Etm551 lecture02
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Etm551 lecture02 Presentation Transcript

  • 1. Product Design & Development Product Planning 1
  • 2. Product Planning positioning Concept Concept System-Level System-Level Detail Detail Testing and Testing and Production Production Planning Planning Development Design Design Refinement Ramp-Up Development Design Design Refinement Ramp-Up Four Phases of Product Development • The product planning phase precedes the product development process 2
  • 3. Product Planning • The Product Planning Process • Identify Opportunities • Evaluate and Prioritize Projects • Allocate Resources and Plan Timing • Complete Pre-Project Planning • Summary 3
  • 4. Xerox Lakes Project Example Xerox Document Centre 265 4
  • 5. The Product Planning Process Questions • What PD projects will be undertaken? • What mix of new products, platforms, and derivative products to pursue? • How do the various projects relate to each other as a portfolio? • What will be the timing and sequence of the project? 5
  • 6. Mission Statement • What market segments to consider? • What new technologies to incorporate? • What are the manufacturing and service goals and constraints? • What are the financial targets of the project? • What are the budget and time frame for the project? 6
  • 7. The Product Planning Process 7
  • 8. The Product Planning Process • The product plan identifies the portfolio of products to be developed by the organization and the timing of their introduction to the market 8
  • 9. The Product Plan • The product plan identifies the portfolio of projects to be pursued by the development organization • The plan may divide projects into four categories: new platforms, derivatives of existing platforms, product improvements, and fundamentally new products (See Exhibit 3-2) 9
  • 10. Four Types of Product Development Projects • New product platforms • Derivatives of existing product platforms • Incremental improvements to existing products • Fundamentally new products 10
  • 11. The Process • Identify opprtunities • Evaluate and prioritize projects • Allocate resources and plan timing • Complete pre-project planning • Reflect on the results and the process 11
  • 12. Identify Opportunities Idea Sources for New Products • Marketing and sales personnel • Research and technolgy development organizations • Current product development teams • Manufacturing and operation organizations • Current or potential customers • Third parties such as suppliers, inventors, and business partners. 12
  • 13. Evaluate and Prioritize Projects • Opportunity funnel can collect 100s or even 1000s of opportunities during a year. • Select the most promising projects to pursue. • Basic perspectives to prioritize: Competitive Strategy, market segmentation, technological trajectories, and product platforms 13
  • 14. Competitive Strategy • Technology leadership • Cost leadership • Customer focus • İmitative 14
  • 15. Market Segmentation • Dividing a market into segments allows the firm to consider the actions of competiters and the strength of the existing products of the firm wrt each well defined group of customers. 15
  • 16. Technological Trajectories • In technology intensive businesses, a key product decision is when to adopt a new technology in a product line. • Technoloy S-curves are conceptual tool to help to think about such decisions. 16
  • 17. Technology S-curves Copier Performance Digital Technology Light-Lens Technology Time 17
  • 18. Product Platform Planning • A platform development project creates the architecture of a family of products. • Derivative Products may be included in the initial platform development effort or derivative products may follow thereafter. • One technique for coordinating technology development with product planning is the technology roadmap. 18
  • 19. Platforms vs Derivatives Research and Technology Development Legend Platform Product Platform A Platform B Project Development Product Release Derivative Product Development time 19
  • 20. Allocate Resources and Plan Timing • Resource allocation (Wheelwright and Clark (1992) 20
  • 21. Project Timing • Timing of product introductions • Technology readiness • Market readiness • Competition 21
  • 22. Complete Pre-Project Planning • Core team • Product vision statement • Mission statements 22
  • 23. Mission statements • Brief (one sentence) description of the product • Key business goals • Target market(s) for the product • Assumption and constraints that guide the development effort (Manufacturing, Service, Environment) • Stakeholders 23
  • 24. Reflect on the results and the process • Is the opportunity funnel collecting an exciting and diverse set of product opportunitie? • Does the product plan support the competitive strategy of the firm? • Does the core team accept the challeges of the resulting mission statement? • How can the product planning process be improved? 24
  • 25. Summary • Product planning involves a five-step process:1. Identify opportunities, 2. Evaluate and prioritize projects, 3. Allocate resources and plan timing, 4. Complete pre-project planning, 5. Reflect on the results and the process. • The opportunity funnel collects possibilities for new product platforms • A mission statement for each PD project documents, the product vision, business goals, target matkets, critical assumptions, and the product’s stakeholders. 25