Product Design &
  Development

  Product Planning




                     1
Product Planning positioning


               Concept
                Concept   System-Level
                           Sy...
Product Planning
•   The Product Planning Process
•   Identify Opportunities
•   Evaluate and Prioritize Projects
•   Allo...
Xerox Lakes Project Example




         Xerox Document Centre 265   4
The Product Planning Process
            Questions
• What PD projects will be undertaken?
• What mix of new products, plat...
Mission Statement
• What market segments to consider?
• What new technologies to incorporate?
• What are the manufacturing...
The Product Planning Process




                               7
The Product Planning Process
• The product plan identifies the portfolio of
  products to be developed by the
  organizati...
The Product Plan

• The product plan identifies the portfolio of
  projects to be pursued by the development
  organizatio...
Four Types of Product
        Development Projects
• New product platforms
• Derivatives of existing product platforms
• I...
The Process
•   Identify opprtunities
•   Evaluate and prioritize projects
•   Allocate resources and plan timing
•   Comp...
Identify Opportunities
  Idea Sources for New Products
• Marketing and sales personnel
• Research and technolgy developmen...
Evaluate and Prioritize Projects
• Opportunity funnel can collect 100s or
  even 1000s of opportunities during a year.
• S...
Competitive Strategy
•   Technology leadership
•   Cost leadership
•   Customer focus
•   İmitative




                  ...
Market Segmentation
• Dividing a market into segments allows the
  firm to consider the actions of competiters
  and the s...
Technological Trajectories
• In technology intensive businesses, a key
  product decision is when to adopt a new
  technol...
Technology S-curves
Copier Performance



                                        Digital
                                ...
Product Platform Planning
• A platform development project creates
  the architecture of a family of products.
• Derivativ...
Platforms vs Derivatives

Research and
 Technology
Development


                                            Legend
  Plat...
Allocate Resources and Plan
               Timing
• Resource allocation (Wheelwright and
  Clark (1992)




              ...
Project Timing
•   Timing of product introductions
•   Technology readiness
•   Market readiness
•   Competition




     ...
Complete Pre-Project Planning
• Core team
• Product vision statement
• Mission statements




                            ...
Mission statements
• Brief (one sentence) description of the
  product
• Key business goals
• Target market(s) for the pro...
Reflect on the results and the
              process
• Is the opportunity funnel collecting an
  exciting and diverse set ...
Summary
• Product planning involves a five-step process:1.
  Identify opportunities, 2. Evaluate and prioritize
  projects...
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Etm551 lecture02

  1. 1. Product Design & Development Product Planning 1
  2. 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. 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. 4. Xerox Lakes Project Example Xerox Document Centre 265 4
  5. 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. 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. 7. The Product Planning Process 7
  8. 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. 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. 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. 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. 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. 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. 14. Competitive Strategy • Technology leadership • Cost leadership • Customer focus • İmitative 14
  15. 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. 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. 17. Technology S-curves Copier Performance Digital Technology Light-Lens Technology Time 17
  18. 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. 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. 20. Allocate Resources and Plan Timing • Resource allocation (Wheelwright and Clark (1992) 20
  21. 21. Project Timing • Timing of product introductions • Technology readiness • Market readiness • Competition 21
  22. 22. Complete Pre-Project Planning • Core team • Product vision statement • Mission statements 22
  23. 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. 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. 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
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