Development What is a New Product? New to the world product, or - PowerPoint PPT Presentation

New Product Development

What is a New Product?  New to the world product, or really new products  New to the firm products or new product lines  Additions to existing product lines  Improvements and revisions to existing products  Repositionings  Cost reductions

High New-to-world products New product 10% Lines 20% Improvements to Additions Existing products to existing 26% product lines 26% Cost Repositionings reductions 7% 11% High Low Newness to market

Successful Product/ Service Ideas  New product should have relative advantage over the existing offering  Be compatible with beliefs, attitudes and changes in buyer behavior  Be simple vis-à-vis functionality  Be easy to communicate (benefits of) to potential users  Convince buyer (satisfy a key need)

New-Product Development Process Idea Generation Prototype Development Idea Screening Test Marketing Concept Development & Testing Commercialization Business Analysis

Critical Steps in New Product Development  Idea Generation:  The initial stage for the new-product development process.  Idea Screening:  Evaluate the idea pool and reduce it to a smaller and more attractive set of potential new products.  Concept Development:  The process of shaping and refining the idea into a more complete product concept.  Business Analysis:  Stage of the new-development process that calls for preparing initial marketing plans for the product.

Critical Steps in New Product Development  Prototype Development:  Converting the concept into an actual product.  Test Marketing:  Testing the product prototype and marketing strategy in simulated or actual market situations.  Commercialization:  The firm introduces the product on a full-scale basis, involving:  Understanding Consumer Adoption  Timing  Coordination

The New Product Concept Need-form concepts Form Need New Products Form- Need- technology 13742 technology concept concepts x 85632 Technology ------------ =???

Breakthrough Innovations  Pocket calculator  Automatic teller  Camcorder  CAT Scan  CAD/CAM

Challenges of New Product Development  Trade offs  Dynamics  Details  Time pressure  Economics

Mission Statement  Product description : one concise & If you can point, focused sentence you can use Macintosh too.  Key business or humanitarian goals  Primary market  Secondary market  Assumptions  Stakeholders  Avenues for creative design  Scope limitations

Core Benefit Proposition  Primary purpose for which the customer buys the product  May reside in  Physical good  Service performance

Elements of the Product  The core cluster of tangible and intangible elements Facilitating Facilitating  A separate cluster Products Services of tangible elements, the facilitating The Core products Cluster  A separate cluster of intangible elements, the facilitating services

Elements of the Product (cont..)  Facilitating products and services are ancillary items the presence and level of which are discretionary  These differentiate the products from the competition  Competition is now more on the basis of services than the product elements

Elements of the Digital Camera Facilitating Facilitating Products Services Transfer to PC In-built Load on Projector The Core YouTube Cluster DLP Pico Smartphone Capture Projectors Store It’s a mobile phone. It’s a Erase projector. It’s Recall both!

Product Definition  What will it do ?  Who will buy it ?  What will be its rough dimensions ?  What are the major competitors ?  What functional features should it have ?  What are the psychological descriptors of the product ?  What is its context ?

Product Differentiation  Product uniqueness and novelty  Technically superior  Product attractiveness and design  High performance to cost ratio

Analysis of Need  How is this need being satisfied ?  Is the present method inefficient ? Ineffective ? What can be improved ?  What is good about the present method of satisfying the need ?  Why will this new way be better and succeed ?  What is the relative cost of the present method v/s the proposed method ?  Has an unmet need been uncovered ?

Lift Labs

Bull’s Eye Despite Shaking Hand  Ten years ago, Ph.D. student at the University of Michigan  Research for the U. S. Army Anupam Pathak  Problem: Soldiers shaking with fear, dread, or stress cannot fire accurately  Working on a university lab project to help stressed soldiers to steady rifle barrels by cancelling the shaking and thereby stabilizing the aim

Trembling at Home  For many people living with Parkinson's disease, the mere act of chewing and swallowing can be a challenge.  One way to deal with this is to blend foods up to minimize the need to chew.  But what if it's difficult merely bringing the spoon to one's mouth without spilling its contents?  While doing his Ph.D. on new materials that can be used for active cancellation in the military, Pathak  figured out how to make the hardware for active cancellation of human tremor very small, and realized that this would be the perfect application for active cancellation technology

Trembling at Home  The idea is to use active cancellation [currently in noise-canceling headphones] to stabilize larger- scale motion  Enter the Liftware Spoon by Lift Labs in San Francisco –  whose patented spoon technology actually helps stabilize tremors in people with Parkinson's, essential tremor, and related disorders  Experts at Lift Labs say the spoon uses an "active cancellation of tremor" technology that works to counteract the tremors people can experience in their hands and help prevent spills

Essential Tremor  Tens of millions people have essential tremor  a neurological disorder characterized by shaking hands  It can make eating nearly impossible — but new steadicam spoon could help  Accelerometers in the handle detect tremors, then actuators move the spoon in compensation  Test eaters report that the spoon is also useful for, say,  scooping out sugar or  feeding babies without stabbing them in the face. And it simply helps people enjoy their meals  Eating can be more about being with people instead of worrying about spilling  Anupam Pathak, Lift Labs founder and CEO

Parkinson's disease is a degenerative disorder of the central nervous system. The motor symptoms of Parkinson's disease result from the death of dopamine- generating cells in the substantia nigra, a region of the midbrain; the cause of this cell death is unknown. Early in the course of the disease, the most obvious symptoms are movement-related; these include shaking, rigidity, slowness of movement and difficulty with walking and gait.

Development of Liftware  Introducing Liftware: Tremor cancellation in the palm of your hand  Over 100 different algorithms were tested over 2 years.  Pick it up: Sensors in the handle detect your hand tremor  Start eating: Liftware quickly responds to your tremor and steadies the spoon  Compact and Portable From strong  It's easy to take out to restaurants medicine to guided delivery  70% Tremor Cancellation  Rechargeable Battery  Spill less Shift attention away from spilling and onto the people you're with  Always ready for your next meal  Is Liftware for me?

Will Liftware Work for You?  Do this quick test to see if Liftware will work for you.  Next, watch these videos to see how Liftware benefits the person whose tremor is most like yours. Mild Tremor  Medium Tremor  Severe Tremor   Engineered to Simplify Your Life  Proprietary Active Cancellation of Tremor technology utilizes state-of-the-art electronics and an on-board computer to adapt to a user's tremor  Lift Pulse measures your tremor using the sensors in your smart phone. You can use Lift Pulse to chart your tremor over time  Lift Stride allows people with Parkinson's Disease to discreetly help prevent shuffling while walking

Mission and Objectives  We are a group of scientists and engineers working to develop new technologies for people with Essential Tremor and Parkinson's Disease  Seeing our own friends and family suffering has motivated us to create Lift Labs and focus on improving overall quality of life and independence

Source of Value  What is the precise source of value to the purchaser/ user ?  What is the precise source of value to the producer/ provider ?  What is the anticipated product life cycle for this opportunity ?

Value Creation Checklist  Can we change physical, thermal, electrical, mechanical and chemical properties of the material?  Are there new electrical, electronic, optical, hydraulic or magnetic ways of doing this?  Can we construct a new model of this?  What if the order of processes were changed?  Find new analogs of parallel problems  Is this function really necessary?  Has every step been computerized as much as possible?