Developing a New Product IdeaTo Product What is the Process? 1 st you need a PLAN.
Developing a New Product Product Development Needs: A Product Concept Skilled, Qualified Staff Necessary Prototype Materials Resources – Facility, $s, etc. A Defined Customer Need to Fulfill A Market Sales Channels (Access to the Market) A Development Plan
Developing a New Product So; You Want to Develop a New Product. Why? How? When? The Answers to These Three Questions are Very Important and Must be Answered Before You Start.
Developing a New Product Why Develop a New Product? Potential Answers to This Question Include: My Competition has One of These! The World Needs This Product! I Have a Great Idea! It’s Going to Sell Millions! We Have the Cash to Spend! It’s Part of Our Strategic Plan!
Developing a New Product If Your Answer is Anything Other Than It’s Part of Our Strategic Plan! You Had Better Get Started on That Strategic Plan. All of the Other Possible Answers Could be Part of Your Strategic Plan; But if You do Not Have a Strategic Plan You Will Never Know.
Developing a New Product Strategic Planning Mission & Objectives Environmental Scan Strategy Formulation Strategy Implementation Evaluation & Control Who are You & What do You Want to Do? Regulations, Competition, Economy, Market Size, Etc. Plan How to Achieve Your Goals Work Your Plan A Good Strategic Planning Process Requires That You Look at All of The Possibilities for Your Business. A Good Guide to the Preparation of a Strategic Plan is Provided in the Books by Michael E. Porter (Harvard Business School).
Developing a New Product
Risk Analysis New TechnologyCaution Danger Existing Technology Safe Caution Existing New Market Market
Developing a New Product Types of Products: 1) Improvement on an Existing Product (Progress) 2) Replacement of an Existing Product (Evolution) 3) A New Product in an Existing Market (Growth) 4) A New Product in a New Market (Risky) 5) A Pioneering Product (Very Risky) 6) A Commodity Product (Cost is King) 7) A Prestige Product (Image is Everything)
Developing a New Product How to Develop a New Product. Potential Answers to this Question Include: Copy an Existing Competitive Product! Adapt One of Your Existing Products! Build a Prototype & Test it in the Market! The Process Is Part of Our Strategic Plan! Copy? Adaptation? Prototype?
Developing a New Product Making a Product Development Plan First Establish the Following: Functional Statement – What is the Product Supposed to do? Design Requirements – Specification, Standards, Safety, Production Quantity, Duty Cycle, Efficiency, Cost, Etc. Evaluation Criteria – How Will You Know When the Product is Finished?
Developing a New Product Example: Functional Statement: A Small, Low Cost Toy to Entertain Kids Under 5 Years Old Design Requirements: Manufacturing Cost < 5¢ per for 100,000 Units, Weight <1 Oz., Shatter Resistant, Cannot be Swallowed or Eaten by a 5 Year Old. Evaluation Criteria: Child Appeal Testing (>90%), Field a Day Care (>85%)
Developing a New Product Create the Step by Step Plan in the Form of a Gantt Chart - Each Step Should Represent a Task - Each Task Must Have an Outcome - An Outcome can be a Deliverable or the Achievement of a Goal Each Task has Resources Assigned and Has its Cost Calculated The Cost of the Individual Tasks are Summed to get the Total Development Cost.
Developing a New Product In Addition to the Gantt Chart, Create a Written Document That Lays Out the Development Plan Milestone by Milestone. This Document Details Resources, Method, and Objectives. Everyone Involved in the Project Should Have Access to This Document. It is a Roadmap Designed to get You to Your Destination “The Product”. Keep All Parties to the Project Informed of Where You are in Your Development Plan. Monitor & Report Progress or its Lack. Development Plan
Developing a New Product Intellectual Property (IP) Prior To & During the Product Development Project Make Every Effort to Identify IP and Keep it Confidential. When the Time is Right, File for Patent Protection, it is a Strategic Advantage. You Have Invested Heavily in Product Development, Protect Your Investment. Involve a Professional in Your IP Strategy (Which is More Than Just Patents).
Developing a New Product Comments on Development Personnel Do You Have Personnel With the Required Skills on Staff? You May Need to Add Staff in the Form of Consultants or University Professors. Specialists in Areas of Knowledge Where Your Own Staff Does Not Have the Required Skills.
Developing a New Product The Role of Innovation in Product Development Innovation is an Overworked Word What is Innovation? My Definition is “The Incorporation of Technology From one Area of Endeavour into Another Area.” A Product Break-Through Requires Innovation Inventors Trained or Experienced in Multi- Disciplinary Product Development are Most Likely to Innovate.
Developing a New Product The Role of Product Knowledge If Your Company is Selling a Product in a Market Place – You & Your Staff Have Product Knowledge. This Knowledge is Crucial to Successful New Product Development. This Knowledge Can Also be a Barrier to Creating a New Product. A Balance Between the Existing Product Knowledge & An Improved Product Must be Achieved.
Developing a New Product The Role of the Customer Your Customer (Existing or Potential) is the only One Who can Judge the Value of Your Product. Knowing or Learning Your Customer’s Needs is Critical to New Product Development. For Small Production Volume Products it is Easier to Determine Customer Needs. For Mass Produced Products, Customer Needs May be Very Diffuse and Unfocused.
Developing a New Product When to Develop a New Product Potential Answers to this Question Include: When we need one! Next Week! When Our Strategic Plan Tells Us!
Developing a New Product Comments on When Since Product Development is a Process That Takes Time – Development Must Start Long Before the Need for a New Product is Clear. Product Development Outcomes are Often Not Certain – Remember Thomas Edison’s Statement to Shareholders “I have not failed. I've just found 10,000 ways that won't work. “We will sell no wine before its time.” The slogan of a famous Paul Masson winery advertising campaign.
Developing a New Product Further Comments on When Having a Product Development Pipeline is Essential to the Steady Creation of New Products. Introduction of New Products Must be Paced to Prevent Consumer Confusion. If a New product is Being Planned to Replace an Existing Product, it Must be Discernibly Superior.
Developing a New Product Product Development Examples From My Experience
Developing a New Product New Product – New Market New Laser Cladding Nozzle Traditional Designs Cannot Control Size of Laser Spot or Powder Spread.
Developing a New Product 2D Nozzle Testing No Vacuum With Vacuum
Developing a New Product Computer Simulation of Particle Flow and Pressure Distribution at the Exit of the Nozzle.
Developing a New Product Product Concept was for a new Nozzle That Used a Vacuum Port to Control Powder Spread Government Funding was Used – IRAP Computer Simulation Study & 2D model Study Showed Idea Worked. US Patent Has Been Issued. Nozzle will be Integrated With a Variable Spot Size Laser Beam Generator. Idea May be Licensed.
Developing a New Product Variable Spot Size Optics Custom OpticsCommercial Product The Next Stage in This Project is to Combine the New Nozzle with Variable Spot Size Optics.
Developing a New Product Applications of a New Material To Self Limiting Heating Applications The New Plastic Formulation is a Conductor that has its Resistance Increase as it Heats up – Thereby Limiting its Upper Temperature This Material Is Injection Mouldable The Company in Question Has a License to Use the Material The Company is a Seat Heater Manufacturer New Product – Existing Market
Developing a New Product 6 Provisional US Patent Applications Were Filed for Various Products – Including Heated Steering Wheel.
Developing a New Product Sensor Evolution – Goal Cost Reduction Existing Product – Existing Market From Generation I to Generation III Manufacturing Cost Reduced from $5,000 to $800 – No Performance Impact! Continuous Improvement in Action!
Developing a New Product Car Body Being Measured in Vigo- Spain. Two Competitors – Share Market ≈ 50/50. Technological Improvements Were Continually Carried out By Both Companies. Annual In-Line Vision Gaging Sales ≈ $20M to $30M
Developing a New Product Skate Sharpening Project – Consumer Product Company Manufactured Professional Skate Sharpening Equipment Wanted to Make a Consumer Skate Sharpening System – Issues: Cost (<$1000), Ease of Use (Wheel Dressing Too Complicated) New Product - Existing Market Government R&D Funding Used - IRAP
Developing a New Product Original Concept for Wheel Dressing Failed! Modified Concept Worked so Well that it is Now Retrofitted to all Company Products! 4 US Patents Have Been Granted, 2 more in the Pending File, 2 Canadian Patents Pending Two Whole New Shapes Invented: The FBV, and the A-Trap Competition is Playing Catch-Up and is Losing Market Share
Developing a New Product Traditional Circular Arc FBV A-Trap Two New Shapes Have Been Developed to Replace the Traditional Circular Arc
Developing a New Product Black Stone X-02 Consumer Portable Ice Skate Sharpener Spinner Magazine In Use
Developing a New Product Programmable Airfoil Contouring System- PACS New Product – New Market Only 8 Systems Were Ever Sold High Price Tag – $300K Traditional CMMs – Large Entrenched Companies Development Cost Never Recovered
Developing a New Product D Sight™ This is a Technique for Visualizing Surface Defects New Product – New Market This Was a True Inspirational Discovery 3 US Patents, A Canadian Patent, A Euro Patent Euro Patent was Contested by Siemens Based on Prior Art. Siemens Lost Their Objection.
Developing a New Product The Audit Station Was Developed for the Auto Industry – 45 Units Were Sold. A Less Capable Portable System was Also Developed – 40 Units Sold. A Specialized Unit was Developed for the Plastics Industry to do Test Plaques. An even more Specialized Unit – DIAS was Developed for the Aircraft Industry. Total Sales Volume - $8M.
Developing a New Product D Sight™ Images of the Sides of two Different Cars. This Tool Was Very Useful in Die Try- Out Prior to Acceptance by the Customer. The Ultimate Goal was to Convert the Image into Surface Dimensions. This Goal was Never Really Achieved.
Developing a New Product Two Pertinent Sayings for Product Development Programs: Plan Your Work & Work Your Plan. O’Toole’s Commentary: Murphy was an Optimist.