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![Page 1: New York University, Spring 2003 Developing New Product and Services Final assignment Lucia Franchi Reckitt Benckiser R&D Manager.](https://reader030.fdocuments.in/reader030/viewer/2022032709/56649eca5503460f94bd8e2b/html5/thumbnails/1.jpg)
New York University, Spring 2003
Developing New Product and Services
Final assignment
Lucia Franchi
Reckitt Benckiser R&D Manager
![Page 2: New York University, Spring 2003 Developing New Product and Services Final assignment Lucia Franchi Reckitt Benckiser R&D Manager.](https://reader030.fdocuments.in/reader030/viewer/2022032709/56649eca5503460f94bd8e2b/html5/thumbnails/2.jpg)
My Objective
Get Senior Management agreement to my proposal of improvement to the current
Stage Gate process used by Reckitt Benckiser
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Agenda
– Reckitt Benckiser background
– Review of the current process
– Weakness of current process
– New process description
– Next steps
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"Passionately delivering better solutions
in household cleaning and health & personal care
for the ultimate purpose of creating shareholder value.”
Reckitt BenckiserCompany Vision
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•Above average Net Revenue Growth by focusing on high growth brands
•Innovation - % NPD vs. Line extensions
•Speed to Market & quality of execution
Key points of the strategy
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Current process
Second screen
First screen
Feasibility LaunchDevelopment Post launch evaluation
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Weaknesses of current process
• Pre-development activities– only low amount of resources are allowed
for those activities
• No criteria for idea screening before the development phase– there is no process in place to
screen/evaluate ideas
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If we improved the process
• Increasing our success rate for NPD of 10% = $40M
• Increasing speed to profitability 1 Mo for a single NPD = $ 2M
• Reducing quality issues on the market– Priceless!
![Page 9: New York University, Spring 2003 Developing New Product and Services Final assignment Lucia Franchi Reckitt Benckiser R&D Manager.](https://reader030.fdocuments.in/reader030/viewer/2022032709/56649eca5503460f94bd8e2b/html5/thumbnails/9.jpg)
New Product Development process
• The “New! Improved” Product Development process will allow us to:– Focus on “The right projects” and
streamline our Project Portfolio– Improve our profitability by enancing our
chances of success with NPD– Improve our Speed to Market
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Strategydefinition
Second screen
Third screen
Idea screen Scoping
Discovery stage
How to improve product development process
Launch
Building the business case
Development Post launch evaluation
Fourth screen
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Description of stage gate process
What is a Gate? – Decision points: the project moves forward,
gets killed or put on hold (I.e. moves back one stage in the process)
– If the criteria to be met/key deliverables for each stage are specified upfront, no involvement from senior management is required.
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Strategy definition
Industry analysis
Companyanalysis
Areas of strategic focus
Scenario generation
Opportunities
- unmet needs
- expansion plans
- voids
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Strategy Definition
• This stage should include the definition of key deliverables and minimum criteria from Senior management– Financial objectives for the project
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Discovery Stage
• This stage is a defined, proactive idea generation and capture system.
• Ideas can come from several sources– fundamental research, contract research organization and consultants– technical publications, universities, inventors– competitors– consumer intimacy (unarticulated consumer needs)– internal creativity potential (innovation session, unsolicited ideas)
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Idea collector(CMM)
Idea screen
Idea handling process in the Discovery stage
Ideas
Idea bank (intranet)
Other categories
Periodic review
Next Stage
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Idea screen gate
Fit with business strategy Degree of product advantage Ability to leverage core
competencies (tech., mktg) Market attractiveness Company policies (regulatory, legal)
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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”)
“What’s in” for RB?
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• The new process will allow for better focus of the R&D resources
– a 2M NR project requires on average 120 mandays
– a 50M NR project requires 400 mandays
Which one has the better ROI?
“What’s in” for RB?
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Scoping stage
• Preliminary market assessment– Internet, library search, focus groups, concept test
• Preliminary technical assessment– development and manufacturing feasibility– timings, costs– legal, regulatory restrictions– expected roadblocks
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Second screen
Fit with business strategy Degree of product advantage Technical and marketing feasibility Market attractiveness/early
financials Company policies(regulatory, legal)
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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”)
“What’s in” for RB?
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Building the business case
• Market research– consumer needs, wants and preferences
• Technical appraisal– lab work (first formulation effort)– manufacturing, sourcing, capex assessment– legal, patent, regulatory assessment
• Business and financial analysis
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• “Post Mortem” analysis:– Project “john smith”. Lack of proper
predevelopment work (market analysis) caused a + 8 Mo slippage of the project ($ 50M loss)
“What’s in” for RB?
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Third screen
Product/packaging definition, key deliverables (consumer data)
Manufacturing and sourcing strategy Regulatory/legal strategy Qualification plan Financial analysis (“must meet” criteria) Project milestone plan Global Roll out plans
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Development Stage
• Formula, Packaging development
• Manufacturing process (including QC)
• Consumer qualification (BASES II test)
• Marketing plan (including sales and distribution)
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Development Stage
Development activities are handled in parallel(rugby model)
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Forth screen*
Project financials (including volumes) Marketing plan Good for sale (R&D, manufacturing) Regulatory, legal clearance
*This stage can be conditional
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Post launch review
• Performance vs. marketing plan
• On going quality, production quality data (includes consumer complaints)
• Quality of planning and execution of the project
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Next Steps
• Get agreement from top management to test the process: finetune model if needed
• Use Project “John Smith” as pilot for the new process
• Additional “food for thoughts”:– Stage Gate process can be used as tool
for technology platforms– impact of parallel dev. on speed to profit