The document discusses managing the front end of innovation, which includes idea generation, market and technology analysis, and preliminary opportunity identification. It emphasizes balancing creativity with structure through approaches that are customer-centric, flexible, and iterative. Key aspects of the front end discussed are formulating product and portfolio strategy, managing uncertainty through different new product development strategies, and addressing reality gaps to improve the learning process between ideas and successful new products.

1. >> Accelerating ideas to profits >>
Managing The Front End of Innovation
“Discover, cultivate and transform
good ideas into exciting new
products and services ”
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

2. NPD Life Cycle
Pre-Phase 0
NPD
(ongoing) << Front End >> Execution
Preliminary
Opportunity
Identification
Go / No-Go Specification
& Design
Idea Decision
Generation, Prototype Test
Market & & Validate
Technology
Analysis Volume
Phase Zero: Phase One:
Manufacturing
Product Feasibility and
Concept Project Planning
Market
Product & Launch
Portfolio
Strategy
ONGOING Product & Portfolio Strategy Formulation and Feedback
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

3. Uncertainty vs. NPD Strategy
Market Uncertainty
Market Radical
High
Innovation Innovation
Incremental Technical
Low
Innovation Innovation
Low High
Technical Uncertainty
Source: Lynn and Akgun
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

4. MFEI: Balancing Creativity with Structure
Chaos Order
Creative Balance Structured
Lots of ideas, minimal VOC Centric, Flexible, Systematic approach
constraints Iterative & with process models
Experiential Approach
Nothing gets done or Customer and Market Incremental
Solutions looking for focus. Market Improvements & “Me-
problems understands and too” products
values innovation
No revenue Innovation and Risk of market decline
Breakthrough
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

5. Design Thinking Balance
Desirability
Viability
Feasibility
Source: Tim Brown - IDEO
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

6. The ideal Product
• Customer’s reception of the product is
overwhelming!
• The product performance is absolutely
amazing – beats all the competition
• The cost is extremely low – much lower
than all the competitors!
• The product is so unique that nobody else
delivers a similar product
• Quality and reliability is best in class
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

7. Reality Gaps in the NPD Process
• Customer reception is low
– VOC information incorrect?
• Product performance is inadequate
– Flawed information transformation process and
information & creation process
• Excessive cost
– Development, Production, Operational
• Excessive competition
– Me too product
• Inadequate quality and reliability
– Upfront design flaws – immature technologies
– Lack of quality and development discipline
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

8. FEI & NPD is a “Learning” Process
• Learning what the customer really
wants and values
• Learning how to create and deliver
that value
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

9. Creative Process
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

10. Innovation Diamond & Four Points of
Performance
A clearly articulated
Product Innovation &
Technology Strategy for
the business
The right climate &
environment for Business's New Resource commitment &
Innovation: commitment, Product focusing on the right
support, effective NPD Performance projects: Portfolio
teams, role of sr mgmt Management
An idea-to-launch
framework for doing NPD
projects right: i.e. Stage-
Gate
Source: Dr. Cooper
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

11. Product Strategy: Four important questions:
• Who will be the target customers?
– Target customers, market boundaries
• What products will be offered?
– Includes determining breadth and depth of
product line
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

12. Product Strategy: (continued)
• How will products reach the customers?
– Specifies distribution channels to be used
• Why will the customers prefer our products
to those of competitors?
– Spells out the distinctive attributes and value
customers look for
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586