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2011 AXIS

Product Development Strategy

&

Design Iteration

Clement Uwajeneza, AXIS

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About AXIS

2011 AXIS

Created in 2006, AxIS is today the Rwandan leader in innovativeSoftware and Web Presence Solutions.

AXIS has a team of 12 People (7 ICT Experts)

AXIS has successfully implemented more than 20 ICT Projects

AxIS was awarded the ICT Best SME 2010 RDB Business ExcellenceAward.

AxIS assists its clients at every stage of their organization sizes in three

areas:

Information Systems consulting, Software Implementation projects management,

Web Presence and eBusiness Solutions.

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Structure the Lecture

2011 AXIS

Theory Concepts related to Product Development Strategy

Cases Products developed at AXIS

Projects conducted for Clients

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Highlights

2011 AXIS

New Product Development Strategy

New Product Development Design

New Product Development Types New Product Development Process

New Product Development Levers

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Why a strategy?

2011 AXIS

New Product Failures

Overestimating market size

Poor marketing research Design Problems

Excessive development Costs

Incorrectly positioned, priced or advertised

Competitive reaction

Cases:

KIVU Coffee Company

MIS

RBO

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2011 AXIS

New Product Development Strategy

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NPD Strategy - Approaches

2011 AXIS

Original Product (ex: Akabanga)

Acquisition (ex: Googles Android, MS -

Skype)

Product Improvements (ex: iPhone5 Vs.

iPhone4)

Product Modifications (ex: Tuza

Accounting System)

New Brands through R&D (ex: Amazons

Kindle)

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NPD Strategy Value Add

2011 AXIS

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NPD Strategy Planning Level

2011 AXIS

Cases:

AXIS

RBO

eDocs

Knownet

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New Product Development Process

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New Product Development Types

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NPD Types

2011 AXIS

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New Product Development Process

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New Product Development Process

NPD Process

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2011 AXIS

NPD Process - Opportunity

Internal Sources

Company Employees at all level

External Sources

Customers

Competitors

Distributors

Suppliers

Outsourcing

Cases:

RBO

Tuza Accounting System

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2011 AXIS

NPD Process Idea Generation

Cross Functional Team

Generate Ideas

Brainstorming

Suspend judgment

Encourage creativity

Identify Opportunity Areas

Problem solving to bring new ideas to the table

Sketching or prototype

Idea prioritization

Generate New Product Concepts and evaluate against a

set of parameters.

Cases:

KIVU Coffee Company

MIS

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2011 AXIS

NPD Process Concept Development

Done by Marketing and/or Advertising AgencyConducting Focus Groups Objectives

Judge whether the concept fits the opportunity area, and constraints

Refine and / or describe the product concept

o What it is :

o What benefit(s) will it deliver to the user

oKey information size, varieties, package, priceCases:

Bus Ticketing System

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2011 AXIS

NPD Process Concept Screening

Produce a Concept Board

Conduct a survey

Representative sample of end users via Internet, Panel

Show concept and ask buying intent, uniqueness, value

Analyze the results

Compare scores to internal criteria, benchmarks, norms

Forecast Trial

If end user shows interest in trying the product during the trial

forecast, then the concept qualifies for developmentIt clears the

first stage gate.

Cases:

Tuza Accounting

System

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2011 AXIS

NPD Process Product Development

Initial stages with broad design parameters

Produce early prototypes Show and obtain feedback from end users

Refine design

Fine tune & finalize design

Vary formulations on key ingredients

Conduct product testing amongst end users

Experimental designs offer most powerful learning

Optimize final design and packaging

Cases:

RBO

Tuza AS

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2011 AXIS

NPD Process Position Development

Develop positioning Target : Benefit(s) : Frame of Reference : Support

Develop communications strategies

Media strategy

Test & refine copy

Qualitative researchCommunications Check

Produce, test and refine the advertisements

Conduct final test (Stage Gate Review)

Cases:

RBO

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2011 AXIS

NPD Process Marketing Plan

Final Positioning Statement Sales Plan (Who will sell it? : Where will it be sold?)

Advertising Media Plan (How will we advertise it?)

Promotion Plan

Consumer promotion (coupons), Trade promotion (on-sale)

Production Plan

How will we make it? (make / buy analysis) Financial Plan

How do we make the profit necessary to satisfy our share holders?

Fixed Costs : Variable Costs : Breakeven : Targeted ROI

Cases: RBO

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2011 AXIS

NPD Process Test Marketing

Two Stages: Simulated Test Market

(Beta testing)

Live Test Market(On market testing)

Cases: RBO

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2011 AXIS

NPD Process Product Development

National expansion of product Develop market rollout plan

Can involve significant capital investment

Can involve distribution costs

Slotting fees : Sales incentives

Build product into a Platform

Maintain growth and sustain competitive advantage

Cases: RBO

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2011 AXIS

New Product Development Levers

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2011 AXIS

NPD Levers Time to Market

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2011 AXIS

NPD Process Product Development

New Product Development Process is used to reduce the risk offailure, and produce new winning products

It should start with an opportunity identification step

The Fuzzy Front End considers a lot of alternatives

Business analysis occurs throughout the process

Stage Gates are built in:

At the concept test stage to justify development costs

At the test market stage to justify going to market.

The Marketing Plan includes a comprehensive set of plans that

involve Sales, Finance, Promotions, Advertising and Production