ideation - The Product Development Process and Role of...

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The Product Development Process and Role of Ideation FOS 4435/5437 Spring 2011 11 Jan 11
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The Product Development Process
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Situation Many industry professionals believe the process of new product development is seriously flawed Difficult to develop data (because much is proprietary), but it’s estimated that most new products that are novel (not line extensions) do not survive more than 1 year on store shelves The cost of these “failures” is estimated at $20 billion Missed sales targets, lost revenue, wasted effort (productivity loss) and resources
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Solution There are no guarantees of success, but a disciplined approach to product development can decrease risk of failure There are various processes that have been identified One framework is the milestone- driven product development process
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Major steps encompassed Gap analysis Concept generalization Concept evaluation Prototype development and assessment Positioning Optimization Market testing Scale-up for launch
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Phase I - Product Definition Strategic plan A vision of a company’s direction Characterization of markets served, competitive environment, regulatory hurdles, core competencies, and profitability goals It articulates the issues a company must consider as it sets goals, allocates resources, balances product portfolios, measures results and evaluates results
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Phase I (con’t.) Market opportunity assessment Definition of market opportunity Usually involves consumer research Combination of qualitative and quantitative research Focus groups Statistical analysis of consumer response Begin to define features of product
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Phase I (con’t.) Business plan Usually for 12 month period Defines business situation Established specific business objectives Designates specific responsibilities Summary of market opportunity
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Phase I (con’t.) Product definition results from integration of Consumer requirements Use, service, maintenance Business objectives Cost targets, competitive analysis Product delivery requirements Manufacturing, distribution, sales, support Safety/regulatory requirements Ingredients, labeling, packaging
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Phase II – Product Implementation Prototype development Using product definition to construct/formulate a “looks like, tastes like, works like” product Benchmarking How do other products compare Product optimization Various technical manipulations
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Phase II (con’t.) Market strategy and testing Forecasts of long-term sales Scale-up and trial production Manufacturing under commercial conditions and deployment of programs such as HACCP
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This phase is led by sales, but supported by all previous work and disciplines Product actually performs in the marketplace Generally supported by special
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This note was uploaded on 03/03/2011 for the course FOS 2001 taught by Professor Marshall during the Spring '08 term at University of Florida.

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ideation - The Product Development Process and Role of...

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