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twinkle22
352DP-CH3.ppt3-*
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- The New Products Process (Ch. 1, 2).
- The Product Innovation Charter (PIC) and the New Product Portfolio (Ch. 3).
PIC: strategic plan for new products.
New Product Portfolio ensures alignment with financial and strategic criteria.
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Product families that share similarities in design, development, or production process.
- Car industry: $3 billion price tag on a new car platform spread out over several models.
- Sony: four platforms for Walkman launched 160 product variations.
- Boeing: passenger, cargo, short- and long-haul planes made from same platform.
- P&G: Liquid Ariel for European market, Liquid Tide for North America, and Liquid Cheer for Japanese market.
- Black & Decker: a single electric motor for dozens of consumer power tools.
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- Find alternate locations. Once McDonald’s had located the best store front locations, it placed stores in Wal-Marts, sports arenas, and airports. Starbucks Coffee sells coffee beans, bottled drinks and ice cream in supermarkets.
- Leverage your firm’s strengths in a new activity center. Nike moved into golf and hockey, and Honeywell is looking into casinos.
- Identify a fast-growing need, and adapt your products to that need. HP identified a need for “total information solutions” leading it to develop computing and communications products for the World Cup and other sporting events.
- Find a “new to you” industry: P&G in pharmaceuticals, GE in broadcasting (NBC), Disney in cruises, Rubbermaid in gardening products – either through alliance, acquisition, or internal development.
Source: Allan J. Magrath, “Envisioning Greenfield Markets,” Across the Board, May 1998, pp. 26-30.
Figure 3.2
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- “Just-in-time” life (Zipcar)
- Sensing consumers (home test kits)
- The transparent self (personal data services)
- In search of “enoughness” (slow food/life)
- Virtual made real (avatars, virtual clubs)
- Co-creation (customized toys, shoes)
Source: A. Hines, J. Calder, and D. Abraham, “Six Catalysts Shaping the Future of Product Development,” Visions, 33(3), October 2009, pp. 20-23.
Figure 3.3
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- To chart the new product team’s strategic direction:
What technologies? - What markets?
- To set new product goals and objectives:
- Guidelines for product innovation development, not processes.
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Figure 3-3
The Flow that Produces PICs -- Special Emphasis on Role of Corporate and Platforms
Figure 3.5
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Focus
At least one clear technology dimension and one clear market dimension. They match and have good potential.
Guidelines
Any "rules of the road," requirements imposed by the situation or by upper management. Innovativeness, order of market entry, time/quality/cost, miscellaneous.
Goals-Objectives
What the project will accomplish, either short-term as objectives or longer-term as goals. Evaluation measurements.
Background
Key ideas from the situation analysis; special forces such as managerial dicta; reasons for preparing a new PIC at this time.
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- Degree of Innovativeness
First-to-market
Adaptive product
Imitation (emulation)
- Timing
First
Quick second
Slow
Late
- Miscellaneous
Avoidance of competition with certain firms
Recognition of weaknesses
Patentability
Product Integrity
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New products in this firm will…
Technologies:
- Use our fine furniture designers (Herman Miller)
- Utilize innovative design (Braun)
- Gain value by being bottled in our bottling system (Coca-Cola)
Markets:
- Be for babies and only babies (Gerber)
- Be for all sports, not just shoes (Nike)
- Be for all people in computers (IBM)
Guidelines:
- Proliferate our product lines (Rubbermaid)
- Be almost impossible to create (Polaroid)
- Use only internal R&D (Bausch & Lomb)
- Be offered to the market hard to get (Ganz Webkinz)
- Have high value to us and to the customer (Kodak)
Figure 3.1
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Focus: Technology strengths: Apple’s operating system, hardware, applications, and services, product design and development skills. Marketing requirements: “cutting edge” products with seamless integration and high performance, intuitive, simple, and fun to use.
Goals: Revolutionary new products should be platforms for future products, due to cost of “really new” product development. New products should be a leadership position in the market.
Special Guidelines: Apple aims to be the best, not necessarily the first, in new product categories.
The Result: Apple’s first “tablet computer,” a revolutionary new product and the “next big thing.” No single tablet computer had established a dominant position. Apple’s iPad objective was leadership, and to add capabilities and applications to future iPads.
Figure 3.6
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- A new products team does everything a firm does
Budget plan, - financial analyses, - development plans.
- Align decisions & actions with the PIC.
- The PIC determines new products platform (types) for development .
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- Strategic goals (defending current base of products versus extending the base).
- Project types (fundamental research, process improvements, or maintenance projects).
- Short-term versus long-term projects.
- High-risk versus low-risk projects.
- Market familiarity (existing markets, extensions of current ones, or totally new ones).
- Technology familiarity (existing platforms, extensions of current ones, or totally new ones).
- Ease of development.
- Geographical markets (North America, Europe, Asia).
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Figure 3.9
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Low Market Newness
High Market Newness
Low Product Newness
Improvements to Existing Products
(35%)
Additions to Existing Product Lines
(20%)
Medium Product Newness
Cost Reductions
(20%)
New Product Lines
(15%)
High Product Newness
Repositioning
(6%)
New-to-the-World Products
(4%)
Source: Adapted from Robert G. Cooper, Scott J. Edgett, and Elko J. Kleinschmidt. Portfolio Management for New Products, McMaster University, Hamilton, Ontario, Canada, 1997, p. 63.
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Figure 3-3
The Flow that Produces PICs -- Special Emphasis on Role of Corporate and Platforms
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Background
Key ideas from the situation analysis; special forces such as managerial dicta; reasons for
preparing a new PIC at this time.
Guidelines
Any "rules of the road," requirements imposed by the situation or by upper management.
Innovativeness
, order of market entry, time/quality/cost, miscellaneous.
Goals-Objectives
What the project will accomplish, either short-term as objectives or longer-term as goals.
Evaluation measurements.
Focus
At least one clear technology dimension and one clear market dimension. They match and
have good potential.
Low Market Newness
High Market Newness
Low Product Newness
Improvements to Existing Products
(35%)
Additions to Existing Product Lines
(20%)
Medium Product Newness
Cost Reductions
(20%)
New Product Lines
(15%)
High Product Newness
Repositioning
(6%)
New-to-the-World Products
(4%)
Source: Adapted from Robert G. Cooper, Scott J.
Edgett, and
Elko J.
Kleinschmidt.
Portfolio Management
for New Products
,
McMaster University, Hamilton, Ontario, Canada, 1997, p. 63.
