The New Product and Services Development Process
description
Transcript of The New Product and Services Development Process
The New Product and Services Development Process
By SK
For “The Genius”
The Genius
...is not just another school. It is a school with a difference. The difference is in the Vision and Action. Genius strongly believes that every child possesses a wealth of potential. All we do is facilitate its emergence in the most natural and beautiful way.
Vision & Mission
To be known to have an exemplary environment to prepare students for the challenges of real life
To enable students to become confident, life-long learners and responsible citizens with the skills to succeed beyond the School’s doors
VisionVision
MissionMission
Goals and Strategy
Build Brand loyalty Growth (# of Students) Fulfill students unmet needs
Establish a feedback process (from students, parents, and teachers) to understand students requirements
Build cross functional teams Leverage all resources Develop NPSD process :The stage gate process & keep
reengineering it
GoalsGoals
StrategyStrategy
Why Do We Need a NPSD Process?
To ensure that the future goals are in line with school strategy
To create superior services in the most cost effective and time efficient manner
To make sure we do the right projects
To make sure we do the projects right
Seven Goals – The Genius plans to Achieve
Goal Key Findings*
1. Quality of Execution 25% to 45% of new product launches fail. Percentage will vary by industry.
2. Sharper Focus, Better Prioritization
19,000 new products were introduced to supermarkets, and half disappeared from the shelves within two years
3. Fast-Paced Parallel Processing Activities Should be done in parallel, not in a series
4. A True Cross-Functional Team Approach
People fall in love with their own ideas
5. A Strong Market Orientation with the Voice of the Customer Built In
Superior products have a rated profitability of 8.4 out of 10 (versus 2.6 of 10) for undifferentiated products.
6. Better Homework Up-Front Superior products have a market share of 53.5% of the defined target market,
versus only 11.6% for “me too” new products7. Products with Competitive
Advantage-
* Source : The Goal behind Innovation: Mastering New Product and Service Development, David Goldsmith
The Stage Gate Process
It is a blueprint for managing the product/service innovation process to improve effectiveness and efficiency
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
OutputOutputCriteriaCriteriaDeliverablesDeliverables
LaunchDevelopmentBuild Business CaseScoping
Stage 1Stage 1
Gate 1Gate 1
Gate 2Gate 2 Stage 2Stage 2 Gate 3Gate 3 Stage 3Stage 3 Gate 4Gate 4 Stage 4Stage 4 Gate 5Gate 5 Stage 5Stage 5
Post LaunchReview
Post LaunchReview
DiscoveryDiscovery
Go To Development Go To Testing Go To Launch
Vision
Second Screen
Idea Screen
Testing & Validation
Must meet - should meet go/ kill/ hold/ recycle point
Must meet - should meet go/ kill/ hold/ recycle point
The Stage Gate Processfor Course Selection
VisionVisionVisionVisionVision
StrategyStrategy
GoalGoal
MissionMission
Hold
Idea Bank
“As Long as you are going to think anyway – you might as well think
BIG! ”
- Donald Trump
1. Movement classes (aspects of Dance,
Gymnastics, Dramatic expressions etc)
2. History with Fun
3. Instrumental classes
4. Creative art
5. History with Fun
1. Health and Physical education2. Foster thinking3. History with Fun
History with Fun
Instrumental classes
1. Health and Physical education
Foster thinking
1. French
Culinary Classes1. Mental Math
2. Shakespearean English
Movement classes
Creative art
Foreign language
Instrumental classes
1. French
Culinary Cooking
1. Foster thinking
History with Fun
1. Health and Physical education2. Foster thinking3. History with Fun
Dramatic Expressions
Foster thinking
Mental Math
Shakespearean English
1. Gymnastics
2. Creative Art
French
Culinary Cooking
French
Culinary Cooking
1. French
2. Culinary Cooking
1. French
2. Culinary Cooking
Discovery Stage : Ideation
Stage 1
Gate 1
Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5
Post Launch Review
Discovery
Voice of Customers
Voice of Customers
MRG EventsMRG Events
Parent-TeacherMeetings
Parent-TeacherMeetings
International Markets/Schools
International Markets/Schools Lead Users
Analysis
Lead UsersAnalysis
EducationWeek
EducationWeek
CompetitorsCompetitors
Networking Events For School
Networking Events For School
Bottom UpTop Down
Bottom UpTop Down
Great NPD Ideas
Great NPD Ideas
Gate 1 : Idea 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
Well described list of ideas (Courses)
Are the courses relevant to The Genius ? Are the market size , growth & opportunities attractive ? Will it leverage resources of the company? Is there a reasonable likelihood that the course will be
technically feasible?
* Use of Benefit Measurement sorting technique such as Q-sort
Go / Kill / Hold / recycle
New Product Development Team and senior management from different departments (3-4 people)
Deliverables
Deliverables
Gatekeeper Gatekeeper
CriteriaCriteria
Output Output
Stage 1 : Scoping
Stage 1
Gate 1
Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5
Post Launch Review
Discovery
Gentle screening of the courses to find out feasibility , magnitude of opportunity
Detective Research/Preliminary Market Assessment (internet search , library search, telephone interviews, Industry experts) to assess value of the courses
Preliminary assessment as to how would these course requirements be achieved technically
Preliminary financial and business assessment that give Sanity check /ball park estimates)
ObjectiveObjective
ActivitiesActivities
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
Figures of market assessment , size , acceptance Level of risk Financial assessment
Are merits higher than the risk ? Would it have any legal issues ? Does it fit The Genius strategy ? Would the payback period cover the investment done ?
* Scoring Models will be used
Go / Kill / Hold / recycle
Standing Gatekeeper GroupGatekeeper Gatekeeper
CriteriaCriteria
Deliverables
Deliverables
Output Output
Stage 2 : Build Business Case
Stage 1
Gate 1
Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5
Post Launch Review
Discovery
Define & describe thoroughly the courses, for whom; why the school should invest and by whom the investment would be made?
User needs and wants study – Is the course truly Superior? Detailed market analysis – how big is the market and how much can we grow? Competitive analysis Detailed technical assessment – Do we have experts/teachers available or will
require additional hiring? A Realistic Concept testing with students/parents – will the course be a winner? Rigorous Financial analysis Plan of Action, e.g. what semester the course will be launched? Spell out desired features, attributes and requirements
ObjectiveObjective
ActivitiesActivities
Gate 3 : MONEY GATE
Stage 1
Gate 1
Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5
Post Launch Review
Discovery
Business Case : Product & project definition , Course Justification & Project Plan Estimate of resources Concept test data Legal assessments
Strategic Product Advantage Market Attractiveness Synergies Technical Feasibility
* Risk versus Return using Financial economic models like, NPV, IRR
Go / Kill / Hold / recycle Plan of action for next Gate
Standing Gatekeeper GroupGatekeeper Gatekeeper
CriteriaCriteria
Deliverables
Deliverables
Output Output
Stage 3 : 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
Physical development of the course and Implementation of development plan
Focus resources towards development of the Course contents Parallel processing with marketing teams and Faculty In house tests Seek constant Parents, students, instructor feedback Working models/ Mock class sessions Worship Time Line Update financials
ObjectiveObjective
ActivitiesActivities
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
Marketing plan Production plan Distribution plan Financial Analysis
Is the Course operating within the budget ? Is the Course meeting its timelines ? Is the Course meeting the parents/students needs better than the
competition? Is the developed course consistent with the original definition ?
Go / Kill / Hold / recycle
Standing Gatekeeper GroupsGatekeeper Gatekeeper
CriteriaCriteria
Deliverables
Deliverables
Output Output
Stage 4 : Testing and Validation
Stage 1
Gate 1
Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5
Post Launch Review
Discovery
Extensive validation of the service and project Preparing for the launch
Validation of course quality Continuation of In-house testing End-User trials of the service - Ensure students’ acceptance Trial sell - Find out modifications if required Revised financial analysis Update marketing & production plan Prepare a launch plan
ObjectiveObjective
ActivitiesActivities
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
Market potential & interest of buying the service Forecast of sales volume in terms of students
Is the course ready for launch ? Is the expected financial return considerably high? Has the course been reviewed thoroughly ? Have the modifications required as per students survey have been made ? Are all processes & resources in place for the launch? Does the testing of the course confirms student satisfaction ?
Go / Kill / Hold / recycle
(The operations & marketing plans are reviewed and approved for implementation in stage 5 )
Standing Gatekeeper GroupsGatekeeper Gatekeeper
CriteriaCriteria
Deliverables
Deliverables
Output Output
Stage 5 : 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
Implementing the marketing & operation plan for launch
Timing is everything
Advertising PR Direct mail Website Production , promotion & Sales
ObjectiveObjective
ActivitiesActivities
Post Launch Review
Stage 1
Gate 1
Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5
Post Launch Review
Discovery
Assess effectiveness of process to deliver objectives
Review costs Review profits Review Strengths Review Weaknesses Review project & product performance
ObjectiveObjective
ActivitiesActivities
“ Do Projects Right ,Do The Right Projects ”
-Robert G. Cooper