Upload
motovateddesignanalysis
View
393
Download
1
Embed Size (px)
DESCRIPTION
Slideshow accompanying Jonathan Prince's session during the Successful Product Development seminar in Greymouth on 2 February 2012.
Citation preview
Developing Products to Deliver Value
Developing Your Vision
Using Robust Development processes
A presentation by Jonathan Prince
Developing Products to Deliver Value
What are we talking about?
• How good Development Processes add value
• Design Process Overview
• The ‘Great Unknown’ Front End
• Other Major Contributors
• Commercialisation
• The Kiwi Advantage
Developing Products to Deliver Value
So, what does a good development process do for your idea?!
Developing Products to Deliver Value
1. Improves Innovation/ Design/ Engineering
2. Directs focus on the Customer Need
3. Reduces Development Cost
4. Reduces Time to Market
It’s all about Value – To you & your customer
Increase The Bottom Line
Developing Products to Deliver Value
Late to Market
Lost revenue
1 2 3 4 5
Volumes/ Sales
Time
Time to Market- What Lifecycle?!
Developing Products to Deliver Value
1. Improves Innovation/ Design/ Engineering
2. Directs focus on the Customer Need
3. Reduces Development Cost
4. Reduces Time to Market
5. Improves Product Quality
Delivering Value – To you & your customer
“Products that come to market six months late but on budget will earn 33% less profit over five years.
In contrast, coming out on time and 50% over budget cuts profits by only 4%.”
- McKinsey and Company
Increase The Bottom Line
Developing Products to Deliver Value
The Development Process:
Getting it Wrong & Getting it Right
Developing Products to Deliver Value
A Common Little Gem!
Low & behold –We haven’t meet expected ROI!
Project goes back through the Design loop
Review becomes a ‘That’s not what I meant’ scenario
Physical models created
Team jumps straight into design – Interprets needs
Project identified – Needs based on perceptions
Developing Products to Deliver Value
Bugger!
• Increased labour, material cost
• Project gets axed
• Increased time to market
• Doesn’t address customer needs
• Costly rework
• Lost opportunity cost
SignificantlyReducedReturns
Developing Products to Deliver Value
Production
Standard Stage Gate Process
Conceptdesign
Detaildesign
Feasibility study
Pre Production
Robust Development Process
Clear design briefStakeholder reviews
Design brief
Project Scope Common start point
Developing Products to Deliver Value
The ‘Great Unknown’: The Project’s Front End
Developing Products to Deliver Value
Designing a Revolutionary Product
• Requires investment in research
• Roughly 1/3 of the project time should be spent on each phase
Tooling and productionisation
Design developmentBrief research and
development
This is where the real breakthroughs occur
Developing Products to Deliver Value
• Customer Analysis
– User Centred design approach
• Competitor analysis
– Key Differentiators
• Market Direction
• Technology Optimisation
• Funding opportunities
Feasibility Stage- We know our Customer!
Outcome of stage is a Design Brief/ Project Spec
Developing Products to Deliver Value
Design Brief – Why bother?!
• All parties know exactly what’s being designed- And WHY!
• Prevents project from going off track
– Keeps team focused
• Product features are clearly identified and agreed
• Ensures project is:
– Well researched
– Well understood
– Relevant to the market need
Core Document – Absolutely key to project success
Developing Products to Deliver Value
Concept Design Stage
• Develop ways of meeting the Design brief criteria
– Address that unmet need
• Explore multiple options cheaply and quickly
– Fail early & Fail fast
• Create accurate costings/ price points early
• Provide Key stakeholders early input and buy in
– Ability to Visualise/ understand product
Developing Products to Deliver Value
Embodiment / Detail Design Stage
• Modular design approach
– Reuse of existing data and standard parts where possible
• DFM - Design For Manufacture
• DV&T Program - Design Validation & Testing
– Design Analysis & Optimisation
• Continued User Analysis / Usability Assessment
• Risk Management
– Identification & Mitigation document
– IP Infringement searches
Developing Products to Deliver Value
Pre-production / Production
• Final checks before tooling/ cutting steel
• Documentation
– Comprehensive and accurate manufacturing/ assembly drawings
– Quality docs/ Technical specs
– Marketing material
• Supply Chain Development and Management
– Don’t just go for the cheapest source
• Final Testing & Verification
Developing Products to Deliver Value
Other Major Contributors
Developing Products to Deliver Value
Oi!, You two, Play Nice!
• Collaboration is King
– Cross functional teams
– Industry experts
– Hard & fair customers
– Leverage Suppliers early
• Creative culture
– No Egos
– Being open and honest is expected
– Make it FUN!
Developing Products to Deliver Value
• 3D CAD systems – A wonderous beast!
– Develop Assemblies
• Check Fits & Tolerances
– Create BOMs/ Cut lists
– Take a Modular Design approach
• Utilise existing components
– Development of accurate Jigs & Fixtures
– Create comprehensive documentation
– Marketing renderings
It’s called a computer - Leverage it!
Embrace Technology!
Developing Products to Deliver Value
• Stress Analysis– Understand loads/ forces early
– Remove unnecessary weight/ material
• Flow Analysis– Can it be made?!
• CAM – Machining– Complex geometries with ease
• Rapid Prototyping– Visualisation– Check fits
Virtual Prototyping- Nah, I’ll just whip one up
Get it right before you cut steel!
Developing Products to Deliver Value
• Reduce– No. Components/ weight– Material families
• Reuse– Previously loved materials– Quick refits
• Snap fit parts• Modular design
• Recycle– Recyclable materials– Natural finishes
• Life Cycle Analysis
• Cradle to Grave analyses
Sustainability- Simple Business Sense!
Developing Products to Deliver Value
Show me the Money!!
• Protection of IP
– Understand all options – Patents are only one
– Something of value to sell
• Route to Market
– Distribution to mass markets
– Leveraging a great Brand
• Raising Capital
– Look for aligned investors
– Ensure your Business plan is ‘Investment Ready’
Developing Products to Deliver Value
Types of Investment
Seed/AngelsFounder/ Family/ Friends
Venture Capital
Private Equity
Extreme risk
Conceptual
Small scale
Emotional
Independent/single deals
High risk
Established
Larger scale
Professional
Pooled/portfolio
Private Equity Continuum
Developing Products to Deliver Value
Angel Investing in NZAn emerging structured industry
�Angel Today
Developing Industry
�Angel Past
Cottage Industry
�Angel 2012
Professionalised part of the private capital markets
Developing Products to Deliver Value
Angel Association of NZ Members
Developing Products to Deliver Value
• Shares - does not want 50%+ of your business!
• Stage – just pre revenue
• Valuation - $500K to $1M
• Involvement – generally Board level
• Deal killers – uncoachable, unrealistic, unprepared
What is an Angel Deal?
Developing Products to Deliver Value
What Investors Are Looking For
The PeopleCEO/Team 25%
Market need Painkiller or vitamin? 15%
ProductWell designed – compelling 10%
Sustainable advantageBarriers/first mover/strategic partners 15%
ValuationReasonable for stage 20%
Other 15%
Developing Products to Deliver Value
Get in Touch -
Earlier the Better
Developing Products to Deliver Value
Source of fresh ideas - Unencumbered thinkers
Teamwork - collaborative, driven, dynamic
Constrained resource, big ambitions
Adventurous and pioneering
The Kiwi Advantage- You bet we can Fly!
Developing Products to Deliver Value
Summary
• Implement a Robust Development Process
• Develop a Design Brief template - Do your research!
• Create a Culture of Innovation
• Leverage Technology
• Persevere - Design creates a unique profile for NZ companies
Developing Products to Deliver Value
Innovate or Die!