Conventional approaches to product development 1.Consumer / Market driven 2. Competition driven 3. Technology driven

Three Approaches to New Product Development Consumer Driven Competition Driven Technology Driven Idea generation Concept development and consumer screening Business Analysis Product Development Consumer / Lab Testing Test marketing Market Analysis Concept Identification and Screening Product Development COMMERCIALISATION Technology needs and application ideas Technology and Engineering facility Business Analysis Prototype development Production testing Advanced Development

PRODUCT DEVELOPMENT PROCESS 1. Defining the idea and concept 2. The market 3. Organizing for Product Development 4. Raw material supply 5. Research and Development 6. Quality Assurance 7. Processing 8. Packaging 9. LAUNCHING THE PRODUCT

For effective idea generation Must have product innovation strategy What is meant by product innovation strategy? - is a strategic master plan that guides your business ‘s new product war efforts - definition of strategy: The schemes whereby a firm’s resources and advantages are managed (deployed) in order to surprise or surpass competitors or to exploit opportunities

“Product innovation strategy” - Helps to define the arena of focus (where you want to hunt). - Important for idea and opportunity identification. Helps to specify what is out of bounds - Ideas become more directed and hence more effective

Strategy is closely tied to product and market specifications Strategy is about “choosing your market to target and choosing the products to target them with”

Way to develop strategies 1.Look for Disruptions in your Customer’s Industry Questions asked: 1.What arenas in the customer industry – segment, value chain, activities are the most attractive for us 2. What changes are occurring in customer need or value chains? How will they affect the industry and its key players? 3. What new opportunities could emerge from these changes – from new value chain and work flows to help make our customers more successful 4. Are there opportunities to better meet customer needs and/or capitalize on a changing environment.

Action: Develop a map of the value chain Identify the various types of players Assess their future changing roles, who will gain, who will disintermediated (cut out) Identify customers’ industry drivers and potential shift of these drivers. Study opportunity for you, how you can help to provide solutions to help customers?

Analyze historical trends and estimate future trends. Spell out a scenario where the market is heading Conduct an internal assessment on your own business – analyze your company’s strength, weakness and core competencies. Identify your competitive position.

2. The value of Scenarios Questions to ask: - What is the best future scenario under the assumption of the best external environment - What is the worst possible scenario of the future for your company - What are some relevant dimensions that characterize these scenarios The failure to generate alternate scenarios led to the greatest business mistake in history!

Scenarios are utilized by imagining that one or another further scenario will be true and assessing the consequences of making each decision, assuming each alternate future Markers or signals of each scenario should be identified to spot the change that indicate which way the world is moving.

3. Use Voice-of-Customer Research to Uncover New Opportunities Your customer probably has your new product idea! Methods involved: a Camping out/ fly-on-the-wall/ day-in-the-life-of - Focus on your customer – identify their problems, unmet needs - No set methodology, just need to work closely with them, listen to their problems. Understand their needs

b.Product Value analysis - Customers have interactions with facets of your product and then express their views, concerns, and difficulties. c. Customer surveys or focus groups - To identify market trends and needs - To convene a group of experts to discuss the problem and possible breakthrough solutions

4. Work with Lead or Innovative Customers “ Many commercially important products are thought of and even prototyped by users (lead users) rather than manufacturers” Lead users are rare and need to track them.

Four main steps involved: 1. Laying the foundation: identify target market and company goals 2. Determine the trend: Talk to people in the field who have broad view of emerging technologies and leading-edge applications 3. Identifying lead users: Use networking process to get people with apparent expertise on the subject 4. Develop breakthroughs: Host a workshop with lead users including key in-house technical and marketing people to define final product concept

5. Fundamental research (FR) breakthroughs In many business FR is no more fashionable – (killing the goose that lays the golden eggs) Trouble is FR undirected, unfocused and unproductive If present, should engage the unit to the discovery stage of new PD process Should introduce Stage-Gate TD for technology development

6. Harness the Creative Ability of Your Entire Organization Your own people, including senior people often have the seeds of great new products within them. By harnessing the creative energy of the entire group, unexpected outcomes often may be obtained MRG-major revenue generator event is conducted to stimulate creativity in a structured fashion

Other ways to get new product ideas: 1.Establish a proactive idea focal point – an ‘on ramp’ – and work the idea sources 2.Set up an idea bank 3.Try immersion – then harvest the ideas 4.Amplify your thin ideas into plussing 5.Competitors trigger ideas 6.Trade shows 7. Trade publications

8. Review patents 9. Suppliers – untapped source of ideas 10. Universities 11. Implement an in-house suggestion scheme 12. Provide scouting time to promote creativity