Sustainable new product development


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A systematic approach to product development success. An amalgamation of best practices from several practical and successful frameworks and methodologies.

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Sustainable new product development

  1. 1. Sustainable New Product Development<br />A systematic approach to product development success<br />
  2. 2. Four Cornerstones of Product Performance<br /><ul><li>Strategy to attack & win each arena defined
  3. 3. Strategy has long-term thrust and focus
  4. 4. Role of product in achieving business’s goals and product strategy clearly communicated
  5. 5. Clear goals and objectives
  6. 6. Clearly defined arenas (i.e., areas of strategic focus)
  7. 7. 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
  8. 8. Commit the necessary resources to achieve the firm’s new product goals
  9. 9. Closely involved in the project Go/Kill and new product spending decisions
  10. 10. Foster innovation in the organization
  11. 11. Having the right resources
  12. 12. Having sufficient resources
  13. 13. Deploying resources wisely – to the right strategic arenas and projects</li></ul>High Quality New Product Process<br /><ul><li>Emphasis on up-front pre-development homework
  14. 14. Strong market-orientation and building in Voice of Customer throughout
  15. 15. Sharp, early product definition
  16. 16. Tough Go/Kill decisions at every stage where projects really do get killed
  17. 17. Focus on quality of execution – no corner-cutting</li></ul>(c) 2010 Shardul Mehta<br />2<br />
  18. 18. 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
  19. 19. Goals for NPD</li></ul>Attack Strategy & Entry Strategy<br />Market Analysis<br />Areas of Strategic Focus<br />Competitive Analysis<br />Company Analysis<br />Product Roadmap<br />Spending Levels<br />Strategic Buckets<br />Resource Commitment & Strategic Portfolio Decisions<br /><ul><li>Project Selection (Go/Kill)
  20. 20. Prioritization
  21. 21. Resource Allocation</li></ul>Tactical Portfolio Decisions<br />(c) 2010 Shardul Mehta<br />3<br />
  22. 22. 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:
  23. 23. Have the steps in the previous stage been executed in a quality fashion?
  24. 24. Does the project (continue to) look like an attractive one?
  25. 25. Are the proposed action plan and the resources requested reasonable and sound?
  26. 26. 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
  27. 27. Broken down into must-meet vs. should-meet characteristics</li></ul>Clearly articulated outputs<br /><ul><li>A decision: Go/Kill/Hold/Recycle
  28. 28. 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
  29. 29. Attrition rates: what % of projects continue at each stage/gate in the process?
  30. 30. Proportion of resources devoted to winners vs. losers vs. killed projects</li></ul>(c) 2010 Shardul Mehta<br />4<br />
  31. 31. 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 />
  32. 32. 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 />
  33. 33. Product Management Framework & Roles<br />Principal Product Owner<br /><ul><li>Product/business ownership
  34. 34. Product profitability
  35. 35. Win/loss analysis
  36. 36. Market problems & definition
  37. 37. Product strategy & roadmap
  38. 38. Build/buy/partner decisions
  39. 39. Product positioning</li></ul>Product Marketing Manager<br /><ul><li>Define buyer personas
  40. 40. Determine market messaging
  41. 41. Market launch management
  42. 42. Create standard presentations and demo scripts
  43. 43. Align sales tools and ideal sales process to typical buying process
  44. 44. Facilitate sales training</li></ul>“Technical” Product Manager<br /><ul><li>Define user personas, user scenarios and product requirements
  45. 45. Package features into releases
  46. 46. Act as customer representative during development
  47. 47. Monitor development and release status</li></ul>Sales Engineer/Technical Sales<br /><ul><li>Assist sales teams, act as product SME on sales calls
  48. 48. Presentations & demos
  49. 49. Event support
  50. 50. Proposal preparation
  51. 51. “Special calls”</li></ul>(c) 2010 Shardul Mehta<br />7<br />
  52. 52. 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 />
  53. 53. “Product Leadership: Creating and Launching Superior New Products” by Robert C. Cooper, ISBN: 0738201561<br /><br />“Developing a Product Innovation and Technology Strategy for Your Business” by Robert C. Cooper<br /><br />“Make Your New Product Process Agile and Adaptable with Spiral Development” by Robert C. Cooper<br /><br />“The Strategic Role of Product Management” by Steve Johnson<br /><br />Pragmatic Marketing Framework<br /><br />“Product Management: The Conscience of Every Product Company” by ZigZag Marketing<br /><br />“Getting Real” by<br /><br />“Top 10 Product Launch Mistakes” by 280 Group<br /><br />“The Three Dimensions of Product Launch” by David Daniels<br /><br />“Where Does Product Management Belong in an Organization?” by Steve Johnson<br /><br />Sources, References<br />(c) 2010 Shardul Mehta<br />9<br />