...Strategic Elements of Product Development 2.The Importance of New Products a. Product development costs over a hundred billion dollars on the technical development phase alone. (Crawford, & Di Benedetto, 2015) b. The new products process is incredibly complex and difficult and when a product fails there is often public scrutiny. 3.Globalization and New Product Development a.”To a greater extent than ever before, firms are seeing new product development as a global process in order to take advantage of worldwide opportunities and increase their efficiency and effectiveness of innovation.” (Crawford, & Di Benedetto, 2015) b. Global innovation cultures are the most effective at producing results. 4. How Product Development Is Different a. Product development teams are composed of a wide-range of professionals from multiple disciplines. b. Product development requires a creative and planned process. 5. What Is a New Product, and What Leads to Success? a. New Products come in a variety of ways. Some are completely new to the market where as others are existing products that have a new line or new functioning. b. Products must be unique and superior in order to succeed. Consumers must feel as if the value added is worth the costs. 6. Does This Field of Activity Have a Unique Vocabulary a. As the field of product development is both global and contains a melting pot of individuals vocabulary is unique to the field. 7. Does the Field of New Products Offer Careers...
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...Product Innovation Best Practices Series Best Practices in the Idea-to-Launch Process and Its Governance Reference Paper #45 Robert G. Cooper and Scott J. Edgett Compliments of: Stage-Gate International and Product Development Institute Inc. This article appeared in Research Technology Management March-April, pp 43-54 For information call +1-905-304-8797 www.stage-gate.com © Product Development Institute Inc. 2000-2014 Product Development Institute Inc. and Stage-Gate are registered trademarks. Logo for Product Development Institute Inc. used under license by Stage-Gate International Logo for Stage-Gate used under license where appropriate. Best Practices in the Idea-to-Launch Process and Its Governance A study of new-product development practices at 211 businesses provides insights into best practices in both the idea-to-launch process and its governance. Robert G. Cooper and Scott J. Edgett OVERVIEW: Most firms now use some form of idea-to-launch process such as a Stage-Gate® system. The question is: Do these processes really work? And what are the elements of a best-in-class idea-to-launch system that really make a difference? A second and related question concerns the governance of the idea-to-launch model. Sadly there is a lack of hard evidence as to what governance structure works best and just what its impact is, if any. This article reports the results of an American Productivity & Quality Center (APQC) and Product Development Institute (PDI)...
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...WINNING BUSINESSES IN PRODUCT DEVELOPMENT: THE CRITICAL SUCCESS FACTORS A formal new product process isn’t enough—you need a high-quality process, a clear and visible strategy, enough people and money, and a respectable R&D budget. How does your program rate on these 10 metrics? Robert G. Cooper and Elko J. Kleinschmidt OVERVIEW: 2007 is Research-Technology Management’s 50th year of publication. To mark the occasion, each issue reprints one of RTM’s six most frequently referenced articles. The articles were identified by N. Thongpapanl and Jonathan D. Linton in their 2004 study of technology innovation management journals, a citation-based study in which RTM ranked third out of 25 specialty journals in that field (see RTM, May–June 2004, pp. 5–6). The benchmarking study reprinted here was originally published in 1996 and has been updated with its author’s reflections. Their study of 161 business units uncovered the key drivers of new product performance at the business unit level. Ten different performance measures were gauged, including percentage of sales by new products, profitability and success rate. The ten gauges were reduced to two key performance dimensions—profitability and impact—which defined the “performance map.” Nine possible drivers— including strategy, process, organizational design, and climate for innovation—were investigated, and four key drivers of performance were identified; namely, a highquality new product process, the new product strategy for the business...
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...Journal of Business Research 55 (2002) 389 – 400 Benefits associated with supplier integration into new product development under conditions of technology uncertainty Gary L. Ragatza,*, Robert B. Handfieldb, Kenneth J. Petersenc a Department of Marketing and Supply Chain Management, Eli Broad Graduate School of Management, Michigan State University, East Lansing, MI 48824-1122, USA b North Carolina State University, Raleigh, NC, USA c University of Oregon, Eugene, OR, USA Abstract In many industries, firms are striving to integrate material suppliers earlier into the new product/process development process. This involvement may range from simple consultation with suppliers on design ideas to making suppliers fully responsible for the design of components or systems they will supply. In this paper, we develop and test a conceptual model of the effect of elements of the supplier integration process on cost, quality, and new product development time, under conditions of technology uncertainty. Technology uncertainty is operationalized here, as the degree to which the product or process technologies employed in the project are new, complex, and/or rapidly changing. The results suggest that technology uncertainty have a negative impact on cost results, but no direct effect on quality or cycle time. The results also show that certain elements of the supplier integration process are more likely to be employed under conditions of technology uncertainty, leading to significant improvements...
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...THE PATTERNS OF SUCCESS IN PRODUCT DEVELOPMENT KIVANC UNCU Applied Business Research And Communication Skills Dr. Peggy Bilbruck June 21, 2014 ABSTRACT Getting a successful result in product development can be considered a typical purpose for any R&D business. The purpose of the paper is to make a good solution the differences of success at R&D project levels. Using the verification from industrial example, the paper shows that the sophistication of the concept of achievement in product development. The paper finalizes that there is often just an indefinite correlation between aspects of R&D success –financial, technical and project management. The main idea of the paper is on the development of investment products for the paper industry. Keywords: R&D success, product development, Performance measurement INTRODUCTION Industrial research and development (R&D) uses science and technology to create new things or it improves products or processes for profit making companies. Product development, which is a very important part of R&D, can see the situations that are expected to improve a company’s competitive advantage and increase future success in periods. R&D management has been an essential point with the increase in investments. At the same time, performance measurement also has been an important contribution to increase of product development. Comparably, the research usually has been used a theory by companies instead...
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...Article Overview: The persistent success of technology based companies depends on their proficiency in creating next generation products and their derivatives. They found that most of the companies were unable to complete such projects on schedule. The companies also had difficulty developing the derivative products needed to fill the gaps in the market that their next-generation products would create. The root cause problem was in the product definition phase and not spontaneously; all the successful companies have learned how to handle the technical and marketplace uncertainties in their product definition processes. Paper describes the actions of companies used as best practices which can improve the definition phase of any company's product-development process. They have grouped the techniques into three categories and carefully lay out the steps that companies need to take as they work through each stage. They can help companies capture new markets without major delays and tools used by managers facing the uncertainty that goes with developing products for a global marketplace. The product strategy being first step to create a clear map of company’s product stream for next 2 years. The challenge is to keep no holes for competitors to exploit opportunities. This step defines the product streams to include both products and their derivatives and it may not be final and can be revised at various miles stones in future. The second step to develop project organization which...
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...improve the new-product development process at FHE? I would be remiss if we didn’t start by mentioning that the problem actually started with the Executive Management Team and the CEO. The organization chart shows a lack of cross-functional decision making which results in the inability to integrate operations. I don’t believe it is his place, but Lum Donaldson should suggest that Phil Thomas, vice president of corporate development and marketing who is currently responsible for both areas of marketing and design engineering split his duties and Merle Alison who is obviously in charge of the engineering group be put in charge of design engineering. Phil, needs to do what he does best and lead the marketing team to working with customers to create demand of the company’s products. This way there can be clear direction designed for the coordination of successful introduction of new products. With an extended Executive Committee consisting of Phil Thomas, Merle Alison and Norman Hart there will be more collaboration and better insight to running a new product through the companys processes. Lum Donaldson needs to coordinate the relationship between product managers, technical program managers, and marketing managers. Lum needs to clearly define the requirements necessary at each phase of project development so that the engineering services department is able to produce results in a more efficient manner than is currently possible. The new product development process can also...
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...Market definition 8 3.2 Total market size 8 3.3 Market need 8 3.4 Estimated segment size 9 Using a product development process 10 Process application – Opportunity identification and selection 10 Concept generation 10 Concept/Project evaluation 10 Defining the product protocol 11 Conclusion 12 Recommendations 13 References 14 Executive Summary New product development in tourism companies has been a nearly ignored theme in tourism marketing. Research on product development has in major studies handled destinations, development of resorts or sites as a total tourist product. We will aim to identify the major problems as well as key phases of the new product development process in tourism. We will have the challenge to innovate more and more attractive activities to fulfil the customers’ needs for emotional experiences. The theoretical framework is based on the traditional product (and services) development theory, which suggests it to be a process of following stages: idea generation, service concept development and evaluation, business analysis, service development and testing, market testing, commercialisation and post introduction evaluation. We will evaluate the usefulness of the traditional product development model in the direction of creating a service to give adventurous experiences to tourists. INTRODUCTION The service concept, the core product is built on an idea of e.g. hard adventure, soft adventure, water sports etc. The concept is then developed...
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...to go from copycat brand to product leader? Samsung started out as a maker of cheap consumer electronic knock-offs. CEO Lee Kun-hee has taken major strides to make Samsung the company it is today. In 1993, Lee unveiled what he called the “new management,” which was a top-to-bottom strategy for the entire company. Under Lee’s new management, he took Samsung Electronics in a very ambitious new direction. His goal was to make Samsung become a premiere brand that would dethrone Sony as the biggest consumer electronics firm in the world. Instead of being a copycat, Samsung was to become a cutting-edge product leader. As part of Samsung’s revamped strategy and positioning, along with developing stylish and innovative new products, the company altered distribution to match. Samsung quickly abandoned low-end distributors such as Walmart and Kmart and built strong relationships with specialty retailers such as Best Buy. 2] Is Samsung’s product development process customer-centered? Team-based? Systematic? Customer-centered new-product development focuses on finding new ways to solve customer problems and to create more customer satisfying experiences. Samsung uses the product development process by using market testing. Samsung created the “Wow!” test which every new product had to pass. If the product did not pass the “Wow!” test it went straight back to the design studio. Team-based new-product development is an approach in developing new products in which various company departments...
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...New Product Development Why is it importand to launch a new product? * A successful new product does more for an organization than any other thing can do * Today a high percentage of sales and profits come from new products (> 30% avg) * The process is extremely difficult * Companies take big risks * Failure rate is quite high (40% avg) * It is fun and exciting! A product can be tangible = Goods A product can be intangible = Services B2B =Business to Business BSC =Consumer Products * New product process does not usually start with a new product idea: it begins with an amount of Strategy * Marketing does not start when the procut is finished: it often starts before ideation * The process is not over when the product is launched=It ends when the new products is successful * Very few are taken to launch and only a small fraction succeed: high risks! * Most new ideas are epresed as lie extensions of existing brands= Parent Brands awareness+values * Most new ideas....are not that new: what’s new for you may not be new for consumers Opportunity An opportunity is a business or technology gap that a company or individual realizes that exists between the current situation and an envisioned future in ordert o capture competitive advantage, respond to a threat, solve a problem or ameliorate a difficulty A Strategy: It is necessary, because it ist he foundation for a new product management A new product development...
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...the last five years, FHE has aggressively introduced new products and has experienced an increase in sales and profits as a result. FHE views aggressive and efficient product development as a means for growth and success. Improving the speed and efficiency of bringing products to market is a critical component of this strategy. As such, the Engineering and Marketing functions are organized into one team which is led by Vice President of Corporate Development and Marketing, Phil Thomas in order to facilitate cooperation during new-product introductions. This new organizational structure has caused overlap and uncertainty around roles and responsibilities in two critical positions within the team, the technical program manager and the product manager. In addition, manufacturing has not been included in the upfront design of the product and is only brought into the process during the testing phase, once the product has been designed and approved. FHE’s Product Development Engineering Manager, Lum Donaldson is reviewing the product development process and looking for opportunities to improve their operations. Currently, the product development process takes 1 year. The process involves Engineering, Marketing and Manufacturing. These three organizations are expected to work closely together during the development process. In his review, Donaldson has seen a bottleneck in the Engineering Services organization where up to 20 new jobs can be in the cue at one time. In addition, Manufacturing...
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...technological changes etc. and the organization’s market share got squeezed down to close to half of the previous figure as a result of their futility in creating new & advanced products right on time, severely harming their brand reputation. However, Medtronic regained their market & product leadership from the late 1980’s through the timely invention of a path-breaking, rate responsive pacemaker named Activitrax, followed by a thorough revamp of their incorporated processes and systems. The gross lack of coordination plaguing the company’s new product development process, resulting directly into the failure to respond fittingly to the market demands or changes, was gradually got rid-off via inculcating the management philosophies (like, assigning highest priorities to the commitments made, creation of a sense of urgency, fetching greater employee productivity, unifying the management and employees etc.). New performance milestones (cycle time, unit product costs, innovative products and product quality) were also set in place with an aim to alleviate the new product development process. A whole new set of processes pertaining to speed of product development cutting through the ‘new idea’ clutter was developed. The new processes were also related to the creation of product platforms, in which a single product can be altered into creating multiple derivatives, thus...
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...Accelerated Innovation: The New Challenge From China Magazine: Summer 2014Research Feature April 23, 2014 Reading Time: 23 min Peter J. Williamson and Eden Yin Rather than focusing on technological breakthroughs, Chinese companies are finding new ways to innovate that reduce lead times and speed up problem solving. Companies elsewhere should take notice. Chinese companies are reengineering new product development in ways that reduce lead times. Chinese companies are opening up a new front in global competition. It centers on what we call accelerated innovation — that is, reengineering research and development and innovation processes to make new product development dramatically faster and less costly. The new emphasis is unlikely to generate stunning technological breakthroughs, but it allows Chinese competitors to reduce the time it takes to bring innovative products and services to mainstream markets. It also represents a different way of deploying Chinese cost and volume advantages in global competition. Silicon Valley and other technology hotbeds may be able to match the speed of Chinese innovation in particular sectors such as electronics and Internet-based services. However, what’s distinctive about the strongest Chinese competitors is their capability to combine accelerated innovation with rapid scale-up to high volume at low cost, and to apply these techniques across a wide variety of traditional industries. We saw accelerated innovation being deployed...
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...Product Development Process System of defined steps and tasks such as strategy, organization, concept generation, marketing plan creation, evaluation, and commercialization of a new product. It is a cycle by means of which an innovative firm routinely converts ideas into commercially viable goods or services. The overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product. Innovative new products are the fuel for the most powerful growth engine you can connect to. You can grow without new products--AT&T sold essentially the same telephones for decades while becoming the world's largest telecommunications concern--but most small companies will find it difficult to grow at all, much less rapidly, without a constant stream of new products that meet customer needs. What is new product development (NPD)? To create the next product in a company’s product line a design team goes through product development process steps. Starting with a product idea, the team moves through several stages to generate all the details and documents needed to get the product built. A NEW product development (NPD) process goes through the same steps, however as this product has not been developed by the team before, new risks and uncertainties are introduced and often additional information is documented and shared with manufacturing. Basic new product development steps There are five basic steps in a new product...
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...ASSIGNMENT COVER SHEET(to be completed by the student) | AIB student ID number: | A12784 | | | Student name: | JASON FARADAY | | | Course name: | MARKETING MANAGEMENT | | | Subject name: | NEW PRODUCT MANAGEMENT | | | Subject facilitator: | TIMITRA WILLIAMS | | | Teaching Centre: | SITAL COLLEGE OF TERTIARY EDUCATION LIMITED | | | No. of pages: | 14 | | | Word count: | 1913 | | | DECLARATION | I, the above named student, confirm that by submitting, or causing the attached assignment to be submitted, to AIB, I have not plagiarised any other person’s work in this assignment and except where appropriately acknowledged, this assignment is my own work, has been expressed in my own words, and has not previously been submitted for assessment. | ASSESSMENT SHEET(to be completed by the examiner) | Student name: | | | | Course name: | | | | Subject name: | | | | Assessor/marker: | | | | COMMENTS | Principles learnt (for example, number and understanding of principles referred to, their influence on the structure of this paper, number and correct citations of references, use of appropriate jargon) | | /4 | | | Application of principles. That is, the analysis and evaluation of the example problem based on the principles, including the final recommendations and their justification | | | /8 | | | How well the example problem was described, including the extent and depth of information...
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