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Sustainable new product development

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A systematic approach to product development success. An amalgamation of best practices from several practical and successful frameworks and methodologies.

A systematic approach to product development success. An amalgamation of best practices from several practical and successful frameworks and methodologies.

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Sustainable new product development Sustainable new product development Presentation Transcript

  • Sustainable New Product Development
    A systematic approach to product development success
  • Four Cornerstones of Product Performance
    • Strategy to attack & win each arena defined
    • Strategy has long-term thrust and focus
    • Role of product in achieving business’s goals and product strategy clearly communicated
    • Clear goals and objectives
    • Clearly defined arenas (i.e., areas of strategic focus)
    • Specified resources are allocated against each arena
    New Product Strategy
    Business’s New Product Performance
    Resource Commitment
    Climate, Culture, Leadership
    • Strongly committed to new products and product development
    • Commit the necessary resources to achieve the firm’s new product goals
    • Closely involved in the project Go/Kill and new product spending decisions
    • Foster innovation in the organization
    • Having the right resources
    • Having sufficient resources
    • Deploying resources wisely – to the right strategic arenas and projects
    High Quality New Product Process
    • Emphasis on up-front pre-development homework
    • Strong market-orientation and building in Voice of Customer throughout
    • Sharp, early product definition
    • Tough Go/Kill decisions at every stage where projects really do get killed
    • Focus on quality of execution – no corner-cutting
    (c) 2010 Shardul Mehta
    2
  • NPD strategy begins with product innovation goals at the top and moves through to tactical project selection decisions at the bottom
    Framework for New Product Strategy
    Select areas of strategic focus
    Define goals for the NPD effort
    Define:
    • Role of NPD in Business Strategy & Goals
    • Goals for NPD
    Attack Strategy & Entry Strategy
    Market Analysis
    Areas of Strategic Focus
    Competitive Analysis
    Company Analysis
    Product Roadmap
    Spending Levels
    Strategic Buckets
    Resource Commitment & Strategic Portfolio Decisions
    • Project Selection (Go/Kill)
    • Prioritization
    • Resource Allocation
    Tactical Portfolio Decisions
    (c) 2010 Shardul Mehta
    3
  • NPD Using Stage-Gate Process & Agile/Iterative Development
    Product Management acts as the “onsite” customer representative, particularly before beta testing
    • Purpose of a Gate:
    • Have the steps in the previous stage been executed in a quality fashion?
    • Does the project (continue to) look like an attractive one?
    • Are the proposed action plan and the resources requested reasonable and sound?
    • Structure of a Gate:
    Visible deliverablesdefined in advance
    Clearly understood criteria to make Go/Kill decisions
    • Include financial and qualitative criteria
    • Broken down into must-meet vs. should-meet characteristics
    Clearly articulated outputs
    • A decision: Go/Kill/Hold/Recycle
    • A path forward = an approved project plan + a date & list of required deliverables for the next gate
    Keep Score!
    • Success versus failure rates at launch
    • Attrition rates: what % of projects continue at each stage/gate in the process?
    • Proportion of resources devoted to winners vs. losers vs. killed projects
    (c) 2010 Shardul Mehta
    4
  • Critical Success Factors
    Senior management has made the necessary resource commitment, and kept it
    Have a superior, differentiated product that delivers unique benefits and better value to customers
    Right organizational structure, design and climate
    Leverage core competencies – synergy with the base business and its strengths are vital to success; “step-out” projects tend to fail more often
    Market attractiveness is a key criterion for project selection and prioritization
    Speed is everything! But not at the expense of quality of execution!
    (c) 2010 Shardul Mehta
    5
  • Identifies a market problem
    Quantifies the opportunity to make sure it’s big enough to generate a profit
    Articulates the problem & opportunity to the rest of the organization
    Executives: business rationale for pursuing, including financial forecasts and risk assessment
    Development, in the form of market requirements
    Marketing Communications, using positioning documents, one for each buyer type
    Empowers sales effort by defining a sales process, supported by requisite sales tools so customer can choose the right products and options
    While other departments are focused on this release, this campaign, this deal, this customer, product management is a strategic role focused on what products and markets the organization can serve in the years to come
    Strategic Role of Product Management
    If you don’t want to be market-driven, you don’t need Product Management
    (c) 2010 Shardul Mehta
    6
  • Product Management Framework & Roles
    Principal Product Owner
    • Product/business ownership
    • Product profitability
    • Win/loss analysis
    • Market problems & definition
    • Product strategy & roadmap
    • Build/buy/partner decisions
    • Product positioning
    Product Marketing Manager
    • Define buyer personas
    • Determine market messaging
    • Market launch management
    • Create standard presentations and demo scripts
    • Align sales tools and ideal sales process to typical buying process
    • Facilitate sales training
    “Technical” Product Manager
    • Define user personas, user scenarios and product requirements
    • Package features into releases
    • Act as customer representative during development
    • Monitor development and release status
    Sales Engineer/Technical Sales
    • Assist sales teams, act as product SME on sales calls
    • Presentations & demos
    • Event support
    • Proposal preparation
    • “Special calls”
    (c) 2010 Shardul Mehta
    7
  • Role of Senior Management
    Best performing companies have senior managements that:
    Are strongly committed to new products and product development
    Embrace a long-term commitment to product development, beyond a 1-year horizon
    Ensure development portfolio contains a certain proportion of long-term and platform projects – not just quick, one-year hits
    Develop a vision, objectives and a strategy for new product efforts driven by (and linked to) the corporate objectives and strategy
    Install a systematic, high-quality new product process in the organization, and practice discipline, following the principles of the process
    Commit the necessary resources to achieve the firm’s new product goals
    Are closely involved in the project Go/Kill and new product spending decisions
    Have a central role in the new product review process and in resource allocation decisions
    Foster innovation in the organization
    Support, reward and recognize new product efforts
    Empower project teams
    Support committed champions: act as godfathers, sponsors or executive champions for major new product projects
    (c) 2010 Shardul Mehta
    8
  • “Product Leadership: Creating and Launching Superior New Products” by Robert C. Cooper, ISBN: 0738201561
    http://www.amazon.com/Product-Leadership-Creating-Launching-Superior/dp/B000B86FPK/ref=sr_1_1?ie=UTF8&s=books&qid=1265259676&sr=8-1
    “Developing a Product Innovation and Technology Strategy for Your Business” by Robert C. Cooper
    http://www.stage-gate.com/knowledge.php
    “Make Your New Product Process Agile and Adaptable with Spiral Development” by Robert C. Cooper
    http://www.stage-gate.com/knowledge.php
    “The Strategic Role of Product Management” by Steve Johnson
    http://www.pragmaticmarketing.com/strategic-role-of-product-management
    Pragmatic Marketing Framework
    http://www.pragmaticmarketing.com/pragmatic-marketing-framework
    “Product Management: The Conscience of Every Product Company” by ZigZag Marketing
    http://www.zigzagmarketing.com/product-management-conscience-of-every-product-company.html
    “Getting Real” by 37signals.com
    http://gettingreal.37signals.com/
    “Top 10 Product Launch Mistakes” by 280 Group
    http://www.280group.com/whitepapers.htm#launch
    “The Three Dimensions of Product Launch” by David Daniels
    http://www.pragmaticmarketing.com/publications/magazine/7/2/goals-readiness-and-constraints-the-three-dimensions-of-product-launch
    “Where Does Product Management Belong in an Organization?” by Steve Johnson
    http://www.pragmaticmarketing.com/publications/topics/07/where-does-product-management-belong-in-the-organization
    Sources, References
    (c) 2010 Shardul Mehta
    9