The New Product and Services Development Process

By SK

For “The Genius”

The Genius

...is not just another school. It is a school with a difference. The difference is in the Vision and Action. Genius strongly believes that every child possesses a wealth of potential. All we do is facilitate its emergence in the most natural and beautiful way.

Vision & Mission

To be known to have an exemplary environment to prepare students for the challenges of real life

To enable students to become confident, life-long learners and responsible citizens with the skills to succeed beyond the School’s doors

VisionVision

MissionMission

Goals and Strategy

Build Brand loyalty Growth (# of Students) Fulfill students unmet needs

Establish a feedback process (from students, parents, and teachers) to understand students requirements

Build cross functional teams Leverage all resources Develop NPSD process :The stage gate process & keep

reengineering it

GoalsGoals

StrategyStrategy

Why Do We Need a NPSD Process?

To ensure that the future goals are in line with school strategy

To create superior services in the most cost effective and time efficient manner

To make sure we do the right projects

To make sure we do the projects right

Seven Goals – The Genius plans to Achieve

Goal Key Findings*

1. Quality of Execution 25% to 45% of new product launches fail. Percentage will vary by industry.

2. Sharper Focus, Better Prioritization

19,000 new products were introduced to supermarkets, and half disappeared from the shelves within two years

3. Fast-Paced Parallel Processing Activities Should be done in parallel, not in a series

4. A True Cross-Functional Team Approach

People fall in love with their own ideas

5. A Strong Market Orientation with the Voice of the Customer Built In

Superior products have a rated profitability of 8.4 out of 10 (versus 2.6 of 10) for undifferentiated products.

6. Better Homework Up-Front Superior products have a market share of 53.5% of the defined target market,

versus only 11.6% for “me too” new products7. Products with Competitive

Advantage-

* Source : The Goal behind Innovation: Mastering New Product and Service Development, David Goldsmith

The Stage Gate Process

It is a blueprint for managing the product/service innovation process to improve effectiveness and efficiency

Stages are designed to gather information needed to progress at the next gate

Gates are quality-control checkpoints where go / kill and prioritizing decisions are made. .

Gates consist of

OutputOutputCriteriaCriteriaDeliverablesDeliverables

LaunchDevelopmentBuild Business CaseScoping

Stage 1Stage 1

Gate 1Gate 1

Gate 2Gate 2 Stage 2Stage 2 Gate 3Gate 3 Stage 3Stage 3 Gate 4Gate 4 Stage 4Stage 4 Gate 5Gate 5 Stage 5Stage 5

Post LaunchReview

Post LaunchReview

DiscoveryDiscovery

Go To Development Go To Testing Go To Launch

Vision

Second Screen

Idea Screen

Testing & Validation

Must meet - should meet go/ kill/ hold/ recycle point

Must meet - should meet go/ kill/ hold/ recycle point

The Stage Gate Processfor Course Selection

VisionVisionVisionVisionVision

StrategyStrategy

GoalGoal

MissionMission

Hold

Idea Bank

“As Long as you are going to think anyway – you might as well think

BIG! ”

- Donald Trump

1. Movement classes (aspects of Dance,

Gymnastics, Dramatic expressions etc)

2. History with Fun

3. Instrumental classes

4. Creative art

5. History with Fun

1. Health and Physical education2. Foster thinking3. History with Fun

History with Fun

Instrumental classes

1. Health and Physical education

Foster thinking

1. French

Culinary Classes1. Mental Math

2. Shakespearean English

Movement classes

Creative art

Foreign language

Instrumental classes

1. French

Culinary Cooking

1. Foster thinking

History with Fun

1. Health and Physical education2. Foster thinking3. History with Fun

Dramatic Expressions

Foster thinking

Mental Math

Shakespearean English

1. Gymnastics

2. Creative Art

French

Culinary Cooking

French

Culinary Cooking

1. French

2. Culinary Cooking

1. French

2. Culinary Cooking

Discovery Stage : Ideation

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Voice of Customers

Voice of Customers

MRG EventsMRG Events

Parent-TeacherMeetings

Parent-TeacherMeetings

International Markets/Schools

International Markets/Schools Lead Users

Analysis

Lead UsersAnalysis

EducationWeek

EducationWeek

CompetitorsCompetitors

Networking Events For School

Networking Events For School

Bottom UpTop Down

Bottom UpTop Down

Great NPD Ideas

Great NPD Ideas

Gate 1 : Idea Screen

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Well described list of ideas (Courses)

Are the courses relevant to The Genius ? Are the market size , growth & opportunities attractive ? Will it leverage resources of the company? Is there a reasonable likelihood that the course will be

technically feasible?

* Use of Benefit Measurement sorting technique such as Q-sort

Go / Kill / Hold / recycle

New Product Development Team and senior management from different departments (3-4 people)

Deliverables

Deliverables

Gatekeeper Gatekeeper

CriteriaCriteria

Output Output

Stage 1 : Scoping

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Gentle screening of the courses to find out feasibility , magnitude of opportunity

Detective Research/Preliminary Market Assessment (internet search , library search, telephone interviews, Industry experts) to assess value of the courses

Preliminary assessment as to how would these course requirements be achieved technically

Preliminary financial and business assessment that give Sanity check /ball park estimates)

ObjectiveObjective

ActivitiesActivities

Gate 2 : Second Screen

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Figures of market assessment , size , acceptance Level of risk Financial assessment

Are merits higher than the risk ? Would it have any legal issues ? Does it fit The Genius strategy ? Would the payback period cover the investment done ?

* Scoring Models will be used

Go / Kill / Hold / recycle

Standing Gatekeeper GroupGatekeeper Gatekeeper

CriteriaCriteria

Deliverables

Deliverables

Output Output

Stage 2 : Build Business Case

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Define & describe thoroughly the courses, for whom; why the school should invest and by whom the investment would be made?

User needs and wants study – Is the course truly Superior? Detailed market analysis – how big is the market and how much can we grow? Competitive analysis Detailed technical assessment – Do we have experts/teachers available or will

require additional hiring? A Realistic Concept testing with students/parents – will the course be a winner? Rigorous Financial analysis Plan of Action, e.g. what semester the course will be launched? Spell out desired features, attributes and requirements

ObjectiveObjective

ActivitiesActivities

Gate 3 : MONEY GATE

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Business Case : Product & project definition , Course Justification & Project Plan Estimate of resources Concept test data Legal assessments

Strategic Product Advantage Market Attractiveness Synergies Technical Feasibility

* Risk versus Return using Financial economic models like, NPV, IRR

Go / Kill / Hold / recycle Plan of action for next Gate

Standing Gatekeeper GroupGatekeeper Gatekeeper

CriteriaCriteria

Deliverables

Deliverables

Output Output

Stage 3 : Development

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Physical development of the course and Implementation of development plan

Focus resources towards development of the Course contents Parallel processing with marketing teams and Faculty In house tests Seek constant Parents, students, instructor feedback Working models/ Mock class sessions Worship Time Line Update financials

ObjectiveObjective

ActivitiesActivities

Gate 4 :Go To Testing

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Marketing plan Production plan Distribution plan Financial Analysis

Is the Course operating within the budget ? Is the Course meeting its timelines ? Is the Course meeting the parents/students needs better than the

competition? Is the developed course consistent with the original definition ?

Go / Kill / Hold / recycle

Standing Gatekeeper GroupsGatekeeper Gatekeeper

CriteriaCriteria

Deliverables

Deliverables

Output Output

Stage 4 : Testing and Validation

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Extensive validation of the service and project Preparing for the launch

Validation of course quality Continuation of In-house testing End-User trials of the service - Ensure students’ acceptance Trial sell - Find out modifications if required Revised financial analysis Update marketing & production plan Prepare a launch plan

ObjectiveObjective

ActivitiesActivities

Gate 5 :Go To Launch

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Market potential & interest of buying the service Forecast of sales volume in terms of students

Is the course ready for launch ? Is the expected financial return considerably high? Has the course been reviewed thoroughly ? Have the modifications required as per students survey have been made ? Are all processes & resources in place for the launch? Does the testing of the course confirms student satisfaction ?

Go / Kill / Hold / recycle

(The operations & marketing plans are reviewed and approved for implementation in stage 5 )

Standing Gatekeeper GroupsGatekeeper Gatekeeper

CriteriaCriteria

Deliverables

Deliverables

Output Output

Stage 5 : Launch

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Implementing the marketing & operation plan for launch

Timing is everything

Advertising PR Direct mail Website Production , promotion & Sales

ObjectiveObjective

ActivitiesActivities

Post Launch Review

Stage 1

Gate 1

Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5

Post Launch Review

Discovery

Assess effectiveness of process to deliver objectives

Review costs Review profits Review Strengths Review Weaknesses Review project & product performance

ObjectiveObjective

ActivitiesActivities

“ Do Projects Right ,Do The Right Projects ”

-Robert G. Cooper