New Product Development (NPD)

New Product Development

1. Product Portfolio [Resource Allocation]2. The NPD Situation – It’s chaotic3. Ideation Process4. Product Development Process

Breaking It Down

• What investments are we making with our available resources and where we need to make changes?

Breaking it Down Further

• When we look closer, we see that each type of investment will impact the business differently and will have different risk tolerance and therefore a different approach to requirements

Run: Changes to existing market offerings that do no impact the functional requirements of the offering

Run: Changes to existing market offerings that do no impact the functional requirements of the offering

Tune: Changes to existing market offerings that require functional changes to the offering in order to improve value

Tune: Changes to existing market offerings that require functional changes to the offering in order to improve value

Grow: New market offerings that require market analysis, new functional requirements and path to market

Grow: New market offerings that require market analysis, new functional requirements and path to market

The NPD Situation

Guiding Principles

The Fantasy

1. Define the Market Problem 2. Define the Solution 3. Build it…

The NPD Situation

Guiding Principles

1. What the heck is this? 2. Is this what it is? 3. Maybe this is it…

The Reality

The Fantasy

1. Define the Market Problem 2. Define the Solution 3. Build it…

The NPD Situation

Guiding Principles

1. What the heck is this? 2. Is this what it is? 3. Maybe this is it…

The Reality

The Fantasy

1. Define the Market Problem 2. Define the Solution 3. Build it…What can we do about this? 1. Accept that it’s chaotic and 2. Implement a process!

What can we do about this? 1. Accept that it’s chaotic and 2. Implement a process!

Ideation Process

1. A managed process with resources allocated to identify and develop new ideas

2. New ideas sourced via focused efforts to interview people across the entire company

3. Support this process by creating incentives for new ideas that make it to Commissioned Status

1. A managed process with resources allocated to identify and develop new ideas

2. New ideas sourced via focused efforts to interview people across the entire company

3. Support this process by creating incentives for new ideas that make it to Commissioned Status

The Development Process

• Each phase along the way has unique requirements needs• In the New Product Development process, this is most clear

At the Concept State, we want to understand the Market Requirements

At the Concept State, we want to understand the Market Requirements

At the Market Testing stage, we want to understand the Core Use Cases we can commit to.

At the Market Testing stage, we want to understand the Core Use Cases we can commit to.

At the Design Stage, we want to understand the functional and technical requirements.

At the Design Stage, we want to understand the functional and technical requirements.

Business Plan

The “Pitch”

Each new product needs it’s own business plan. The business plan needs to incorporate the companywide business plan.

Each new product needs it’s own business plan. The business plan needs to incorporate the companywide business plan.

Stage 1 – Concept Development

• Concept– Simple, high-level description of the market, the

problem, the solution and the economics

• Business Case– How do we think this concept will make money? How

does it fit into our strategy? What are the criteria for success?

• Market Requirements Document– Detailed analysis of the market, the opportunity, the

competitors, etc.

Stage 2 – Market Testing

• Pilots– Hands on interaction with motivated early adopters

in the target market to understand the roles and the problem/opportunity

• Prototyping– Early concepts of what the solution might do and

how it might work: interactive/visual/scenarios, etc.

• Use Cases– What are the roles and scenarios that we can firmly

articulate as critical to the success of the offering?

Stage 3 – Product Design

• PRD– Detailed product requirements, including

services, documentation, support, rollout, etc. This document needs to harmonize with the technical development methodology.

• Functional Spec– Detailed depiction of the functionality of the

product; could be in the form of a working prototype

• Technical Spec– Detailed technical design and architecture,

including core technology, design pattern, hardware, tools, etc.

Stage 4 – Product Development

• Develop– Development team, methodology and

project plan: code, test, validate, release

• Launch– Marketing release, including PR, web site,

and other campaigns as outlined in the BP

• Support– Hand off to support for ongoing tuning,

enhancements, and improvements

Prototyping Process

• Prototypes are disposable tools to test, measure and learn• Prototypes inform our understanding of the market need

AND the technology design

Outside the Box Innovation

• “Inside the Box” innovation means that we work within the current platform constraints

• “Outside the Box” innovation means we go beyond the current platform constraints and look for ways to re-invent the platform

So How do we Get there?

• “We want to take a more formalized approach to product development, but how do we navigate the changes?”

• Start by modeling a requirements management process

Model- Define- Test- Document

Model- Define- Test- Document

Deploy- Right Team- Right Project- Learn

Deploy- Right Team- Right Project- Learn

Refine- Feedback- Change- Communicate

Refine- Feedback- Change- Communicate