CH 2 Notes - professor Lissa Cupp PDF

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professor Lissa Cupp...

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CH 2 - The New Products Process -

Lego case study Product Innovation Charter (PIC) - Begins with an honest situation assessment and opportunity identification - LEGO was missing a guidance system - LEGO new strategy for innovation centered not on making toys but rather on developing new experiences - It is a systematic way for managers to develop a new product strategy that considers the goals for their product innovation efforts and how these efforts fit overall business strategy - Involves identifying a strategic focus

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New Products Process - The path the new product takes from idea to the time of launch and beyond - LEGO example - Begins by collecting inlput from customers suppliers and other outside sources - Two day workshop held to examining market trends and identory ideas sources from inside the company and from the oustide sources - Concepts become more fully developed - Those with the most potential are approved for further work - Then they get finalized and go into development

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The New Product Portfolio - There needs to be an assurance that thfirm is developing the right products with respect to its product portfolio - 3 broad innovation categories - Adjusted innovation : continuous improvement of existing product categories based on experience and insight - Reconfigured innovation: involves creating new and better value providing solutions supported by studies of customer needs and marketplace changes - Redefined innovation: never before seen solutions that provide new strategic directions for the future based on an understanfing of social and cultural trends as well as industry trends

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The phases in the New Products Process - Phase 1: opportunity Identification and selection - Generate new products opportunities as spinouts of the ongoin business operation - New product suggestions - Changes in marketing plan - Resource changes and new needs/wants in the marketplace

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Research evaluate validate and rank them 3 main streams of activity feed strategic planning for new products 1.) Ongoing marketing planning 2.) Ongoing corporate pplanning 3.) Special opportunity analysis - Opportunities identified ^^ can be sorted into 4 categories 1.) An underutilized resource: bottling operation a strong franchise with dealers or that manufacturing process engineering department 2.) A new resource: a chemical company discovers a cnew compound with hundreds of potentially commercial uses and applications 3.) An external mandate: the market may be stagnant but the competition may be threatening or customer needs may be evolving 4.) An internal mandate: long range planning often establishes a 5 year out dollar sales target and new products people often must fill part of the gap between current sales and that target - Opportunity identification: the princess of creatively recognizing such opportunities Phase 2: concept generation - Select a high potential/urgency opportunity and being customer involvement - Collect available new product concept that fit the opportunity and generate new ones as well - Problem find-solve approach: identifying problems people or businesses have and suggesting solutions to them Phase 3: concept/project evaluation - Evaluate new products concepts as they begin to come in on technical marketing anf financial criteria - Rank them and select the bet 2 or 3 - Request project proposal authorization when in possession of product definition, team, budget, skeleton of development plan and final PIC - Full screen: when views all come together Phase 4: development - A: technical tasks - The full development process and its deliverables - Undertake to design prototypes against protocol - Design and validate production process for the best prototype - B: marketing tasks - Prepare strategy, tactics, and launch details for marketing plan - Prepare proposed business plan and get approval for it - Stipulate product augmentation and prepare for it - The major body of effort

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Major development of 3 things - The item or sercie itself - The marketing plan - The business/financial plan Phase 5: launch - Commercialize plans and prototypes from developmental phase - Begin distribution and sale of new product - Manage launch program to achieve the foals and objectives set in the PIC - Resource preparation - Market test: dress rehearsal for launch

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Agile product development - Objective: provide customer satisfaction by continuous software improvement and delivery - This development requires changes in prodcut team organization to build in the required amount of flexibility - Process described as scrum - Agile-state-agile: a blending of agil product development with the traditional new products process has been successfully employed with computer hardware and other manufactured goods

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Speeding product to market - Accelerated product development → product will be on the market for a longer peorpd of time before becoming obsolete and can attract customers early and possible block competition - 5 methods to accelerate time to market 1.) A clear product innovation charter 2.) A third generation new products process that permits overlapping phases or parallel processing 3.) Portfolio management approach 4.) Focus on quality at every phase 5.) Empowered cross-functional team

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Risks in speeding to market - Mau be tempted to concentrate on only easy incremental product projects or cut critical steps → product may become inadequate - Might result in bringing the product out too soon while it still has its bugs

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New services? - Services and goods are arrayed on a scale of - 1:pure service - 2: primarily service and partly good - 3: primarily a good and part a service

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- 4: pure good Creation of service prodcuts tends to mirror the system used for goods Services are individualized to the individual customer (goods are mass produced) Human interaction between service provider and customer is of utmost importance Services are continuously being evaluated by customers at every interaction with the service provider

New to the world products Disruptive innovation - Innovations that create a new market of value network - Disruptive innovation is launched by a smaller firm with few resources which targets segments that established firms have overlooked -...