The document outlines the New Product Development (NPD) process, which includes strategy, organization, concept generation, product and marketing plan development, and commercialization. It discusses various NPD models such as stage gate, DMADV, and flexible NPD, along with investment percentages in NPD across different industries and trends impacting the process. Additionally, it highlights key success factors and performance measurement techniques necessary for effective NPD management.

1. Kerim Tumay
Managing Director
August 2011
© 2011 Technology Multipliers, LLC

2. Outline
• Why NPD?
NPD Concept • What is NPD?
• Business Strategy & NPD Investments
• Stage Gate, DMADV, AMS Process Funnel
NPD Process • Flexible NPD
Models • Ideation in each stage
• Performance Measurement
NPD Technologies • Software
Success Factors • Keys to success with NPD
© 2011 Technology Multipliers, LLC

3. NPD Concept NPD Process NPD Success Factors
Models Technologies
Why NPD?
© 2011 Technology Multipliers, LLC

4. NPD Concept NPD Process NPD Success Factors
Models Technologies
What is NPD?
New Product Development (NPD) is the overall process of:
Strategy
Organization
Concept generation
Product and marketing plan development
Commercialization and launch
© 2011 Technology Multipliers, LLC

5. NPD Concept NPD Process NPD Success Factors
Models Technologies
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%
Sources: Wikipedia and Software Industry Insights Blog
© 2011 Technology Multipliers, LLC

6. NPD Concept NPD Process NPD Success Factors
Models Technologies
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
© 2011 Technology Multipliers, LLC

7. NPD Concept NPD Process NPD Success Factors
Models Technologies
Stage Gate NPD Model
Build the
Testing &
Scoping Business Development Launch
Validation
Case
Source: Innovation Framework Technologies
© 2011 Technology Multipliers, LLC

8. NPD Concept NPD Process NPD Success Factors
Models Technologies
DMADV Model
Define design goals
consistent with
customer demands
and the enterprise
strategy
Verify the design, Measure and
set up pilot runs,
identify CTQs
implement the
(Critical To Quality)
production process
Design details,
optimize the Analyze to develop
design, and plan and design
for design alternatives
verification
© 2011 Technology Multipliers, LLC

9. NPD Concept NPD Process NPD Success Factors
Models Technologies
AMS NPD Process Funnel
Source: Applied Marketing Science, Inc.
© 2011 Technology Multipliers, LLC

10. NPD Concept NPD Process NPD Success Factors
Models Technologies
Flexible NPD Model
“ 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

11. NPD Concept NPD Process NPD Success Factors
Models Technologies
Modified, Flexible NPD Model
Dimensions of Urgency and Classification Flexible Stage Gate Process
Critical time to market Increase the pace for the stages
High financial and technical feasibility Lower the hurdles for the gates
High financial, technical and regulatory risks Reduce the pace for the stages
Non-critical time to market 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

12. NPD Concept NPD Process NPD Success Factors
Models Technologies
Ideation at every stage
Partners and
Other
• Formal surveys Suppliers • Company-wide
and/or focus groups incentives
• Suggestion requests • Market research • Market research • Market research
• Reward programs • Suggestion requests with customer • Competitive
• Collaborative service reps intelligence
development, early • Consultants
adopter programs
Company
Customers
Internal Sources
Internet
Encourage and
Monitor social Monitor user groups,
Encourage capture feedback via
networking sites like chat rooms and other
suggestions via the online meeting tools
Facebook, LinkedIn, online customer
web site like GoToMeeting,
and Twitter venue
Webex..
© 2011 Technology Multipliers, LLC

13. NPD Concept NPD Process NPD Success Factors
Models Technologies
Performance Measurement
Hard Soft
• Development cycle time • Design quality
• Cost of people • Patent filings
• Equipment/material • Published papers
costs • Revenue potential
• Revenue • Know-how
• Experience
© 2011 Technology Multipliers, LLC

14. NPD Concept NPD Process NPD Success Factors
Models Technologies
NPD Software
• NPD Suites
– PD-Trak
– HypeIMT
– Innovation Framework Technologies
– Accolade
• Niche Tools
– Imaginatik
– Inova
– ProModel
© 2011 Technology Multipliers, LLC

15. NPD Concept NPD Process NPD Success Factors
Models Technologies
Keys to Success with NPD
Review resource
allocation strategy
regularly
Leverage software Monitor key trends
suites and the affecting new
Internet for ideation product
and NPD development
Measure the NPD Select a process
process in terms of model and adopt it
quantitative and to your company and
qualitative impacts situation
Encourage ideation Build flexibility into
the NPD process and
in every stage of the
organizational
NPD process
culture
© 2011 Technology Multipliers, LLC

16. Download E-books
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© 2011 Technology Multipliers, LLC