The document outlines two approaches to product development: traditional and lean. Traditional product development follows a linear process from planning to production, while lean product development focuses on efficiency by minimizing resources and eliminating waste. It contrasts strategies, engineering practices, organizational structures, financial reporting, and approaches to failure and speed in both methodologies.

1. PRODUCT DEVELOPMENT
IN THEORIES
Renny Wijayanti

2. Outline
1. 2 kind of approaches of Product Development
2. Traditional Product Development
3. Lean Product Development
4. Strategy
5. New Product Process
6. Engineering
7. Organization
8. Financial Reporting
9. Failure
10. Speed

3. 2 kind of approaches of Product Development
Product
Development
Traditional
Product
Development
Lean
Product
Development

4. Traditional Product Development
Phase 0
• Planning
Phase 1
• Concept
Development
Phase 2
• System-
Level Design
Phase 3
• Detail
Design
Phase 4
• Testing and
Refinement
Phase 5
• Production
Ramp-Up
Set of activities with the perceptions of market opportunity and ending in the production,
sale, and delivery of product
Sequence of steps or activities that an enterprise employs to conceive, design, and
commercialize a product.

5. Lean Product Development
• An approach that used less of
everything, less manufacturing
space, tooling, raw materials,
inventory, and labor, and did it
significantly faster and cheaper
than traditional mass-production
techniques.
• Set of principles or fundamental
truth that defines behavior,
eliminating waste, and project
management principles for
achieving quality, speed, and
customer alignment strategy.
• Lean practices eliminating anything
that isn’t adding value to the task
being done, and provides
resources only to what needs to be
done at any time.

6. Strategy
Traditional Product Development Lean Product Development
• Business Plan
• Implementation-driven
• Business Model
• Hypothesis-driven

7. New Product Process
Traditional Product Development Lean Product Development
• Product Management
• Prepare offering for market
following a linear, step-by-step plan
• Customer Development
• Get out the officers and test
hypotheses

8. Engineering
Traditional Product Development Lean Product Development
• Waterfall development
• Build the product interactively, of
fully specify the product before
building the product
• Agile Development
• Build the product iterattively and
incrementally

9. Organization
Traditional Product Development Lean Product Development
• Department by function
• Hire for experience and ability to
execute
• Customer and agile development
teams
• Hire for learning, nimbleness, and
speed

10. Financial Reporting
Traditional Product Development Lean Product Development
• Accounting
• Income statement, balance sheet,
cash flow statement
• Matrics that matters
• Customer acquisition cost, lifetime
customer value, churn, viralness

11. Failure
Traditional Product Development Lean Product Development
• Exception
• Fix by firing executives
• Expected
• Fix by iterating on ideas and
pivoting away from ones that don’t
work

12. Speed
Traditional Product Development Lean Product Development
• Measured
• Operates on complete data
• Rapid
• Operates in good enough data

13.  Thank You 