Clearly defined arenas (i.e., areas of strategic focus)
Specified resources are allocated against each arena</li></ul>New Product Strategy<br />Business’s New Product Performance<br />Resource Commitment<br />Climate, Culture, Leadership<br /><ul><li>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
Tough Go/Kill decisions at every stage where projects really do get killed
Focus on quality of execution – no corner-cutting</li></ul>(c) 2010 Shardul Mehta<br />2<br />
NPD strategy begins with product innovation goals at the top and moves through to tactical project selection decisions at the bottom<br />Framework for New Product Strategy<br />Select areas of strategic focus<br />Define goals for the NPD effort<br />Define:<br /><ul><li>Role of NPD in Business Strategy & Goals
NPD Using Stage-Gate Process & Agile/Iterative Development<br />Product Management acts as the “onsite” customer representative, particularly before beta testing<br /><ul><li>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:</li></ul>Visible deliverablesdefined in advance<br />Clearly understood criteria to make Go/Kill decisions<br /><ul><li>Include financial and qualitative criteria
Broken down into must-meet vs. should-meet characteristics</li></ul>Clearly articulated outputs<br /><ul><li>A decision: Go/Kill/Hold/Recycle
A path forward = an approved project plan + a date & list of required deliverables for the next gate</li></ul>Keep Score!<br /><ul><li>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</li></ul>(c) 2010 Shardul Mehta<br />4<br />
Critical Success Factors<br />Senior management has made the necessary resource commitment, and kept it<br />Have a superior, differentiated product that delivers unique benefits and better value to customers<br />Right organizational structure, design and climate<br />Leverage core competencies – synergy with the base business and its strengths are vital to success; “step-out” projects tend to fail more often<br />Market attractiveness is a key criterion for project selection and prioritization<br />Speed is everything! But not at the expense of quality of execution!<br />(c) 2010 Shardul Mehta<br />5<br />
Identifies a market problem<br />Quantifies the opportunity to make sure it’s big enough to generate a profit<br />Articulates the problem & opportunity to the rest of the organization<br />Executives: business rationale for pursuing, including financial forecasts and risk assessment<br />Development, in the form of market requirements<br />Marketing Communications, using positioning documents, one for each buyer type<br />Empowers sales effort by defining a sales process, supported by requisite sales tools so customer can choose the right products and options<br />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<br />Strategic Role of Product Management<br />If you don’t want to be market-driven, you don’t need Product Management<br />(c) 2010 Shardul Mehta<br />6<br />
Role of Senior Management<br />Best performing companies have senior managements that:<br />Are strongly committed to new products and product development<br />Embrace a long-term commitment to product development, beyond a 1-year horizon<br />Ensure development portfolio contains a certain proportion of long-term and platform projects – not just quick, one-year hits<br />Develop a vision, objectives and a strategy for new product efforts driven by (and linked to) the corporate objectives and strategy<br />Install a systematic, high-quality new product process in the organization, and practice discipline, following the principles of the process<br />Commit the necessary resources to achieve the firm’s new product goals<br />Are closely involved in the project Go/Kill and new product spending decisions<br />Have a central role in the new product review process and in resource allocation decisions<br />Foster innovation in the organization<br />Support, reward and recognize new product efforts<br />Empower project teams<br />Support committed champions: act as godfathers, sponsors or executive champions for major new product projects<br />(c) 2010 Shardul Mehta<br />8<br />
“Product Leadership: Creating and Launching Superior New Products” by Robert C. Cooper, ISBN: 0738201561<br />http://www.amazon.com/Product-Leadership-Creating-Launching-Superior/dp/B000B86FPK/ref=sr_1_1?ie=UTF8&s=books&qid=1265259676&sr=8-1<br />“Developing a Product Innovation and Technology Strategy for Your Business” by Robert C. Cooper<br />http://www.stage-gate.com/knowledge.php<br />“Make Your New Product Process Agile and Adaptable with Spiral Development” by Robert C. Cooper<br />http://www.stage-gate.com/knowledge.php<br />“The Strategic Role of Product Management” by Steve Johnson<br />http://www.pragmaticmarketing.com/strategic-role-of-product-management<br />Pragmatic Marketing Framework<br />http://www.pragmaticmarketing.com/pragmatic-marketing-framework<br />“Product Management: The Conscience of Every Product Company” by ZigZag Marketing<br />http://www.zigzagmarketing.com/product-management-conscience-of-every-product-company.html<br />“Getting Real” by 37signals.com<br />http://gettingreal.37signals.com/<br />“Top 10 Product Launch Mistakes” by 280 Group<br />http://www.280group.com/whitepapers.htm#launch<br />“The Three Dimensions of Product Launch” by David Daniels<br />http://www.pragmaticmarketing.com/publications/magazine/7/2/goals-readiness-and-constraints-the-three-dimensions-of-product-launch<br />“Where Does Product Management Belong in an Organization?” by Steve Johnson<br />http://www.pragmaticmarketing.com/publications/topics/07/where-does-product-management-belong-in-the-organization<br />Sources, References<br />(c) 2010 Shardul Mehta<br />9<br />