THREE OBJECTIVES:
1.MORE OF IT
2.FASTER
3.WITHIN BUDGET
WHY NEW PRODUCTS?
1.REVENUE GENERATION
2.GROWTH
3.PROFITABILITY
4.LEARNING CURVE
5.ECONOMIES OF SCALE
6.KEEP COMPETITION OFF BALANCE
7.ADDRESS GLOBALIZATION OPPORTUNITIES
8.KEEP YOUR PEOPLE ENERGIZED
9.HAPPY CUSTOMERS
10. MAKES YOU COMPETITIVE WITH LARGER COMPANIES
DEFINE NEW?
NEW TO THE “WORLD”
NEW TO YOUR COMPANY
PRODUCT LINE EXTENSIONS
IMPROVED CURRENT PRODUCTS
NEW APPLICATIONS (REPOSITION)
COST REDUCTIONS IN COMPONENT PARTS
REASONS WHY “NEW” PRODUCTS FAIL
1.NO NEED FOR THE NEW PRODUCT
2.YOUR PRODUCT DOESN’T MEET THE NEED
3.QUALITY ISSUES
4.MARKETING ISSUES
5.COST/NOT PROFITABLE
FIVE PHASES OF NEW PRODUCT DEVELOPMENT:
1.OPPORTUNITY IDENTIFICATION
2.CONCEPT GENERATION
3.CONCEPT/PROJECT EVALUATION
4.DEVELOPMENT
5.LAUNCH
LET’S DO IT FASTER………………………
ACCELERATED PRODUCT DEVELOPMENT
HOW?
THROUGH GOOD MANAGEMENT
NOT JUST……………………
WORKING HARDER
FOR EXAMPLE:
1.CROSS FUNCTIONAL TEAMS
2.PROCESS MANAGEMENT THINKING
3.USE OF TECHNOLOGY
4.PARTNERING
5.DATA NETWORKING
6.LEARNING CURVES
7.COMPENSATION/MOTIVATION
8.PARALLEL PROCESSING
9.REMOVE TOP MANAGEMENT ROADBLOCKS
10. EMPOWER AND TRAIN EMPLOYEES
11. PLANNING “THE 10 RULE”
THE 10 RULE:
EVERY ACTIVITY HAS THREE STAGES
1.PLANNING
2.IMPLEMENTATION
3.DELIVERY TO A “CUSTOMER”
EACH STAGE HAS ITS OWN COST
COST INCREASES BY MULTIPLIERS OF TEN
TWO IMPLICATIONS OF THE 10 RULE
1.PLANNING IS THE LEAST EXPENSIVE
PLACE TO WORK
2.YOU CAN FIND AND FIX MOST OF
YOUR MISTAKES IN PLANNING
