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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