How to develop new products process, tips and pitfalls
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Transcript of How to develop new products process, tips and pitfalls
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New Product Development ProcessTips and Pitfalls February 2010
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New Product Development (NPD) Process
Prioritise ideas
Create design brief
Plan
Test
Optimise
Validate
Gather feedback
Support
Correct
Protect
Ramp-up
Launch
Gather
Research
Create
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Step 1 - Discover
Typical problems encountered during this phase include:
Insufficient 'good ideas' resulting from a lack of up-front marketing and research activities
A tendency for 'technology push' concepts in engineering-led companies (“We have developed this new technology; now where can we apply it?”)
Inadequate stakeholder exposure (involve all your departments, your customers and the users at an early stage to gain invaluable feedback)
Poor 'project portfolio management' resulting in too many projects and not enough resources
No involvement of industrial designers to help draw together the market and technology perspectives
Platform and product range opportunities not explored (don’t just focus on the first model, but consider an NPD roadmap for future development).
Good ideas rarely just happen. There needs to be a range of activities taking place to ensure that requirements and ideas are gathered from all relevant sources. You need to be very aware of what is happening in your market – who your customers are, how they are using (and abusing) your product, what their needs are, what the competition is doing and what trends are affecting your marketplace.
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GatherGather
Identify sources for ideas (team, end-users, retailers, distributors, tradeshows, conferences, experts, raw material manufacturers, etc)
Set up dialogue with each source and encourage 2-way flow of information and ideas
Identify sources for ideas (team, end-users, retailers, distributors, tradeshows, conferences, experts, raw material manufacturers, etc)
Set up dialogue with each source and encourage 2-way flow of information and ideas
DiscoverKey activities
ResearchResearch
Investigate unmet needs – ‘eyes and ears’ Segment market; create persona for your target groups Regularly research trends Research new technologies, science, ingredients for
inspiration Research customer activities (patents, R&D, new
products)
Investigate unmet needs – ‘eyes and ears’ Segment market; create persona for your target groups Regularly research trends Research new technologies, science, ingredients for
inspiration Research customer activities (patents, R&D, new
products)
CreateCreate
Set up systems to gather and collate ideas Hold regular Innovation Days to explore new
opportunities
Set up systems to gather and collate ideas Hold regular Innovation Days to explore new
opportunities
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Step 2 - Define
Typical problems encountered during this phase include:
A poor understanding of the market, with little attempt to identify the target customer
Inadequate understanding of user requirements, with focus on features rather than benefits
A weak business case, based only on your experience of the market and your hunches about the opportunity
Little consideration of the market, technical and commercial risks
During the Define stage you should aim to focus on a select few concepts to take forward and build up a clearer picture of the commercial and technical viability of your project and establish the criteria for success. The main output from this phase is a detailed product specification in addition to a clear business case to justify further investment.
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PrioritisePrioritise
Establish ‘need to have’ criteria (e.g. Fits with strategy) and eliminate ideas that don’t meet them
List criteria for market success (e.g. size, competition, extent of need) and technical success (e.g. feasibility of ingredients)
Establish ‘need to have’ criteria (e.g. Fits with strategy) and eliminate ideas that don’t meet them
List criteria for market success (e.g. size, competition, extent of need) and technical success (e.g. feasibility of ingredients)
DefineKey Activities
Create design briefCreate design brief
PlanPlan
Create planning document (commercialisation plan, financial plan, Intellectual Property, regulatory, packaging, supply chain, environmental assessment, risk assessment)
Create planning document (commercialisation plan, financial plan, Intellectual Property, regulatory, packaging, supply chain, environmental assessment, risk assessment)
Create 1-page brief – rationale, value proposition, benefit to customer, marketplace opportunity, constraints, success criteria)
Create 1-page brief – rationale, value proposition, benefit to customer, marketplace opportunity, constraints, success criteria)
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Step 3 - Develop
Typical problems encountered during this phase include: A tendency to choose the first solution, based on your personal
knowledge or experience, without considering other options
Poor integration of industrial and engineering design, resulting in 'stylish but un-manufacturable' or 'practical but ugly' concepts
Ad hoc approach, leading to component proliferation and supply chain inefficiencies
Insufficient involvement of customers for regular feedback on design and functionality
Prototypes developed too late or not at all, resulting in late design changes
Having defined the potential opportunity, the development stage is when you can start to search for possible solutions for your product. It is during this phase that usability issues and alternative technologies will be explored. The development stage should be iterative with early prototypes being tested and feedback used to refine the product.
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TestTest
Develop prototypes/mockups/samples of product and packaging for testing as soon as possible
Carry out laboratory testing (e.g. characterisation, origin, stability, toxicity, absorption, colour fading etc)
Set up Customer Advisory Group to provide feedback Gather consumer feedback (smell, colour, consistency,
efficacy, packaging, ergonomics, etc)
Develop prototypes/mockups/samples of product and packaging for testing as soon as possible
Carry out laboratory testing (e.g. characterisation, origin, stability, toxicity, absorption, colour fading etc)
Set up Customer Advisory Group to provide feedback Gather consumer feedback (smell, colour, consistency,
efficacy, packaging, ergonomics, etc)
DevelopKey Activities
OptimiseOptimise
Build feedback into new versions Repeat cycles
Build feedback into new versions Repeat cycles
ValidateValidate
Validate for:̶�market and̶�technical acceptability
Validate for:̶�market and̶�technical acceptability
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Step 4 - Implement
Typical problems encountered during this phase include: Late discovery of problems with supply of components / logistics /
manufacturability / distribution / usability that should have been identified and managed out at an earlier stage
Poor coordination and communication between functional groups with the result that one element of the project is ready for launch, but some other aspect is still work in progress
Rushing to launch to meet some external deadline (e.g. exhibition, Xmas) before basic technical problems have been resolved
Once the concept has been agreed, the next stage is to ramp up the project ready for launch. This means liaising with the various stakeholders from suppliers to internal departments to plan for resources, logistics and operations. Good project planning is a critical factor here, including project launch plans, regular team meetings to review project progress, and contingency planning to manage risks.
The culmination of this stage is the launch of the product or service, accompanied by the necessary field and customer support, and communication/PR plan.
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ProtectProtectImplementKey Activities
Ramp-upRamp-up
Brief suppliers Batch production testing Plan market communications Plan POS and merchandising
Brief suppliers Batch production testing Plan market communications Plan POS and merchandising
LaunchLaunch
Set supply chain in motion Commission production Integrate with other production Create training document for distributors Promote in multiple channels
Set supply chain in motion Commission production Integrate with other production Create training document for distributors Promote in multiple channels
Identify and register intellectual assets if relevant (e.g. patents, trademarks, design rights, copyright, database rights)
Identify other intellectual assets (e.g. trade secrets, contracts, accreditation, show-how)
Maximise value of IP
Identify and register intellectual assets if relevant (e.g. patents, trademarks, design rights, copyright, database rights)
Identify other intellectual assets (e.g. trade secrets, contracts, accreditation, show-how)
Maximise value of IP
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Step 5 - Monitor
Typical problems encountered during this phase include: Customer complaints that really should have been discovered prior
to launch
Problems with logistics (e.g. timing of supply and distribution)
Variations in distribution channels that were not envisaged
Insufficient monitoring taking place, leading to lost opportunities for close relations with customers, new insights, increased sales, etc.
Launching the product is not the end of the process – you need to continue to monitor sales and customer satisfaction to support your customers, make minor adjustments to the product and gather information for the next generation product.
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Gather feedbackGather feedback
Review sales and customer satisfaction Look for opportunities to add value/reduce costs, etc Gather ideas for new products/ammendments
Review sales and customer satisfaction Look for opportunities to add value/reduce costs, etc Gather ideas for new products/ammendments
Monitor
SupportSupport
CorrectCorrect
Make any changes to packaging, promotion, materials and product as required
Look for line extensions
Make any changes to packaging, promotion, materials and product as required
Look for line extensions
Maintain good dialogue with sales team Continue to support sales effort (update marketing
materials, keep online materials fresh, supply case studies, white papers as relevant, circulate success stories, PR articles, etc.
Maintain good dialogue with sales team Continue to support sales effort (update marketing
materials, keep online materials fresh, supply case studies, white papers as relevant, circulate success stories, PR articles, etc.
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Rowan Norrie
True North Innovation
www.truenorthinnovation
Tel: +44(0)1698 389 456