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8/12/2019 Product Innovation Process
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Case Study:Case Study:DevelopingDevelopinga comprehensivea comprehensive
ProductProduct InnovationInnovation ProcessProcess
Amalia SuziantiAmalia Suzianti
The 2nd SEPneT Workshop
Buenos Aires, September 28th, 2005
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ContentsContents
Introduction and OverviewIntroduction and Overview
Innovative Organization Culture and StructureInnovative Organization Culture and Structure
Product Innovation Process : Stage-GateProduct Innovation Process : Stage-Gate
ProcessProcess
Implementation of Stage-Gate Process atImplementation of Stage-Gate Process at
medium sized I Companymedium sized I Company
ConclusionConclusion
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Introduction and Overview !"#Introduction and Overview !"#
Innovation one of the $eys to %olster profitInnovation one of the $eys to %olster profitmargins and fuel future earnings streamsmargins and fuel future earnings streams
Innovation supports the achievement of mar$etInnovation supports the achievement of mar$et
leader position and ensures this positionleader position and ensures this positionhere is a need of a guide line to perform thehere is a need of a guide line to perform theright tas$s in achieving innovative products andright tas$s in achieving innovative products andprocesses :processes :
Innoation !ana"ement S#stemInnoation !ana"ement S#stem
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Introduction and Overview !Introduction and Overview !
ClarityClarity'G( was founded in'G( was founded inDecem%er &)))( andDecem%er &)))( andcurrently is counting amongcurrently is counting amongthe pioneers of voice portalthe pioneers of voice portal
providersproviders
hehe**ission is to transformission is to transformthe spo$en word into athe spo$en word into auniversal and ever-presentuniversal and ever-presentinterface for digital service+interface for digital service+
,. Platform is the,. Platform is the ClarityClaritycore product+ It serves ascore product+ It serves asthe %asis for %oth individualthe %asis for %oth individualindustry-and function-industry-and function-specific applications as wellspecific applications as well
as for individual solutions+as for individual solutions+ Source: Clarity/s 0hite Paper( Internal Document+
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Innovative Culture in an OrganizationInnovative Culture in an Organization
$hallen"e %the Pull&$hallen"e %the Pull&
$ustomer 'o(us %the Push&$ustomer 'o(us %the Push&
$reatiit# %the Brain&$reatiit# %the Brain&
$ommuni(ation$ommuni(ation%the )i*eblood&%the )i*eblood&
$ollaboration %the +eart&$ollaboration %the +eart&
$ompletion %the !us(le&$ompletion %the !us(le&
$ontemplation %the )adder&$ontemplation %the )adder&
Source: www+thin$smart+com
http://www.thinksmart.com/http://www.thinksmart.com/8/12/2019 Product Innovation Process
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Innovative Organizational Structure
CEO
Christoph PfeifferBoard of Directors Advisory Board
CFO
(Power Promoter)
Christoph Pfeiffer
CSO
Christoph Pfeiffer
CTO
*arcus *un$
Bad Homburg Hamburg Stuttgart !ie" #uric$
Cor%orate
Commu"icatio" &gr'(Process "ow How
Promoter)
Gregor 1onsel
C*arity Services +mbH
2onn
C*arity So*utio"s +mbH
2ad 1om%urg
C*arity ,-rai"e
E"ter%rises
3iev
Proveo+mbH
Crailsheim
best Se**a A+
Cologne
CEO
Board of Directors Advisory Board
CFO
(Power Promoter)CSO CTO
Bad Homburg Hamburg Stuttgart !ie" #uric$
Cor%orate
Commu"icatio" &gr'(Process "ow How
Promoter)
C*arity Services +mbH
2onn
C*arity So*utio"s +mbH
2ad 1om%urg
C*arity ,-rai"e
E"ter%rises
3iev
Proveo+mbH
Crailsheim
best Se**a A+
Cologne
Source: Clarity/s 0hite Paper( Internal Document( modified+
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Product Innovation Process:Product Innovation Process:
Stage-Gate ProcessStage-Gate Process
Stage-Gate is a widely employed product developmentStage-Gate is a widely employed product developmentprocess that divides the effort into distinct time-se4uencedprocess that divides the effort into distinct time-se4uencedstages separated %y management decision gates+stages separated %y management decision gates+
It is a %lue print for managing the new product generationIt is a %lue print for managing the new product generationprocessprocess
Source: http:www+prod-dev+comstage-gate+shtml
http://www.prod-dev.com/stage-gate.shtmlhttp://www.prod-dev.com/stage-gate.shtmlhttp://www.prod-dev.com/stage-gate.shtmlhttp://www.prod-dev.com/stage-gate.shtmlhttp://www.prod-dev.com/stage-gate.shtml8/12/2019 Product Innovation Process
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I CustomizedI CustomizedStage Gate ProcessStage Gate Process
Stage .+ate . +ate / +ate 0 +ate 1 +ate 2Stage / Stage 0 Stage 1 Stage 2
Deve*o%me"tTest
Decisio"to
Testi"ga"d
3a*idatio"
Decisio"to
Post4au"c$i"
5eview4au"c$4au"c$i"g
Customer feedbac-S$orte"i"g
deve*o%me"ttime
Fie*d tria*sEcommercetest mar-et
Fi"a"cia*A"a*ysis
6m%*eme"ti"g&ar-eti"g
P*a"
3oice of Customer&i"d &a%%i"g
+rou% Brai"stormi"gCreativity Award
6deaScree"
Detai*ed6"vestigatio"
Pre*imi"ary Seco"dScree"
to
Discovery
Stage
6deaScree"
Detai*ed
6"vestigatio"
Seco"d
Scree"
Decisio"
Deve*o%
Pre*imi"ary 6dea
First
6dea DatabaseDefi"e mar-eta"d tec$"ica*
c$aracteristics6"ter"et com%etitive
a"a*ysis
Portfo*io &a"ageme"tCom%etitor7s Product roadma%
E8advertisi"gDirect mar-eti"gTarget costi"g
6"vestigatio"
Discovery
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Proposed as$s in Stage-Gate ProcessProposed as$s in Stage-Gate Process
Profita%ility 'nalysisProfita%ility 'nalysisPost )aun(hin" reie
Implementing *ar$eting 5aunch PlanImplementing *ar$eting 5aunch
Plan !*ar$eting *i6#
)aun(hin"
7ield trials( e-commerce test mar$et7ield trials( e-commerce test
mar$et
Testin" and -alidation
Customer feed%ac$( shortening development timeCustomer feed%ac$( shortening
development time
.eelopment
Portfolio *anagement( Constructing competitor/s products
roadmap
rade show visit
Define mar$eting planning for selected product: e-
advertising( direct mar$eting !cooperate with partners#( target
costing strategy+
Partnering and outsourcing
Portfolio *anagement( Scoring
*odels( 8conomic *odels
.etailed Inesti"ation
Collecting Ideas into data%ase
Define mar$et and technical characteristics(
General competitive analysis such as num%er and size of
competitors through the internet
Set up idea data%ase
*ar$et and technical analysis
Competitive analysis
Preliminar# Inesti"ation
,oice of Customer
*ind *apping com%ined with Group 2rainstorming
2rainstorming( *ethod 9-.-(
*ind mapping( ,alue
Innovation( ;I
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Idea GenerationIdea Generation
&i"d &a%%i"g
Brai"stormi"g
3iller
'pplication
*o%ile
8ntertaining
Simple
Convenient
==+
Orga
nizer
==+
==+
3oice of Customer
6dea Database
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Preliminary InvestigationPreliminary Investigation
> Collecting Ideas into data%aseCollecting Ideas into data%ase
Define mar$et characteristics:Define mar$et characteristics:> *ar$et size and ports( user %enefits( competitor*ar$et size and ports( user %enefits( competitor
infoinfo
Define technical characteristics:Define technical characteristics:> ?um%er of dialog states( Perple6ity of the?um%er of dialog states( Perple6ity of the
grammar( customisationgrammar( customisation
Internet competitive analysisInternet competitive analysis> General info and characteristics such as num%erGeneral info and characteristics such as num%er
and size of competitorsand size of competitors
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Overview ofOverview of IIIdeas Data%aseIdeas Data%ase
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Detailed InvestigationDetailed Investigation
> Portfolio *anagementPortfolio *anagement
> Constructing competitor/s products roadmapConstructing competitor/s products roadmap
rade show visitrade show visit
Define mar$eting planning for selected product:Define mar$eting planning for selected product:> e-'dvertisinge-'dvertising> direct mar$eting !cooperate with partners#(direct mar$eting !cooperate with partners#(> target costing strategy+target costing strategy+> 8arly follower strategy8arly follower strategy
Partnering and outsourcingPartnering and outsourcing
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'pplication Components Portfolio'pplication Components Portfolio""
3a*ue (Se**i"g Pote"tia* Com%etitive Adva"tage)
Probabi*ityofSuc
cess
(&ar-etattractive"ess
Tec$"ica*Feasibi*ity)
Low High
Hig
h
Low
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'pplication Components Portfolio'pplication Components Portfolio&&
3a*ue to t$e Com%a"y (&ar-et Be"efits)
Tec$"o*ogyEffor
t
Low
High
Low High
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Detailed Investigation> Portfolio *anagement
> Constructing competitor/s products roadmap
rade show visit
Define mar$eting planning for selected product:> e-'dvertising> direct mar$eting !cooperate with partners#(
> target costing strategy+> 8arly follower strategy
Partnering and outsourcing
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Decision to Develop:Decision to Develop:
CrCreating Pro@ect Planeating Pro@ect Plan
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Development( 5aunching(Development( 5aunching(
Post 5aunch ;eviewPost 5aunch ;eview
> Customer feed%ac$( shortening development timeCustomer feed%ac$( shortening development time
> 7ield trials( e-commerce test mar$et7ield trials( e-commerce test mar$et
Implementing *ar$eting 5aunch Plan:Implementing *ar$eting 5aunch Plan:> Direct *ar$etingDirect *ar$eting> 8-'dvertising8-'dvertising
> arget Costingarget Costing> 8arly 7ollower8arly 7ollower
Profita%ility 'nalysisProfita%ility 'nalysis
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ConclusionConclusion
Successful Innovation *anagementSuccessful Innovation *anagement
System re4uires :System re4uires : clearly defined o%@ectivesclearly defined o%@ectives
innovative culture and structureinnovative culture and structure
a high commitment from all of company/sa high commitment from all of company/s
components( especially managementcomponents( especially management
good communication flowgood communication flow aa structuredstructured guide lineguide line which is representedwhich is represented
%y%y Stage-Gate Process DocumentationStage-Gate Process Documentation
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;eferences;eferences
Broc-$off ' (.99:): echnology *anagement in the Company of the 7uture( echnology 'nalysis and Strategic*anagement( ,ol+ A( p+"B-"A+
Brow" David (.99;): Innovation *anagement ools : ' review of selected methodologies( 8uropean Communities(5u6em%ourg+
Burge*ma" 5obert A' &aidioer"8Ae* (/==.): Innovationsmanagement in $leinen und mittleren Enternehmen( ,ahlen ,erlag( *Fnchen+
Odagiri Hiroyu-i (.99/): Growth through competition - Strategic *anagement and he 8conomy in apan( O6ford
Eniversity Press( ?ew or$+
Patterso" &arvi" 4' (.990): 'ccelerating Innovation - Improving the Process of Product Development( ?ew or$+
Pavitt eit$ (.999): echnology( *anagement and System of Innovation( 8dward 8lgar Pu%lishing 5imited( E3+o'3 (/==1): Innovation D?' K 7ramewor$ of Principles ( E;5: www+thin$smart+commissiondna( )+)+&))+
http://www.shef.ac.uk/~ibberson/qfd.htmlhttp://www.thinksmart.com/mission/dna/http://www.thinksmart.com/mission/dna/http://www.thinksmart.com/mission/dna/http://www.shef.ac.uk/~ibberson/qfd.htmlhttp://www.shef.ac.uk/~ibberson/qfd.htmlhttp://www.shef.ac.uk/~ibberson/qfd.htmlhttp://www.shef.ac.uk/~ibberson/qfd.htmlhttp://www.shef.ac.uk/~ibberson/qfd.htmlhttp://www.shef.ac.uk/~ibberson/qfd.html