1. Kevin Chan

2. Project Managers (PM) involved with new product development (NPD) projects should first understand the structure of the NPD process. With this knowledge, the PM has greater control on the flow of the entire project and it assists in the planning stage of the project. The course will hopefully give you an insight into the structure of a NPD project and various PM tools that can be used at each part of the NPD process. There will be examples throughout the course and a basic case study to apply your new knowledge.

3.  Essential to countless companies for growth in their market area  NPD – the entire process of realising a new product/service to market  The process consists of several phases or stages

4.  Why NPD?  Innovation – new or improved product ideas required for competing in the market sector  The inevitable – sales decline from an ageing product  Examples of NPD:  Xbox to Xbox 360  Playstation 2 to Playstation 2 Slim  Coca Cola Zero Coca Cola Zero: http://www.solarnavigator.net/solar_cola/coca_cola_zero.htm

5.  NPD everywhere!  Used to revive or generate a new revenue stream  NPD Process provides basic framework to the creation of a replacement or brand new product

6.  6 Stages of the NPD Process 1. Idea Generation 2. Idea Screening 3. Concept Development & Testing 4. Business Analysis 5. Beta & Market Testing 6. Commercialisation  There are slight variations on how many stages there are in the process but the fundamentals are the same

7.  Most difficult part to get right first time  Very important – foundation for the complete project  Ideas – good ideas are hard to find, requires screening  Referred to as the “Fuzzy Front End” of the NPD Process – difficult to pinpoint key idea  Must be done properly or may lead to issues further into the project

8.  Generating concepts – various methods  Employees, Customers, Salespeople  The Competition

9.  Screening Process – answer key questions  Can the product be made? (Technology available?)  Is there anything else like it on the market? (The competition)  Who would buy it?  Why would they buy it?  Will it make a profit?  Project Manager must ensure answers are obtained – communication with all affiliated with the project  Authorisation from Top Level Manager – due to allocating company resources to project

10.  Idea phase not expensive with regards to money BUT can be very time consuming! Clock: http://blog.wolfram.com/images/carlson/clock.gif

11.  Further Development of initial product idea – features of the product  Research in potential market sector  Investigation into intellectual property – don’t want lawsuits arising later  Application of Patent – protection of idea  Designers and technical staff work on ‘blueprints’ for possible prototype  Obtain feedback from potential consumers to improve product concept  Project Manager – certify that tasks within this stage of process is completed  Communication – highly important for PM to deal with various teams involved in project

12.  Analyse the profitability of the product in depth  Constantly expanding on market research  Identify Pricing  Potential sales  Fourt-Woodlock Equation:  Terms explained in accompanying notes  Project Manager – keeping organised history of spending on the project, ready to relay information to project team V = ( HH. TR. TU ) + (HH. TR. MR. RR. RU )

13.  Implementation of a physical prototype  Hardware, Software, Safety and Quality testing  Launch to small test group for more feedback – refine for final launch  Project manager again needs to observe that beta and market tests are carried out thoroughly  Bad Example – Fallout: New Vegas...

14. Video link: http://www.youtube.com/watch?v=ToKIkw3LIoQ

15.  Final part of NPD Process  often considered post-NPD  Time running out  Deadline to launch product imminent  Consider competition before launch  Avoid conflicting with other similar products  Delays – Project Manager’s nightmare  Costly in money and reputation  First to market is key for many new products

16.  Use of Launch events to promote new product  Widely used throughout the consumer good industry  May seem like a time to reap the rewards but...  Settling period once product is with end user  Problems begin to surface as demonstrated from the release of Apple’s IPhone 4

17.  Iphone 4 Issues:  Loss of signal due to antenna design  Discoloration of screen  Non-scratchproof  Incompatibility with 3 rd party accessories  Recall of product would cost up to £1bn!

18.  Sales continued despite product flaws  Reputation and popularity major help to project  Casings were given to consumer to resolve antenna issue  Replacements for screen discoloured products  Project Manager still tied to project and must deal with the problems

19.  Not hands on – but strong connection to the various project teams to have a clear idea of project status  Project’s success judged on 3 aspects of Iron Triangle

20.  Project Manager expected to balance all 3 aspects of the Iron Triangle accordingly

21.  Project Manager should have some of the following attributes and skills:  Understanding of the NPD Process  Communication Skills  People Skills  Organised  Thriving under Pressure  Enthusiasm  Persistence  Persuasive  Confidence

22.  Various PM tools can also help with NPD projects as well as others  Stakeholder Maps  Gantt Charts  Critical Path Method  Risk Register

23.  Stakeholder Maps  Stakeholders – individuals or organisations that have a direct or indirect connection to project  Anyone who can be affect negatively or positively should also be considered  Placed in a stakeholder map to determine and manage their effect on the project

24. Mendelow’s Stakeholder Matrix Identifying the key stakeholders will be advantageous for the project

25.  Gantt Charts  Used for planning out the project  Identifying tasks and associating completion times with them  More complex Gantt Charts include percentage of completion in each bar representing a specific task

26.  Critical Path Method  Network analysis tool  Isolates the set of tasks that takes the longest to execute  Any delays in these task will result in a delay for the overall project

27.  Risk registers  Effective way to record and manage risks  Organised in a table  Row headings  Risk Numbers  Column headings  Risk Name  Probability  Impact  Risk Score  Mitigation  Contingency Plan

28.  Risk registers can be as simple or complex as required

29.  Project Management not an exact science  PMs can only handle situations as then come as all projects are different  There will be similarities between NPD or any projects so prior experience can be called upon  No project manager is perfect – learning from mistakes is part of the job  Course has now covered NPD Process structure & main function of the project manager within the NPD Process

30. Video link: http://www.youtube.com/watch?v=iYumjyXEFms Watch the following video and note any key events you think may be relevant as a project manager or to anything we have covered

31. Video link: http://www.youtube.com/watch?v=K4rFh62Q1Rg Watch the following video and note any key events you think may be relevant as a project manager or to anything we have covered

32. Video link: http://www.youtube.com/watch?v=b9rG_NOr44Q&NR=1 Watch the following video and note any key events you think may be relevant as a project manager or to anything we have covered

33. Video link: http://www.youtube.com/watch?v=ZCriPTBlKQk&feature=watch_response Watch the following video and note any key events you think may be relevant as a project manager or to anything we have covered

34.  Key Events – The iPod Revolution Part One  Return of Steve Jobs  Company losing money – critical state  Existing bad Apple products  Steve Jobs eliminating bad products from market  Reduced R&D projects – minimising investment into bad ideas  New colourful iMacs  Concept of sharing music digitally over the internet - Napster

35.  Key Events – The iPod Revolution Part Two  Birth of iTunes – jukebox software 2001  Entry into digital music concept  Developing the iPod  Simplicity  User feedback  Development snag problem 3 months before launch  power management – dead after 3 hours, poor battery life  8 weeks to fix problem  Oct 2001 release of iPod  Clever Marketing – “It’s not a Mac...”

36.  Key Events – The iPod Revolution Part Two  Worse timing for a new product launch  Napster sued  9/11  Silicon valley economy falling apart  The iPod  Scepticism – expensive product  Excellent integration with software  Poor competition  Ease of use  Apple loyalists  2 months of sales – thousands of trend setters

37.  Key Events – The iPod Revolution Part Three  The right target market  White ear buds project continues – Great Marketing!  Sales on the rise  Napster out of Market for music online  Steve Jobs  Persistent, Intense, Charismatic, Self Confident, Persuasive  Steve Jobs starts selling music online  Idea of selling songs rather than ‘renting’  April 2003 - Launch of iTunes Music Store  Major Success + special announcement...

38.  Key Events – The iPod Revolution Part Four  First 18 month 700000 iPod sold  Still considered niche product  Special announcement April 2003 - Windows compatibility – 3 rd generation of iPod

39.  Refer back to the accompanying notes and attempt the Questions section of the case study.

40. From the release of the iPod in Oct 2001 to April 2003, there were already 2 product revisions made to the original iPod making Apple into a billion dollar company. This just shows the value of NPD process to a company and that there is potential for all project managers to achieve success of the highest order with one simple product idea.