New Product Development, Management of Technological Innovation, KV Patri 1 New Product Development.

New Product Development, Management of Technological Innovation, KV Patri

1

New Product Development


2

Issues in Product Design

• User Centered design• Group technology, part modularization,

standardization, simplification, and specialization.• Design for manufacture and automatic assembly.• Value Analysis.

• Product evaluation and configuration management.

• Marketing and ongoing development.


3

Policy

Strategy

Tactics

Design Actualization

Business Task HierarchyDesign Profession Work Task

Design Producer

Design Director

Design Manager

Designer

Generalist

Specialist

Corporate Planning

Business Development

Concept Creation

ModelingResearching

Soft

Hard

Field of DesignArchitectural, Interior, Product, Visual


4

CI: Corporate Identity

BI: Brand Identity

HI:Human Identity

VI:

Visual Identity

PI:Product Identity

Corporate Design Policy


5

Designer Involvement in Various Corporate Tasks (No. out of 109)

(Japan) [M. Takahashi, 1999]

0102030405060708090

100


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General Manager

R&DSales &

MarketingProduction & Logistics

Dept # 01

Dept # 11

Dept # 110

Dept # 01

Dept # 11

Dept # 110

Dept # 01

Dept # 11

Dept # 110

Shared Product Development Responsibility

Project ManagerPool

Project Team 01

Project Team 03

Project Team 02

Steering Committee


7

User centered design: Establishing contacts with customers

• Many large, high-tech companies consciously or unconsciously isolate their creative people and their R&D departments from direct contact with customers. This is wrong since the voice of the customer can actually be used as a strategic edge for breakthroughs in innovation.

• Usually customer contact is relegated exclusively to the marketing department. A little later after-sales-service is attached to the marketing department. A small personal conflict between the R&D manager and marketing manager could lead to the total isolation of R&D personnel from the customer.


8

Use of beta-sitesMicrosoft has devised a very attractive method to maintain

close contact with its worldwide customers. Every new, innovative software package it develops is first distributed, free of charge, to a network of enthusiastic customers willing to serve as Beta-sites for Microsoft realizing that the best way of creating a “bug-free” product is to subject it to a statistically significant quantity of real-life testing. Microsoft collects fixes the bugs based on the feedback received from these real-life users. The feedback also usually contains a bonanza of comments, suggestion, and proposals for improvements. These drive future innovations.


9

Red Competitor Representative

• Red competitor is the strongest real (external) competitor. An internal expert is selected to gather intelligence about the competitor, anticipate their moves and periodically challenge the internal Blue Team.


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Market

Existing New

Improve value and cost

Adaptknowhowto markets

Achievemajor gains invalue and cost;

Introduce new products

Radicallydiversify

product(s)and markets

Product-Market Matrix: Four Positions


11

Product Life Cycle

AdultInfant Aged

Time

Rev

enue


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Time

TechnologicalCapability

The “S” Shaped Curve


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• The growth in a new technological capability typically follows an “S”shaped logistic curve,

• The curve can be divided into three stages:

(i) slow initial growth till the technology has

demonstrated superiority over existing technologies,

(ii) rapid explosive growth after superiority is

demonstrated, and

(iii) leveling off due to technological or socioeconomic

factors.

• Commercially successful exploitation of technology often depends upon the astute perception and exploitation of the “S”shaped growth trend. Hence much research has been done on how the curve may be modeled.


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Time

Cash flow

Sequence of innovations


15

organisms) biological

of patternsgrowth studyingin y extensivel

usedbeen hasfunction sPearl' (Raymond

constants

growth limit toupper the

Where1

:Function Pearl

a, b

L

ae

L y

bt


16

Envelope Curves and Trend Exploitation

Technological evolutions typically progress through successive substitutions of new approaches. Whereas individual technological capabilities (A, B, C, etc.) follow the S-shaped curves, each current technology is superceded by the next significantly superior technology so that the ‘envelope curve” can be used for trend exploitation.


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Some technology trends that have been modeled

• Efficiency of light bulbs since 1850:

log(lumens/watt) = -128.71511+0.0685t

(t is in years since 1850)• Top speed of US combat aircraft since 1909:

log(speed mph) = -118.30568 + 0.0640t• Capacity of Random Access Storage/Random

Access Time since 1951:

log(bits/microsec) = -1080.81958 + 0.55125t

Exercise: Test each forecast against current value.


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Time

Cost-effectivemeasure Envelope

Curve


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Basic Research and Invention

Concept Design

Prototype Developmentand Testing

Final Productor Design Engg

Tooling and Industrial Engg

Test Mktg

ManufacturingStart-up

MarketingStart-up

Prodn, Mrktg, Sales

After-Sales Service and Trouble-shooting

Market Res.and Testing

The Design andDevelopment Activity

The Process of Technological

Innovation


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Managing Design: 11 Phases1. Identify need or want

2. Specification

3. Relevance of Product

4. Conceptual design

5. Preliminary cost estimate

6. Evaluation

7. Detail design

8. Prototype

9. Manufacture

10. Product launch

11. Product review

Mrktg with Engg assistance

Mrktg and Engg

Mrktg, Prdn, Fin. and Legal

Engg

Prdn

Fin. and Mrktg

Engg

Engg

Prdn

Mrktg

Mrktg, Engg and Fin.


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Design is Interdisciplinary

Design fo

r

function

Design for Market

Design for

Manufacture

Desig

n for

Appea

ranc

e

Mech/Elec

Eng.

Manufacturing Eng..

Business Mgmt

Industrial

Art


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Objectives of Design

• Aim: To make profits for the manufacturer while satisfying the customer within the constraints imposed by society (e.g. environmental effects, patents, intellectual property.

• Some objectives: Simplicity, Lightness, Use of standard parts.


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Where should ‘Design’ be located?

• Part of ‘Production’ department: Conflicts may arise because design changes disrupt production.

• Parallel with ‘Production’ department.

• Temporary project team for each design project. Team drawn from various departments. Lying outside the normal line structure. Reporting to someone higher up. (Matrix Organization)


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Product/Service Decision Making

Product/Service Specification

Design

Communication (final stage only)

Operations

Process Decision Making

Process Specification

Traditional SequentialApproach to

Designing and Manufacturing/Operating

Time


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Design

Weak, One-Way Communications

Operations

False SimultaneousApproach to


Time


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Design

Strong, Two-Way Communications

Operations

True Modern SimultaneousApproach to


Time

Visit the case study on Sun Microsystems here.


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Study the following chapters now:

• Project Management Issues

• Value Analysis

• QFD

• DFX, etc.

• Patenting, etc.

New Product Development, Management of Technological Innovation, KV Patri 1 New Product Development.

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