NEW PRODUCT & SERVICE

DEVELPMENT

GHNew York University SPCS

Spring 2007

Background

Dalumi is a leading diamonds manufacturing company based in Israel, with more then 600 employees all over the world. Dalumi have offices in Israel, USA, Hong Kong, China, Japan, Belgium, Spain and France.History

1960 Founded by Asher Dalumi1989 Second generation join the company

1993 DTC Sight granted1995 Received “Outstanding exporter reward”

1996 Recognized as one of the top five manufactures in Israel2000 Established Jewelery division in Hong Kong

2005 Received “outstanding exporter award to Japan”2006 No. of employees exceeded 600

2007 Received a second sight from DTC and opening new diamond manufacturing facility in Botswana

Mission & Vision Our mission is to maintain and enhance our role as a

leading, global diamond and Jewelery business operating from rough to polished to fine diamond

Jewelery.We Strive to be the first choice of our strategic customers.

We Aspire to continue our profitable growth while maintaining our personalize touch.

Our corporate believes & valuesHonesty & Integrity

Personal ResponsibilityProfessionalism

ExcellenceTeamwork & Cooperation

Overview

Diamond MinesDe Beers

DTCDalumi Diamonds

Rough Department

Factory

Polished departmentAssortmentPricingInventory data

Europe USA Asia

Distribution in the U.S

DalumiN.Y Office

Diamond DealersWholesalers

Jewelers manufactures

Jewelry RetailStores

How can Develop New Products and Services ideas?

Stage gate process

Gate1

ScopingGate

2

BuildBusiness

Case

Gate3

DevelopmentGate

4

TestingGate

5

PostLaunchreview

Discovery

Ideation / discovery

Action are in use through this stage:

Ideas are generated, following company vision & mission guides

Front line Sales people input. A focus group of sales people is created, in which they asked to brainstorm about potential new services with the intention of increasing their sales volume, and reaching to new clients.

Front line management input. A survey is given to Management to find out there ideas for increasing revenues, cutting expenses, and utilize sales people.

Customer input. Interviews with clients to find out their expectations and feedbacks from our sales people, and from company availability.

Discovery

Gate1 Scoping

Gate2

Ideas Bank (Brainstorm/gather ideas)

• Open an Online Diamond store• Venture together with the fashion industry• Hire new sales representatives • Open a new Dalumi office in another city• Open a retail Jewelery chain stores • Start selling different shapes and sizes of diamonds• Give bigger and longer credit to our clients. 120, 150

days• Venture together with the toys industry• Start selling to the retail stores market• Brainstorming more ideas………………………..

Gate 1: initial screen

Testing each idea generated during brainstorming session. To confirm whether each one is suitable to the needs of the company, that we found during the research & discovery stage, and whether it meets the following criteria?

DiscoveryGate

1 ScopingGate

2

Is there market attractiveness to open a new office?

Yes=“Go”

N0=“Kill”

Discovery

Gate1

ScopingGate

2

Open a retail Jewelery chain stores

Yes=“Go”

No=“Kill”

Discovery

Gate1 Scoping

Gate2

Venture together with the fashion industry

Yes=“Go”No=“Kill”

Discovery

Gate1 Scoping

Gate2

Go/Kill Ideas

GO•Open a new office in another city•Venture together with the fashion industry•Hire new sales representatives •Give bigger and longer credit to clients

Kill•Open a retail jewelry chain stores•Venture together with the toys industry•Start selling different shapes and sizes of diamonds•Start selling to the retail jewelry stores market

Stage 1: Scoping

the spirit of this stage is to spend a little money, gather some information, so that project can be re-evaluated at the next gate. This stage is a quick and inexpensive assessment of the technical

qualities of the project and its market prospects. • Preliminary market assessment

• Preliminary technical assessment • Preliminary business & financial assessment

Discovery

Gate1

Scoping Gate2

Scoping

Preliminary market assessment: Involve a quick and dirty market study. The purpose is to determine whether the proposed product has any commercial prospects.

• Internet research • Your own library• Internal Reports• Key customers Preliminary Technical Assessment:• What will the product requirements be?• Do we have the technological capability to develop it?Preliminary Business and financial Assessment:• Do we have what it takes to win here?• Do we need a partnering or outsourcing relationship?• Estimates of expected sales and costs

Discovery Gate1

ScopingGate

2

Gate 2: Second Screen

Objective:• Scoped idea are revaluated, and discuss information gathered during stage 1.

Gatekeepers:•Legal: Labor, Compliance•Technical: Diamonds supply•Sales: coordinate with N.Y sales manager•Accounting and finance teams

Discovery

Gate1

ScopingGate

2

What was the feedbacks from the focus group?

Discovery

Gate1

ScopingGate

2

GO• Open new office in another city•Venture together with the Fashion industry

Kill• Hire new sales representatives to the company•Give bigger and longer credit to clients

Stage 2: Build Business Case Proceedings: a detailed investigation and Business evaluation stage that defines the product and verifies the attractiveness of the project prior to heavy spending.

• Target market definition • Description of the product/service concept• Specification of a product/service strategy• Determination the customer’s need, wants, and

preferences. To help define the “winning” product

BuildBusiness

Case

Gate3

DevelopmentGate

4

Build business case

Open new office in L.AVenture with the fashion industry

•Downtown L.A is the second biggest diamond market after N.Y•The purpose of opening a new office in L.A is to provide better service for our clients by giving first and quick solutions to their needs.•The goal is to increase profits by 15% in the first year and cut expenses.

•The target market for this product is the High End fashion designers•The product is diamonds for exclusive fashion designers( Shoes. Dresses and accessories)•Strategy-to find fashion designers that use diamonds with their products, by the marketing department•Brand and advertise Dalumi Diamonds

Gate 3: Decision to Develop base on Business Case

Objective: To choose one idea to develop , specific suggestion based on the business evaluation.

• Last point at which a project can get killed before entering heavy spending

• Gate 3 subject the project to the set of must-meet and should-meet criteria used at Gate 2

• Results of financial analysis are an important part of this screen

BuildBusiness

Case

Gate3

Development Gate4

Gate 3: GO/Kill Decision

BuildBusiness

Case

Gate3

Development Gate4

GOKill

Stage 3: Development

Here the business case plans are translated into concrete deliverables.

One prototype product that meet the requirements of the Lab tests, in house tests, alpha tests and customers feedbacks is being chosen.

Parallel Actions During this stage:• physical Development- technical development• Market analysis- Marketing operations• Customer Feedbacks- Designing customer tests• Operations activities• Make time lines• Detailed test plans• Market launch plans

BuildBusiness

Case

Gate3

Development Gate4

Constant Iterations: Rapid prototype and test with customers throughout the development stage.

Build

Feedback

Test

Build

Feedback

Test

Build

Feedback

Test

Development

• Set meeting with fashion designers that use diamonds within their products

• Market analysis- see what is the size of the market, how many designers use diamonds?

• Technical analysis- check the factory and technical people, make sure everyone on the same page

• Financial analysis

BuildBusiness

CaseGate

3Development Gate

4

Gate 4: Post-Development ReviewObjectives:

• Re-evaluate in opposition to Financial/ Budget restriction• To decide what will be accepted as success and failure when

testing are run at a larger level

Deliverable: Gatekeepers:• established financial analysis - Senior Management• Determine value of services

Criteria :• Is the project within budget

Build

BusinessCase

Gate3

Development Gate4

Stage 4: Testing & Validation

this stage test and validates the entire project:

The project itself, the production process, customer acceptance, and the economic of the project.

• In house product tests• Field trials of the product• Test market• Business and financial analysis

TestingGate

5

PostLaunchreview

Gate 5: Business Analysis

• It is the final point at which the project can still be killed• This gate is focused on the quality of the activities in the

testing stage and their results• Expected Financial return • suitability of the launch and operations start up plans

Testing

Gate5

PostLaunchreview

GO / Kill

• Will we be able to supply this amount of diamonds?• Do we have enough man power at our company to keep

with productions?• Do we have the capability to manufacture specific orders

for the clients• Will we make any profit?• Do we have enough clients?• Will this project will help branding our company name?

Testing Gate5

PostLaunchreview

Stage 5: Market Launch

This final stage involves accomplishment of both the marketing launch plan and the

production operations plan.

TestingGate

5

PostLaunchreview

Post Launch Review:

This is the point where the project and product’s is reviewed

• Latest data on revenues• Costs• Profits • Timing

What we learned from this project and how the next project can be done better

TestingGate

5

PostLaunchreview