New Product Development
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NEW PRODUCT DEVELOPMENT A new ‘mantra’ in business success? OR The age-old yearning for “something new”?
Transcript of New Product Development
NEW PRODUCT DEVELOPMENT
A new ‘mantra’ in business success?OR
The age-old yearning for “something new”?
What drives NPD – at human level
• 5 senses - Sight, sound, smell, taste and feel – stimulate about all our activity, e.g.– Melodies in alarm clocks, ring-tones… – Fragrances evoke freshness, attraction… – Taste, smell and feel combined – make eating an
exhilarating experience – against raw nutrition
• Emotions - Constant yearning for “better” and “new” stuff in all our lives
What drives NPD – new trends
• Never-satisfied customer– “Sexy cars” – collaboration of studio artists with
engineers, beyond traditional auto needs of reliability, functionality, performance
– Increasing no. of gourmet restaurants - culinary art exploits nutrition science, technology and customer emotions
– Apple “Smart devices” provide ease of use and attractive forms - importance of visual & functional design blended with technology
What drives NPD – new trends
• Willingness to pay – for value against price
• Attractive margins for seller and producer on new solutions as against cut-throat pricing for mature products or me-too solutions
• Products must go beyond raw functionality, usability, performance, etc
What drives NPD – environment
1. Market 1. Buyer behavior, evolving needs and means2. Economic & social changes3. Markets – new demand, competition, gaps
2. Technology1. New developments2. Potential to fill gaps or create new uses
3. Art1. Observations of forms, functions, feelings2. Blending of all components into whole
Product Decisions
• What is the offering?– Broad definition of user problem to address– Credentials of the team or company
• What will it do?– Features, functions
• For whom?– Target market, Segment
• Why this one?– Benefits, differences with existing solutions
Generating the Concept
Product-Market Studies
Creative/Studio inputs, Ideation
Technology & Engg. Review
Brainstorming, Distillation
Product Concept, Dummy, Model
MARKET TECHNOLOGY ART
Generating the concept
Iterative process• Is this what the market wants? • What is the value proposition?• What will it cost? • Any competitive advantage?
– Competitive advantage may mean premium price– (Price / No. of functions) of similar products
If OK – build the design prototype
If not – develop a new concept
From Concept to Product
Product Concept, Dummy, Model
Design Prototype, Evaluation
Field Prototype,Field Report
Specs OK?
Product Engineering work begins –
Product definition
Tools, machines…
Design evolution
Quality Assurance process kicks in -
Standards.
Tests,
Prototype evaluation
Product Concept, Dummy, Model
Design Prototype, Evaluation
Field Prototype,Field Report
Specs OK?
OK
Not OK
Concept…
… Product
Final Product and ProcessField Prototype,
Field Report
Manufacturing Documentation
Production Gear-up
Performance OK?
Quality Control process begins:
Product & process standards
Tests & evaluation
Approvals
Engineering requirements finalised:
Details of product and process
Man-Machine-Materials needs
Manufacturing Prototype
OK
Not OK
Marketing Decisions
Simultaneous to previous efforts:• Target market definition• Positioning statement e.g.
“For students and busy executives tired of carrying several devices for word processing, internet browsing, social networking, phone calls, messaging, remembering dates and taking lecture notes, the Simplator is a single low-cost device that records speech, converts into text and takes your voice command.
Unlike the slew of palm-tops and smart cell-phones, this is a automated multitasking device that recognizes your needs and files each recorded note where required. It hangs like a pendent from your neck and fits in your top pocket, so that you may take lecture notes while you chat with friends. Batteries are charged by sunlight or bright overhead lights.”
Marketing Decisions
• Market entry strategy– Concept selling, service, entry pricing, promotions,
incentive schemes, sales channel… – Hard or soft launch; Phased or “Big Bang”
• Consolidation strategy – Re-pricing, product revision on customer feedback, fresh
promotions, dealership or value-added resellers, production scale-up…
• Other decisions - facilities, funding…
Future of product development
• World moving toward ‘Creative Economy’
• Globalized production and design facilities – connectivity via Internet, etc.
• Version 2.0 concepts in marketing, advertising and design – joint involvement and equal influence of user and producer
THANK YOU
MÉTIER ADVISORY3-B, 3rd Floor, Siddhivinayak Chambers Opp MIG Cricket Club, Gandhi NagarBandra (East), Mumbai – 4000051Fax: +91-22-2640 4156 e-mail: [email protected]: http://www.metieradvisory.com
