NEW PRODUCT DEVELOPMENT-MAP30-09-13

IMPORTANTMAPPING IS A MEDIUM AND ALSO A MESSAGE: GET TOGETHER ON NEW PRODUCTS SOONER OR SMARTER WITH NEW PRODUCT DEVELOPMENT MAP

HIGH FAILURE RATE

NEW PRODUCTSLIFE-BLOOD OF ORGANIZATIONSDEVELOPMENT PROCESS RISKYFAILURE RATES HIGHIMPORTANT TO UNDERSTAND PROCESS OF NPDAPPLE 2 DECADES AGO , KNOWN AS EARLY PRODUCT INNOVATOR ,GOT OFF TO FAST , IMPRESSIVE START;DECADE LATER FOUND ON BRINK OF EXTINCTION- REASON-CREATIVE FIRES COOLEDSTEVE JOBS USED LOT OF INNOVATION AND REMADE COMPANY 20 YEARS LATERMOTTO OF APPLE- THINK DIFFERENT

TWO OPTIONS TO A COMPANYTHRU ACQUISITION-BUYING A WHOLE COMPANY ,PATENT ,LICENSE TO PRODUCE SOMEONE ELSES PRODUCTSECOND OPTION- OWN NEW PRODUCT DEVELOPMENT EFFORTSNEW( MEANING)-ORIGINAL,PRODUCT IMPROVEMENT/MODIFICATIONS,NEW BRANDS OF FIRM DEVELOPED THRU OWN R & D

REASONS FOR FAILURESOVERESTIMATION OF MARKET SIZEPOOR DESIGNWRONG POSITIONINGLAUNCH AT WRONG TIMETOO HIGH PRICEPOOR ADVERTISEMENT

POOR DESIGN

POOR ADVERTISEMENT

POOR DESIGN

WRONG POSITION

WRONG TIMING

NEW PRODUCT DEVELOPMENT PROCESSIDEA GENERATIONIDEA SCREENINGCONCEPT DEVELOPMENT & TESTINGMARKETING STRATEGY DEVELOPMENTBUSINESS ANALYSISPRODUCT DEVELOPMENTTEST MARKETINGCOMMERCIALIZATION

GREAT IDEA

IDEA GENERATION-SYSTEMATIC SEARCHIBM- INNOVATION JAM ON LINE SUGGESTION BOX 3 DAYS , 160 COUNTRIES ,1,50,000 PEOPLE AND 46,000 IDEAS SOURCES- INTERNAL AND EXTERNALINTERNAL- FORMAL R & D , EMPLOYEES FROM EXECUTIVES TO SCIENTISTS ,ENGINEERS AND MANUFACTURING STAFF TO SALES PEOPLE AND TOP MANAGEMENT ALSO

SALESMAN

TOP MANAGEMENT

DESIGNERS-R & D

EXTERNAL SOURCESDISTRIBUTORSSUPPLIERSCOMPETITORSCONSULTANCY AND DESIGN FIRMSON-LINE COLLABORATIVE COMMUNITIES-InnoCentive in USACUSTOMERS

CUSTOMERS AS SOURCE OF AN IDEA

COMPETITORS

FOLLOW COMPETITION

EXTERNAL SOURCESDISTRIBUTORS-CLOSE TO MARKET ; CAN PASS ON INFORMATION ABOUT CUSTOMER PROBLEMS AND NEW PRODUCT POSSIBILITIESSUPPLIERS- CAN TELL ABOUT NEW CONCEPTS ,TECHNIQUES, MATERIALS WHICH CAN BE USED IN NEW PRODUCT DEVELOPMENTCOMPETITORS-UNDERSTAND HOW THEIR PRODUCTS WORK;ANALYIZE THEIR SALES ,

EXTERNAL SOURCESTRADE MAGAZINES, SHOWS SEMINARS,GOVERNMENT AGENCIES,ADVERTISING AGENCIES,MARKETING RESEARCH FIRMS ,UNIVERSITIES,COMMERCIAL LABORATORIES,INVENTORSNEW PRODUCT CONSULTANCY AND DESIGN FIRMSON-LINE COLLABORATIVE COMMUNITIES

ON-LINE COLLABORATIVE COMMUNITIESINNOCENTIVE USACORPORATE CLIENTS( SEEKERS) IN TOUCH WITH > 1,00,000 SCIENTIESTS ( SOLVERS)SEEKERS POSE CHALLENGESSOLVERS CAN GET UPTO $ 1,00,000 FOR PROVIDING SOLUTIONS

CUSTOMERS AS SOLUTION PROVIDERSANALYSIS OF CUSTOMER COMPLAINTS/QUESTIONSINDICA FROM TATA- CUSTOMER NEED FOR A FUEL-EFFICIENT,SPACIOUS , AFFORDABLE CAR1,15,000 BOOKINGS IN ONE WEEK AFTER LAUNCH IN 1999CUSTOMERS AS CO-CREATORS

CUSTOMERS AS CO-CREATORS

PROBLEM SOLUTION

MINIATURIZATION

TWO-IN-ONE

DESIGN IMPROVEMENT

NEW USES OF OLD PRODUCTS

IDEA SCREENINGPURPOSE OF IDEA GENERATION- CREATION OF LARGE NUMBER OF IDEASPURPOSE OF SCREENING- REDUCE THAT NUMBERSTOP GOOD IDEAS; DROP POOR IDEAS REVIEW BY NEW PRODUCT COMMITTEE OF IDEAS WRITTEN IN A STANDARD FORMAT

DROP POOR IDEAS-HANGING KASAB

STOP GOOD IDEAS FOR FURTHER PROCESSING

PROCESSING OF NEW IDEASR-W-W (REAL,WIN,.WORTH IT)FIRST QUESTION- IS IT REAL( REAL NEED AND DESIRE FOR PRODUCT AND WILL CUSTOMER BUY?)SECOND- CAN WE WIN? PRODUCT WITH SUSTAINABLE COMPETITIVE ADVANTAGE / COMPANY EQUIPPED WITH RESOURCES TO ENSURE SUCCESSTHIRD-IS IT WORTH DOING?-PRODUCT IN SYNC WITH COMPANY STRATEGY?-PROFIT POTENTIAL

IS IT REAL-WIN-WORTH?

CONCEPT DEVELOPMENT & TESTINGIDEA WHICH CAN BE EXPANDED INTO SEVRAL PRODUCT CONCEPTSEACH TO BE TESTED WITH TARGET CUSTOMERSCONCEPT- PARTICULAR COMBINATION OF FEATURES, BENEFITS,PRICEEVALUATION BY CUSTOMERS

IDEA EXPANSION INTO SEVEAL CONCEPTS

CONCEPT- TESTING

CONCEPT TESTING PROCESSDESCRIPTION OF CONCEPT EITHER PICTORIALLY/VERBALLYPERCEPTION OF CUSTOMERS OF BENEFITS FROM FEATURESUSE OF QUESTIONNAIRE TO ASCERTAIN LIKING/DISLIKING , KIND OF PERSON/ORGANIZATION LIKELY TO BUY THE PRODUCTHOW IT SHALL BE USED;LIKELIHOOD OF USING PRODUCT

LIKELIHOOD OF USAGE OF THE PRODUCT

MARKETING STRATEGY DEVELOPMENT3 PARTSDESCRIPTION OF TARGET MARKETPLANNED VALUE PROPOSITIONSALES,MARKET SHARE AND PROFIT GOALS FOR FIRST FEW YEARS

BUSINESS ANALYSISBUSINESS ATTRACTIVENESS OF THE PROPOSALREVIEW OF SALES,COSTS,PROFIT PROJECTIONS TO FIND OUT WHETHER THEY MEET COMPANYS OBJECTIVESHOW?- SALES HISTORY OF SIMILAR PRODUCTS ;MARKET SURVEYS.USE OF SALES AND COSTS FIGURES TO ANALYZE PRODUCTS FINANCIAL ATTRACTIVENESS

PRODUCT DEVELOPMENTDEVELOPMENT OF CONCEPT INTO A PHYSICAL PRODUCTDEVELOPMENT OF COMPONENTS TO THE SPECIFICATIONSMULTI-DISCIPLINARY TEAMS TO BRING PRODUCT TO THE MARKETPLACEINTEGRATION OF SKILLS OF DIFF DEPARTMENTS

PRODUCT DEVELOPMENT-TESTINGFOCUS ON FUNCTIONAL ASPECT OF PRODUCT + CONSUMER ACCEPTANCEPAIRED COMPARISON TEST BENCHMARKING AGAINST WHICH TO JUDGE NEW OFFERINGMONADIC PLACEMENT TEST-NEW PRODUCT TO USERS FOR TRIAL

PRECAUTION AT DEVELOPMENT STAGEISOLATION ATTITUDE OF DEVELOPERS/SCIENTISTSATTITUDE OF DEVELOPERS NOT TO SHOW INCOMPLETE DESIGN/PRODUCT CONFLICT-DESIGN VERSUS MANUFACTURING COST- DESIGN RELAYED BACK TO DEVELOPERSPOSSIBILITY OF LOOSING SIGHT OF CUSTOMER NEEDS

PRECAUTION AT DEVELOPMENT STAGEDANGER OF CUSTOMER NEEDS/TECHNOLOGIES LIKELY TO CHANGE IN LONG DEVELOPMENT PROCESSEXAMPLE OF FORD EDSELANTICIPATION OF THESE CHANGES AND INCLUSION IN DESIGNAT ONE POINT OF TIME NEGLECT CHANGING NEEDS TO ENSURE TO AVOID DELAY IN PROJECT

PRECAUTION AT DEVELOPMENT STAGEMISMATCH BETWEEN PHYSICAL PRODUCT AND DESCRIPTION OF SAME IN CONCEPT TESTING WITH CUSTOMER STAGEAPPROVAL OF DESIGN FROM CUSTOMER BEFORE FREEZINGTESTING OF PTRODUCT ACTUAL USE AND NOT IN IDEAL CONDITIONSWILLING TO DO ANYTHING TO ENSURE NEW PRODUCT SUCCESSGIVE MORE TIME/MONEY TO ENSURE CHANCES OF SUCCESS

MARKET TESTINGINTRODUCTION OF PRODUCT/MARKETING PROGRAM INTO REALISTIC MARKETING SETTINGSEXPERIENCE OF MARKETING A PRODUCT BEFORE GOING TO GREAT EXPENSE OF FULL INTRODUCTIONTESTING OF ENTIRE PROGRAM- STP,ADVERTISING,DISTRIBUTION,PRICING,BRANDING,PACKAGING,BUDGET LEVELS

TEST MKTG- IMPORTANTAMOUNT OF TEST VARIES WITH EACH NEW PRODUCTHIGH COSTS , ALLOWING COMPETITORS GAIN ADVANTAGELITTLE/NO TEST MARKETING OF DEVELOPMENT COSTS ARE LOW,COMPANY CONFIDENT OF SUCCESSNO TEST MARKETING IN CASE OF LINE-EXTENSIONS/COPY OF SUCCESSFUL COMPETITORS PRODUCTS

WHEN/WHY TEST MARKET?INTRODUCTION OF PRODUCT NEEDS HUGE INVESTMENTHIGH RISKMANAGEMENT NOT SURE OF MARKETING PROGRAMCOST-BENEFIT COST HIGH BUT BENEFIT OF AVOIDING COSTLY MISTAKES IMPORTANTCAUTION- IT DOES NOT GUARANTEE SUCCESS-TATA INDICA CERTAIN ERRORS IN MANUFACTURING

STANDARD TEST MARKETSCHANDIGARHPUNE BENGULURUCOUPLED WITH STORE AUDITS,CONSUMER/DISTRIBUTOR SURVEYSRESULTS USED TO FORECAST NATIONAL POTENTIAL

DRAWBACKS OF TEST MARKETSCAN BE COSTLY ;MAY TAKE LONG TIMEMONITORING OF RESULTS BY COMPETITORS ALSOPRICE CUTTING DURING TESTS,INCREASE IN PROMOTION,EVEN BUYING UP OF TEST MARKETED PRODUCTSOPPORTUNITY TO COMPETITORS TO LOOK AT PRODUCT BEFORE NATIONAL INTRODUCTIONTIME TO DEVELOP DEFENSIVE STRATEGIES

SIMULATED TEST MARKETSSHOWING OF ADS AND PROMOTIONS FOR PRODUCTS INCLUDING NEW PRODUCTS TO BE TESTEDINVITE CUSTOMERS TO A REAL/LABORATORY STOREHOW CUSTOMERS BUY NEW/COMPETING BRANDSCOSTS LESS ,CAN RUN FOR LONG PERIODS ;IMPORTANT- KEEP PRODUCT OUT OF COMPETITORS VIEW

COMMERCIALIZATIONINPUTS FROM TEST MARKETING WHETHER TO GO AHEAD WITH CCOMMERCIALIZATIONINVESTMENT IN FACILITY SUCH AS PRODUCTION, PACKAGING , ALSO ON ADVERTISING , SALES PROMOTION AND OTHER MARKETING EFFORTS

ISSUES IN COMMERCIALIZATIONTIMING-ISSUE OF SELF- CANNIBALIZATIONWHERE ?-SINGLE LOCATION/REGION/NATIONAL OR INTERNATIONAL MARKETFEW COMPANIES GO FOR NATIONAL/INTERNATIONAL LAUNCHOTHERS- MARKET ROLLOUT OVER PERIOD OF TIMESWIFT GLOBAL ROLLOUT- WINDOWS VISTA O/S

NEW PRODUCT DEVELOPMENTCUSTOMER CENTEREDTEAM BASED NEW PRODUCT DEVELOPMENTSYSTEMATIC NEW PRODUCT DEVELOPMENT

CUSTOMERTHOROUGH UNDERSTANDING OF WHAT CUSTOMER NEEDS AND VALUES FOCUS ON FINDING NEW WAYS OF SOLVING CUSTOMER PROBLEMS AND CREATION OF MORE CUSTOMER SATISFYING EXPERIENCES

SINK USING WASTE WATER FOR PLANT GROWTH

TEAM BASED NEW PRODUCT DEVELOPMENTSEQUENTIAL PRODUCT DEVELOPMENT APPROACHONE DEPARTMENT COMPLETES WORK ASSIGNED TO IT TO BE PASSED ON TO NEXT BRING CONTROL TO COMPLEX/RISKY PROJECTSCAN BE DANGEROUSLY SLOWSLOW-BUT SURE DEVELOPMENT CAUSE FOR FAIALURES,LOST SALES/PROFITS AND DWILDLING MARKET POSITIONS

TEAM BASED..CLOSE WORKING IN CROSS-FUNCTIONAL TEAMSTEAM OF PEOPLE ( VARIOUS DEPARTMENTS) STAY TOGETHER WITH NEW PRODUCT FROM START TO FINISHLIMITATIONS-CONFUSION AND ORGANIZATIONAL TENSIONIMPORTANT TO COMBINE CUSTOMER CENTERED APPROACH WITH TEAM BASED AAPPROACH

SYSTEMATIC NEW PRODUCT DEVELOPMENTPROCESS TO BE HOLISTIC AND SYSTEMATICINSTALLATION OF INNOVATION MANAGEMENT SYSTEM- COLLECT, REVIEW ,EVALUATE, MANAGE NEW PRODUCT IDEASAPPOINTMENT OF INNOVATION MANAGERENCOURAGEMENT TO ALL STAKEHOLDERSHELPS IN CREATION OF INNOVATION ORIENTED COMPANY CULTUREYIELD LARGE NUMBER OF NEW PRODUCT IDEAS ( FEW VERY GOOD ONES ALSO)

COMPANIES KNWONGOOGLEAPPLEMARUTITATA 3M CORPORATIONP& GGE

LAUNCH OF NOKIA SMARTPHONE N8

N8MANY FIRSTS 12 MEGAPIXEL CAMERA PHONEONE YEAR AFTER ITS RIVALS- FEATUREFIRST TO HAVE NEW SYMBIAN 3 OPERATING SYSTEM-EMBRACING ON LINE SOCIAL NETWORK FACEBOOK AND TWITTER UPDATES ON HOMESCREEN ITSELFFREE NAVIGATION SOFTWARE FOR TURN-BY-TURN NAVIGATION GUIDANCE

N8- OTHER DETAILSNOKIAS FIRST PHONE WITH NON-REMOVABLE BATTERYPRICE RS. 26,295DIMENSIONS- 113.5X59.1X12.9MM3.5 INCH CAPACITIVE DISPLAY AS BIG AS I-PHONE135GMS WEIGHTCAN SHOOT HD VIDEOS

FLOP SIDEDOES NOT MEET BENCHMARK SET BY APPLE AND GOOGLEWEAK LINK- BROWSER- CAN NOT OPEN MULTIPLE WINDOWS MAY NOT ATTRACT CURRENT I PHONE / ANDROID USER

CONDITIONS FOR NEW PRODUCT SUCCESSIS THERE A NET BENEFIT TO THE USER?ARE YOU PREPARED FOR RETALIATION BY COMPETITORS?WHO IS THE PRODUCT CHAMPION?-MENTORNEW PRODUCT PIONEER NEED NOT NECESSARILY BE THE MARKET LEADER

INNOVATORSCONSUMPTION PIONEERSCHALLENGE IS TO LOCATE AND TARGETSMALL IN VOLUMEFOR ANY PRODUCT ,THERE WILL BE SOME PIONEERS

IDEA INNOVATOR

EARLY ADOPTERSOPINION LEADERS IN THEIR RESPECTIVE COMMUNITYSIZEABLE SEGMENTMARKETERS NEED TO PENETRATE THIS EEGMENT TO ENSURE SUCCESS OF PROGRAMTWO CHARACTERISTICS OF THE GROUP- VENTURESOME NATURE AND SIZE OF THE GROUPCHALLENGE- LOCATE,IDENTIFY AND REACH THRU MARKETING PROGRAM

EARLY MAJORITYNOT VENTURESOME LIKE INNOVATORSNOR FAST ADOPTION AS EARLY ADOPTERS+VE IN APPROACH TO NEW THINGSGIVE A TRY TO NEW THINGS EARLIER THAN AVERAGE PERSON OF THEIR COMMUNITY

LATE MAJORITYBY AND LARGE SKEPTICAL IN THEIR APPROACHGENERALLY TRY THEM ONLY AFTER LOT OF PEOPLE AROUND THEM HAVE ALREADY ADOPTED IT

LAGGARDSTRADITION BOUNDWILL BUY/USE PRODUCT ONLY AFTER IT BECOMES A KNOWN AND ACCEPTED PRODUCT THROUGHOUT THE MARKET

INNOVATOR FOR ONE PRODUCT MAY NOT BE SAME FOR ANOTHERJOB OF MARKETER- FIND OUT INNOVATORS FOR PARTICULAR PRODUCT EACH TIME.