Presentation on theme: "New Product & Service Development Process By: HW."— Presentation transcript:
New Product & Service Development Process By: HW
Brief Company Overview Founded 1963 Residential Pest Control Transition to Commercial P/C 1980 Started when poisons became unacceptable in 2001 Cleanup Services Installed other people’s products. Patented BellStrip™ Continued Innovation
Why do we need a system for New Product and Service Development? To ensure that future endeavors meet with the company’s strategy. To create superior products in a most timely manner. To slow down and not only do projects right, but to make sure to do the right projects. Because we value the consistency of tried and true methods of success. (Reduce Risk)
Any idea pursued must conform to the company’s vision, mission, goals and strategies. Vision – how the company sees itself and wants to be seen by various parties Mission – the purpose, philosophy, and broad direction of the company Goals – company’s objectives and targets Strategies – the path through which a company plans on meeting its goals
Vision – Provider of premium quality services and products guaranteed to solve clients problems Mission – To profit from expertise and value of quality offerings to clients in need of our solutions Goals – Expand based on the existing model to increase annual revenues 500% in 5 years. Strategies – Innovate to refine our existing model of blending service & products, rather than choosing one business type. Expand through increased sales force and additional expenditure on marketing efforts.
Personal Challenges: Objectives To overcome the obstacle of wearing multiple hats as an excuse not to follow a patterned process of New Product & Service Development. To produce consistent results by slowing down and constantly evaluating the course we’re on instead of following a course of action to its end just because it can be done.
7 Problems in New Product Development 1.A lack of a market orientation. 2.Poor quality of execution. 3.Moving too quickly. 4.Not enough up-front homework. 5.A lack of product value for the customer. 6.No focus, too many projects, and a lack of resources. 7.The lack of a systematic new product process with discipline. Robert G. Cooper, “Winning at New Products”
Basic Stage-Gate Model For NP&SD Discovery Scoping Build Business Case Development Testing & Validation Launch Post Launch Review
Schizophrenia as an Entrepreneur in Discovery, Scoping, & Building the Business Case Stages Marketing Finance Department Technical Developer Customer Service & Sales Representative Legal Department Me Positive: Less time coordinating and worrying about getting input. Negatives: That much more homework for one person to do. Must remember to wear each of these hats objectively and not to proceed to the next stage until each “hat’s” concerns are satisfied.
Basic Stage-Gate Model Discovery Discovery is done through ideation. Looking at multiple and varied sources for ideas including those which have previously been considered will provide more options for new products and services to develop at this time. Listening to Customers: sales figures of existing products & services, customer service input, sales force input, Suppliers & Vendors Examine Competitors Trade Shows, Associations, & Industry Groups External Consultants Employees Internet Surfing Etc., Etc., Etc.,
Basic Stage-Gate Model Discovery Basic Stage-Gate Model Gate 1 – Funnel Method The first idea is not always the best idea. Increase the probability of success with the Funnel Method of Idea Generation. Filters: used to eliminate ideas which don’t lead to the desired result. Made up of internal and external relevant criteria. Continuously ending up in the right place means consistently starting on the right path. In order to reach the next stage, a new product or service idea must pass through each requisite gate. Each gate contains go/kill criteria which the project must satisfy in order to continue.
Goal of widened mouth funnel is to narrow down even more ideas to the best choice at this time. The better job we do at Discovery, the wider our funnel’s mouth will be. Means being more creative and conscientious when determining the filters on which Gate 1 is set up. Choosing 1 from 10 is not as good as choosing the 1 from 1000! DiscoveryScoping
Basic Stage-Gate Model Discovery Scoping is essentially a first round of “doing homework” to evaluate the merit of an idea given broad criteria, based on easily available sources of information. Careful comparative analysis to other products on the market, including our own. Scoping
Basic Stage-Gate Model Gate 2 Discovery Parameters established by previously mentioned hats are tested. Important to pre-plan parameters representing each hat. If parameters are not met, idea is killed and returned to idea bank for consideration at another time. Scoping
Basic Stage-Gate Model Discovery Scoping Build Business Case Essential Stage: Sometimes Rushed Business Evaluation is a complex screening process which may include a more formal market analysis of current & potential customers, competitors, and financial analysis. Determine technical requirements product or service must satisfy. Research ability to create and implement the product or service.
Basic Stage-Gate Model Gate 3 Discovery Scoping Build Business Case Justification of expense, technical feasibility, and likelihood of success are seriously questioned at this time.
Basic Stage-Gate Model Discovery Scoping Build Business Case Development Development includes prototype generation, in-house testing, customer feedback, continued business and financial analysis of feasibility. Broad marketing plan created.
Basic Stage-Gate Model Gate 4 Discovery Scoping Build Business Case Development Evaluate development process to determine whether the product or services still matches up with previously defined criteria of success.
Basic Stage-Gate Model Discovery Scoping Build Business Case Development Testing & Validation Testing & Validation includes tweaking done by technical team. Marketing team is getting ready for full roll out by educating sales team.
Basic Stage-Gate Model Gate 5 Discovery Scoping Build Business Case Development Testing & Validation Review of technical testing and marketing validation by analyzing test market feedback. Most Critical Go/Kill: Stage with the greatest expense comes next. Company image is in question with potential launch of BAD product or service.
Basic Stage-Gate Model Discovery Scoping Build Business Case Development Testing & Validation Launch Launch is going to market with successful New Product & Service. Roll out of new service, full manufacture of product, and implement marketing strategy. Standard NetAesthetic (thinner) Net
Basic Stage-Gate Model Discovery Scoping Build Business Case Development Testing & Validation Launch Post Launch Review