audio, samples, or whatever best portrays the concept, associated attribute and benefit messages being tested.

Overall Concept Reaction Measurement

• Concept need / relative improvement over current method of doing things

• Overall reaction to the concept (acceptability, desirability, interest) • Likelihood of purchase of concept

Detailed Concept Analysis Evaluation

• Likes and dislikes about the concept • Attribute list evaluation • Awareness of competing products • Awareness of substitute and complementing products • Superiority over other existing products

Use Situation Evaluation • Likelihood of use in specified situations • Current use of similar / competing products • Frequency of product use

Value Analysis • Estimate product value • Price sensitivity analysis • Preferred method of purchase

Segmentation Analysis Market segments most likely to use (order and prioritize)


Quality is a must : TQM TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives.

• Commitment by senior

management and all employees • Meeting customer requirements • Reducing development cycle times • Just in time/demand flow

manufacturing • Improvement teams • Reducing product and service

costs • Systems to facilitate improvement • Line management ownership • Employee involvement and

empowerment

Management Commitment

Employee Empowerment

Fact Based DM

Continuous Improvement

Customer Focus


Early Supplier Involvement

Early supplier involvement adds another dimension of expertise to your existing design team during the planning, design and manufacturing phases. This broadened knowledge base makes it easier to keep pace with rapid technology and material developments as well as your industry’s demands for shorter product life cycles.

An early client/supplier alliance can enhance the design and manufacturing process by:

• Assessing the supplier’s capabilities and understanding of materials and manufacturing processes

• Improving overall design and quality

• Increasing manufacturability

• Discovering design and production efficiencies

• Reducing concept to end-user development time

Stage 4: Designing and Engineering Products

“Once the products are conceptualized, they need to be designed and engineered to match customer specification and company objectives

like cost and profitability”

Conjoint Analysis

Value Engineering

Two Techniques used to do the same are as below

Conjoint Analysis

Goal of Conjoint Analysis

Determine the level of each product feature that would be the most acceptable to an identified segment of customers.

Infer the contribution of each feature to the perceived value which is derived from the product.

Estimate the contribution to utility of each feature at each of its levels

Value Engineering


Target Costing: DFMA “Production cost is an important factor in the marketing success of a

new product”

Market Share Improvement due to lower prices.

Market Growth due to lower prices.

Economies of Scale.

Quality Improvements.

Benefits due to Learning Curve.

Strategic Benefits due to competitive disincentives.

Benefits of Reducing Unit Production Cost


Stage 5: Prototype Development & Testing


NEED OF PROTOTYPING:

• Enables us to explore the problem space with the stakeholders.

• As a requirements artifact to initially envision the system.

• As a design artifact that enables us to explore the solution space of the product

• A potential foundation from which to continue developing the product

TYPES OF PROTOTYPING:

• Physical

• Non- Physical

Journey of the Prototyping process

Goals

Functionality Evaluate

Develop


• Tests conducted to validate form, fit and function.

• Tests Plans:

- A description of the type of tests to be performed, the timing when they are to be completed, and the resources to be expended.

Modes of Failure

Manufacturability

Operation/Maintenance

Safety

Environmental

-Provides a structure for organizing, scheduling, and managing the testing program, and a means to communicate the test program details to all the

stakeholders, eliciting feedback and delegating responsibilities.

Testing Prototypes


Objectives –

list of items (parts, systems, models) to be tested

purposes for which the tests are being conducted

Workscope – narrative description:

type of tests,

test descriptions/procedures,

experimental setup,

experimental controls,

design of experiments test matrix, and

list of deliverables.

Budget

Schedule

Basic Components in a Test Plan

Summary of the Principles

1 • quality is a must - TQM approach

2 • a bias for cycle time reduction

3 • a bias for innovation

4 • coherent vision, strategy, plan and metrics

5 • a product-family oriented Business Unit

6 • listening to the Voice of the Customer

7 • a clearly defined and well-organized development process

8 • cross-functional product development teams

9 • supplier involvement early in the development process

10 • a development methodology

References Spark Innovation Through Empathic Design by Dorothy Leonard, HBR 2003 http://web.mit.edu/hauser/www/Papers/Chapter%208%20Hauser_Dahan%20Book%20Chapter%20on%20New%20Products.pdf http://mcclarinplastics.com/early-supplier-involvement.html http://lpd2.com/wp-content/uploads/2013/06/ReinertsenFLOWChap1.pdf


product development principles

Leadership & Management