Product Innovation Process

8/12/2019 Product Innovation Process

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Case Study:Case Study:DevelopingDevelopinga comprehensivea comprehensive

ProductProduct InnovationInnovation ProcessProcess

Amalia SuziantiAmalia Suzianti

The 2nd SEPneT Workshop

Buenos Aires, September 28th, 2005


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ContentsContents

Introduction and OverviewIntroduction and Overview

Innovative Organization Culture and StructureInnovative Organization Culture and Structure

Product Innovation Process : Stage-GateProduct Innovation Process : Stage-Gate

ProcessProcess

Implementation of Stage-Gate Process atImplementation of Stage-Gate Process at

medium sized I Companymedium sized I Company

ConclusionConclusion


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Introduction and Overview !"#Introduction and Overview !"#

Innovation one of the $eys to %olster profitInnovation one of the $eys to %olster profitmargins and fuel future earnings streamsmargins and fuel future earnings streams

Innovation supports the achievement of mar$etInnovation supports the achievement of mar$et

leader position and ensures this positionleader position and ensures this positionhere is a need of a guide line to perform thehere is a need of a guide line to perform theright tas$s in achieving innovative products andright tas$s in achieving innovative products andprocesses :processes :

Innoation !ana"ement S#stemInnoation !ana"ement S#stem


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Introduction and Overview !Introduction and Overview !

ClarityClarity'G( was founded in'G( was founded inDecem%er &)))( andDecem%er &)))( andcurrently is counting amongcurrently is counting amongthe pioneers of voice portalthe pioneers of voice portal

providersproviders

hehe**ission is to transformission is to transformthe spo$en word into athe spo$en word into auniversal and ever-presentuniversal and ever-presentinterface for digital service+interface for digital service+

,. Platform is the,. Platform is the ClarityClaritycore product+ It serves ascore product+ It serves asthe %asis for %oth individualthe %asis for %oth individualindustry-and function-industry-and function-specific applications as wellspecific applications as well

as for individual solutions+as for individual solutions+ Source: Clarity/s 0hite Paper( Internal Document+


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Innovative Culture in an OrganizationInnovative Culture in an Organization

$hallen"e %the Pull&$hallen"e %the Pull&

$ustomer 'o(us %the Push&$ustomer 'o(us %the Push&

$reatiit# %the Brain&$reatiit# %the Brain&

$ommuni(ation$ommuni(ation%the )i*eblood&%the )i*eblood&

$ollaboration %the +eart&$ollaboration %the +eart&

$ompletion %the !us(le&$ompletion %the !us(le&

$ontemplation %the )adder&$ontemplation %the )adder&

Source: www+thin$smart+com
http://www.thinksmart.com/http://www.thinksmart.com/


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Innovative Organizational Structure

CEO

Christoph PfeifferBoard of Directors Advisory Board

CFO

(Power Promoter)

Christoph Pfeiffer

CSO

Christoph Pfeiffer

CTO

*arcus *un$

Bad Homburg Hamburg Stuttgart !ie" #uric$

Cor%orate

Commu"icatio" &gr'(Process "ow How

Promoter)

Gregor 1onsel

C*arity Services +mbH

2onn

C*arity So*utio"s +mbH

2ad 1om%urg

C*arity ,-rai"e

E"ter%rises

3iev

Proveo+mbH

Crailsheim

best Se**a A+

Cologne

CEO

Board of Directors Advisory Board

CFO

(Power Promoter)CSO CTO

Bad Homburg Hamburg Stuttgart !ie" #uric$

Cor%orate

Commu"icatio" &gr'(Process "ow How

Promoter)

C*arity Services +mbH

2onn

C*arity So*utio"s +mbH

2ad 1om%urg

C*arity ,-rai"e

E"ter%rises

3iev

Proveo+mbH

Crailsheim

best Se**a A+

Cologne

Source: Clarity/s 0hite Paper( Internal Document( modified+


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Product Innovation Process:Product Innovation Process:

Stage-Gate ProcessStage-Gate Process

Stage-Gate is a widely employed product developmentStage-Gate is a widely employed product developmentprocess that divides the effort into distinct time-se4uencedprocess that divides the effort into distinct time-se4uencedstages separated %y management decision gates+stages separated %y management decision gates+

It is a %lue print for managing the new product generationIt is a %lue print for managing the new product generationprocessprocess

Source: http:www+prod-dev+comstage-gate+shtml
http://www.prod-dev.com/stage-gate.shtmlhttp://www.prod-dev.com/stage-gate.shtmlhttp://www.prod-dev.com/stage-gate.shtmlhttp://www.prod-dev.com/stage-gate.shtmlhttp://www.prod-dev.com/stage-gate.shtml


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I CustomizedI CustomizedStage Gate ProcessStage Gate Process

Stage .+ate . +ate / +ate 0 +ate 1 +ate 2Stage / Stage 0 Stage 1 Stage 2

Deve*o%me"tTest

Decisio"to

Testi"ga"d

3a*idatio"

Decisio"to

Post4au"c$i"

5eview4au"c$4au"c$i"g

Customer feedbac-S$orte"i"g

deve*o%me"ttime

Fie*d tria*sEcommercetest mar-et

Fi"a"cia*A"a*ysis

6m%*eme"ti"g&ar-eti"g

P*a"

3oice of Customer&i"d &a%%i"g

+rou% Brai"stormi"gCreativity Award

6deaScree"

Detai*ed6"vestigatio"

Pre*imi"ary Seco"dScree"

to

Discovery

Stage

6deaScree"

Detai*ed

6"vestigatio"

Seco"d

Scree"

Decisio"

Deve*o%

Pre*imi"ary 6dea

First

6dea DatabaseDefi"e mar-eta"d tec$"ica*

c$aracteristics6"ter"et com%etitive

a"a*ysis

Portfo*io &a"ageme"tCom%etitor7s Product roadma%

E8advertisi"gDirect mar-eti"gTarget costi"g

6"vestigatio"

Discovery


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Proposed as$s in Stage-Gate ProcessProposed as$s in Stage-Gate Process

Profita%ility 'nalysisProfita%ility 'nalysisPost )aun(hin" reie

Implementing *ar$eting 5aunch PlanImplementing *ar$eting 5aunch

Plan !*ar$eting *i6#

)aun(hin"

7ield trials( e-commerce test mar$et7ield trials( e-commerce test

mar$et

Testin" and -alidation

Customer feed%ac$( shortening development timeCustomer feed%ac$( shortening

development time

.eelopment

Portfolio *anagement( Constructing competitor/s products

roadmap

rade show visit

Define mar$eting planning for selected product: e-

advertising( direct mar$eting !cooperate with partners#( target

costing strategy+

Partnering and outsourcing

Portfolio *anagement( Scoring

*odels( 8conomic *odels

.etailed Inesti"ation

Collecting Ideas into data%ase

Define mar$et and technical characteristics(

General competitive analysis such as num%er and size of

competitors through the internet

Set up idea data%ase

*ar$et and technical analysis

Competitive analysis

Preliminar# Inesti"ation

,oice of Customer

*ind *apping com%ined with Group 2rainstorming

2rainstorming( *ethod 9-.-(

*ind mapping( ,alue

Innovation( ;I


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Idea GenerationIdea Generation

&i"d &a%%i"g

Brai"stormi"g

3iller

'pplication

*o%ile

8ntertaining

Simple

Convenient

==+

Orga

nizer

==+

==+

3oice of Customer

6dea Database


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Preliminary InvestigationPreliminary Investigation

> Collecting Ideas into data%aseCollecting Ideas into data%ase

Define mar$et characteristics:Define mar$et characteristics:> *ar$et size and ports( user %enefits( competitor*ar$et size and ports( user %enefits( competitor

infoinfo

Define technical characteristics:Define technical characteristics:> ?um%er of dialog states( Perple6ity of the?um%er of dialog states( Perple6ity of the

grammar( customisationgrammar( customisation

Internet competitive analysisInternet competitive analysis> General info and characteristics such as num%erGeneral info and characteristics such as num%er

and size of competitorsand size of competitors


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Overview ofOverview of IIIdeas Data%aseIdeas Data%ase


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Detailed InvestigationDetailed Investigation

> Portfolio *anagementPortfolio *anagement

> Constructing competitor/s products roadmapConstructing competitor/s products roadmap

rade show visitrade show visit

Define mar$eting planning for selected product:Define mar$eting planning for selected product:> e-'dvertisinge-'dvertising> direct mar$eting !cooperate with partners#(direct mar$eting !cooperate with partners#(> target costing strategy+target costing strategy+> 8arly follower strategy8arly follower strategy

Partnering and outsourcingPartnering and outsourcing


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'pplication Components Portfolio'pplication Components Portfolio""

3a*ue (Se**i"g Pote"tia* Com%etitive Adva"tage)

Probabi*ityofSuc

cess

(&ar-etattractive"ess

Tec$"ica*Feasibi*ity)

Low High

Hig

h

Low


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'pplication Components Portfolio'pplication Components Portfolio&&

3a*ue to t$e Com%a"y (&ar-et Be"efits)

Tec$"o*ogyEffor

t

Low

High

Low High


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Detailed Investigation> Portfolio *anagement

> Constructing competitor/s products roadmap

rade show visit

Define mar$eting planning for selected product:> e-'dvertising> direct mar$eting !cooperate with partners#(

> target costing strategy+> 8arly follower strategy

Partnering and outsourcing


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Decision to Develop:Decision to Develop:

CrCreating Pro@ect Planeating Pro@ect Plan


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Development( 5aunching(Development( 5aunching(

Post 5aunch ;eviewPost 5aunch ;eview

> Customer feed%ac$( shortening development timeCustomer feed%ac$( shortening development time

> 7ield trials( e-commerce test mar$et7ield trials( e-commerce test mar$et

Implementing *ar$eting 5aunch Plan:Implementing *ar$eting 5aunch Plan:> Direct *ar$etingDirect *ar$eting> 8-'dvertising8-'dvertising

> arget Costingarget Costing> 8arly 7ollower8arly 7ollower

Profita%ility 'nalysisProfita%ility 'nalysis


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ConclusionConclusion

Successful Innovation *anagementSuccessful Innovation *anagement

System re4uires :System re4uires : clearly defined o%@ectivesclearly defined o%@ectives

innovative culture and structureinnovative culture and structure

a high commitment from all of company/sa high commitment from all of company/s

components( especially managementcomponents( especially management

good communication flowgood communication flow aa structuredstructured guide lineguide line which is representedwhich is represented

%y%y Stage-Gate Process DocumentationStage-Gate Process Documentation


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;eferences;eferences

Broc-$off ' (.99:): echnology *anagement in the Company of the 7uture( echnology 'nalysis and Strategic*anagement( ,ol+ A( p+"B-"A+

Brow" David (.99;): Innovation *anagement ools : ' review of selected methodologies( 8uropean Communities(5u6em%ourg+

Burge*ma" 5obert A' &aidioer"8Ae* (/==.): Innovationsmanagement in $leinen und mittleren Enternehmen( ,ahlen ,erlag( *Fnchen+

Odagiri Hiroyu-i (.99/): Growth through competition - Strategic *anagement and he 8conomy in apan( O6ford

Eniversity Press( ?ew or$+

Patterso" &arvi" 4' (.990): 'ccelerating Innovation - Improving the Process of Product Development( ?ew or$+

Pavitt eit$ (.999): echnology( *anagement and System of Innovation( 8dward 8lgar Pu%lishing 5imited( E3+o'3 (/==1): Innovation D?' K 7ramewor$ of Principles ( E;5: www+thin$smart+commissiondna( )+)+&))+
http://www.shef.ac.uk/~ibberson/qfd.htmlhttp://www.thinksmart.com/mission/dna/http://www.thinksmart.com/mission/dna/http://www.thinksmart.com/mission/dna/http://www.shef.ac.uk/~ibberson/qfd.htmlhttp://www.shef.ac.uk/~ibberson/qfd.htmlhttp://www.shef.ac.uk/~ibberson/qfd.htmlhttp://www.shef.ac.uk/~ibberson/qfd.htmlhttp://www.shef.ac.uk/~ibberson/qfd.htmlhttp://www.shef.ac.uk/~ibberson/qfd.html

Product Innovation Process

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