enterprise thinking metamatrix consulting group new product & services development adjunct...
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ENTERPRISETHINKING
MetaMatrix
Consulting Group
NEW PRODUCT & SERVICES DEVELOPMENT
Adjunct Associate Professor
David A. Goldsmith MetaMatrix Consulting Group, LLC.
8248 Barksdale Lane Manlius, NY 13104
Phone: (315) 682-3157 Fax: (315) 682-0509
Email: [email protected]
website: www.metamatrixconsulting.com
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TEXT BOOKMain Text
Winning At New Product Development:
Accelerating the Process from Idea to Launch
by Robert Cooper (3rd edition)
Published by Perseus Publishing
Suggested Reading
Revolutionizing Product Development
By Wheelwright and Clark
Published by Free Press
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COURSE REQUIREMENTS & ATTENDANCE
To earn CEU attendance is required at all sessions. Course requires full class participation & assignments. There will be no exams. There are assignments for each
session which includes a final project. Grading is based on how much each individual learns
during the course. • 25% of the grade will be for class participation• 25% will be for the first assignment• 50% will be for the final project.
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Today 09:00 AM –
Introduction; overview; your expectations; what new product and service development means to you; the final project; grading; and defining new products.
10:00 AM – Organizational and new product visions, goals, and strategic directions.
Teams will work on establishing vision, mission, goals, and strategies for your real or hypothetical New Product Development Group(NPDG) and for new products.
11:00 AM – Why new products fail & critical factors for success.
12:00 PM - Lunch 1:00 PM – Continued 04:00 PM - Adjourn
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FINAL PROJECT
“The Process You Would Use To Develop A New Product Or Service And The New Product Or Service That you Have Developed From The Process.”
1. The vision, mission, goals, and strategies of the NPDG.
2. The general criteria for the NPDG.
3. Description and diagram of the NPP.
5. The specific criteria for the new product or service.
6. Your business evaluation of the new product.
7. The next actions you will take.
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What are your expectations?• Name…country• If employed…where?• Position you currently hold…if any?• What would you like to learn?• If you learned it, what would it do to your
business or you?• One unique thing about yourself that
others may be surprised to know.
Russian Roulette
$10 Million Dollars
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Goals for you
• Create a mind shift • Increase your awareness and knowledge• Develop a system for your firm to use.
• Part educational• Part group activities• Part interactive• Use of examples
Educating Your Mind
“A man’s mind, once stretched, never goes
back to it’s original dimensions.”
Oliver Wendell Homes
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WHAT ARE NP&S?
?
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They can be…
• Concepts• Solutions to problems• New technology• New to the company• Line extension• Service extension
Product of the Highway Industry
E-Z Pass changes
The need for toll personnel
The need to count cash
The need to generate reciepts
The need for accounting personnel
The need for “people” safety
Benefits to driverSpeed of processing
One simple bill
No cash as a driver
Consolidate invoices
Waiting in line diminished
New Products from Coca-ColaVanilla Coke May 8, 2002
Diet Coke with Lemon in October 2001
Cherry Coke in 1986New Coke 1985
Diet Coke in 1982
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“The Can” Sherwin-Williams Inc
“The new plastic can is largely a response to the growing number of women who not only make most decorating decisions at home but also are taking brush in hand,” said Adam Chafe, director of marketing for Dutch Boy.
Test marketed in Syracuse NYNottingham Spirk Design Associates
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New to consumer – End user
• Continuous Innovation
Car, Television, chair, Windows 2000• Dynamically Continuous Innovation
Digital watch, Laptop• Discontinuous innovation
MP3
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New to a company
• Technology introduction• Inventions within firm• Innovations • Addition to existing products• New to market • New to market segment
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New to a company or trade
• New to a country – Mexican Food in US• New to a category – DVD• New Brand – Victoria Secret• Repackaging – Financial Services• Repositioning – Apple• Line Extension – size, color, shape
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NP&S define business
• Sales• Hiring• Manufacturing process• Vendor selection• Technology• Planning• Channel• Customers
• Banking • Media• Advertising• Location• Alliances• Competition• Education• Legal
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NP&S are all over your firm…• Accounting
– Invoice, Software• IT
– Software, Server, Computers
• HR – Training, Handbook,
Leasing• Maintenance
– Chemicals, Tools• Logistics
– Shippers, Online tracking• Engineering
– New process, Forms
• Design
– On-line service, ASP
• Finance
– Proposals, Credit Cards
• Sales – New video, Products
• Manufacturing – Equip., Staging Systems
• Operations
– 24 tech Support, Site Select
• Marketing – Ad Campaign, Survey
Role of management is to create the systems and supply the tools for
employees to produce predictable reliable results….continuously.
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Less glamour, more profit
“ Big firms are better at less eye-catching forms of innovation—adding the twist to the snack food, for example, and generally improving the ways in which products invented elsewhere are manufactured, marketed and continually enhanced. Henry Ford... did not invent the automobile. He invented a far superior way to manufacture it, the mass-production assembly line.”
The EconomistApr 22nd 2004
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The Results – 1, 2 or 3 items
100%
47%
32%
64%Anticipated
Results
Actual Results
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Jump right in…
Draw a picture
of how you do it now.
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Review of your process….
• Where did you enter the process?• Where did your employees add input?• Where did you make the decision to go
ahead?• Where did accounting, manufacturing or
human resources enter the picture?
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The Management Toolbox
• We use meetings to increase productivity• We use time management to create time• We use statistical analysis for guidance.• We create teams to gain synergy• We design buildings to increase efficiency
Our tools are our decisions and the better we make the process the more predictable is the result.
Rule of 80/20
A firms ability to compete and employees ability to succeed is
driven primarily by the structure the firm has to offer. The role of
management is to think…design the structure, processes and goals to insure the probability of success.
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Create systems and tools
Define and refine process
Teach the firm to use it
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2 Main Tools
Funnel Development Process
Stage Gate
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NEW PRODUCT IDEA ATTRITION
100
90
80
70
60
50
40
30
20
10
0
0 10 20 30 40 50 60 70 80 90 100
IDEA GENERATION
SCREENING
EVALUATION
DEVELOPMENTTESTING
COMMERCIALIZATION
SURVIVAL RATE(%)
CUMULATIVE TIME IN PROCESS (%)
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Funnel Development Tool
Internal ForcesManagementTimeFunds
External ForcesVendorsCustomersMarket Conditions
Wheelright and Clark
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Process limits the success
• Not enough ideas• Research misdirected• Management late entry• Resources not reviewed or wasted• Not tied to strategy (poor strategy)• Cannot be taught• Missed opportunities• Risk assessment overlooked – 9/11 Shift
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Increase the probability of success
Generation and collection of ideas for programs, facilitators, and sponsors
Objective is quantity
Goal is to continually expand the ideas so the final product is the best possible choice
Narrow choices for more in depth discussion.
Selection should be greater than needed.
Final selection has an increased probability of success and higher quality.
Change in approach and narrowed based on pre-determined characteristics.
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Increase Mouth
• Customers• Vendors • Focus Groups• Industry• Customer Service• Consultants• Trade Journals• Existing Products• Magazines/Books
• Surveys• Sales Force• Competition• Mailings• Web • Employees• Associations• Friends• Trade Shows
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Narrow Scope
• Research• Stats• Costs• Market Needs• Capacity• Equipment• Finances
• Facilities• Time to market• ROI
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How can this be powerful
• Duplicatible• Expectations met• Formula determines success• Easy to teach• Increases Creativity• Proactive
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DAVI
D A
GO
LDSM
ITH
DAVI
D A
GO
LDSM
ITH
DAVI
D A
GO
LDSM
ITH
03-0
2-1
0 Re
cru
iting
Pro
ce
ss F
unne
l
1. Evaluate Needs80/20 RuleActive M anagem ent
2. A lliances In S tateHigh School CoachesAlum niRecruiting F irm sDB D eveloped
4. Identify P rospectsProcess FunnelTop 10 in Country on List2 on 4 E lim ination Academ ic Child D iscip line Transfer
5. Com plete H om ew orkStudent N eedsAcadem icsLong Range GoalG uidance CouncilorsO ther CoachesFam ily B ackground
6. W atch Them PlayRanking Form ula Built Academ ics Interests G oals Ta lent Skill S ets Define (Jum p a phone book)
7. Relationship Build ing
Throw Cata logsHTM NM om , Dad, S tudent NeedsEarly Rela tionshipsPresenta tion D ifferentia tion
9. Offic ia l VisitsSchedule Entire TourChoreograph ProcessCoach tim e w ith S tudentPrepare O ffer in AdvanceO ffer is a G IFTCreate A Career Ladder
8. Finacia l ReviewSet L im its on O ffersF inancia l AssistanceUse Scoring M ethod
10. A fter the O fferCreate a Conversation L istO rganize Calls S tra tegica llyAccept O ffer - M ake it a G IFT
11. Accepts Another O fferDisney - W elcom e Hom eStock Thank You CallKeep in Touch Process
3. A lliances In O ut-o f-S tateHigh School CoachesAlum niRecruiting F irm sDB D eveloped
1 2 3 4 5 6 7 8 9 10 11
© 2003 MetaM atrix Consulting Group LLCP: (315) 476-0510 ww w.metam atrixconsulting.comUse only by C larion Univ. W ithout Written Perm ission
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Let’s try a simple one…
1. Take one person in the group.
2. Show their current process
3. Convert it to a more structured funnel
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Gun Example
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Defining Stages
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Stage Gate Process - Robert Cooper
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STAGE GATE PROCESS ™
STAGE 1
IDEA GATE 1
INITIAL
SCREEN
IDEATION
PRELIMINARY
INVESTIGATION (SCOPING)
GATE 2 STAGE 2
GATE 3 STAGE 3
GATE 4 STAGE 4
GATE 5 STAGE 5
PIR
2NDSCREEN
DETAILED INVESTIGATION (BUSINESS CASE ORBUSINESS EVALUATION)
DECISION ON B.E.
DEVELOPMENT
POST -DEVELOPMENT REVIEW
TESTING & VALIDATION
PRE-COMMERCIALIZATION BUSINESS ANALYSIS
FULL PRODUCTION & MARKET LAUNCH
POST-IMPLEMENTATION REVIEW
60% of all firms in the world use it!!
Advantages:
Insures consistency
Parallel processing
Blocks ideas that do not fit company
Can be managed consistently
Structured process
Easily taught
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Pontiac Solstice in Record Time
126 vs. 253 Days
'Oh my gosh, you guysare making this thing arunner, aren't you!'“
says Reuss.
NBC5.comhttp://www.popsci.com/popsci/auto/article/0,12543,233259-6,00.html
Photograph by John B. Carnett
RubbermaidContinual Stream of New Products using New
Product Development Teams
Founded 1933
98.9% Brand Awareness
$7 Billion in 2000
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Technology Firms Use It
• Israel-based company VKB has developed a virtual QWERTY keyboard that can be projected onto any flat surface.
• Because the keyboard is projected, it’s ideal for use in sterile environments such as cleanrooms and hospital operating theatres.
• keyboard is full size and the letters are in a standard format (Clicks when you type)
www.vkb.co.il
Product & Service Firms Use it
Häagen-Dazs® ice cream was first sold in 1961 exclusively in New York gourmet shops. As the popularity of this exotic-sounding brand name
grew and the demand for further distribution increased, Häagen-Dazs began franchising ice
cream shops/cafés in the mid-1970s
Creating The Right Products
The Burj
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A Story About Franks. Snappys …
…children and
decisions that cost
them the farm
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Heid’s of Liverpool
• Founded in 1883 by Mr. Valentine Hied• One of the oldest and best-known “Hot Dog
Stand” in the country.• Present restaurant built in 1937 and design
bought from the 1935 World Fair of a Bavarian sausage house.
• Family owned and operated for 3 generations until 1995
• Bought by John and Randall Parker (brothers) in 1995
• Plans to re-open Sweet Treats facility serving ice cream
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Starting Over … Planning
‘If you don’t know where you’re going, you might end up somewhere else.”
Casey Stengel
“Plans are nothing, planning is everything.”Dwight D. Eisenhower