new product development lufthansa german airlines ls nyu fall 2006
TRANSCRIPT
Lufthansa concentrates its activitieson the core competencies of its six strategic business segments
Passenger business MRO
Leisure travel
Logistics
IT Services
Catering
Lufthansa is an innovative corporation and a leader in the aviation industry
Within the last five years, the products below were introduced in the passenger business segment-Lufthansa Passage
• All Business Class Jet• Onboard wireless internet• Dedicated First Class terminal• New Business Class Product • Private Jet
and products in development……
•Onboard medical products•Charter service
A new product process will offer efficiency and focus
- The launch of Lufthansa Private Jet was not seamless
- Onboard medical products will launch in approximately 6 months
Team assignment
Brainstorm ideas that will increase the chance of a successful launch
Implementing the Stage-Gate process at Lufthansa
Step 1- DiscoveryCreate an idea bankDelegate a manager
Idea
Idea
Idea
IdeaIdea
IdeaIdea
Idea
IdeaIdea
Idea
IdeaIdea
Idea
Idea
Idea
Gate 1
Stage 1
Gate 2
Stage 2 Gate 3
Stage 3
Gate 5
Stage 4
Gate 4
Stage 5
Idea ScreenCustomer intelligence/market researchEducation on product and featuresIs the product recyclableUse of benefit measurement technique-scoring modelCan the project be completed within 20 weeks deadlineDeliverables for Gate 2 decided
Product Manager/Department head
ScopingPreliminary market assessment/Surface research
- Medical training - Webinar- Outsource - Web based training- In house - Off the rack- Sales collateral - Provided by manufacturer- Internet
Project managerTimeline 4days
Gate 1
Stage 1
Gate 2
Stage 2 Gate 3
Stage 3
Gate 5
Stage 4
Gate 4
Stage 5Decision to build a training program
- Does the product fit within the corporate training program- Will usage of the product help reach targeted sales goals- Financial requirements- Deliverables for Gate 3 decided
HR Manager/Director of Sales Timeline 5 days
Building the business case
- Define the new product concept- Competitive analysis- Detailed technical appraisal- Business and financial analysis- Conduct RFP with outside vendors- Consult with manufacturer/doctors
Project Manager Timeline 25 days
Business Case
Offering a sales training program will increase the probability of reaching sales goals.
Type Program 1Web based program developed by LHS
Supported with in house training and sales collateral
Program 2Training purchased and provided by manufacturer. Supported with sales collateral
Pros - Web training will be updated with product development and news.
- Monies spent to develop program roll back to LH
- No LH resources needed to develop program- Lower initial cash outlay
Cons - Responsibility to ensure the web content is accurate
- Risk that sales staff may rely solely on web content as sole source of information
- Without a developed in house training program, financial resources will be needed to continue training new staff on product features
Cost - Budget of $60,000
- 75% for web program payable to LHS
- Budget of $48,000
- Two training sessions at a cost of $24,000 per session
Misc. - Web program prototype can be modified for other products at minimal cost
- Critical path/project plan will be provided
- While the training product offered is good, all further training will rely on outside sources
- Critical path/project plan will be provided
Gate 1
Stage 1
Gate 2
Stage 2 Gate 3
Stage 3
Gate 5
Stage 4
Gate 4
Stage 5Decision to spend
Is the product within our budget?Does it accomplish objectives?Will it offer a competitive advantage? Deliverables for Gate 4 decided
Vice PresidentTimeline 5 days
Development
Web program in development with LHSSales collateral in development with marketing teamTraining coordinator enters projectConsultation with manufacturer/doctors
Timeline 45 days
Gate 1
Stage 1
Gate 2
Stage 2 Gate 3
Stage 3
Gate 5
Stage 4
Gate 4
Stage 5Product review
Does the product meet our needsIs it ready to move to testingAre the financials within budgetTimelineDeliverable for Gate 5 decided
HR Manager/Director of Sales/Training CoordinatorTimeline 2 days
Testing & Validation
Web program sent to targeted staff for testingConference call arranged for Q&ASurvey completed by test group to determine products strengths and weaknesses
Training Coordinator/Product ManagerTimeline 2 days
Gate 1
Stage 1
Gate 2
Stage 2 Gate 3
Stage 3
Gate 5
Stage 4
Gate 4
Stage 5
Review of testing
Was the feedback positive?Are improvements required?How is the timeline?Is the training program adequate?
HR Manager/Product Manager/Training CoordinatorTimeline 5 days
Launch
Implement training programSales collateral completed and ready for distribution
Post launch reviewEvaluate productFinancial reviewEvaluate strengths & weaknesses
Product Manager/Project Manager/Department Head