Developing Your Vision (Greymouth Feb 2012 Seminar)

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Slideshow accompanying Jonathan Prince's session during the Successful Product Development seminar in Greymouth on 2 February 2012.

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Developing Your Vision (Greymouth Feb 2012 Seminar)

  1. 1. Developing Your Vision Using Robust Development processes A presentation by Jonathan PrinceDeveloping Products to Deliver Value
  2. 2. What are we talking about?• How good Development Processes add value• Design Process Overview• The ‘Great Unknown’ Front End• Other Major Contributors• Commercialisation• The Kiwi Advantage Developing Products to Deliver Value
  3. 3. So, what does a good development process do for your idea?!Developing Products to Deliver Value
  4. 4. It’s all about Value – To you & your customer1. Improves Innovation/ Design/ Engineering2. Directs focus on the Customer Need3. Reduces Development Cost4. Reduces Time to Market Increase The Bottom Line Developing Products to Deliver Value
  5. 5. Time to Market- What Lifecycle?!Volumes/ Sales Lost revenue 1 2 3 4 5 Time Late to Market Developing Products to Deliver Value
  6. 6. Delivering Value – To you & your customer1. Improves Innovation/ Design/ Engineering “Products that come to market six months late but on budget will earn2. Directs focus on the Customer Need 33% less profit over five years.3. Reduces Development Cost In contrast, coming out on time and 50% over4. Reduces Time to Market budget cuts profits by only 4%.” - McKinsey and Company5. Improves Product Quality Increase The Bottom Line Developing Products to Deliver Value
  7. 7. The Development Process: Getting it Wrong & Getting it RightDeveloping Products to Deliver Value
  8. 8. A Common Little Gem! Project identified – Needs based on perceptions Team jumps straight into design – Interprets needs Physical models created Review becomes a ‘That’s not what I meant’ scenario Project goes back through the Design loop Low & behold –We haven’t meet expected ROI! Developing Products to Deliver Value
  9. 9. Bugger!• Increased labour, material cost• Project gets axed• Increased time to market Significantly• Doesn’t address customer needs Reduced• Costly rework Returns• Lost opportunity cost Developing Products to Deliver Value
  10. 10. Robust Development Process Standard Stage Gate Process Clear design brief Stakeholder reviews Project Scope Common start point Feasibility Design Concept Detail Pre Production Production study brief design design Developing Products to Deliver Value
  11. 11. The ‘Great Unknown’: The Project’s Front EndDeveloping Products to Deliver Value
  12. 12. Designing a Revolutionary Product• Requires investment in research• Roughly 1/3 of the project time should be spent on each phase Brief research and Tooling and Design development development productionisation This is where the real breakthroughs occur Developing Products to Deliver Value
  13. 13. Feasibility Stage- We know our Customer!• Customer Analysis – User Centred design approach• Competitor analysis – Key Differentiators• Market Direction• Technology Optimisation• Funding opportunities Outcome of stage is a Design Brief/ Project Spec Developing Products to Deliver Value
  14. 14. Design Brief – Why bother?!• All parties know exactly what’s being designed- And WHY!• Prevents project from going off track – Keeps team focused• Product features are clearly identified and agreed• Ensures project is: – Well researched – Well understood – Relevant to the market need Core Document – Absolutely key to project success Developing Products to Deliver Value
  15. 15. Concept Design Stage• Develop ways of meeting the Design brief criteria – Address that unmet need• Explore multiple options cheaply and quickly – Fail early & Fail fast• Create accurate costings/ price points early• Provide Key stakeholders early input and buy in – Ability to Visualise/ understand product Developing Products to Deliver Value
  16. 16. Embodiment / Detail Design Stage• Modular design approach – Reuse of existing data and standard parts where possible• DFM - Design For Manufacture• DV&T Program - Design Validation & Testing – Design Analysis & Optimisation• Continued User Analysis / Usability Assessment• Risk Management – Identification & Mitigation document – IP Infringement searches Developing Products to Deliver Value
  17. 17. Pre-production / Production• Final checks before tooling/ cutting steel• Documentation – Comprehensive and accurate manufacturing/ assembly drawings – Quality docs/ Technical specs – Marketing material• Supply Chain Development and Management – Don’t just go for the cheapest source• Final Testing & Verification Developing Products to Deliver Value
  18. 18. Other Major ContributorsDeveloping Products to Deliver Value
  19. 19. Oi!, You two, Play Nice!• Collaboration is King – Cross functional teams – Industry experts – Hard & fair customers – Leverage Suppliers early• Creative culture – No Egos – Being open and honest is expected – Make it FUN! Developing Products to Deliver Value
  20. 20. It’s called a computer - Leverage it!• 3D CAD systems – A wonderous beast! – Develop Assemblies • Check Fits & Tolerances – Create BOMs/ Cut lists – Take a Modular Design approach • Utilise existing components – Development of accurate Jigs & Fixtures – Create comprehensive documentation – Marketing renderings Embrace Technology! Developing Products to Deliver Value
  21. 21. Virtual Prototyping- Nah, I’ll just whip one up• Stress Analysis – Understand loads/ forces early – Remove unnecessary weight/ material• Flow Analysis – Can it be made?!• CAM – Machining – Complex geometries with ease• Rapid Prototyping – Visualisation – Check fits Get it right before you cut steel! Developing Products to Deliver Value
  22. 22. Sustainability- Simple Business Sense!• Reduce – No. Components/ weight – Material families• Reuse – Previously loved materials – Quick refits • Snap fit parts • Modular design• Recycle – Recyclable materials – Natural finishes• Life Cycle Analysis • Cradle to Grave analyses Developing Products to Deliver Value
  23. 23. Show me the Money!!• Protection of IP – Understand all options – Patents are only one – Something of value to sell• Route to Market – Distribution to mass markets – Leveraging a great Brand• Raising Capital – Look for aligned investors – Ensure your Business plan is ‘Investment Ready’ Developing Products to Deliver Value
  24. 24. Types of Investment Founder/ Family/ Seed/Angels Venture Private Friends Capital Equity High riskExtreme risk EstablishedConceptual Larger scaleSmall scale ProfessionalEmotional Pooled/portfolioIndependent/single deals Private Equity Continuum Developing Products to Deliver Value
  25. 25. Angel Investing in NZ An emerging structured industry Angel Past Angel Today Angel 2012 Professionalised part Cottage Industry Developing Industry of the private capital marketsDeveloping Products to Deliver Value
  26. 26. Angel Association of NZ MembersDeveloping Products to Deliver Value
  27. 27. What is an Angel Deal?• Shares - does not want 50%+ of your business!• Stage – just pre revenue• Valuation - $500K to $1M• Involvement – generally Board level• Deal killers – uncoachable, unrealistic, unprepared Developing Products to Deliver Value
  28. 28. What Investors Are Looking For The People CEO/Team 25% Market need Painkiller or vitamin? 15% Product Well designed – compelling 10% Sustainable advantage Barriers/first mover/strategic partners 15% Valuation Reasonable for stage 20% Other 15%Developing Products to Deliver Value
  29. 29. Get in Touch - Earlier the BetterDeveloping Products to Deliver Value
  30. 30. The Kiwi Advantage- You bet we can Fly!Source of fresh ideas - Unencumbered thinkersTeamwork - collaborative, driven, dynamicConstrained resource, big ambitions Adventurous and pioneering Developing Products to Deliver Value
  31. 31. Summary• Implement a Robust Development Process• Develop a Design Brief template - Do your research!• Create a Culture of Innovation• Leverage Technology• Persevere - Design creates a unique profile for NZ companies Developing Products to Deliver Value
  32. 32. Innovate or Die!Developing Products to Deliver Value

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