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The moment of truthin launching innovations

Het moment van de waarheidbij het lanceren van innovaties

Reggy MortierMarket Director

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Context (Case)

Summary & Conclusion

Presentation scope

Determine

Bepalen

Control

Beheersen

Secure

Beveiligen

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Context

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Platform Strategy

- Technology -

Product platform strategy

Product Family Strategy

- Market -

Vision

- People -

New Product Introduction

- Product / Service -

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Three platforms / families of rugged displays

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For extreme installations

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In extreme environments

100% humidity, interference, sand and dust

-46°C +71°C

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Price range

Low End Market Segment

High End Market Segment

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thinLITE display family

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Determine: fix or find out precisely, calculate

Product Life Cycle Monitoring (Management)

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Determining the MoT = Profit monitoring

x x

MoT: Defining & Developing

MoT: Selling

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Main Segment

Lower Cost & New Size & Performance

Result of our PLC analysis

Low End Market Segment

- Disruptive, “Good Enough” Competition -

Emerging Segments

- New Requirements -

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Control: be in command of, manage, restrain

Product Portfolio (Platform) Management

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To control the MoT = To USE your ...

Cannibalization

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Bad cannibalization

Lost Profit byBad Cannibalization

GOOD

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Cannibalize for MAXIMUM RETURN only

BIO-MIMICRY

Eliminate Competition

- Procreation -

Secure Food For Offspring

- Procreation -

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Cannibalize for MAXIMUM PROFIT only

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III

0

4000

8000

12000

2005 2006 2007 2008 2009 2010

III

Three possible profit scenarios: III is right one

3000

6000

Cannibaliz

ed Pro

fit

Lost

Pro

fit

To Com

petitio

n

Regained P

rofit

New

Pro

fit

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Resulting profit contribution & ROI

-10000

-5000

0

5000

10000

2005

2006

2007

2008

2009

2010

9000

III

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MoT was about 2 years later: Hypothetical Ex.

Investment

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Secure: make certain or safe, succeed in getting

Part I: Securing sales (and value based pricing)Part II: Securing maximum profit

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Secure: make certain or safe, succeed in getting

Part I: Customer Engagement & Involvement

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Customer engagement

1. To share & mitigate the risk of a new product introduction

– creating EARLY customer “Buy-in” & initial customers ! Crucial to get the wheel rolling and To get through the nearly “unavoidable” dip !

– improving and tuning the product with SELECTED customers Find more & new ways of using your product Using initial design provisions !

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Avoiding the Voice of the Customer “trap”

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New Product Development ( Reggy Mortier - Market Director)

SalesCRM

ProductManagement

Engineering

QFD Coach

MarketCustomer

AR's, Reports,Complaints,

Exhibitions, ....

Product IDEASelection

- Brainstorms -

Product IDEARefinement andInitial Product

Definition

Capture VoC

TRENDS

Product RequestDocument

BusinessCase

High LevelFunctional

ProductDescription

Customer Needs

TechnicalRequirements

TechnicalSpecification

Measures

Verification CrossReference Matrix

Voice of theCustomer

StrategicManagement

Process&

PLC

Voice Of TheCustomer

QuantitativeMarket Data(Programs)

PassiveCapture Active

Capture

Create FirstHouse ofQualityHoQ1

Translate VoCinto CustomerRequiremnets

Dev Spec

Test Plan

CorrelationCR to TR

DATA

PredefinedProcess

Process

Stored Data

Document

During development @ all major stage gates

Stage Gate 0: Voice of the Customer @ product definition

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Customer engagement

2. To strive for & achieve customer Delight !

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KANO Customer Needs Model

Didn’t do it at all

Did it very well

BASIC NEEDS

EXCI

TEMEN

T

NEED

SPERFORMANCE

NEEDS

Spoken W

ants

Unsp

oken

Basi

cs –

Unl

ess

Viol

ated

Unspoken

Excitement

Satisfied

Dissatisfied

KANO

Leads to loyal customers & better pricing

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Example: delight & lower cost !

Console Mount

Shelter Mount

Original Concept:

Solving the needs

Final Concept:

Bringing Delight

Console Mount

VESA Mount* Smallest Outline* 8U BezelVESA Mount

Shelter Mount* 19” Rack* 8U Bezel

Shelter Mount

Console Mount

Shelter Mount

Original Concept:

Solving the needs

Final Concept:

Bringing Delight

Console MountConsole Mount

VESA Mount* Smallest Outline* 8U BezelVESA MountVESA Mount* Smallest Outline* 8U BezelVESA MountVESA Mount* Smallest Outline* 8U BezelVESA Mount

Shelter Mount* 19” Rack* 8U Bezel

Shelter MountShelter Mount* 19” Rack* 8U Bezel

Shelter Mount

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Example: Product provisions lead to new uses

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Secure: make certain or safe, succeed in getting

Part II: Phased Product Introduction

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Phased product introduction

In different, separate market or price segments

To maximize profit contribution per segment– & consequentially in your total market

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Example: Phased introduction per segment

Low End Market Segment

Main Market Segment

Emerging Segments

I

II

III

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Summary & conclusion

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Summary

Determine the moment of truth– By monitoring your profit evolution (PLC)

Control the moment of truth– By “using” cannibalization

to maximize your total profit (portfolio)

Secure the moment of truth– By true customer engagement

To sell early & surely (risk management & delight)

– By phased product introductions per segment

To maximize your total market profit

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Thank you

More information: www.barco.com

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Pictures: istockphoto