I Npd Mfei 5 10

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>>>>>>>> Accelerating ideas to profits >>>>>>>>

Managing The Front End of Innovation

“Discover, cultivate and transform

good ideas into exciting new

products and services ”

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NPD Life Cycle

Preliminary

Opportunity

Identification

Idea

Generation,

Market &

Technology

Analysis

Specification

& Design

Prototype Test

& Validate

Volume

Manufacturing

Market

Launch

Phase Zero:

Product

Concept

Phase One:

Feasibility and

Project Planning

Product &

Portfolio

Strategy

Pre-Phase 0

(ongoing)

ONGOING Product & Portfolio Strategy Formulation and Feedback

NPD

Execution<< Front End >>

Go / No-Go

Decision

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Uncertainty vs. NPD Strategy

Technical

Innovation

Market

Innovation

Radical

Innovation

Incremental

Innovation

Low High

Technical Uncertainty

High

Low

Market Uncertainty

Source: Lynn and Akgun

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MFEI: Balancing Creativity with Structure

OrderChaos

No revenue

Nothing gets done or

Solutions looking for

problems

Lots of ideas, minimal

constraints

Creative

Risk of market decline Innovation and

Breakthrough

Incremental

Improvements & “Me-

too” products

Customer and Market

focus. Market

understands and

values innovation

Systematic approach

with process models

VOC Centric, Flexible,

Iterative &

Experiential Approach

Structured Balance

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Design Thinking Balance

Desirability

Feasibility

Viability

Source: Tim Brown - IDEO

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The ideal Product

• Customer’s reception of the product is

overwhelming!

• The product performance is absolutely

amazing – beats all the competition

• The cost is extremely low – much lower

than all the competitors!

• The product is so unique that nobody else

delivers a similar product

• Quality and reliability is best in class

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Reality Gaps in the NPD Process

• Customer reception is low– VOC information incorrect?

• Product performance is inadequate– Flawed information transformation process and information & creation process

• Excessive cost– Development, Production, Operational

• Excessive competition– Me too product

• Inadequate quality and reliability– Upfront design flaws – immature technologies

– Lack of quality and development discipline

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FEI & NPD is a “Learning” Process

• Learning what the customer really

wants and values

• Learning how to create and deliver

that value

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Creative Process

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Innovation Diamond & Four Points of

Performance

Source: Dr. Cooper

A clearly articulated

Product Innovation &

Technology Strategy for

the business

Resource commitment &

focusing on the right

projects: Portfolio

Management

An idea-to-launch

framework for doing NPD

projects right: i.e. Stage-

Gate

The right climate &

environment for

Innovation: commitment,

support, effective NPD

teams, role of sr mgmt

Business's New

Product

Performance

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Product Strategy: Four important questions:

• Who will be the target customers?

– Target customers, market boundaries

• What products will be offered?

– Includes determining breadth and depth of

product line

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Product Strategy: (continued)

• How will products reach the customers?

– Specifies distribution channels to be used

• Why will the customers prefer our products

to those of competitors?

– Spells out the distinctive attributes and value

customers look for