1. Introduction to New Product Development January 18, 2007

2. Introduction to NPD Why is NPD an exciting topic? What separates winners from losers? Why does NPD matter? The NPD Process

3. Introduction to NPD Why is NPD an exciting topic?

4. Risky To avoid failure, everything has to be right: Concept Design Pricing Positioning Packaging Advertising and Promotion

5. Risky New Products Showcase and Learning Center Largely for consumer products that tend to have higher failure rates: http://www.newproductworks.com

6. Critical

7. Source: Product Leadership - Creating and Launching Superior New Products Robert G. Cooper

8. Introduction to NPD Why is NPD an exciting topic? What separates winners from losers?

9. Winners vs. Losers Success Drivers Correlation with ProfitsTimeliness A unique, superior, differentiated product.53n/s A strong market orientation w/voice of customer.44.41 Early fact-based product definition prior to development.39.24 Effective implementation of front-end activities.37.41 Use of true cross-functional teams.33.48 Leverage – project builds on firm’s core competencies.32n/s Market attractiveness – size, growth, margins.31.22 Quality of launch effort – planning and resources.29.20 Tech. competencies and execution of technical activities.26.32

10. Winners vs. Losers The Cornerstones of Performance : 1)A High-Quality NPD Process 2)A Defined NPD Strategy for the Business 3)Resource Commitment

11. Introduction to NPD Why is NPD an exciting topic? What separates the winners from the losers? Why does NPD matter?

12. Well-managed NPD processes are a significant source of performance improvement Decrease Development Time by 30-70% Reduce # of Engineering Changes by 65-90% Reduce Time-to-Market by 20-90% Increase Overall Product Quality by 200-600% Increase White Collar Productivity by 20-110% Increase Dollar Sales by 5-50% Increase Return on Assets by 20-120% Source: Product Leadership (2000) Robert Cooper

13. PDMA Best Practices Survey (’97) The Best: average 49% of sales from products < 5 yrs old have a success rate over 80% Use stage/gate processes more extensively (& more stages) reward team non-financially in public and private ways innovate in their use of market research and engineering design tools Source: Drivers of NPD Success: The PDMA Report

14. Introduction to NPD Why is NPD such an exciting topic? Introductions Why does NPD matter? The NPD Process

15. Phase 1: Opportunity Identification and Selection Phase 2: Concept Generation/ Ideation

16. The NPD Process Phase 1: Opportunity Identification and Selection Phase 2: Concept Generation/ Ideation Phase 3: Concept Evaluation & Screening Phase 4: Development

17. The NPD Process Phase 1: Opportunity Identification and Selection Phase 2: Concept Generation/ Ideation Phase 3: Concept Evaluation & Screening Phase 4: Development Phase 5: Testing & Launch “Fuzzy” Front End

18. The NPD Process