1. New Product Development
Keiko Taguchi
4/19/03

2. Agenda Vision Mission Goal & Strategy New Product Process
New Product Process Description
New Product Concept

3. Vision
Plan and develop software products that have potential to be essential infrastructure relating to banking industry and government. The software should contribute to enhance, shorten or ease current and future procedure and/or system

4. Mission
Mission of my group is to plan new software product for multi-application smart card, which can be used with payment software.
The new product should be used for business purpose, and should have synergy effect with current products, fingerprint authentication software and electric purse software, and expand current market.

5. Goal & Strategy Goal Strategy More than $1,000,000 sales
Acquire new customer who use cards for business purpose
Provide new or enhanced products to existing customers and extend market

6. What should be changed
Percentage of failed projects where activity is not undertaken - Statistics
We can learn from the study to improve our new product development process
Source : R. G. Cooper and E. J. Kleinschmidt

7. What Stage-Gate Can Do
Percentage of positive impact with Stage-Gate process - Statistics
We can improve our new product development process with Star-Gate, for more success and less risk
Source : R. G. Cooper and E. J. Kleinschmidt

8. The New Product Process
Idea Generation
Scoping
Build Business Case
Gate 0
Discovery
Gate 1
Stage 1
Gate 2
Stage 2
Development
Pilot Testing
Launch
Post Launch
Gate 3
Stage 3
Gate 4
Stage 4
Gate 5
Stage 5
Next Cycle

9. Description - Gate 0 Guides new product idea direction
Company vision and group mission is the basis

10. Description - Discovery
Idea Generation
Generate and store ideas
Ideas come from
Sales group
Planning group
Customer requirements
Technical group D

11. Description - Gate 1 Check against Broad Criteria Broad Criteria 1
Product must use smart card
Product must be used for business purpose
Product must enhance, shorten or ease current procedure or system
Product must have potential to be installed in government or banking infrastructure system
Must see criteria. Make sure it is consistent with vision, mission, goal & strategy 1

12. Description - Stage 1 Scoping Object Work
Spend little money and gather some information
Work
Preliminary Market Research
Preliminary Technical Research
Preliminary Financial/Business Estimation
Preliminary Legal Check - Patent 1

13. Description - Gate 2 Check against Specific Criteria Specific Criteria
Company vision/mission
Product must have merit to use “smart” card - not “magnetic” card.
Product should be beneficial when installed with existing authentication or payment software
Market
Product category should have potential market size more than $10,000,000
Product market segment should be in introduction stage 2

14. Description - Gate 2 Specific Criteria (continued) Technical Financial
Patent must be cleared
Product must fit within current smart card memory
Product should be easy to install and use for end users
Cycle time for implementation should be less than 1 year
Financial
Product sales must be expected to hit $1MM
Product payback period should be expected within 2 years 2

15. Description - Stage 2 Build Business Case Object Work 2
Verify the attractiveness of the project prior to heavy spending
Work
Detailed Research
In-depth market research
Existing/potential user needs
Competitive products
Detailed technical research/assessment
Legal research
Financial estimation
Define product 2

16. Description - Gate 3
Careful examination against Broad Criteria and Specific Criteria
“Must-See” Criteria
Agree ; Go and score (3)
Disagree ; Kill or return to Idea Bank
“Should-See” Criteria
Agree ; Score (1-3)
Disagree ; No score
Compare each score and choose top 3 3

17. Description - Stage 3 Pilot Development
Design and Develop Pilot Software
Design software structure/function
Design detailed software flowchart and workflow
Develop pilot software
Internal test
Feedback internal test result
User opinion
Technical issues
Financial data adjustment
Market Launch Plan 3

18. Description - Gate 4 Check attractiveness of the project 4
Product Features
Attract Pilot users as expected in Stage2?
Yes : Go
No : if the gap easily correctible, return to Stage 3, otherwise return to Idea Bank
Technology Function
Support features without significant problem as assessed?
No : if the problem easily correctible, return to Stage 3, otherwise return to Idea Bank
Financial Estimation
Financials are sound with attractive price as expected? 4

19. Description - Stage 4 Pilot Testing Test Pilot Software
External pilot test with partner companies
Feedback external test result
User opinion
Technical issues
Financial data adjustment
Market Launch Plan 4

20. Description - Gate 5 Check attractiveness of the project 5
Product Features
Accepted by users?
Users are attracted and likely to buy?
Yes : Go
No : if the gap easily correctible, return to Stage 3, otherwise return to Idea Bank
Technology Function
Support features without significant problem as assessed?
No : if the problem easily correctible, return to Stage 3, otherwise return to Idea Bank
Financial Estimation
Financials are sound with attractive price as expected? 5

21. Description - Stage 5
Product Launch
Execute marketing plan 5

22. Description - Post Launch
Keep researching user acceptance
Keep watching competitor's movement
Feed back the result for next cycle PL

23. Next Step After new product development process is approved here…
Design and assign teams for each stages and gates
Implement new process
Head for success