Anpd tt m_overview_20141218

TtM Product SolutionsAccelerating New Product Development

Mike Henry

Time to Market

[email protected]

TtM Product Solutions Ltd

Tel: +44 1462 337461

Mob: +44 7802 323678

Achieving Faster Time to Market and Product Innovation

using:

Time Compression,

Concurrency,

Lean,

Agile,

Pipeline Management and other methods

“We accelerate growth”

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Contents

Principles and Practices of Accelerated New Product Development (NPD)

Framework of processes and tools for Time to Market Compression and Product

Innovation

New Product Development 'Time Black Holes'

Stage-Gate improved to introduce concurrency and tuned for shorter Time to

Market

Using customers and competitive products to stimulate Product Innovation and

improve Product Definition

'Fuzzy Front End' and the use of Product Portfolio Strategy

Lean, Agile and Jugaad (Ingenious improvised solutions) approaches for

accelerating NPD and Product Innovation

People aspects of NPD and relative Roles and Responsibilities


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Accelerating Product Development includes:

Time to Market Compression

While enabling Product Innovation (Disruptive,

Revolutionary and Evolutionary)

Balancing Time to Market with other Product and

Development Objectives needs to be analysed so that the

effect on Profit can be understood as exemplified by

Hewlett Packard (HP)

A New Product Development case study illustrates some

of the common reasons for accelerating Product

Development: Increased domestic and global competitive pressures.

Rapid technological changes.

Market demand – i.e. customers requiring new products

developed quickly.

A need to meet corporate growth objectives.

Shortening of product life cycles (a combined effect of rapid

technological changes, competitive activities and market

requirement changes).

Pressure from senior management to speed product development

A desire to be first in an emerging new market

and why delays occur

Why is Time to Market (TtM) and Product Innovation so important?

New Product Development (NPD) and 'Time Black Holes'


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Accelerating Time to Market without an appropriate level of

Product Innovation (Disruptive, Revolutionary and Evolutionary)

is not a great product strategy.

Different approaches for Product, Market and Technology

Innovation can be thought of in terms of:

Need seekers (e.g. Apple, HP)

Market readers (e.g. Samsung)

Technology drivers (e.g. Google)

Time to Market is not just the development time but as illustrated

'Time Black Holes‘ help to quantify and look for improvements.

Why is Time to Market (TtM) and Product Innovation so important?

New Product Development (NPD) and 'Time Black Holes'


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Generations of NPD Process

Generations of NPD Process refers to the evolution

over time of the processes and methods relating to

Product Design and Development; NPD Project

Pipeline Management and Product and other

Innovation. These include:

Functional management with or without project

management

Stage-Gate or Phase-Review with project

management

NPD Project Pipeline Management

Waterfall or V-Model for Software/ Solution/

System Design & Development

Lean Product Development (LPD)

Agile Software/ Product/ Solution Development

e.g. SCRUM

Jugaad Innovation (Ingenious improvised

solutions)


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Stage – Gate or Phase/Review Improvements

2a Serial: Stage - Gate Improved Management control

Linear – so more suited to Evolutionary/Incremental

Development rather than Revolutionary Innovation

× Often still functional/ department working

× Serial - Poor Time to Market× ‘One size fits all’

2b Parallel Phases and Decision Points with

Cross Functional Project Team Parallel/ Concurrent working and Project Management

Tools – Improved Time to Market

Potentially suited to Revolutionary Innovation

Project Management and Cross- Functional Working

Potential for PDP Pipeline Management× ‘One size fits all’

2c Overlapping PDP Projects with Pipeline

Management Parallel/ Concurrent working – Improved Time to Market

Technology Innovation can be done in parallel

PDP Pipeline Management

Improved Resource (People, Money , Facilities) and

Productivity Management× May need better Reward and Risk Management

Project Management

Tools


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2d ‘Tuned’ Serial or Parallel Models Model adjusted for the type of Product Development no

longer ‘One size fits all’

Improved Risk/ Resource Management

Improved Time to Market by simplifying process

Can deal with differing levels of Innovation

× Requires ‘mature’ management or else everything

becomes JFDI

2e ‘Tuned’ Models with Reward/Risk and

Pipeline Management Pipeline of ‘scaled’ product developments and other

projects

Improved Reward/Risk/Resource Management

Technology Innovation can be done in parallel and Risk

managed

Improved Time to Market by simplifying processes and

prioritising pipeline

× Requires ‘mature’ management or else everything

becomes JFDI and ‘high priority’

× Requires good Reward/Risk/Resource management tools

and skills



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Idea

GenerationIdea

Qualification Idea

Prioritisation Idea

Finalisation

2f Models with ‘Idea Management’ at Front End Introduces a process to identify, filter and prioritise “Ideas” or

Requests or Opportunities to find the best possibilities for

Product Development

Improved Time to Market by reducing time taken at front end

and achieving consensus on priorities

× Sometimes has just been ‘bolted’ on to the front end of

product development to bring a semblance of structure

× Can be bureaucratic

× Ideas may be handled ‘piecemeal’

× Ideas may not be based on real Voices of Customers/ Market

Research/ Applications, but from internal sources:× Ideas/ requests from Sales folks

× Individual Customer requirements or projects vs Market

requirements

× from R&D/ Product Development/ Upper Management

× Only Product related ideas vs Market/ Technology/ Business

Model

× “Me Too” Ideas (we need what they have)

× Incremental Improvements vs Innovation/Ingenuity

× Lack of clear Market/ Product /Technology/ Sales Strategies

as a framework to help set priorities

Fuzzy Front End: Unpredictable/ Unstructured

PDP: Product Development

Projects Pipeline



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Using customers and competitive products in

Product Definition and Innovation

A clear understanding of customers' needs, product

requirements and a comparison with likely competitive

products ensures that a product will be successful in

the market and prepares for product innovation and

fast design and development.

Methods for Voices of Customers include:

•Interviews/Discussions

•Gemba/ Contextual Enquiry (as used by Ford)

•User Groups (as used by Apple)

•Crowdsourcing (as used by GE)

•Competitive Labs


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Customer Product Value Proposition Tools

Customer Empathy Map

Customer

Product Value Proposition

EU/CEB TB BU

Customers

Original Equipment

Manufacturers (OEMs)

EB TB

Customers

in Value

Network

“How to”/ Competitive Map

Some Tools help the translation of customers' needs and competitive intelligence into product

requirements and Product Value Propositions describing: WHO the target customers are; WHAT

do they want; HOW will we provide benefits and against what do we compete in terms of

opportunities and threats.

Tools for Voices of Customers and Competitive Intelligence include:


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Managing the 'Fuzzy Front End' : Product, Service and

Solution Portfolio Strategy and Roadmapping

A lot of time can be lost by not starting as soon as possible,

this delay is referred to as the "Fuzzy Front End".

Product Portfolio Strategy and the use of Trend, Technology

and Product Portfolio Roadmaps helps to crystalise the way

ahead and make the priority decisions required.

Hewlett Packard (HP), for example, use a process to guide

the generation of Market and Product portfolio strategy

Apple, for example, use Trend Roadmaps to map

Application and Industry Trends

Microsoft, for example, use Technology Roadmaps to map

External and Industry Trends

Various companies use Product Portfolio Roadmaps to map

Product Development, Product Launch, Product

Management and Trends

.


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Lean Product Development (LPD)

to increase flow and reduce waste

Lean Product Development (LPD), first used in Japan but

now practiced worldwide, is a method which can reduce the

'Time Black Holes' which can occur because of 'waste' in

the product, 'waste' in the NPD process and queues which

cause delays in the work stream.

It is based on a set of principles and practices

The intent is to address 'bottlenecks’ and increase flow and

momentum in NPD. Sometimes LPD principles seem

counterintuitive to some people.

There are some key learning points from companies such

as Philips and Pratt & Witney

.


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LPD Tools

Value Stream Map

Queueing TheoryCumulative Flow Diagram (CFD)

Kanban


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Agile Product and Software Development:

an iterative approach

Agile, first practiced in the US for software development, but

now practiced worldwide for software, hardware, systems

and other products is focused on customers and

accelerates NPD based on a set of principles which have

some overlap with LPD.

It also embodies the means to involve users in the design

as a 'co-creation' principle.

An important principle of Agile is the use of prototyping,

initially used in software development but now possible for

hardware by the increasing capability of "3D Printing".

There are different 'flavours' of Agile, for example, SCRUM,

XP, DSDM, KANBAN, ..... with different practices and

strengths.

SCRUM, one of the more popular methods, uses a series of

short and rapid iterations (sometimes known as sprints).

.


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an iterative approach

Widespread use of the various Agile methods has provided

case studies and examples from which Learning Points can

be identified

.


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Jugaad was born out of ‘emerging economies and

environments’ in India, Asia, Africa.

This method is particularly focused on:

Rapid Changes,

Shorter Product Lifecycles,

Competition from anywhere,

Governmental policy changes,

Resource scarcity,

Frugal and diverse customers,

Immature Industries,

Markets and industry standards not yet established and

Exponential Interconnectivity.

.

Jugaad Innovation (Ingenious improvised solutions)


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People aspects of NPD:

Accountability and Responsibility (RACI)

Development: is done by people

with the help of methods, processes and computerised facilities.

Motivating 'human capital' is very important,

especially those whose 'day job' is not product development but

who provide important work and deliverables during development

and launch.

In many cases people's roles in terms of Responsibility,

Accountability, Consulted and Informed (RACI) is not clear,

so it is important to provide clarity, especially for accelerating new

product development.

Fast Development of products

with a significant scope and a

high level of newness is more

achievable with motivated

people

RACI Matrix: identifies key tasks, milestones or deliverables

and clarifies who is involved, who does the

work and who is ultimately held to account for

it being done

Responsible: Individuals who do the work, perform a task or achieve a milestone

There may be several people with ‘team responsibility’

Accountable: The individual who is ultimately accountable for ensuring

the task, milestone or deliverable is achieved

There should be only one person with ‘accountability’

Consulted: Individuals to be consulted during a task or prior to a decision

Informed: Individuals who need to be informed after a task or milestone

is completed or a decision is taken

Example for BIAVTTool: RM RACI Matrix ROLE

Task or Milestone

Client

NP

E

Pro

duct D

evelo

pm

ent

Fin

ance

Supplier

Part

ner.

Port

folio S

trate

gy

Com

petito

r In

tellig

ence

Tra

nsport

Access

Netw

ork

Str

ate

gy &

Evolu

tion

Develo

pm

ent B

udget

BT

Securi

ty

Reta

il

Ignite

RA

D

BT

W C

ontr

act s

Functional E

xpert

s

In-L

ife M

anagem

ent

Agree requirements R AR R R

Manage Conf Call AR

Supply data for Strategic fit A R R

Market & Customer Analysis AR R R

Technology AR C

Regulation AR C

Cost Benefit Analysis AR C

Risks & Dependencies AR C

Proposed Development & Resource AR R C C C C C C R

Produce report & recommendations AR

Agree report R AR R R

Obtain sign-off AR

Authorise Report R AR R

Contracts AR C

Security AR C


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People: Accelerating New Product Development

Stage – Gate or Phase/Review

Waterfall or V-Model

Customers

Regulatory

Authority

Decision

Makers

Marketing

INTERNAL

EXTERNAL

Partners: Demand

or Supply Side

SalesFinance

Products and

Solutions

Operations

Comms & IT

Networks

and IT

Team managing life cycle

Suppliers

Competition

Stakeholders

Lean Product Development (LPD)Motivate people (to be accountable, empowered, disciplined

and creative) and Innovate through knowledge

Close, daily cooperation between business people and developers

Face-to-face conversation is the best form of communication (co-location)

Projects are built around motivated individuals, who should be trusted

Self-organizing teams

Agile Software/ Solution Development

Management

Marketing/ Product Management

Analysis

Computer Aided Design CAD

Purchasing

Prototyping

Testing

Tooling

Specialists

QUEUE SERVER


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Mike Henry – Profile

Mike Henry was educated as an electronics engineer, graduated from Leeds University and subsequently carried out postgraduate research in medical computing at the University of Dundee.

He has been involved in the development, integration and marketing of software and electronics systems in a wide variety of applications.

With Xerox, Mike was the Electronics and Software Manager for a development programmewhich was used as a pilot for Xerox's Product Development Process. He lead product development and management of photocopiers and document image management workstations, with teams based in the UK, Netherlands, East and West Coasts of USA, Japan and Korea.

Mike joined Crosfield Electronics (now Fuji Film Electronic Imaging) as a member of the marketing department. He took the lead in developing and implementing the company Product Life Cycle Process (PLP), with the major objectives of reducing time to market, stimulating product innovation and increasing life cycle profitability. He was accountable for Product Strategy and Planning for EMEA, Japan (With Fuji Film) and Americas (with DuPont).

Mike now leads Time to Market (TtM Product Solutions) as Managing Director.He has completed projects with over a hundred companies in the UK, USA, Canada, Switzerland, Italy, Finland, Poland, Russia, Japan, China and India relating to Product Management, Product Strategy and Innovation.

Mike specialises in Product Management, Product Marketing, Product Value Propositions (PVP), Voices of Customers (VoC) and Product Competitive Analysis (PCA) and together with his colleagues provides a wide range of training and implementation programmes to clients in many markets, including: electronics, engineering, telecommunications, software and data services, chemical, financial services, government, retail etc.

Mike Henry

Time to Market

[email protected]


www.ttm.co.uk

Tel: +44 1462 337461

Mob: +44 7802 323678


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That’s all Folks – Thank you

Mike Henry

Time to Market

[email protected]


www.ttm.co.uk

Tel: +44 1462 337461

Mob: +44 7802 323678

Mike will be very happy to

receive:

Any Questions

Comments orFeedback

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