New Product & Services
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Transcript of New Product & Services
New Product & Services
NYU Spring 2007NYU Spring 2007Professor – David GoldsmithProfessor – David GoldsmithAmit WellnerAmit Wellner
Why do we need NPDP?
• “With a poorly defined product and project, R&D engineering and design people waste considerable time seeking definition, often recycling back several times as the project parameters change” (R. Cooper, “Winning at new Products”).
• “Quality of execution of the predevelopment steps is closely tied to product financial performance. Successful products have about 75% more person days devoted to the predevelopment activities than do failures” (R. Cooper, “Winning at new Products”)
Mission, Vision, Goal
Define: Vision, Mission, and Goal of the company
NP&S full cycle
Market Research (S1)
G1
Business Planning (S2)
Development & Marketing (S3)
Testing(S4)
Prepare to launch (S5)
Idea Generation
Idea screen
G2
Raise Capital
G3
Product & Market redness
G4 G5
Financial Review
MissionVisionGoal
Support andMeasures (S6)
G6
End of life
Idea Generating
• Objective:– Gather ideas form various sources
• Activity:– Idea bank website– Rewards for selected ideas– Awareness campaign– Brain storming
• Members:– Cross company employees
Market Research (S1)
G1
Business Planning (S2)
Development & Marketing (S3)
Testing(S4)
Prepare to launch (S5)
IdeaIdea GenerationGeneration
G2
G3 G4 G5
Idea screening criteria – Gate 1
• Objective:– Filter ideas generated periodically
• Activity:– Ideas fit the mission, vision and goal– Rate and select ideas based on business value– Set time frame
• Members:– Innovation group– Strategic group
Market Research (S1)
G1G1
Business Planning (S2)
Development & Marketing (S3)
Testing(S4)
Prepare to launch (S5)
Idea Generation
G2
G3 G4 G5
Market ResearchStage 1
• Objective:– Market research
• Activity:– Build a team– Assessment: market, technical, and financial – If new proposition formulates – revert them to
Idea Generation Stage• Members:
– Target Innovation group comprised of: project leader, marketing, business development, technology architecture
Market Market Research (S1Research (S1)
G1
Business Planning (S2)
Development & Marketing (S3)
Testing(S4)
Prepare to launch (S5)
Idea Generation
G2
G3 G4 G5
Gate 2
• Objective:– Defining the market margins assess profitability– Market projection
• Activity:– Filters: Technology, Legal & Marketing– Risk assessment
• Members:– Strategic group– Risk analysis– Legal– Chief technology
Market Research (S1)
G1
Business Planning (S2)
Development & Marketing (S3)
Testing(S4)
Prepare to launch (S5)
Idea Generation
G2G2
G3 G4 G5
Business Proposal – Stage 2
• Objective:– Intense research and business case/ scenario
• Activity:– Build a business case– Deep market analyst– Competitive analysis– If new proposition formulates – revert them to
Idea Generation Stage• Members:
– Target Innovation groupMarket
Research (S1)
G1
Business Business Planning (S2)Planning (S2)
Development & Marketing (S3)
Testing(S4)
Prepare to launch (S5)
Idea Generation
G2
G3 G4 G5
Raise Capital – Definition Gate 3
• Objective:
Assess risks and benefits of investment
• Activity:
1. Determine whether the idea remains commercially viable after planning
2. Create a demo (if possible)
3. Get the money – critical phase
• Members:
– Strategic group
– Senior management
Market Research (S1)
G1
Business Planning (S2)
Development & Marketing (S3)
Testing(S4)
Prepare to launch (S5)
Idea Generation
G2
G3G3 G4 G5
What would happen if…
1. Hotmail - acquired by Microsoft (MSFT) in 1998 for about $400 million
2. Skype - acquired by eBay (EBAY) in September 2005 for $2.6 billion
3. MySimon - acquired by CNET (CNET) in 1999 for $700 million4. Lycos - acquired by Terra Networks for $4.6 billion in 20005. Netscape - acquired by AOL (TWX) in 1998 for $4.2 billion6. GeoCities - acquired by Yahoo! (YHOO) in 1999 for $3.56
billion7. Excite - acquired by @Home in 1999 for $6.7 billion ($394 per
user!) 8. AOL - merged with TimeWarner in 2000 9. Broadcast.com - acquired by Yahoo! in 1999 for $5 billion
($710 per user )
Development & Marketing Stage 3
• Objective:– Develop the product
• Activity:– R&D - Start developing the product– Marketing
• Find potential client.• Partners• Set pricing
– Legal • Write patent• Contract – with partners
• Members:– Product development team: Product manager, Marketing
manager and Product technology manager– Legal department
Market Research (S1)
G1
Business Planning (S2)
Development & Development & Marketing (S3)Marketing (S3)
Testing(S4)
Prepare to launch (S5)
Idea Generation
G2
G3 G4 G5
Product & Market redness - Gate 4
• Objective:– Is the product consist with the definition at Gate 3?
• Activity:– Check:
• Product• Market• Financial state
• Members:– Strategic groupMarket
Research (S1)
G1
Business Planning (S2)
Development & Marketing (S3)
Testing(S4)
Prepare to launch (S5)
Idea Generation
G2
G3 G4G4 G5
Testing - Stage 4
• Objective:– Test and validate the project– Prepare for launch
• Activity:– Test product: error fixing in development– Customer endorsement– Test market (Trial sell)– Financial analysis– Develop the operation plan and the market launch
plan• Members:
– QA team– Sale & marketing
Market Research (S1)
G1
Business Planning (S2)
Development & Marketing (S3)
TestingTesting(S4)(S4)
Prepare to launch (S5)
Idea Generation
G2
G3 G4 G5
Gate 5
• Objective:– Business evaluate
• Activity:– Financial and market review
• Members:– Senior management
Market Research (S1)
G1
Business Planning (S2)
Development & Marketing (S3)
Testing(S4)
Prepare to launch (S5)
Idea Generation
G2
G3 G4 G5G5
Stage 5
• Objective:– Get ready…
• Activity:– Create campaign– Advertising company
• Members:– PR and marketing– Product development team
Market Research (S1)
G1
Business Planning (S2)
Development & Marketing (S3)
Testing(S4)
PreparePrepare to launch (S5to launch (S5)
Idea Generation
G2
G3 G4 G5
Launch
• Objective:– Deploy product
• Activity:– Customer support– Client feedback– Find new features
• Members:– Operation– Product Manager
Market Research (S1)
G1
Business Planning (S2)
Development & Marketing (S3)
Testing(S4)
Prepare to launch(S5)
Idea Generation
G2
G3 G4 G5
Pro and cons for Stage gate process
AdvantagesAdvantages Disadvantage Disadvantage Structural process Time consuming
Control point, Go/Kill. Save money and time Bureaucracy
Increase successes rate Missing rewarded plan
Risk control. Customer feedback
Set time frame Bottle neck
Revenue oriented – “Don’t fall in love in your dreams”
Adjustment to new standards
Gatekeeper is not involved in the stage before
Does not fit for upgrades \ maintenances
???
• Any questions? • ? שאלות