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New Product Development (NPD) is the overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product. This Technology Multipliers webinar provides a complete overview of the NPD process, models, tools, and metrics to succeed with new product development for technology companies.
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© 2011 Technology Multipliers, LLC
Kerim Tumay
Managing Director
August 2011
© 2011 Technology Multipliers, LLC
Outline
• Why NPD?
• What is NPD?
• Business Strategy & NPD Investments NPD Concept
• Stage Gate, DMADV, AMS Process Funnel
• Flexible NPD
• Ideation in each stage
• Performance Measurement
NPD Process Models
• Software NPD Technologies
• Keys to success with NPD Success Factors
© 2011 Technology Multipliers, LLC
Why NPD?
NPD Concept NPD Process
Models
NPD
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
What is NPD?
NPD Concept NPD Process
Models
NPD
Technologies
Success Factors
New Product Development (NPD) is the overall process of:
Commercialization and launch
Product and marketing plan development
Concept generation
Organization
Strategy
© 2011 Technology Multipliers, LLC
NPD Investments As Percentage of Revenue
• Average for industrials = 3.5%
• Average high technology = 7%
• IBM, SAP, Oracle = 13.5%
• Ericsson = 24.9%
• Technology startups > 25%
NPD Concept NPD Process
Models
NPD
Technologies
Success Factors
Sources: Wikipedia and Software Industry Insights Blog
© 2011 Technology Multipliers, LLC
Trends
• Globalization
• Collaborative R&D partnerships
• Compliance with new health and safety regulations
• Personalization
• Six Sigma quality
• Design for manufacturability
• Design for sustainability
• Design for supply chain efficiency
NPD Concept NPD Process
Models
NPD
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
Stage Gate NPD Model
NPD Concept NPD Process
Models
NPD
Technologies
Success Factors
Scoping Build the Business
Case Development
Testing & Validation
Launch
Source: Innovation Framework Technologies
© 2011 Technology Multipliers, LLC
DMADV Model
NPD Concept NPD Process
Models
NPD
Technologies
Success Factors
Define design goals consistent with
customer demands and the enterprise
strategy
Measure and identify CTQs
(Critical To Quality)
Analyze to develop and design alternatives
Design details, optimize the
design, and plan for design
verification
Verify the design, set up pilot runs, implement the
production process
© 2011 Technology Multipliers, LLC
AMS NPD Process Funnel
NPD Concept NPD Process
Models
NPD
Technologies
Success Factors
Source: Applied Marketing Science, Inc.
© 2011 Technology Multipliers, LLC
Flexible NPD Model
NPD Concept NPD Process
Models
NPD
Technologies
Success Factors
the ability to make changes in the product.. even relatively late in
development, without being too disruptive.. The less disruptive the
changes are, the more flexible the process is”
Preston Smith, the author of Flexible New Product Development
“
© 2011 Technology Multipliers, LLC
Modified, Flexible NPD Model
NPD Concept NPD Process
Models
NPD
Technologies
Success Factors
Dimensions of Urgency and Classification Flexible Stage Gate Process
Critical time to market
High financial and technical feasibility
Increase the pace for the stages
Lower the hurdles for the gates
High financial, technical and regulatory risks
Non-critical time to market
Reduce the pace for the stages
Increase the hurdles for the gates
Projects with high urgency and caution Higher authority approvals
Projects with low urgency and caution Normal stage gate process
© 2011 Technology Multipliers, LLC
Monitor user groups, chat rooms and other
online customer venue
Monitor social networking sites like Facebook, LinkedIn,
and Twitter
Encourage and capture feedback via online meeting tools like GoToMeeting,
Webex..
Encourage suggestions via the
web site
Ideation at every stage
• Formal surveys and/or focus groups
• Suggestion requests
• Reward programs
Customers
• Market research
• Suggestion requests
• Collaborative development, early adopter programs
Partners and Suppliers • Company-wide
incentives
• Market research with customer service reps
Company Internal Sources
• Market research
• Competitive intelligence
• Consultants
Other
Inte
rnet
NPD Concept NPD Process
Models
NPD
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
Performance Measurement
NPD Concept NPD Process
Models
NPD
Technologies
Success Factors
Hard
• Development cycle time
• Cost of people
• Equipment/material costs
• Revenue
Soft
• Design quality
• Patent filings
• Published papers
• Revenue potential
• Know-how
• Experience
© 2011 Technology Multipliers, LLC
• NPD Suites
– PD-Trak
– HypeIMT
– Innovation Framework Technologies
– Accolade
• Niche Tools
– Imaginatik
– Inova
– ProModel
NPD Concept NPD Process
Models
NPD
Technologies
Success Factors
NPD Software
© 2011 Technology Multipliers, LLC
Keys to Success with NPD
Review resource allocation strategy
regularly
Monitor key trends affecting new
product development
Select a process model and adopt it
to your company and situation
Build flexibility into the NPD process and
organizational culture
Encourage ideation in every stage of the
NPD process
Measure the NPD process in terms of quantitative and
qualitative impacts
Leverage software suites and the
Internet for ideation and NPD
NPD Concept NPD Process
Models
NPD
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
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