The document discusses factors that drive new product development (NPD), including human senses, emotions, trends, willingness to pay premium prices, and adapting to market and environmental changes. It outlines the NPD process from concept generation and prototyping to manufacturing and marketing. The future of NPD is seen as more collaborative with global design and production facilities and joint involvement of users and producers in product development.

1. NEW PRODUCT DEVELOPMENT A new ‘mantra’ in business success? OR The age-old yearning for “something new”?

2. What drives NPD – at human level 5 senses - Sight, sound, smell, taste and feel – stimulate about all our activity, e.g. Melodies in alarm clocks, ring-tones… Fragrances evoke freshness, attraction… Taste, smell and feel combined – make eating an exhilarating experience – against raw nutrition Emotions - Constant yearning for “better” and “new” stuff in all our lives

3. What drives NPD – new trends Never-satisfied customer “ Sexy cars” – collaboration of studio artists with engineers, beyond traditional auto needs of reliability, functionality, performance Increasing no. of gourmet restaurants - culinary art exploits nutrition science, technology and customer emotions Apple “Smart devices” provide ease of use and attractive forms - importance of visual & functional design blended with technology

4. What drives NPD – new trends Willingness to pay – for value against price Attractive margins for seller and producer on new solutions as against cut-throat pricing for mature products or me-too solutions Products must go beyond raw functionality, usability, performance, etc

5. What drives NPD – environment Market Buyer behavior, evolving needs and means Economic & social changes Markets – new demand, competition, gaps Technology New developments Potential to fill gaps or create new uses Art Observations of forms, functions, feelings Blending of all components into whole

6. Product Decisions What is the offering? Broad definition of user problem to address Credentials of the team or company What will it do? Features, functions For whom? Target market, Segment Why this one? Benefits, differences with existing solutions

7. Generating the Concept Product-Market Studies Creative/Studio inputs, Ideation Technology & Engg. Review Brainstorming, Distillation Product Concept, Dummy, Model MARKET TECHNOLOGY ART

8. Generating the concept Iterative process Is this what the market wants? What is the value proposition? What will it cost? Any competitive advantage? Competitive advantage may mean premium price (Price / No. of functions) of similar products If OK – build the design prototype If not – develop a new concept

9. From Concept to Product Product Concept, Dummy, Model Design Prototype, Evaluation Field Prototype, Field Report Specs OK? Product Engineering work begins – Product definition Tools, machines… Design evolution Quality Assurance process kicks in - Standards. Tests, Prototype evaluation Product Concept, Dummy, Model Design Prototype, Evaluation Field Prototype, Field Report Specs OK? OK Not OK Concept… … Product

10. Final Product and Process Field Prototype, Field Report Manufacturing Documentation Production Gear-up Performance OK? Quality Control process begins: Product & process standards Tests & evaluation Approvals Engineering requirements finalised: Details of product and process Man-Machine-Materials needs Manufacturing Prototype OK Not OK

11. Marketing Decisions Simultaneous to previous efforts: Target market definition Positioning statement e.g. “ For students and busy executives tired of carrying several devices for word processing, internet browsing, social networking, phone calls, messaging, remembering dates and taking lecture notes, the Simplator is a single low-cost device that records speech, converts into text and takes your voice command. Unlike the slew of palm-tops and smart cell-phones, this is a automated multitasking device that recognizes your needs and files each recorded note where required. It hangs like a pendent from your neck and fits in your top pocket, so that you may take lecture notes while you chat with friends. Batteries are charged by sunlight or bright overhead lights .”

12. Marketing Decisions Market entry strategy Concept selling, service, entry pricing, promotions, incentive schemes, sales channel… Hard or soft launch; Phased or “Big Bang” Consolidation strategy Re-pricing, product revision on customer feedback, fresh promotions, dealership or value-added resellers, production scale-up… Other decisions - facilities, funding…

13. Future of product development World moving toward ‘ Creative Economy ’ Globalized production and design facilities – connectivity via Internet, etc. Version 2.0 concepts in marketing, advertising and design – joint involvement and equal influence of user and producer

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