The New Product and Services Development Process

By SK

Winning Innovations for Tomorrow (WIT)

Vision & Mission

Vision To contribute towards upliftment of

education & to provide highest quality education material

Mission To utilize latest methods to produce

quality innovative educational products fulfilling the customers’ needs

Goals and Strategy Goals

Create new product development process Build Brand loyalty & customer satisfaction Increase revenue by 20 % in 2 years by bringing quality

innovations Identify & fulfill customer’s unmet needs

Strategy Building cross functional teams Continuous customer need & feedback evaluation Analyzing competitors Leveraging company resources Developing new Product Development process :The stage gate

process & keep reengineering it

Reasons for failure Lack of Market Orientation Poor quality of execution Moving too quickly Not enough up front homework Lack of product value for the customer Lack of resources Lack of systematic new product process

Critical Success Factors in Product Innovation

1. A unique superior product to the customer2. A strong market orientation and customer focus3. An international orientation4. More predevelopment work 5. Sharp and early product definition6. A well-conceived, properly executed launch 7. Right Organization structure , design & climate8. Top management commitment9. Leveraging core competencies10. Products aimed at attractive markets11. Tough go/kill decision and prioritization12. Completeness, consistency, and quality of execution13. Resources in place14. Speed not at the expense of quality15. Multistage disciplined New Product Process –Stage Gate Process

The Stage Gate Process It is a blueprint for managing the product innovation process to

improve effectiveness and efficiency Predetermined set of stages – cross functional and parallel

activities Stages are designed to gather information needed to progress

at the next gate Gates are quality-control checkpoints where go / kill and

prioritizing decisions are made Gates consist of

Deliverables Criteria Output

LaunchDevelopmentBuild Business CaseScoping

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post LaunchReview

Discovery

Go To Development Go To Testing Go To Launch

Vision

Mission

Strategy

Goal

Accumulate Idea Resource

The Stage Gate ProcessWIT ( Winning Innovations for

Tomorrow )

Second Screen

Idea Screen

Testing & Validation

Idea Bank Must meet - should meet go/ kill point

Discovery Stage : Ideation Object

Identify customer needs Generate & document breakthrough new product ideas based

on the vision , mission , goal & strategy of the company Identify new opportunities

Activity Voice of customer Research & analysis Trade shows Working with lead users Interdepartmental brainstorming Idea Bank

Member Cross functional team

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Gate 1 : Idea Screen Deliverables

Well described list of ideas

Criteria Is it relevant to the business ? Are the market size , growth & opportunities attractive ? Will it leverage resources of the company? Is there a reasonable likelihood that the product will be

technically feasible?

Output Go / Kill / Hold / recycle

Gatekeeper Management of New Product Development Team

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Stage 1 : Scoping Object

Gentle screening to find out feasibility , magnitude of opportunity Activities

Preliminary literature search and consultation with internal and industry resources ( internet search , library search ) to assess value of an idea

Preliminary Market Assessment Preliminary technical assessment Preliminary financial and business assessment Recommendations and plans for stage 2

Members Management of New Product Development Team and members form

other departments depending on the requirement of the idea

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Gate 2 : Second Screen

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Deliverables Figures of market assessment , size , acceptance Level of risk Financial assessment

Criteria Are merits higher than the risk ? Would it have any legal issues ? Does it fit the business strategy ? Would the payback period cover the investment done ? What is the reasonable likelihood of technical feasibility? Are the costs worth of the time invested

Output Go / Kill / Hold / recycle

Gatekeeper Senior Management & managements relevant to the idea

Stage 2 : Build Business Case Object

Define & describe thoroughly the business case Activities

User needs and wants study Competitive analysis Market analysis Detailed technical assessment Concept testing Financial analysis Plans of Action Spell out desired features ,attributes and requirements

Members Management of New Product Development Team and

members from other departments depending on the requirement of the idea

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Gate 3 :Go To Development

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Deliverables Business Case : Product & project definition , Project Justification &

Project Plan Estimate of resources Concept test data Legal assessments

Criteria Strategic Product Advantage Market Attractiveness Synergies Technical Feasibility Risk versus Return

Output Go / Kill / Hold / recycle

Gatekeeper Project council ( Senior management from different departments )

Stage 3 : Development Object

Implementation of development plan and physical development of the product

Activities Focusing resources towards development of the product Parallel marketing & operations In house tests Customer feedback Rapid prototypes Developing action plan Updating financials

Members Management of New Product Development Team and members

from other departments depending on the requirement of the idea

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Gate 4 :Go To Testing

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Deliverables Marketing plan Production plan Distribution plan Financial Analysis

Criteria Is the product operating within the budget ? Is the project meeting its timelines ? Is the product meeting the customer needs better than the

competition? Is the developed product consistent with the original definition ?

Output Go / Kill / Hold / recycle

Gatekeeper project council ( Senior management from different departments )

Stage 4 : Testing and Validation Object

Testing for extensive validation of the project Preparing for the launch

Activities Validation of quality of the project & process In-house test continue Field trial sell Test market Update financial analysis Prepare a launch plan Update marketing & production plan Find out modifications if required Ensure customer acceptance

Members Management of New Product Development Team and members from

other departments depending on the requirement of the idea

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Gate 5 :Go To Launch

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Deliverables Market potential & interest of buying the product Forecast of sales volume

Criteria Is the product ready for launch ? Is the expected financial return considerably high? Has the project been reviewed thoroughly ? Have the modifications required as per customer survey been made ? Are all processes & resources in place for the launch? Does the testing of the product confirm customer satisfaction ?

Output Go / Kill / Hold / recycle( The operations & marketing plans are reviewed and approved for implementation in stage 5 )

Gatekeeper : project council ( Senior management from different departments )

Stage 5 : Launch Object

Implementing the marketing & operation plan for launch

Activities Advertising PR Direct mail Trade shows Website Production , promotion & Sales

Members New Product Development Team and members from other

departments depending on the requirement of the idea , Ad agency , PR agency

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Post Launch Review Object

Assess effectiveness of process to deliver objectives

Activities Review costs Review profits Review Strengths Review Weaknesses Review project & product performance

Members New Product Development Team and members from

other departments depending on the requirement of the idea

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

“ Do Projects Right ,Do The Right Projects ”

-Robert G. Cooper