New Product Development Philosophy IB Work Better
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The document outlines the capabilities and thinking of PIB in new product development (NPD), emphasizing the connections between strategy, innovation, and project management. It details services offered to enhance NPD processes through governance, decision-making transparency, project portfolio management, and the integration of technology for efficient communication and implementation. PIB aims to assist organizations by providing tailored project management support and tools to improve decision-making and overall NPD performance.
New Product Development Philosophy IB Work Better
- 1. PIB CAPABILITIES & THINKING
- 2. 2 Our Perspective on New Product Development. Connecting Strategy, Innovation, NPD process and Portfolio Management Innovation Strategy Defines the role and scope of NPD efforts in the organization Portfolio Management Executes strategy by prioritizing and approving NPD projects Stage-Gate NPD Process Mechanism for ideating, designing, developing and commercializing new products Governance & Decision Rights Determines key decision makers and their scope of responsibility when approving NPD projects Project Management Manages individual NPD projects to ensure that they are in scope, are within budget, and meet key objectives PIB’s New Product Development System
- 3. 3 Project Portfolio Management & Governance managing the Gates New Product Development Process improving the Stages Project Management executing the Stages PIB Offers Services Across the NPD System With a deep understanding of the innovation strategy, we visualize key project information to help senior leadership teams both monitor the value the portfolio of NPD projects and make key investment decisions. Additionally, we work intimately with leadership teams to design decision making processes and ensure that NPD teams present the appropriate project information at governance meetings. We have significant experience in helping companies understand the cross-functional connecting rods framing effective NPD processes. We understand the NPD process and map it for our clients to educate their teams and improve performance. Processes we have focused on in the past include Ideation, Feasibility, Development, Commercialization, and Geographic Expansion. Our project management services are focused solely on projects which support NPD to complement our experience in the space. In order to support the development of our client’s NPD Project Management function, we: • Assess Internal Project Management Functions • Structure and Build Project Management Organization • Outsource Project Managers
- 4. 4 Project Portfolio Management & Governance Services The Right Information Leadership bodies need to be equipped with the right information to make critical decisions. • Balance Scorecards We build scorecards to objectively assess the strategic and financial value of projects within the NPD portfolio. • Portfolio Visualizations We visualize key project data to ensure that leadership teams can easily understand and interact with project information. This improves the quality and speed of decision making within our client’s organization. The Right Decisions Leadership bodies need established processes to make sure that decision rights are clearly articulated. • Decision Process Design We build internal processes to make decision making processes as transparent as possible. This includes the criteria for making decisions as well as who makes the decisions (e.g., RACI / RAPID / DAI decision matrices). IDEATION PROOF OF CONCEPT DEVELOPMENT COMMERCIALI ZATION GEOGRAPHIC EXPANSION 1 2 3 4 To effectively manage the NPD project portfolio to achieve an organization’s strategic goals, we employ methods and tools to ensure that sr. leadership teams have the right information to make the right decisions. Do Consumers Want it? • Purchase Intent (Top Box) • Frequency • Volume • Degreeof Newness • Target Consumer • Consumer Need /Insight • Consumer Benefits /RTBs • Updates,asrequired • Updates,asrequired Can We Make it? High-Level Estimate of Tech. Complexity • Product • Procurement • Package • Process /Manufacturing • Regulatory / Legal • Target Formula • Target Package • Target Cost • SKUsImpacted • Target Manufacturing Plant(s) • TechnicalFeasibility Plans • Updates,asrequired Will Customers Drive it? • % ACV • % Incremental toCategory (Estimate) • Velocity Rank • Preliminary Assessment of Trade Interest by Sales Organization • Alignment to Campbell’s SGOs • Updates,asrequired Can we Make Money? • IncrementalNPV (if available) • Year 1and Ongoing Estimates • Volume (MEQ) • List Sales ($MM) • IncrementalList Sales ($MM) • IncrementalNet Sales ($MM) • IncrementalGM ($MM) • GM% • EBIT ($MM) • Incremental A,C, T($MM) • % Incrementality • Capital(Y/N/M) • FinancialAssumptions • Updates,asrequired• IncrementalNPV • Year 1, 2, and Ongoing Estimates • Volume (MEQ) • List Sales ($MM) IncrementalList Sales ($MM) • IncrementalNet Sales ($MM) • IncrementalGM($MM) • GM % EBIT ($MM) • IncrementalA,C, T($MM) • % Incrementality • Capital$ • FinancialAssumptions New Product Excellence: Gate Criteria Is it Strategic? • Alignment to Brand, Business,and Corporate Strategy • Degreeof Competitive Diff erenti ati on • Barriers toCompetitive Entry • Likely Competitive Response • Updates,asrequired Resources Required For Next Stage? • Updates,asrequired • Updates,asrequired• Market Research $ • Incremental A,C,T $ • Capital$ • PD& Packaging FTEs • Supply Chain FTEs • AdditionalFTEs • Updates,asrequired • FinalFormula • Final Package • FinalCost • Updates,asrequired • Updates,asrequired From Find to Launch What’s the Learning Plan? • Key Questions that Need to Be Answered By the Next Gate • Key Questions that Need to Be Answered By the Next Gate • Key Questions that Need to Be Answered By the Next Gate KeyQuestions What are the Key Risks? Risk Assessment • Risks,Likelihood, PotentialImpact, Miti gati on Plan Risk Assessment • Risks,Likelihood, PotentialImpact, Miti gati on Plan Risk Assessment • Risks,Likelihood, PotentialImpact, Miti gati on Plan © 2009 LLP© 2009 LLP • Updates,asrequired • Updates,asrequired • Updates,asrequired • Updates,asrequired • Updates,asrequired • Updates,asrequired • Not Applicable Risk Assessment • Risks,Likelihood, PotentialImpact, Miti gati on Plan Project Overview • Project Name • Project Description • Project Lead Project Sponsor • BusinessUnit • Brand(s) • Project Type (Innovation, Renovati on) • CSC Platform • Target Launch Date • # ofSKUsto be Developed, Launched, & Slotted • Updates,asrequired • Updates,asrequired • Updates,asrequired Organizational Feasibility • Updates,asrequired • Updates,asrequired• Description ofProject Complexity • Description of Potential Impact on Other Initiati ves • Confidence in Achievement Milestone Timeline • Updates,asrequired Draft: Feb. 25, 2009 Version 7.0 Find Fill Early Development Late Development Commercialization Launch and Post-Launch Gate 1 Gate 2 Gate 3 Gate 4
- 5. 5 Mapping & Improving the Process We have significant experience mapping and improving the NPD process. Some of our work examples include: • Business Development and Technology Search processes mapped as separate workflows or embedded within the NPD process • Processes involving CMOs and CROs • The NPD process mapped to as many as 9 levels of detail including the SOP level • NPD processes for Rx-to-OTC Switches and Medical Devices, as well as drugs, cosmetics, consumer electronics and foods New Product Development Processes Implementing the Process The people who live the process day to day determine its success. Therefore, we have employed methods to ensure organization-wide engagement: • Process Visualizations We transform the swim lanes and boxes of traditional process maps into user-friendly & fun process visuals for communication and education. (see next page for examples) • Web-Enablement of Key Processes To support implementation, we use technology to ensure that employees can access the information within the process maps anytime, anywhere. IDEATION PROOF OF CONCEPT DEVELOPMENT COMMERCIALI ZATION GEOGRAPHIC EXPANSION 1 2 3 4 Across the NPD process, we are interested in helping our clients map, better, and implement the process within their organization. We believe that a well thought through process allows our client’s to devote themselves entirely to creative, innovative work and limit questions such as “who does what now?”.
- 6. 6 NPD Process Map Visualization Client Examples Some Product Development Process Maps are driven by the R&D activities necessary to launch a product or service. These represent the more typical approach to Process Mapping. Others focus on the specific “consumer touch points” throughout the process to ensure that the consumer remains the focal point of the Product Development Process.
- 7. 7 NPD Project Management Outsourced NPD Project Managers Our expertly trained project managers will lead complex projects or support your project managers to produce on- time, in-budget, high-quality results. Examples of how our project managers can support your organization include: • Chartering projects • Building and tracking project plans • Reporting on project status • Facilitating cross-functional project meetings • Communicating with Project Sponsors • Proactively addressing risks • Managing scope creep and change requests • Maintaining project documents Assess & Build Internal NPD Project Management Capability We utilize our standard Project Management Maturity Model to identify the current state of the PM capability, pinpoint areas for improvement, and build the organization’s capability. We help our clients build the PM capability by: • Identifying the vision of the PM organization • Defining roles and responsibilities • Designing a reporting structure to unify and streamline the organization • Developing customized PM methods and tools • Defining core competencies and instituting them in the organization through case-based, interactive training IDEATION PROOF OF CONCEPT DEVELOPMENT COMMERCIALI ZATION GEOGRAPHIC EXPANSION 1 2 3 4
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Editor's Notes
- #7: Obviously, many functional groups need to interact collaboratively and in parallel to bring an idea all the way to fruition as a marketed OTC product. Cross-Functional participation is crucial! These 7 groups need to work together throughout the NPD process. The NPD Road Map we looked at two slides back just covered this one swim lane at a very high level. The complete NPD process when broken down into individual tasks would number into the hundreds or thousands depending on the level of granularity you go down to. At Merck Consumer Care we utilize a project team approach to ensure cross-functional participation