Marketing Project on New Product Innovation

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					New Product Development




        New Product Development,     1
       Management of Technological
       Issues in Product Design
• User Centered design
• Group technology, part modularization,
  standardization, simplification, and specialization.
• Design for manufacture and automatic assembly.
• Value Analysis.
• Product evaluation and configuration
  management.
• Marketing and ongoing development.
                    New Product Development,             2
                   Management of Technological
         Design Profession Business Task Hierarchy              Work Task


Generalist                                                                            Soft

             Design Producer             Policy                  Corporate Planning


             Design Director            Strategy               Business Development

             Design Manager              Tactics                 Concept Creation

               Designer                                               Modeling
                                 Design Actualization                Researching      Hard
Specialist

                                     Field of Design
                          Architectural, Interior, Product, Visual


                                  New Product Development,                              3
                                 Management of Technological
       CI: Corporate Identity

           BI: Brand Identity

                      HI:
                  Human Identity


     VI:                           PI:
                              Product Identity
Visual Identity

      Corporate Design Policy




    New Product Development,                     4
   Management of Technological
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 New Product Development,
                                     ve                 em




Management of Technological
                                         rt                 en
                                            is                  t
                                               in
                                                                                         (Japan) [M. Takahashi, 1999]




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                                                                             Designer Involvement in Various Corporate Tasks (No.




                                                Af
                                                  fa
                                                    ir
                                                       s
               5
                                        Shared Product Development
                                        Responsibility
             General Manager



 Sales &                                Production     Steering
                  R&D
Marketing                               & Logistics   Committee



Dept # 01        Dept # 01               Dept # 01
                                                       Project
                                                       Team 03
Dept # 11        Dept # 11               Dept # 11
                                                         Project
                                                        Team 02

Dept # 110       Dept # 110              Dept # 110       Project
                                                         Team 01

               Project Manager
                     Pool


                     New Product Development,                       6
                    Management of Technological
              User centered design:
      Establishing contacts with customers
• Many large, high-tech companies consciously or
  unconsciously isolate their creative people and their R&D
  departments from direct contact with customers. This is
  wrong since the voice of the customer can actually be used
  as a strategic edge for breakthroughs in innovation.
• Usually customer contact is relegated exclusively to the
  marketing department. A little later after-sales-service is
  attached to the marketing department. A small personal
  conflict between the R&D manager and marketing
  manager could lead to the total isolation of R&D personnel
  from the customer.
                      New Product Development,              7
                     Management of Technological
                 Use of beta-sites
Microsoft has devised a very attractive method to maintain
  close contact with its worldwide customers. Every new,
  innovative software package it develops is first distributed,
  free of charge, to a network of enthusiastic customers
  willing to serve as Beta-sites for Microsoft realizing that
  the best way of creating a “bug-free” product is to subject
  it to a statistically significant quantity of real-life testing.
  Microsoft collects fixes the bugs based on the feedback
  received from these real-life users. The feedback also
  usually contains a bonanza of comments, suggestion, and
  proposals for improvements. These drive future
  innovations.
                        New Product Development,                     8
                       Management of Technological
 Red Competitor Representative
• Red competitor is the strongest real
  (external) competitor. An internal expert is
  selected to gather intelligence about the
  competitor, anticipate their moves and
  periodically challenge the internal Blue
  Team.


                  New Product Development,       9
                 Management of Technological
Product-Market Matrix: Four Positions

                        Market
         Existing                     New
                                   Adapt
         Improve                 knowhow
       value and cost            to markets

          Achieve
       major gains in            Radically
       value and cost;            diversify
                                 product(s)
         Introduce
        new products            and markets




         New Product Development,             10
        Management of Technological
     Product Life Cycle


          Infant             Adult           Aged
Revenue




                             Time

                New Product Development,            11
               Management of Technological
Technological
 Capability
                   The “S” Shaped Curve




                                              Time


                 New Product Development,            12
                Management of Technological
• The growth in a new technological capability typically
  follows an “S”shaped logistic curve,
• The curve can be divided into three stages:
  (i) slow initial growth till the technology has
       demonstrated superiority over existing technologies,
  (ii) rapid explosive growth after superiority is
       demonstrated, and
  (iii) leveling off due to technological or socioeconomic
        factors.
• Commercially successful exploitation of technology often
  depends upon the astute perception and exploitation of the
  “S”shaped growth trend. Hence much research has been
  done on how the curve may be modeled.
                      New Product Development,             13
                     Management of Technological
Cash   Sequence of innovations
flow




                                      Time


         New Product Development,            14
        Management of Technological
Pearl Function :
        L
y        bt
   1  ae
Where
L  the upper limit togrowth
a, b  constants
(Raymond Pearl's function has been used
extensively in studying growth patternsof
biologicalorganisms)
              New Product Development,      15
             Management of Technological
Envelope Curves and Trend Exploitation
Technological evolutions typically progress
  through successive substitutions of new
  approaches. Whereas individual
  technological capabilities (A, B, C, etc.)
  follow the S-shaped curves, each current
  technology is superceded by the next
  significantly superior technology so that the
  „envelope curve” can be used for trend
  exploitation.
                 New Product Development,     16
                Management of Technological
 Some technology trends that have been modeled

• Efficiency of light bulbs since 1850:
  log(lumens/watt) = -128.71511+0.0685t
  (t is in years since 1850)
• Top speed of US combat aircraft since 1909:
   log(speed mph) = -118.30568 + 0.0640t
• Capacity of Random Access Storage/Random
   Access Time since 1951:
   log(bits/microsec) = -1080.81958 + 0.55125t
Exercise: Test each forecast against current value.
                    New Product Development,          17
                   Management of Technological
Cost-effective
  measure        Envelope
                  Curve




                                                Time


                   New Product Development,            18
                  Management of Technological
                    Basic Research and Invention

The Process of
Technological            Concept Design               Market Res.
 Innovation                                           and Testing
                     Prototype Development
                           and Testing


    Tooling and           Final Product
                         or Design Engg                  Test Mktg
  Industrial Engg
                         The Design and                  Marketing
 Manufacturing         Development Activity               Start-up
   Start-up
                         Prodn, Mrktg, Sales

              After-Sales Service and Trouble-shooting

                         New Product Development,                    19
                        Management of Technological
   Managing Design: 11 Phases
1. Identify need or want             Mrktg with Engg assistance
2. Specification                     Mrktg and Engg
3. Relevance of Product              Mrktg, Prdn, Fin. and Legal
4. Conceptual design                 Engg
5. Preliminary cost estimate         Prdn
6. Evaluation                        Fin. and Mrktg
7. Detail design                     Engg
8. Prototype                         Engg
9. Manufacture                       Prdn
10. Product launch                   Mrktg
11. Product review                   Mrktg, Engg and Fin.
                       New Product Development,                    20
                      Management of Technological
Design is Interdisciplinary




         New Product Development,     21
        Management of Technological
        Objectives of Design
• Aim: To make profits for the manufacturer
  while satisfying the customer within the
  constraints imposed by society (e.g.
  environmental effects, patents, intellectual
  property.
• Some objectives: Simplicity, Lightness, Use
  of standard parts.

                 New Product Development,     22
                Management of Technological
     Where should „Design‟ be
             located?
• Part of „Production‟ department: Conflicts may
  arise because design changes disrupt production.
• Parallel with „Production‟ department.
• Temporary project team for each design project.
  Team drawn from various departments. Lying
  outside the normal line structure. Reporting to
  someone higher up. (Matrix Organization)


                   New Product Development,          23
                  Management of Technological
Product/Service Decision Making                  Traditional Sequential
                                                     Approach to
                                                    Designing and
                                                Manufacturing/Operating
                                      Design


                                        Communication (final stage only)
  Product/Service Specification




                    Operations

     Process Decision Making


           Time                                       Process Specification




                         New Product Development,                             24
                        Management of Technological
                                       False Simultaneous
                                          Approach to
                                         Designing and
                                     Manufacturing/Operating
                           Design


                             Weak, One-Way Communications




Operations



      Time



              New Product Development,                      25
             Management of Technological
                                    True Modern Simultaneous
                                           Approach to
                                          Designing and
                                    Manufacturing/Operating
                           Design


                             Strong, Two-Way Communications




Operations


                                                       Visit the
                                                       case study
   Time                                                on Sun
                                                       Microsyste
                                                       ms here.
              New Product Development,                         26
             Management of Technological
Study the following chapters now:
• Project Management Issues
• Value Analysis
• QFD
• DFX, etc.
• Patenting, etc.

                New Product Development,     27
               Management of Technological

				
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