New Product Development

New Product Development

A mythical fable

with apologies to Dr. Seuss, and all poets who know how to rhyme.

Prof. David GoldsmithPS March 29, 2007


• In a faraway land• Just outside Timbuktu• A long time ago• In the year of ought, two

• A king ruled the land• Over subjects galore• A benevolent fellow• Or so goes the lore


• This king had a business• And made things a plenty• Red, blue, yellow, green things• More than 10 score and twenty

• The king loved new products• Invented them weekly• Big, little, thin, wide ones• But marketed them meekly


• The King oft asked his salesmen• Named Horton and Who• “Am I doing ok?• Do you like what I do”?

• And they answered in kind,• (For they hadn’t a clue)• “Why king you’re the best• Don’t stop, move more through”


• They thought to themselves• “He’s old and he’s daft”• But the commissions are fine• And we’ll have the last laugh

• “Make more products they urged• Both cheap and real dear• We’ll sell them as closeouts• You’ll have a great year”


• New products galore • Filled the royal store shelves• But costs were too high• So the subjects rebelled

• “We’re mad”, they all cried• “Your products confuse• Make them better or simpler• Make things we can use”


• And the subjects complained• “Where’s the green eggs or ham”?• And the king came to realize• I’m in a real jam

• And the royal warehouse • Grew bigger and taller• Until bricks there were none• And the profits were smaller


• And the evil vizier• Who was devious and foxy• (He was the king’s banker)• Threatened takeover by proxy

• The king looked to his staff• To his behavior condone• But his yes men all pointed• “You screwed up alone!”


• The desperate king called • A consultant, or wizard• “Help me, help me”, he cried• “Help me save my big biz, Sir”

• The wizard did conjure• Fingers flew on his abacus• Until he exclaimed, “King”• “Eureka, I’ll save us”

Photo courtesy of Davidgoldsmith.com


• “I know what is wrong.”• “It’s the products you’re picking”• “You do what you please”• “With no screening or thinking”

• “You have products blue,• Green, red, yellow and black.• But if customers want white• Why you haven’t got that.”


• Your sundials are so• Profitable, and sell great• You think every product• Will achieve the same fate

• But alas, my dear king• Your empire is crumbling• You failures are the norm• And that is so humbling


• “You need a new process• I invented of late.• It’s the rage of the land,• It’s called the stage-gate”

• “Let me give you a taste,• Don’t think me a wise-ass• I made the King of Siam• As rich as old Midas”

• “Pretend your idea • Is a telescope that’s thinner”.• Your salesmen say, “King”• “You’re a genius, it’s a winner”.

• Step back for a second,• Is the idea quite the best?• Ask the royal astronomer• Would he like to invest?



• Ask the queen and the jester• Ask the butler and cook.• “Would you buy this product?• Would you take a second look?”

• If some say, “nay, King”• “I wouldn’t buy it.”• Then hold back the product,• And ask some to try it


• Now the King did see red,• And called for his axes• “Kill the naysayers”, he cried• And raise everyone’s taxes

• But the wizard was calm,• And said, “King wait your turn”• You’re really no tyrant• You do want to learn.


• So the King asked the wizard,• “Please Wiz, tell me more”• But the wizard replied,• “Not yet, I won’t bore”

• Next week we’ll be thorough• And learn what to do• Controls, gates and checkpoints• And how it helps you


• Even a smart King • Needs market research• So chill and you’ll find,• You’ll grow more in wealth

• Your homework, my highness• List all products, pray tell• Then honestly rank them• By how well they sell


• We’ll go through a process• Called stage-gate, you know,• What products to plant• What products to sow

• But also my Leader• What products to slay• For not every idea• Belongs to this day


• Your pie-tins for example• No customers do buy• For until two more decades• Will man invent pie

• Your gel filled foot insoles• No one can yet use• For not one in the kingdom• Can yet afford shoes


• So open your mind, King• And rest up your bones• We will debunk your theories• That must be from gnomes

• The next lesson will look at• Products, service and more• And fix all your problems• Or your fees I’ll restore.


• Now nightfall did pass• And the King still was yearning• So the Wizard was summoned • And they resumed learning

• Now King, the first lesson • Is called ideation• It’s nothing much more• Than a massive creation


• A creation of ideas• Collected near and far• From any who have some• Throw them all in a jar

• Ideas from your own mind• Ideas from all others,• You servants and flunkies• Your sisters and brothers


• Ideas from competitors• Ideas from the staff• Ideas from the customers• Both the wheat and the chaff

• Then shake the idea jar• And keep only the best• To the royal dragon• Please feed all the rest


• The king said , “That’s great• I’ll happily choose• But the Wiz said, “No wait”• If you choose, you’ll lose

• You need someone else• Someone younger and, yes,• Someone who shops always• Said the King, “Ah, the

princess!”


• But the princess was sleeping• From a night filled with clubbing• Not properly waltzing• But bumping and rubbing

• And drinking many potions• And shots made with Jell-O• And dragged in during morn• With this strange looking fellow

(This page not for homes with young children)

CENSORED


• Said the King, How could I• Be so damn darn obtuse• That I let my own daughter• Be so free and footloose

• I’ll lock her away• Until my wrath she has felt• And I’ll speed the invention• Of the chastity belt


• But the Wizard intervened• King, think of sales essentials• You’ve lost touch with youth• And their market potential

• The young are big customers• They buy products new• They’re open and curious• And not like we two


• Said the King, Here’s a lesson• Its not all about me• I build products I’d like• And think all will agree

• The sales staff all praise me• Say my products are sweet• But the young and trendy• Think them all obsolete


• But unknown to the king• Cause the Wizard was clever• A coincidence was brewing• To change history forever

• Without any fanfare• Without blowing horns• Within this very kingdom• Big business would be born


• As the royal vizier• Who was cursing the wizard• Had his witch make a potion• With toadstools and lizards

• He sprinkled it liberally • All through the palace• And watched as is worked• With glee for his malice


• His curse was a creation• A bane to theocracy• For here was the first• Authentic bureaucracy

• Bureaucrats were born• To confuse good ideas• And to act as gatekeepers• The king cried, “Oh please!”


• But the wizard just smiled• And said King, “just wait”• We’ll turn what seems lemons• To sweet lemonade

• You’ll need some smart staffers• To gather out yonder• To help make decisions• Whenever you ponder


• But the king still was cocky,• “I believe in my widgets• And a bureaucrat’s IQ • Is only single digits”

• But the Wiz said, “we’ll train them• To be quite objective• And they’ll demonstrate wisdom• Just fine in collective


• Ideas we created• And screened and rejected• Need now to pass muster• Need now be elected

• We call this Gate 1• And the bureaucrats of new• Shall let only practical• Ideas pass on through

ROYAL GATE 1


• And the king was beginning• To learn some new thoughts• I liked all my ideas before,• But many none bought

• By screening ideas• We’ll make fewer things• But ones people buy• Like clothing and rings


• Now, King we’re not done• For we still have too many• We need much more info• Before spending a penny

• If we don’t do more research• You’ll still likely fail• You’ll choose products poorly• Stores won’t choose for sale


• Let’s move on the cycle• To stage number one• It’s where we decide• Which products have won

• We call this one screening• For things we can do• Not things we just dream of• Like your spaceship for two


• We ask many questions• Of products we invent• Will anyone buy it?• Will it pay the rent?

• We search all the kingdom• For voids and for clones• To see if this product• Is truly our own


• And again we take all • The ideas we have sorted• And air them all out• And rank them in order

• The best ones remain• And the ones that we lag on• Become the desert • For the fat royal dragon


• For the good ones we ask• Our lawyer, named Shyster• Can we build these products?• Or should we say “Bye, Sir”

• If all is agreed• Then we go on and do• The ones that get past • What we say is Gate 2 ROYAL GATE 2


• Now it’s time for stage two• Where we really get busy• The King said, Slow down,• My head’s getting dizzy”

• Stage two said the Wiz• Hangs ideas from the soffit• And sees if they’ll sell well• And sees if we’ll profit


• Convene all the wise men,• And those not so smart• The bureaucrats and more,• The prince and his tart

• Let them study the concept• Let them do some research• Let them see if makes sense• Study much till it hurts

NEW PRODUCT DEVELOPMENT

• Now here use the princess• Who shops morn til eve• Let her try all new products• Will they anger or please

• Does she like yours much better• Than those from Tibet• Or will she say, “Nay Dad• Your goods are all wet”


• Then assemble a trusted• Decision committee• Ask Horton and Who• Workers big and itty-bitty

• You need the thing-makers• And packers and mystics• The ones called production• The ones called logistics


• If all do agree that• A product will float• We’ll stamp it with seal wax• Dump the rest in the moat

• We then with great fanfare• And royal decree• Pronounce it has passed• Royal gate number three

ROYAL GATE 3


• Now it’s on to Stage 3, King• With groups we name focus• And here we do prototypes• And much hocus-pocus

• We do testing called alpha• Said the Wiz, in this stage• We do market research• And results we do gauge


• It’s important to see• Before big bucks we spend• Can we make it ok?• Can we cut, shape and bend?

• Will it fit in the boxes?• Can they sell it, the staff?• Can Horton and Who• Get the price that we ask?


• Will the royal accountant• His blessing do say• Will the princess say “Great, Dad,• Or Dad, that’s passé”

• Will the sample look right• And get subjects to buy • Or will word of mouth• Cause the product to die.


• If all are agreed• That the product is clever• If all are assured• It’s among the best, ever

• Then proclaim to kingdom• With honors galore• This product moves on• It has gone through Gate 4

ROYAL GATE 4


• Said the King, “Now we’re done”• Said the Wiz, “hold your horses”• We’ve only a sample• We’ve another two courses

• Stage 4 is now coming• Or you’re betting the farm• On an untested product• With potential to harm


• Stage Four is the testing• Before big bucks fly• Are the focus groups right• Or did they all lie?

• Might the prince and the princess• Claim riches you’ll get • So you’ll give them each• A new royal Corvette


• Will banquets be tasty• Or make people sick?• If clothing it is• Will it have the right fit?

• Will arrows fly forward• Or like boomerangs?• Will nooses be sturdy• So villains can hang?


• Perhaps test the product• On subjects most youthful• For subjects this age• Are known to be truthful

• Measure products they buy• And quantities involved• The prices they’ll pay• And your mystery is solved


• The ones that pass muster• Why build them the fastest• The ones that are dudsville• Throw right on their asses• (Children, an ass is another

name for a mule)

• Subject all the products• To financial review• That means a bean-counter• Independent from you

• Ask all who you trust • To review all results• Will it pay for your armies• And the best catapults?

• If all of the data • Shows success will accrue• Then tell all the world• Gate Five it is through


ROYAL GATE 5


• Stage 5 is the last• When we take it to market• We sell it, and yell it• And tell people, “Hark it”

• Stage 5, Oh my King• Is when bureaucrats shine• For here they are experts• On skills they combine


• Stage five, product launch• Needs a real expert touch• Building and packing• And selling and such

• Customer service and• Paying the serfs• Far more than you wish• To do all by yourself


• Launch needs advertising• To couples and singles• Accounting and hiring• And even some jingles

• Legal Review for the • Ifs, ands and buts• And many, many meetings• With bagels and donuts

KING’S SUNDIALS

20% MORE ACCURATE

THAN PHAROAH’S


• Now do it correctly • And success you’ll assure• The riches will follow • From mountain to shore

• Roadblocks and pitfalls• Will you staff circumvent • And you will have time• For new products to invent


• The princess again • Will be the girl you adore• The queen will stop seeing• Her shrink and paramour

• The prince will grow up• And resume his Biz Ed• And start seeking girlfriends• For what’s in their heads


• The King said I’m humbled• I hadn’t a clue.• That I could improve so• On things that I do

• I thought I knew best• On each subject galore• But now I’ll seek experts• Who specialize more


• The Wizard kept talking• For he wasn’t quite through• There’s still one more stage• Called the Post Launch Review

• You think we’re successful• But looks can deceive• Do costs come in lower• Than the funds we receive?


• And even more telling• Ask what can we learn• And be more successful• On products next turn

• Remember that business• Is full of competitors• Each one is trying • To do even better


• The King now decided that• The Wizard was done• He looked for a sculptor • The very best one

• He commissioned a statue• Made of granite and slate• To immortalize forever • His hero, STAGE GATE

STAGE

GATE


• The King now gives lectures• To many rave reviews• “There’s more to new products• Than hunches and voodoo”

• The stage gate is kind • Of a method scientific• To save you from feelings• That have outcomes horrific


• If a product you love• Is to have a great fate• It will withstand the scrutiny• Of stages and gates

• And reviewing committees• And even bureaucrats• And devil’s advocates• And Cats in their Hats King Precision

Sundials - Our sun only sets at night


• Now all was serendipity• In the Kingdom and vicinity• Factories were humming• Riches flowed in the cities

• The King was the first• To combine the Stage Gate• With skilled staff and training• To make products great


• The King and Wizard• Together created• The first big conglomerate• That competitors hated

• Historians must lie, claiming• Where business came from• But you know the truth• It was here in this kingdom


• And so now my readers• We’re just about through• But there is one more lesson• I need to teach you

• Work hard and you’ll win• By the time day is done• But working’s not complete• Without having some fun


THE END

New Product Development

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