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ECE520.427
Class #2
Product Development
and
Product Planning
Outline: Class #2
Introduction to product design and
development
Product development process
Intermission – get some popcorn
Product planning
Homework assignment #1
What is Product Design and
Development?
Product development is a set of activities
starting with the perception of a market
opportunity and ending with the sale of a product
Product design is one aspect of the development
process
Engineering design specifies how the technical
systems will work
Industrial design specifies the aesthetics, ergonomics,
and user interface
Other development activities include marketing
and manufacturing
Success of the product typically depends on the
success of all three development activities
Successful Product Development
Marketing
(pre-design) Identification of market opportunities
(pre-design) Identification of customer needs
(pre-design) Identification of target pricing
(post-design) Promotion of product
Design
Product quality
Product cost (includes development cost)
Development time
Development capability
Manufacturing
Production system
Supply chain
Examples
Good market research and
bad design:
Archos vs. Apple
Archos 20GB
Released October 2001
350 g, 1.3” thick
File-based organization
system
Ugly interface
iPod 5GB
Released November 2001
184 g, 0.78” thick
ID3-based organization
system
Pretty interface
Examples
Good design and
marketing and bad
manufacturing
Example 1: Wii
Example 2: Lenovo
X61 Tablet
Why Is Good Product
Development Difficult?
Trade-offs
Dynamics
Details
Time pressures
Economics
Generic Design Process
Phase 0:Phase 0:
PlanningPlanning
Phase 1:Phase 1:
ConceptConcept
DevelopmentDevelopment
Phase 2:Phase 2:
SystemSystem--LevelLevel
DesignDesign
Phase 3:Phase 3:
DetailDetail
DesignDesign
Phase 4:Phase 4:
Testing andTesting and
RefinementRefinement
Phase 5:Phase 5:
ProductionProduction
RampRamp--UpUp
MarketingMarketing
DesignDesign
ManufacturingManufacturing
Generic Design Process
Marketing
Describe market opportunity
Design
Consider existing product platform (if any)
Consider new technologies
Manufacturing
Identify production and/or corporate constraints
Other
Allocate project resources
Mission statement
Phase 0:Phase 0:
PlanningPlanning
Phase 1:Phase 1:
ConceptConcept
DevelopmentDevelopment
Phase 2:Phase 2:
SystemSystem--LevelLevel
DesignDesign
Phase 3:Phase 3:
DetailDetail
DesignDesign
Phase 4:Phase 4:
Testing andTesting and
RefinementRefinement
Phase 5:Phase 5:
ProductionProduction
RampRamp--UpUp
Generic Design Process
Market opportunity product concept
Marketing
Identify customer needs
Research competitive landscape
Design
Develop concepts
Determine feasibility of design concepts
Build and test prototypes
Manufacturing
Estimate manufacturing costs
Other
Investigate IP issues
Product concept and proof-of-concept prototype
Phase 0:Phase 0:
PlanningPlanning
Phase 1:Phase 1:
ConceptConcept
DevelopmentDevelopment
Phase 2:Phase 2:
SystemSystem--LevelLevel
DesignDesign
Phase 3:Phase 3:
DetailDetail
DesignDesign
Phase 4:Phase 4:
Testing andTesting and
RefinementRefinement
Phase 5:Phase 5:
ProductionProduction
RampRamp--UpUp
Generic Design Process
Phase 0:Phase 0:
PlanningPlanning
Phase 1:Phase 1:
ConceptConcept
DevelopmentDevelopment
Phase 2:Phase 2:
SystemSystem--LevelLevel
DesignDesign
Phase 3:Phase 3:
DetailDetail
DesignDesign
Phase 4:Phase 4:
Testing andTesting and
RefinementRefinement
Phase 5:Phase 5:
ProductionProduction
RampRamp--UpUp
ProductProduct
PlanningPlanning
Identify CustomerIdentify Customer
NeedsNeeds
Product SpecificationsProduct Specifications
ConceptConcept
GenerationGeneration
ConceptConcept
SelectionSelection
ConceptConcept
TestingTesting
Product ArchitectureProduct Architecture
Industrial DesignIndustrial Design
Design for ManufacturingDesign for Manufacturing
PrototypingPrototyping
Robust DesignRobust Design
Patents, IP, and EconomicsPatents, IP, and Economics
Generic Design Process
Proof-of-concept complete product architecture
Marketing
Develop extended product family
Develop marketing plan
Design
Describe all subsystems and components
Develop software and firmware
Create prototypes of each subsystem
Select geometric layout and create industrial design
Choose all parts and tolerances
Manufacturing
Identify suppliers
Create assembly scheme
Define assembly process and obtain tooling
“Control documentation”
Phase 0:Phase 0:
PlanningPlanning
Phase 1:Phase 1:
ConceptConcept
DevelopmentDevelopment
Phase 2:Phase 2:
SystemSystem--LevelLevel
DesignDesign
Phase 3:Phase 3:
DetailDetail
DesignDesign
Phase 4:Phase 4:
Testing andTesting and
RefinementRefinement
Phase 5:Phase 5:
ProductionProduction
RampRamp--UpUp
Generic Design Process
Control documentation prototypes
Marketing
Develop plans for field testing
Design
Create alpha and beta prototypes
Performance and reliability testing
Iterate and refine design
Manufacturing
Refine assembly and fabrication schemes
Create quality assurance strategy
Phase 0:Phase 0:
PlanningPlanning
Phase 1:Phase 1:
ConceptConcept
DevelopmentDevelopment
Phase 2:Phase 2:
SystemSystem--LevelLevel
DesignDesign
Phase 3:Phase 3:
DetailDetail
DesignDesign
Phase 4:Phase 4:
Testing andTesting and
RefinementRefinement
Phase 5:Phase 5:
ProductionProduction
RampRamp--UpUp
Generic Design Process
Prototypes products
Marketing
Get first-run products to “preferred customers”
Design
Evaluate first-run output
Relax a little
Pray that everything works
Manufacturing
Start production
Make sure you don’t use lead paint from China
Phase 0:Phase 0:
PlanningPlanning
Phase 1:Phase 1:
ConceptConcept
DevelopmentDevelopment
Phase 2:Phase 2:
SystemSystem--LevelLevel
DesignDesign
Phase 3:Phase 3:
DetailDetail
DesignDesign
Phase 4:Phase 4:
Testing andTesting and
RefinementRefinement
Phase 5:Phase 5:
ProductionProduction
RampRamp--UpUp
Isn’t This All Obvious?
Yes and no
Taken individually, you could probably think up
most of the product development issues and
tasks covered in this class
Taken collectively, it takes experience to
produce a thorough product development
process from start to finish
This class guides the process step-by-step with
“structured methods” for each step
Within each step, some items might be “obvious”,
but combining all of the steps will produce a result
greater than the sum of the parts
Intermission
ECE520.427
Class #2
Product Development
and
Product Planning
Product Planning
Corporations typically plan products many years
in advance
Product planning ensures that products support
overall business strategy
Determine mix of new products vs. upgrades
Optimize past experience as leverage into new
products
Decide which market segments to target
Phase 0:Phase 0:
PlanningPlanning
Phase 1:Phase 1:
ConceptConcept
DevelopmentDevelopment
Phase 2:Phase 2:
SystemSystem--LevelLevel
DesignDesign
Phase 3:Phase 3:
DetailDetail
DesignDesign
Phase 4:Phase 4:
Testing andTesting and
RefinementRefinement
Phase 5:Phase 5:
ProductionProduction
RampRamp--UpUp
Example: Xerox
Types of product development projects:
New product platforms, derivatives of existing
platforms, incremental improvements to existing
products, and fundamentally new products
1996 1997 1998 1999 2000
Hodaka
Lakes
H-Net
L-Net
Astro
595 6010 392 393
New
Platforms
Derivatives
Improvements
Fundamentally New
Legend
Project
Product
Release
Evaluating Projects
Step 1: Identify market opportunities
Step 2: Evaluate opportunities
Four perspectives for evaluation:
Competitive strategy
Market segmentation
Technological trajectories
Product platforms
Competitive Strategy
Defines the company’s approach to
markets and competitors – “reputation”
Technology leadership
Cost leadership
Customer focus
Market Segmentation
Technological Trajectories
TimeTime TimeTime
todaytoday
Product Platforms and
Technology Roadmaps
Product Platforms and
Technology Roadmaps
Functional Elements
Photo-
receptor
Scanner
Layout
Toner
Type
Output
Modes
User
Interface
Cylindrical
Drum
2D CCD Array
w/Optical Reduc.
Keypad
3-Pitch Belt
Photoreceptor
Full-Width, Linear Array
without Optical Reduction
Touch Screen, Remote PC
Color: Paper, Fax, Scan,
Local Network, Internet
Document
Centre
220, 230
Document
Centre
240, 255, 265
Document
Centre
2XX
Hodaka
Project
Lakes
Project
Lakes
Extensions
Document
Centre
3XX
Next
Platform
Technologies
n-Pitch Belt
Photoreceptor
High
Temperature
Low Melting
Point
Low Melting Point,
Low Emission
Touch Screen
Image
Processing
Automatic Image Quality
Diagnostics On-Board
Diagnostics
Remote-Dialup
Diagnostics
Remote
Repair
Time
1200 dpi600/1200 dpi 1800 dpi600 dpi
Monochrome: Paper, Fax, Scan,
Local Network, Internet
Product Platforms and
Technology Roadmaps
Product Platforms and
Technology Roadmaps
“In the course of the past several months, it has become clear that the right
path for Palm is to offer a single, consistent user experience around this new
platform design and a single focus for our platform development efforts. To that
end, and after careful deliberation, I have decided to cancel the Foleo mobile
companion product in its current configuration and focus all of our energies on
delivering our next generation platform and the first smartphones that will bring
this platform to market. We will, of course, continue to develop products in
partnership with Microsoft on the Windows Mobile platform, but from our
internal platform development perspective, we will focus on only one.”
– Ed Colligan, CEO of Palm, Inc.
Product Planning Process
1. Identify opportunities
2. Evaluate and prioritize products
3. Allocate resources and plan timing
4. Complete pre-project planning
5. Reflect on the results and the process
Product “Mission Statement”
Evaluate and
Prioritize
Projects
Allocate
Resources and
Plan TimingPortfolio
of
Projects
Multiple Projects
Complete
Pre-Project
PlanningProduct
Plan
Mission
Statements
Product
Development
Process
Identify
Opportunities
Mission Statement
The Mission Statement provides a detailed
definition of the assumptions under which the
product will be developed, including:
One-sentence description of the product
(avoid implying a specific product concept)
Benefit proposition
Key business goals (time, cost, quality)
Target market(s)
Target price
Assumptions and constraints
Stakeholders
Intermission
Outline: Class #2
Introduction to product design and
development
Product development process
Intermission – get more popcorn
Product planning
Homework assignment #1
Product Development Task #1:
Opportunity Statement
An opportunity statement is a one- or two-
sentence description of a product or market
opportunity
Should not imply the use of any particular
technology
Should not imply a specific product concept
Example:
“Create a simple bedside device that displays internet weather
forecasts so you can see what the weather will be when you wake
up in the morning.”
Product Development Task #1:
Opportunity Statement
Make a “pitch” in three slides
Explain problem, need, or motivation
Explain necessary elements in solution
Summarize with opportunity statement
Assignment Schedule
Monday (9/15) – email me your opportunity
statement and your slides
Tuesday (9/16) – be ready to make a short (< 5
minute) presentation with your slides
At the end of class, everyone will vote for their
preferred product.
We’ll review votes and form teams.
Thursday (9/18) – we’ll announce the product
development teams by in-class and provide
some feedback
Monday (9/22) – each team will email me a team
Mission Statement (HW #2)
Review: Homework #1
Due (email) by September 15
Written opportunity statement
Three (3) slides to make pitch
Also due by September 15: take online Jung
typology test and email me the results.
Before student presentations and team selection,
we’ll talk about teamwork and group dynamics
The results of the online typology test will help us to
customize the discussion to the students in the class
Link to test is on course website
How to Identify Opportunities
Potential sources:
Think about the frustrations and complaints your friends have
about existing products
Think about inefficiencies in your daily routine
Read a recent issue of Wired or Popular Science and get
inspired by new technologies
Scan the TOC of Proc. IEEE for the past few months to get an
idea of emerging trends
Methods to keep track of opportunities:
Keep an “opportunity database” on your computer; text-message
or email yourself when you think of an idea
Keep a running list of opportunities on your PDA
Write ideas down on a small piece of paper that you keep in your
wallet or purse
Next Class
In class:
Guest lecture on teamwork and group dynamics
Student presentations – product pitches
Before class:
Read U & E chapters 1, 2 & 3
Complete online typology test
Submit opportunity statement, slides, and
typology results via email

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Class2

  • 2. Outline: Class #2 Introduction to product design and development Product development process Intermission – get some popcorn Product planning Homework assignment #1
  • 3. What is Product Design and Development? Product development is a set of activities starting with the perception of a market opportunity and ending with the sale of a product Product design is one aspect of the development process Engineering design specifies how the technical systems will work Industrial design specifies the aesthetics, ergonomics, and user interface Other development activities include marketing and manufacturing Success of the product typically depends on the success of all three development activities
  • 4. Successful Product Development Marketing (pre-design) Identification of market opportunities (pre-design) Identification of customer needs (pre-design) Identification of target pricing (post-design) Promotion of product Design Product quality Product cost (includes development cost) Development time Development capability Manufacturing Production system Supply chain
  • 5. Examples Good market research and bad design: Archos vs. Apple Archos 20GB Released October 2001 350 g, 1.3” thick File-based organization system Ugly interface iPod 5GB Released November 2001 184 g, 0.78” thick ID3-based organization system Pretty interface
  • 6. Examples Good design and marketing and bad manufacturing Example 1: Wii Example 2: Lenovo X61 Tablet
  • 7. Why Is Good Product Development Difficult? Trade-offs Dynamics Details Time pressures Economics
  • 8. Generic Design Process Phase 0:Phase 0: PlanningPlanning Phase 1:Phase 1: ConceptConcept DevelopmentDevelopment Phase 2:Phase 2: SystemSystem--LevelLevel DesignDesign Phase 3:Phase 3: DetailDetail DesignDesign Phase 4:Phase 4: Testing andTesting and RefinementRefinement Phase 5:Phase 5: ProductionProduction RampRamp--UpUp MarketingMarketing DesignDesign ManufacturingManufacturing
  • 9. Generic Design Process Marketing Describe market opportunity Design Consider existing product platform (if any) Consider new technologies Manufacturing Identify production and/or corporate constraints Other Allocate project resources Mission statement Phase 0:Phase 0: PlanningPlanning Phase 1:Phase 1: ConceptConcept DevelopmentDevelopment Phase 2:Phase 2: SystemSystem--LevelLevel DesignDesign Phase 3:Phase 3: DetailDetail DesignDesign Phase 4:Phase 4: Testing andTesting and RefinementRefinement Phase 5:Phase 5: ProductionProduction RampRamp--UpUp
  • 10. Generic Design Process Market opportunity product concept Marketing Identify customer needs Research competitive landscape Design Develop concepts Determine feasibility of design concepts Build and test prototypes Manufacturing Estimate manufacturing costs Other Investigate IP issues Product concept and proof-of-concept prototype Phase 0:Phase 0: PlanningPlanning Phase 1:Phase 1: ConceptConcept DevelopmentDevelopment Phase 2:Phase 2: SystemSystem--LevelLevel DesignDesign Phase 3:Phase 3: DetailDetail DesignDesign Phase 4:Phase 4: Testing andTesting and RefinementRefinement Phase 5:Phase 5: ProductionProduction RampRamp--UpUp
  • 11. Generic Design Process Phase 0:Phase 0: PlanningPlanning Phase 1:Phase 1: ConceptConcept DevelopmentDevelopment Phase 2:Phase 2: SystemSystem--LevelLevel DesignDesign Phase 3:Phase 3: DetailDetail DesignDesign Phase 4:Phase 4: Testing andTesting and RefinementRefinement Phase 5:Phase 5: ProductionProduction RampRamp--UpUp ProductProduct PlanningPlanning Identify CustomerIdentify Customer NeedsNeeds Product SpecificationsProduct Specifications ConceptConcept GenerationGeneration ConceptConcept SelectionSelection ConceptConcept TestingTesting Product ArchitectureProduct Architecture Industrial DesignIndustrial Design Design for ManufacturingDesign for Manufacturing PrototypingPrototyping Robust DesignRobust Design Patents, IP, and EconomicsPatents, IP, and Economics
  • 12. Generic Design Process Proof-of-concept complete product architecture Marketing Develop extended product family Develop marketing plan Design Describe all subsystems and components Develop software and firmware Create prototypes of each subsystem Select geometric layout and create industrial design Choose all parts and tolerances Manufacturing Identify suppliers Create assembly scheme Define assembly process and obtain tooling “Control documentation” Phase 0:Phase 0: PlanningPlanning Phase 1:Phase 1: ConceptConcept DevelopmentDevelopment Phase 2:Phase 2: SystemSystem--LevelLevel DesignDesign Phase 3:Phase 3: DetailDetail DesignDesign Phase 4:Phase 4: Testing andTesting and RefinementRefinement Phase 5:Phase 5: ProductionProduction RampRamp--UpUp
  • 13. Generic Design Process Control documentation prototypes Marketing Develop plans for field testing Design Create alpha and beta prototypes Performance and reliability testing Iterate and refine design Manufacturing Refine assembly and fabrication schemes Create quality assurance strategy Phase 0:Phase 0: PlanningPlanning Phase 1:Phase 1: ConceptConcept DevelopmentDevelopment Phase 2:Phase 2: SystemSystem--LevelLevel DesignDesign Phase 3:Phase 3: DetailDetail DesignDesign Phase 4:Phase 4: Testing andTesting and RefinementRefinement Phase 5:Phase 5: ProductionProduction RampRamp--UpUp
  • 14. Generic Design Process Prototypes products Marketing Get first-run products to “preferred customers” Design Evaluate first-run output Relax a little Pray that everything works Manufacturing Start production Make sure you don’t use lead paint from China Phase 0:Phase 0: PlanningPlanning Phase 1:Phase 1: ConceptConcept DevelopmentDevelopment Phase 2:Phase 2: SystemSystem--LevelLevel DesignDesign Phase 3:Phase 3: DetailDetail DesignDesign Phase 4:Phase 4: Testing andTesting and RefinementRefinement Phase 5:Phase 5: ProductionProduction RampRamp--UpUp
  • 15. Isn’t This All Obvious? Yes and no Taken individually, you could probably think up most of the product development issues and tasks covered in this class Taken collectively, it takes experience to produce a thorough product development process from start to finish This class guides the process step-by-step with “structured methods” for each step Within each step, some items might be “obvious”, but combining all of the steps will produce a result greater than the sum of the parts
  • 18. Product Planning Corporations typically plan products many years in advance Product planning ensures that products support overall business strategy Determine mix of new products vs. upgrades Optimize past experience as leverage into new products Decide which market segments to target Phase 0:Phase 0: PlanningPlanning Phase 1:Phase 1: ConceptConcept DevelopmentDevelopment Phase 2:Phase 2: SystemSystem--LevelLevel DesignDesign Phase 3:Phase 3: DetailDetail DesignDesign Phase 4:Phase 4: Testing andTesting and RefinementRefinement Phase 5:Phase 5: ProductionProduction RampRamp--UpUp
  • 19. Example: Xerox Types of product development projects: New product platforms, derivatives of existing platforms, incremental improvements to existing products, and fundamentally new products 1996 1997 1998 1999 2000 Hodaka Lakes H-Net L-Net Astro 595 6010 392 393 New Platforms Derivatives Improvements Fundamentally New Legend Project Product Release
  • 20. Evaluating Projects Step 1: Identify market opportunities Step 2: Evaluate opportunities Four perspectives for evaluation: Competitive strategy Market segmentation Technological trajectories Product platforms
  • 21. Competitive Strategy Defines the company’s approach to markets and competitors – “reputation” Technology leadership Cost leadership Customer focus
  • 25. Product Platforms and Technology Roadmaps Functional Elements Photo- receptor Scanner Layout Toner Type Output Modes User Interface Cylindrical Drum 2D CCD Array w/Optical Reduc. Keypad 3-Pitch Belt Photoreceptor Full-Width, Linear Array without Optical Reduction Touch Screen, Remote PC Color: Paper, Fax, Scan, Local Network, Internet Document Centre 220, 230 Document Centre 240, 255, 265 Document Centre 2XX Hodaka Project Lakes Project Lakes Extensions Document Centre 3XX Next Platform Technologies n-Pitch Belt Photoreceptor High Temperature Low Melting Point Low Melting Point, Low Emission Touch Screen Image Processing Automatic Image Quality Diagnostics On-Board Diagnostics Remote-Dialup Diagnostics Remote Repair Time 1200 dpi600/1200 dpi 1800 dpi600 dpi Monochrome: Paper, Fax, Scan, Local Network, Internet
  • 27. Product Platforms and Technology Roadmaps “In the course of the past several months, it has become clear that the right path for Palm is to offer a single, consistent user experience around this new platform design and a single focus for our platform development efforts. To that end, and after careful deliberation, I have decided to cancel the Foleo mobile companion product in its current configuration and focus all of our energies on delivering our next generation platform and the first smartphones that will bring this platform to market. We will, of course, continue to develop products in partnership with Microsoft on the Windows Mobile platform, but from our internal platform development perspective, we will focus on only one.” – Ed Colligan, CEO of Palm, Inc.
  • 28. Product Planning Process 1. Identify opportunities 2. Evaluate and prioritize products 3. Allocate resources and plan timing 4. Complete pre-project planning 5. Reflect on the results and the process Product “Mission Statement” Evaluate and Prioritize Projects Allocate Resources and Plan TimingPortfolio of Projects Multiple Projects Complete Pre-Project PlanningProduct Plan Mission Statements Product Development Process Identify Opportunities
  • 29. Mission Statement The Mission Statement provides a detailed definition of the assumptions under which the product will be developed, including: One-sentence description of the product (avoid implying a specific product concept) Benefit proposition Key business goals (time, cost, quality) Target market(s) Target price Assumptions and constraints Stakeholders
  • 31. Outline: Class #2 Introduction to product design and development Product development process Intermission – get more popcorn Product planning Homework assignment #1
  • 32. Product Development Task #1: Opportunity Statement An opportunity statement is a one- or two- sentence description of a product or market opportunity Should not imply the use of any particular technology Should not imply a specific product concept Example: “Create a simple bedside device that displays internet weather forecasts so you can see what the weather will be when you wake up in the morning.”
  • 33. Product Development Task #1: Opportunity Statement Make a “pitch” in three slides Explain problem, need, or motivation Explain necessary elements in solution Summarize with opportunity statement
  • 34. Assignment Schedule Monday (9/15) – email me your opportunity statement and your slides Tuesday (9/16) – be ready to make a short (< 5 minute) presentation with your slides At the end of class, everyone will vote for their preferred product. We’ll review votes and form teams. Thursday (9/18) – we’ll announce the product development teams by in-class and provide some feedback Monday (9/22) – each team will email me a team Mission Statement (HW #2)
  • 35. Review: Homework #1 Due (email) by September 15 Written opportunity statement Three (3) slides to make pitch Also due by September 15: take online Jung typology test and email me the results. Before student presentations and team selection, we’ll talk about teamwork and group dynamics The results of the online typology test will help us to customize the discussion to the students in the class Link to test is on course website
  • 36. How to Identify Opportunities Potential sources: Think about the frustrations and complaints your friends have about existing products Think about inefficiencies in your daily routine Read a recent issue of Wired or Popular Science and get inspired by new technologies Scan the TOC of Proc. IEEE for the past few months to get an idea of emerging trends Methods to keep track of opportunities: Keep an “opportunity database” on your computer; text-message or email yourself when you think of an idea Keep a running list of opportunities on your PDA Write ideas down on a small piece of paper that you keep in your wallet or purse
  • 37. Next Class In class: Guest lecture on teamwork and group dynamics Student presentations – product pitches Before class: Read U & E chapters 1, 2 & 3 Complete online typology test Submit opportunity statement, slides, and typology results via email