Guide to New Product Development (NPD)

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New Product Development (NPD) is the overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product. This Technology Multipliers webinar provides a complete overview of the NPD process, models, tools, and metrics to succeed with new product development for technology companies.

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  • New Product Development plays important role in an organization to become successful.

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Guide to New Product Development (NPD)

  1. 1. Kerim TumayManaging Director August 2011 © 2011 Technology Multipliers, LLC
  2. 2. Outline • Why NPD? NPD Concept • What is NPD? • Business Strategy & NPD Investments • Stage Gate, DMADV, AMS Process Funnel NPD Process • Flexible NPD Models • Ideation in each stage • Performance Measurement NPD Technologies • Software Success Factors • Keys to success with NPD © 2011 Technology Multipliers, LLC
  3. 3. NPD Concept NPD Process NPD Success Factors Models TechnologiesWhy NPD? © 2011 Technology Multipliers, LLC
  4. 4. NPD Concept NPD Process NPD Success Factors Models TechnologiesWhat is NPD?New Product Development (NPD) is the overall process of: Strategy Organization Concept generation Product and marketing plan development Commercialization and launch © 2011 Technology Multipliers, LLC
  5. 5. NPD Concept NPD Process NPD Success Factors Models Technologies NPD Investments As Percentage of Revenue• Average for industrials = 3.5%• Average high technology = 7%• IBM, SAP, Oracle = 13.5%• Ericsson = 24.9%• Technology startups > 25% Sources: Wikipedia and Software Industry Insights Blog © 2011 Technology Multipliers, LLC
  6. 6. NPD Concept NPD Process NPD Success Factors Models Technologies Trends• Globalization• Collaborative R&D partnerships• Compliance with new health and safety regulations• Personalization• Six Sigma quality• Design for manufacturability• Design for sustainability• Design for supply chain efficiency © 2011 Technology Multipliers, LLC
  7. 7. NPD Concept NPD Process NPD Success Factors Models Technologies Stage Gate NPD Model Build the Testing & Scoping Business Development Launch Validation CaseSource: Innovation Framework Technologies © 2011 Technology Multipliers, LLC
  8. 8. NPD Concept NPD Process NPD Success Factors Models TechnologiesDMADV Model Define design goals consistent with customer demands and the enterprise strategy Verify the design, Measure and set up pilot runs, identify CTQs implement the (Critical To Quality) production process Design details, optimize the Analyze to develop design, and plan and design for design alternatives verification © 2011 Technology Multipliers, LLC
  9. 9. NPD Concept NPD Process NPD Success Factors Models Technologies AMS NPD Process FunnelSource: Applied Marketing Science, Inc. © 2011 Technology Multipliers, LLC
  10. 10. NPD Concept NPD Process NPD Success Factors Models TechnologiesFlexible NPD Model“ the ability to make changes in the product.. even relatively late in development, without being too disruptive.. The less disruptive the changes are, the more flexible the process is” Preston Smith, the author of Flexible New Product Development © 2011 Technology Multipliers, LLC
  11. 11. NPD Concept NPD Process NPD Success Factors Models Technologies Modified, Flexible NPD ModelDimensions of Urgency and Classification Flexible Stage Gate ProcessCritical time to market Increase the pace for the stagesHigh financial and technical feasibility Lower the hurdles for the gatesHigh financial, technical and regulatory risks Reduce the pace for the stagesNon-critical time to market Increase the hurdles for the gatesProjects with high urgency and caution Higher authority approvalsProjects with low urgency and caution Normal stage gate process © 2011 Technology Multipliers, LLC
  12. 12. NPD Concept NPD Process NPD Success Factors Models Technologies Ideation at every stage Partners and Other• Formal surveys Suppliers • Company-wide and/or focus groups incentives• Suggestion requests • Market research • Market research • Market research• Reward programs • Suggestion requests with customer • Competitive • Collaborative service reps intelligence development, early • Consultants adopter programs Company Customers Internal Sources Internet Encourage and Monitor social Monitor user groups, Encourage capture feedback via networking sites like chat rooms and other suggestions via the online meeting tools Facebook, LinkedIn, online customer web site like GoToMeeting, and Twitter venue Webex.. © 2011 Technology Multipliers, LLC
  13. 13. NPD Concept NPD Process NPD Success Factors Models TechnologiesPerformance MeasurementHard Soft• Development cycle time • Design quality• Cost of people • Patent filings• Equipment/material • Published papers costs • Revenue potential• Revenue • Know-how • Experience © 2011 Technology Multipliers, LLC
  14. 14. NPD Concept NPD Process NPD Success Factors Models Technologies NPD Software• NPD Suites – PD-Trak – HypeIMT – Innovation Framework Technologies – Accolade• Niche Tools – Imaginatik – Inova – ProModel © 2011 Technology Multipliers, LLC
  15. 15. NPD Concept NPD Process NPD Success Factors Models TechnologiesKeys to Success with NPD Review resource allocation strategy regularly Leverage software Monitor key trends suites and the affecting new Internet for ideation product and NPD development Measure the NPD Select a process process in terms of model and adopt it quantitative and to your company and qualitative impacts situation Encourage ideation Build flexibility into the NPD process and in every stage of the organizational NPD process culture © 2011 Technology Multipliers, LLC
  16. 16. Download E-booksFor more information, go to www.technologymultipliers.com © 2011 Technology Multipliers, LLC

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