New Product Development Keiko Taguchi 4/19/03

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

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

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Description - Stage 5 Product Launch Execute marketing plan 5

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

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