1. New Product Development Lufthansa German Airlines LS NYU Fall 2006

2. Lufthansa concentrates its activities on the core competencies of its six strategic business segments Passenger business MRO Leisure travel Logistics IT Services Catering

3. Lufthansa is an innovative corporation and a leader in the aviation industry Within the last five years, the products below were introduced in the passenger business segment- Lufthansa Passage All Business Class Jet Onboard wireless internet Dedicated First Class terminal New Business Class Product Private Jet and products in development…… Onboard medical products Charter service

4. A new product process will offer efficiency and focus - The launch of Lufthansa Private Jet was not seamless - Onboard medical products will launch in approximately 6 months Team assignment Brainstorm ideas that will increase the chance of a successful launch

5. Implementing the Stage-Gate process at Lufthansa Step 1-Discovery Create an idea bank Delegate a manager Idea

6. Gate 1 Stage 1 Gate 2 Stage 2 Gate 3 Stage 3 Gate 5 Stage 4 Gate 4 Stage 5 Stage 1 Idea Screen Customer intelligence/market research Education on product and features Is the product recyclable Use of benefit measurement technique-scoring model Can the project be completed within 20 weeks deadline Deliverables for Gate 2 decided Product Manager/Department head Scoping Preliminary market assessment/Surface research - Medical training- Webinar - Outsource- Web based training - In house- Off the rack - Sales collateral- Provided by manufacturer - Internet Project manager Timeline 4days

7. Gate 1 Stage 1 Gate 2 Stage 2 Gate 3 Stage 3 Gate 5 Stage 4 Gate 4 Stage 5 Stage 1 Decision to build a training program - Does the product fit within the corporate training program - Will usage of the product help reach targeted sales goals - Financial requirements - Deliverables for Gate 3 decided HR Manager/Director of Sales Timeline 5 days Building the business case - Define the new product concept - Competitive analysis - Detailed technical appraisal - Business and financial analysis - Conduct RFP with outside vendors - Consult with manufacturer/doctors Project Manager Timeline 25 days

8. Business Case Offering a sales training program will increase the probability of reaching sales goals. TypeProgram 1 Web based program developed by LHS Supported with in house training and sales collateral Program 2 Training purchased and provided by manufacturer. Supported with sales collateral Pros - Web training will be updated with product development and news. - Monies spent to develop program roll back to LH -No LH resources needed to develop program -Lower initial cash outlay Cons - Responsibility to ensure the web content is accurate - Risk that sales staff may rely solely on web content as sole source of information - Without a developed in house training program, financial resources will be needed to continue training new staff on product features Cost - Budget of $60,000 - 75% for web program payable to LHS - Budget of $48,000 - Two training sessions at a cost of $24,000 per session Misc. -Web program prototype can be modified for other products at minimal cost - Critical path/project plan will be provided -While the training product offered is good, all further training will rely on outside sources -Critical path/project plan will be provided

9. Gate 1 Stage 1 Gate 2 Stage 2 Gate 3 Stage 3 Gate 5 Stage 4 Gate 4 Stage 5 Stage 1 Decision to spend Is the product within our budget? Does it accomplish objectives? Will it offer a competitive advantage? Deliverables for Gate 4 decided Vice President Timeline 5 days Development Web program in development with LHS Sales collateral in development with marketing team Training coordinator enters project Consultation with manufacturer/doctors Timeline 45 days

10. Gate 1 Stage 1 Gate 2 Stage 2 Gate 3 Stage 3 Gate 5 Stage 4 Gate 4 Stage 5 Stage 1 Product review Does the product meet our needs Is it ready to move to testing Are the financials within budget Timeline Deliverable for Gate 5 decided HR Manager/Director of Sales/Training Coordinator Timeline 2 days Testing & Validation Web program sent to targeted staff for testing Conference call arranged for Q&A Survey completed by test group to determine products strengths and weaknesses Training Coordinator/Product Manager Timeline 2 days

11. Gate 1 Stage 1 Gate 2 Stage 2 Gate 3 Stage 3 Gate 5 Stage 4 Gate 4 Stage 5 Stage 1 Review of testing Was the feedback positive? Are improvements required? How is the timeline? Is the training program adequate? HR Manager/Product Manager/Training Coordinator Timeline 5 days Launch Implement training program Sales collateral completed and ready for distribution Post launch review Evaluate product Financial review Evaluate strengths & weaknesses Product Manager/Project Manager/Department Head

12. Thank You

13. Gate 1 Stage 1 Gate 2 Stage 2 Gate 3 Stage 3 Gate 5 Stage 4 Gate 4 Stage 5 Stage 1 Benefit measurement used for go/kill decision Sales involvement Education on product and features Sales incentives Is the product recyclable Can the project be completed within 20 weeks deadline Product Manager/Department head