Guide to New Product Development (NPD)
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The document outlines the New Product Development (NPD) process, which includes strategy, organization, concept generation, product and marketing plan development, and commercialization. It discusses various NPD models such as stage gate, DMADV, and flexible NPD, along with investment percentages in NPD across different industries and trends impacting the process. Additionally, it highlights key success factors and performance measurement techniques necessary for effective NPD management.
Guide to New Product Development (NPD)
- 1. Kerim Tumay Managing Director August 2011 © 2011 Technology Multipliers, LLC
- 2. Outline • Why NPD? NPD Concept • What is NPD? • Business Strategy & NPD Investments • Stage Gate, DMADV, AMS Process Funnel NPD Process • Flexible NPD Models • Ideation in each stage • Performance Measurement NPD Technologies • Software Success Factors • Keys to success with NPD © 2011 Technology Multipliers, LLC
- 3. NPD Concept NPD Process NPD Success Factors Models Technologies Why NPD? © 2011 Technology Multipliers, LLC
- 4. NPD Concept NPD Process NPD Success Factors Models Technologies What is NPD? New Product Development (NPD) is the overall process of: Strategy Organization Concept generation Product and marketing plan development Commercialization and launch © 2011 Technology Multipliers, LLC
- 5. NPD Concept NPD Process NPD Success Factors Models Technologies NPD Investments As Percentage of Revenue • Average for industrials = 3.5% • Average high technology = 7% • IBM, SAP, Oracle = 13.5% • Ericsson = 24.9% • Technology startups > 25% Sources: Wikipedia and Software Industry Insights Blog © 2011 Technology Multipliers, LLC
- 6. NPD Concept NPD Process NPD Success Factors Models Technologies Trends • Globalization • Collaborative R&D partnerships • Compliance with new health and safety regulations • Personalization • Six Sigma quality • Design for manufacturability • Design for sustainability • Design for supply chain efficiency © 2011 Technology Multipliers, LLC
- 7. NPD Concept NPD Process NPD Success Factors Models Technologies Stage Gate NPD Model Build the Testing & Scoping Business Development Launch Validation Case Source: Innovation Framework Technologies © 2011 Technology Multipliers, LLC
- 8. NPD Concept NPD Process NPD Success Factors Models Technologies DMADV Model Define design goals consistent with customer demands and the enterprise strategy Verify the design, Measure and set up pilot runs, identify CTQs implement the (Critical To Quality) production process Design details, optimize the Analyze to develop design, and plan and design for design alternatives verification © 2011 Technology Multipliers, LLC
- 9. NPD Concept NPD Process NPD Success Factors Models Technologies AMS NPD Process Funnel Source: Applied Marketing Science, Inc. © 2011 Technology Multipliers, LLC
- 10. NPD Concept NPD Process NPD Success Factors Models Technologies Flexible NPD Model “ the ability to make changes in the product.. even relatively late in development, without being too disruptive.. The less disruptive the changes are, the more flexible the process is” Preston Smith, the author of Flexible New Product Development © 2011 Technology Multipliers, LLC
- 11. NPD Concept NPD Process NPD Success Factors Models Technologies Modified, Flexible NPD Model Dimensions of Urgency and Classification Flexible Stage Gate Process Critical time to market Increase the pace for the stages High financial and technical feasibility Lower the hurdles for the gates High financial, technical and regulatory risks Reduce the pace for the stages Non-critical time to market Increase the hurdles for the gates Projects with high urgency and caution Higher authority approvals Projects with low urgency and caution Normal stage gate process © 2011 Technology Multipliers, LLC
- 12. NPD Concept NPD Process NPD Success Factors Models Technologies Ideation at every stage Partners and Other • Formal surveys Suppliers • Company-wide and/or focus groups incentives • Suggestion requests • Market research • Market research • Market research • Reward programs • Suggestion requests with customer • Competitive • Collaborative service reps intelligence development, early • Consultants adopter programs Company Customers Internal Sources Internet Encourage and Monitor social Monitor user groups, Encourage capture feedback via networking sites like chat rooms and other suggestions via the online meeting tools Facebook, LinkedIn, online customer web site like GoToMeeting, and Twitter venue Webex.. © 2011 Technology Multipliers, LLC
- 13. NPD Concept NPD Process NPD Success Factors Models Technologies Performance Measurement Hard Soft • Development cycle time • Design quality • Cost of people • Patent filings • Equipment/material • Published papers costs • Revenue potential • Revenue • Know-how • Experience © 2011 Technology Multipliers, LLC
- 14. NPD Concept NPD Process NPD Success Factors Models Technologies NPD Software • NPD Suites – PD-Trak – HypeIMT – Innovation Framework Technologies – Accolade • Niche Tools – Imaginatik – Inova – ProModel © 2011 Technology Multipliers, LLC
- 15. NPD Concept NPD Process NPD Success Factors Models Technologies Keys to Success with NPD Review resource allocation strategy regularly Leverage software Monitor key trends suites and the affecting new Internet for ideation product and NPD development Measure the NPD Select a process process in terms of model and adopt it quantitative and to your company and qualitative impacts situation Encourage ideation Build flexibility into the NPD process and in every stage of the organizational NPD process culture © 2011 Technology Multipliers, LLC
- 16. Download E-books For more information, go to www.technologymultipliers.com © 2011 Technology Multipliers, LLC