Product Development Principles

S15: Product Development Principles
Technology and Innovation

Contents
1 Introduction
2 New Product Development Funnel
3 Stage 1: Idea Generation & Opportunity Evaluation
4 Stage 2: Product Concept Development
5 Stage 3: Concept Testing
6 Stage 4: Design and Engineering Products
7 Stage 5: Prototype Development and Testing
8 Summary of the Principles
9 References
© 2017. All Rights Reserved.

• New product development is the complete
process of bringing a new product or service
to market
Introduction
• New product development may be done to
develop an item to compete with a particular
product or may be done to improve an already
established product
https://www.youtube.com/watch?v=3ocvBg_-wjw

New Product Development Funnel

Stage 1: Idea Generation &
Opportunity Evaluation
 Capturing consumers, suppliers and employees point of view
 Most challenging part is to capture the voice of the customer,
assess customer needs, measure preferences, and predict
new product purchase behavior

Sparking Innovation through
Empathetic Design
Conducting the proper research to
target empathic design not only can
build this connection
but also can help a company innovate
new products or solutions for
problems the user never asked for or
never thought could be solved.
Ex. Empathetic design techniques are
most essential while designing web
products
HP Example
https://www.youtube.com/watch?v=
pXtN4y3O35M&feature=youtu.be

The more different
“spaces” are explored,
the higher the probability
that the best ideas will
be good ideas that can
position the organization
to satisfy customer
needs in new and
creative ways.
Available at Amazon.com
3D Printing © 2017. All Rights Reserved.

Brainstorming
& Brainwriting
The Idea
Game
Morphological
Analysis
Stage 2: Product Concept
Development
Brainstorming
• Shared problem solving
• Contribute ideas including
unrealistic ideas
• Key rule: criticism forbidden
Brainwriting
• Write down ideas instead
of calling them out in front
of the group
• Use of index cards
• Reads the ideas; either tries
to elaborate on them, or
tries to use them to
generate additional ideas
• Cards are repeatedly &
continuously passed
around the group
• Web based methods
• Participants can post
ideas, expand ideas, and
comment on ideas at their
convenience from
anywhere in the world
• Ideas are organized in
threads so that
participants can easily
build upon other ideas
• Incentives are balanced so
that respondents think
hard and post only those
ideas that are new,
different, and incremental
• Example: Crowdsourcing
• Method for identifying and
investigating the total set of
interesting new combinations of
product attributes and features
• Lists the key attributes of the
given product or service
• Team creates a table using each
of these attributes as column
headings
• Generates as many existing and
potential variations of each
individual attribute
• It entails randomly selecting one
item from each column and
investigating the novelty,
plausibility and applicability of
each combination.

Forced
Relationships
Systems
Approaches
Varied
Perspectives
• Relies upon the creation
of a forced relationship
between two or more
normally unrelated
products or ideas
• Example: The ongoing
series of innovations
coming from cell phone
manufacturers
• Using cell phones as
credit cards – replacing
the need to carry and use
plastic credit cards when
purchasing goods and
services
• Attention on how the
product or service fits
into the overall life of the
user
• This approach is based
on the premise that
there exists in life a
universal “system” of
organization that
underlies the whole of
our experiences
• The NPD team’s ability to
listen to customers’
needs and generate
product/service ideas
designed to satisfy them
can be greatly enhanced
by understanding how
the firm’s offerings fit
into the lives (systems) of
its customers.
• Members of a product
design team often have
diverse creative
perspectives
• DeBono’s six hats model
represents the variety of
different member
perspectives
• White hat - information,
Red hat - feelings, Black
hat - caution, Green hat -
creative energy hat ,
Blue hat - thinking
process itself, and the
Yellow hat - benefits of a
suggestion
• Analyze the idea from
the perspective of each
one of the six hats so as
to improve
communications and
foster creative exchange.

Archival Analysis Incentive Templates
• Involves critically and judiciously gathering
and analyzing the ideas of others who have
solved problems in other domains
• Document and summarize all solutions to
problems that are relevant to the firm or the
NPD team
• Creates a universal table or template that
lists possible solutions to potential problems
facing the NPD team
• The Kano model characterizes product
features according to their relationship to
customer expectations
• Ideation is more effective when the NPD
team focuses on well-defined schemes that
are derived from an historical analysis of
new products.
• Systematic change between an existing
solution and a new solution and provide a
method by which the PD team can make
these changes in a series of smaller steps
called “operators:”
• Exclusion, inclusion, unlinking, linking,
splitting, and joining.
• For example, how a new car concept was
developed by creating a dependency
between color and the location of a car’s
parts. Specifically, Volkswagen’s “Polo
Harlequin” features differently colored parts
and has become quite popular in Europe
even though it was initially intended as an
April Fools’ joke

Stage 3: Concept Testing
Definition: Concept testing (or market testing) is the process of using
quantitative methods and qualitative methods to evaluate consumer
response to a product idea prior to the introduction of a product to the
market.
Evaluations on such measures as consumer relevance (how
important is the consumer need being addressed by the innovation),
consumer purchase interest, and dissatisfaction with currently
available products are used to prioritize ideas for further testing,
evaluation, and funding.
Steps in Concept Testing:
• Concept Definition
• Concept Evaluation
• Forecasting

Voice Of Customer

Concept Presentation Describe the concept completely. Use graphics, videos, audio, samples,
or whatever best portrays the concept, associated attribute and benefit
messages being tested.
Overall Concept Reaction
Measurement
• Concept need / relative improvement over current method of doing
things
• Overall reaction to the concept (acceptability, desirability, interest)
• Likelihood of purchase of concept
Detailed Concept Analysis
Evaluation
• Likes and dislikes about the concept
• Attribute list evaluation
• Awareness of competing products
• Awareness of substitute and complementing products
• Superiority over other existing products
Use Situation Evaluation • Likelihood of use in specified situations
• Current use of similar / competing products
• Frequency of product use
Value Analysis • Estimate product value
• Price sensitivity analysis
• Preferred method of purchase
Segmentation Analysis Market segments most likely to use (order and prioritize)

Quality is a must : TQM
TQM is a management philosophy that seeks to integrate all organizational
functions (marketing, finance, design, engineering, and production, customer
service, etc.) to focus on meeting customer needs and organizational objectives.
• Commitment by senior
management and all employees
• Meeting customer requirements
• Reducing development cycle times
• Just in time/demand flow
manufacturing
• Improvement teams
• Reducing product and service
costs
• Systems to facilitate improvement
• Line management ownership
• Employee involvement and
empowerment
Management Commitment
Employee Empowerment
Fact Based DM
Continuous Improvement
Customer Focus

Early Supplier Involvement
Early supplier involvement adds another dimension of expertise to your
existing design team during the planning, design and manufacturing phases.
This broadened knowledge base makes it easier to keep pace with rapid
technology and material developments as well as your industry’s demands for
shorter product life cycles.
An early client/supplier alliance can enhance the design and manufacturing
process by:
• Assessing the supplier’s capabilities and understanding of materials and
manufacturing processes
• Improving overall design and quality
• Increasing manufacturability
• Discovering design and production efficiencies
• Reducing concept to end-user development time

Stage 4: Designing and Engineering
Products
“Once the products are conceptualized, they need to be designed and
engineered to match customer specification and company objectives
like cost and profitability”
Conjoint Analysis
Value Engineering
Two Techniques used to do the same are as below

Conjoint Analysis
Goal of Conjoint Analysis
Determine the level of each product feature that would be the
most acceptable to an identified segment of customers.
Infer the contribution of each feature to the perceived
value which is derived from the product.
Estimate the contribution to utility of each feature at each of
its levels

Value Engineering

Target Costing: DFMA
“Production cost is an important factor in the marketing success of a
new product”
Market Share Improvement due to lower prices.
Market Growth due to lower prices.
Economies of Scale.
Quality Improvements.
Benefits due to Learning Curve.
Strategic Benefits due to competitive disincentives.
Benefits of Reducing Unit Production Cost

Stage 5: Prototype Development
& Testing
NEED OF PROTOTYPING:
• Enables us to explore the problem space with the stakeholders.
• As a requirements artifact to initially envision the system.
• As a design artifact that enables us to explore the solution
space of the product
• A potential foundation from which to continue developing the
product
TYPES OF PROTOTYPING:
• Physical
• Non- Physical

Journey of the Prototyping process
Goals
Functionality
Evaluate
Develop

• Tests conducted to validate
form, fit and function.
• Tests Plans:
- A description of the type of tests to
be performed, the timing when they
are to be completed, and the
resources to be expended.
Modes of Failure
Manufacturability
Operation/Maintenance
Safety
Environmental
-Provides a structure for organizing, scheduling, and managing the testing
program, and a means to communicate the test program details to all the
stakeholders, eliciting feedback and delegating responsibilities.
Testing Prototypes

Objectives –
list of items (parts, systems, models) to be tested
purposes for which the tests are being conducted
Workscope – narrative description:
type of tests,
test descriptions/procedures,
experimental setup,
experimental controls,
design of experiments test matrix, and
list of deliverables.
Budget
Schedule
Basic Components in a Test Plan

Summary of the Principles
1 • quality is a must - TQM approach
2 • a bias for cycle time reduction
3 • a bias for innovation
4 • coherent vision, strategy, plan and metrics
5 • a product-family oriented Business Unit
6 • listening to the Voice of the Customer
7 • a clearly defined and well-organized development process
8 • cross-functional product development teams
9 • supplier involvement early in the development process
10 • a development methodology

References
Spark Innovation Through Empathic Design by Dorothy
Leonard, HBR 2003
http://web.mit.edu/hauser/www/Papers/Chapter%208%20H
auser_Dahan%20Book%20Chapter%20on%20New%20Produ
cts.pdf
http://mcclarinplastics.com/early-supplier-involvement.html
http://lpd2.com/wp-
content/uploads/2013/06/ReinertsenFLOWChap1.pdf

Product Development Principles

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