New Product Development
Keiko Taguchi
4/19/03
Agenda
Vision
Mission
Goal & Strategy
New Product Process
New Product Process Description
New Product Concept
Vision
Plan and develop software products
that have potential to be essential
infrastructure relating to banking
industry and government.
The software should contribute to
enhance, shorten or ease current and
future procedure and/or system
Mission
Mission of my group is to plan new
software product for multi-application
smart card, which can be used with
payment software.
The new product should be used for
business purpose, and should have
synergy effect with current products,
fingerprint authentication software and
electric purse software, and expand
current market.
Goal & Strategy
Goal
More than $1,000,000 sales
Strategy
Acquire new customer who use cards for
business purpose
Provide new or enhanced products to
existing customers and extend market
What should be changed
Percentage of failed projects where activity is
not undertaken - Statistics
Initial screening 8%
Prellim market assessment 23%
Prelim tech assessment 15%
Detailed market study 75%
Business/ financial analysis 37%
Product development 11%
In-house product tests 11%
Customer tests of product 34%
Test market/ trial sell 77%
Trial/ pilot production 51%
Pre-launch business analysis 65%
Production start-up 44%
Market launch (roll out) 32%
0% 10% 20% 30% 40% 50% 60% 70% 80%
We can learn from the study to improve our
new product development process
Source : R. G. Cooper and E. J. Kleinschmidt
What Stage-Gate Can Do
Percentage of positive impact with Stage-
Gate process - Statistics
34%
H i g h e r s u c c e s s ra te & c u s tom e r s a ti s f a c ti on
34%
D e v e l op e d on ta rg e t ti m e , q u a l i ty & c os t
F a s te r to m a rk e t 31%
I m p rov e d p rof i t p e rf orm a n c e 28%
A l e a rn i n g tool : e d u c a te ou r p e op l e 24%
I m p rov e d c oop e ra ti on / c ood i n a ti on 21%
F e w e r e rrors ; l e s s re c y c l i n g ; l e s s re d e s i g n 17%
I m p rov e d c om m u n i c a ti on
17%
B e tte r p roj e c t c on trol
10%
0% 5% 10% 15% 20% 25% 30% 35%
We can improve our new product
development process with Star-Gate, for
more success and less risk
Source : R. G. Cooper and E. J. Kleinschmidt
The New Product Process
Idea Generation Scoping Build Business Case
Gate 0 Discovery Gate 1 Stage 1 Gate 2 Stage 2
Development Pilot Testing Launch
Post
Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5
Launch
Next
Cycle
Description - Gate 0
Guides new product idea direction
Company vision and group mission is
the basis
0
Description - Discovery
Idea Generation
Generate and store ideas
Ideas come from
Sales group
Planning group
Customer requirements
Technical group
D
Description - Gate 1
Check against Broad Criteria
Broad Criteria
Product must use smart card
Product must be used for business purpose
Product must enhance, shorten or ease current
procedure or system
Product must have potential to be installed in
government or banking infrastructure system
1
Description - Stage 1
Scoping
Object
Spend little money and gather some information
Work
Preliminary Market Research
Preliminary Technical Research
Preliminary Financial/Business Estimation
Preliminary Legal Check - Patent
1
Description - Gate 2
Check against Specific Criteria
Specific Criteria
Company vision/mission
Product must have merit to use “smart” card - not
“magnetic” card.
Product should be beneficial when installed with existing
authentication or payment software
Market
Product category should have potential market size more
than $10,000,000
Product market segment should be in introduction stage
2
Description - Gate 2
Specific Criteria (continued)
Technical
Patent must be cleared
Product must fit within current smart card memory
Product should be easy to install and use for end users
Cycle time for implementation should be less than 1 year
Financial
Product sales must be expected to hit $1MM
Product payback period should be expected within 2 years
2
Description - Stage 2
Build Business Case
Object
Verify the attractiveness of the project prior to heavy
spending
Work
Detailed Research
In-depth market research
Existing/potential user needs
Competitive products
Detailed technical research/assessment
Legal research
Financial estimation
Define product
2
Description - Gate 3
Careful examination against Broad Criteria
and Specific Criteria
“Must-See” Criteria
Agree ; Go and score (3)
Disagree ; Kill or return to Idea Bank
“Should-See” Criteria
Agree ; Score (1-3)
Disagree ; No score
Compare each score and choose top 3
3
Description - Stage 3
Pilot Development
Design and Develop Pilot Software
Design software structure/function
Design detailed software flowchart and workflow
Develop pilot software
Internal test
Feedback internal test result
User opinion
Technical issues
Financial data adjustment
Market Launch Plan
3
Description - Gate 4
Check attractiveness of the project
Product Features
Attract Pilot users as expected in Stage2?
Yes : Go
No : if the gap easily correctible, return to Stage 3, otherwise
return to Idea Bank
Technology Function
Support features without significant problem as assessed?
Yes : Go
No : if the problem easily correctible, return to Stage 3,
otherwise return to Idea Bank
Financial Estimation
Financials are sound with attractive price as expected?
Yes : Go
No : if the gap easily correctible, return to Stage 3, otherwise
return to Idea Bank
4
Description - Stage 4
Pilot Testing
Test Pilot Software
External pilot test with partner companies
Feedback external test result
User opinion
Technical issues
Financial data adjustment
Market Launch Plan
4
Description - Gate 5
Check attractiveness of the project
Product Features
Accepted by users?
Users are attracted and likely to buy?
Yes : Go
No : if the gap easily correctible, return to Stage 3, otherwise
return to Idea Bank
Technology Function
Support features without significant problem as assessed?
Yes : Go
No : if the problem easily correctible, return to Stage 3,
otherwise return to Idea Bank
Financial Estimation
Financials are sound with attractive price as expected?
Yes : Go
No : if the gap easily correctible, return to Stage 3, otherwise
return to Idea Bank
5
Description - Stage 5
Product Launch
Execute marketing plan
5
Description - Post Launch
Keep researching user acceptance
Keep watching competitor's movement
Feed back the result for next cycle
PL
Next Step
After new product development process
is approved here…
Design and assign teams for each
stages and gates
Implement new process
Head for success