1. Idea Insights from GNPS Technical Development in NPD Episode 15-20 www.globalnpsolutions.com/idea-incubator/ 1 2. Idea Insights from GNPS NPD Structured Process Staged and gated processes guide new product development Minimizes innovation risk and investment Stages: 1. Opportunity Identification 2. Concept Generation 3. Concept Evaluation 4. Technical Development 5. Commercial Launch www.globalnpsolutions.com/idea-incubator/ 2 3. Idea Insights from GNPS Activities in Stage 4 Much of technical development specific to product, industry Includes engineering, quality, reliability Also includes risk assessments, market research studies Identify capital investment & manufacturing costs www.globalnpsolutions.com/idea-incubator/ 3 4. Idea Insights from GNPS Determining Costs Profit = Revenue Cost Revenue estimates from Stage 3 Costs finalized during Stage 4 Development Cost Ignore sunk costs or include? Manufacturing Costs Technical design is completed www.globalnpsolutions.com/idea-incubator/ 4 5. Idea Insights from GNPS Economies of Scale Variable costs change with amount of production and sales Fixed costs dont change (like development cost) Example: Dev Cost = $100,000 Produce 100,000 units, allocate $1/unit Product only 10,000 units, allocate $10/unit Economy of scale lowers allocated costs www.globalnpsolutions.com/idea-incubator/ 5 6. Idea Insights from GNPS For More Information See the full post at the Idea Incubator Blog www.globalnpsolutions.com/idea-incubator/ Free registration Contact me! 1-281-280-8717 info@globalnpsolutions.com 2323 Clear Lake City Blvd., #180-177 Houston, TX 77062 www.globalnpsolutions.com/idea-incubator/ 6 Click here