How to develop new products process, tips and pitfalls

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New Product Development ProcessTips and Pitfalls February 2010

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New Product Development (NPD) Process

Prioritise ideas

Create design brief

Plan

Test

Optimise

Validate

Gather feedback

Support

Correct

Protect

Ramp-up

Launch

Gather

Research

Create

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Step 1 - Discover

Typical problems encountered during this phase include:

Insufficient 'good ideas' resulting from a lack of up-front marketing and research activities

A tendency for 'technology push' concepts in engineering-led companies (“We have developed this new technology; now where can we apply it?”)

Inadequate stakeholder exposure (involve all your departments, your customers and the users at an early stage to gain invaluable feedback)

Poor 'project portfolio management' resulting in too many projects and not enough resources

No involvement of industrial designers to help draw together the market and technology perspectives

Platform and product range opportunities not explored (don’t just focus on the first model, but consider an NPD roadmap for future development).

Good ideas rarely just happen. There needs to be a range of activities taking place to ensure that requirements and ideas are gathered from all relevant sources. You need to be very aware of what is happening in your market – who your customers are, how they are using (and abusing) your product, what their needs are, what the competition is doing and what trends are affecting your marketplace.

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GatherGather

Identify sources for ideas (team, end-users, retailers, distributors, tradeshows, conferences, experts, raw material manufacturers, etc)

Set up dialogue with each source and encourage 2-way flow of information and ideas

Identify sources for ideas (team, end-users, retailers, distributors, tradeshows, conferences, experts, raw material manufacturers, etc)

Set up dialogue with each source and encourage 2-way flow of information and ideas

DiscoverKey activities

ResearchResearch

Investigate unmet needs – ‘eyes and ears’ Segment market; create persona for your target groups Regularly research trends Research new technologies, science, ingredients for

inspiration Research customer activities (patents, R&D, new

products)

Investigate unmet needs – ‘eyes and ears’ Segment market; create persona for your target groups Regularly research trends Research new technologies, science, ingredients for

inspiration Research customer activities (patents, R&D, new

products)

CreateCreate

Set up systems to gather and collate ideas Hold regular Innovation Days to explore new

opportunities

Set up systems to gather and collate ideas Hold regular Innovation Days to explore new

opportunities

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Step 2 - Define

Typical problems encountered during this phase include:

A poor understanding of the market, with little attempt to identify the target customer

Inadequate understanding of user requirements, with focus on features rather than benefits

A weak business case, based only on your experience of the market and your hunches about the opportunity

Little consideration of the market, technical and commercial risks

During the Define stage you should aim to focus on a select few concepts to take forward and build up a clearer picture of the commercial and technical viability of your project and establish the criteria for success. The main output from this phase is a detailed product specification in addition to a clear business case to justify further investment.

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PrioritisePrioritise

Establish ‘need to have’ criteria (e.g. Fits with strategy) and eliminate ideas that don’t meet them

List criteria for market success (e.g. size, competition, extent of need) and technical success (e.g. feasibility of ingredients)

Establish ‘need to have’ criteria (e.g. Fits with strategy) and eliminate ideas that don’t meet them

List criteria for market success (e.g. size, competition, extent of need) and technical success (e.g. feasibility of ingredients)

DefineKey Activities

Create design briefCreate design brief

PlanPlan

Create planning document (commercialisation plan, financial plan, Intellectual Property, regulatory, packaging, supply chain, environmental assessment, risk assessment)

Create planning document (commercialisation plan, financial plan, Intellectual Property, regulatory, packaging, supply chain, environmental assessment, risk assessment)

Create 1-page brief – rationale, value proposition, benefit to customer, marketplace opportunity, constraints, success criteria)

Create 1-page brief – rationale, value proposition, benefit to customer, marketplace opportunity, constraints, success criteria)

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Step 3 - Develop

Typical problems encountered during this phase include: A tendency to choose the first solution, based on your personal

knowledge or experience, without considering other options

Poor integration of industrial and engineering design, resulting in 'stylish but un-manufacturable' or 'practical but ugly' concepts

Ad hoc approach, leading to component proliferation and supply chain inefficiencies

Insufficient involvement of customers for regular feedback on design and functionality

Prototypes developed too late or not at all, resulting in late design changes

Having defined the potential opportunity, the development stage is when you can start to search for possible solutions for your product. It is during this phase that usability issues and alternative technologies will be explored. The development stage should be iterative with early prototypes being tested and feedback used to refine the product.

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TestTest

Develop prototypes/mockups/samples of product and packaging for testing as soon as possible

Carry out laboratory testing (e.g. characterisation, origin, stability, toxicity, absorption, colour fading etc)

Set up Customer Advisory Group to provide feedback Gather consumer feedback (smell, colour, consistency,

efficacy, packaging, ergonomics, etc)

Develop prototypes/mockups/samples of product and packaging for testing as soon as possible

Carry out laboratory testing (e.g. characterisation, origin, stability, toxicity, absorption, colour fading etc)

Set up Customer Advisory Group to provide feedback Gather consumer feedback (smell, colour, consistency,

efficacy, packaging, ergonomics, etc)

DevelopKey Activities

OptimiseOptimise

Build feedback into new versions Repeat cycles

Build feedback into new versions Repeat cycles

ValidateValidate

Validate for:̶�market and̶�technical acceptability

Validate for:̶�market and̶�technical acceptability

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Step 4 - Implement

Typical problems encountered during this phase include: Late discovery of problems with supply of components / logistics /

manufacturability / distribution / usability that should have been identified and managed out at an earlier stage

Poor coordination and communication between functional groups with the result that one element of the project is ready for launch, but some other aspect is still work in progress

Rushing to launch to meet some external deadline (e.g. exhibition, Xmas) before basic technical problems have been resolved

Once the concept has been agreed, the next stage is to ramp up the project ready for launch. This means liaising with the various stakeholders from suppliers to internal departments to plan for resources, logistics and operations. Good project planning is a critical factor here, including project launch plans, regular team meetings to review project progress, and contingency planning to manage risks.

The culmination of this stage is the launch of the product or service, accompanied by the necessary field and customer support, and communication/PR plan.

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ProtectProtectImplementKey Activities

Ramp-upRamp-up

Brief suppliers Batch production testing Plan market communications Plan POS and merchandising

Brief suppliers Batch production testing Plan market communications Plan POS and merchandising

LaunchLaunch

Set supply chain in motion Commission production Integrate with other production Create training document for distributors Promote in multiple channels

Set supply chain in motion Commission production Integrate with other production Create training document for distributors Promote in multiple channels

Identify and register intellectual assets if relevant (e.g. patents, trademarks, design rights, copyright, database rights)

Identify other intellectual assets (e.g. trade secrets, contracts, accreditation, show-how)

Maximise value of IP

Identify and register intellectual assets if relevant (e.g. patents, trademarks, design rights, copyright, database rights)

Identify other intellectual assets (e.g. trade secrets, contracts, accreditation, show-how)

Maximise value of IP

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Step 5 - Monitor

Typical problems encountered during this phase include: Customer complaints that really should have been discovered prior

to launch

Problems with logistics (e.g. timing of supply and distribution)

Variations in distribution channels that were not envisaged

Insufficient monitoring taking place, leading to lost opportunities for close relations with customers, new insights, increased sales, etc.

Launching the product is not the end of the process – you need to continue to monitor sales and customer satisfaction to support your customers, make minor adjustments to the product and gather information for the next generation product.

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Gather feedbackGather feedback

Review sales and customer satisfaction Look for opportunities to add value/reduce costs, etc Gather ideas for new products/ammendments

Review sales and customer satisfaction Look for opportunities to add value/reduce costs, etc Gather ideas for new products/ammendments

Monitor

SupportSupport

CorrectCorrect

Make any changes to packaging, promotion, materials and product as required

Look for line extensions

Make any changes to packaging, promotion, materials and product as required

Look for line extensions

Maintain good dialogue with sales team Continue to support sales effort (update marketing

materials, keep online materials fresh, supply case studies, white papers as relevant, circulate success stories, PR articles, etc.

Maintain good dialogue with sales team Continue to support sales effort (update marketing

materials, keep online materials fresh, supply case studies, white papers as relevant, circulate success stories, PR articles, etc.

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Rowan Norrie

True North Innovation

www.truenorthinnovation

Tel: +44(0)1698 389 456