Download - technology management & innovation
tm&i 2010 IV.1
technology management & innovation
new product development (NPD)
tm&i 2010 IV.2
innovation & technology development
Some large Corporations
Companies (both small & large)Universities & Research Institutes
Governments & Research Councils Private investors Venture Capital Firms Corporate R&D Sales Revenue (ROI)
BASIC APPLIED NEW PRODUCT DEVELOPMENT ON MARKET
From Technology Strategy Board,
tm&i 2010 IV.3
new product development (NPD) is a critical part of the overall process in transforming new technologies into functional products
tm&i 2010 IV.4
technology development process*
• Fundamental development & proof of principle
• Patent filings
• Product & license opportunities
• Business & marketing strategy
• Product developments
• License negotiations
• Transfer to manufacture
• On-going IP management
• On-going development
Early Phase
Mid Phase
Late Phase
Technology Transfer
Product Development
Product Innovation
*slide courtesy of Erasmus Technology LLP
http://www.erasmus.eu.com
tm&i 2010 IV.5
NPD
IP
technology
know-how
$ capital
market awareness
new product
new product development is a process
•NPD has inputs & outputs, and requires time to complete
time
tm&i 2010 IV.6
traditional NPD process
compartmentalised (department or function-based) processes
serial flow from one division to the nextmultiple “handover” pointsplenty of scope for misunderstandingslittle or no opportunity for design changesR&D function isolated from end users
R&D manufacturing marketing sales
tm&i 2010 IV.7
product
marketing sales
R&D manufacturing
C-TEAM
integrated product development
marketing sales
R&D manufacturing
marketing sales
R&D manufacturing
B-TEAM
A-TEAM
product A
product C
time
product launch date
A B C
B
tm&i 2010 IV.8
integrated PD process
advantages•cross-functional teams•work flow is project (product) based•core team is responsible for product from concept to completion•integrated approach bridges communication gaps between different business functions•design improvements/changes more easily incorporated•product is more closely aligned to end-user’s needs
marketing sales
R&D manufacturing
the cross-functional core team are responsible for the full product
design cycle, from concept through to completion
tm&i 2010 IV.9
product life cycle curve*sales vs time
sales
timeintroduction
growth
maturity
decline
introduction
new product development
*reproduced from ‘Product Innovation: leading change through integrated product development’. D. Rainey. CUP (2005), p.82.
tm&i 2010 IV.10
• the standard product life cycle curve is a plot of sales against time
• there are four distinct phases:• introduction, growth, maturity &
decline
• the purpose of NPD is to replace those products, or product families, that are in decline
tm&i 2010 IV.11
the six phases of the NPD process*
*reproduced from ‘Product Innovation: leading change through integrated product development’. D. Rainey. CUP (2005), p.113
idea generation
concept developmen
t & selection
NPD programme
planning
design & developmen
t
validationpre-
commercial
tm&i 2010 IV.12
new product development
• NPD translates technology innovations into products
• it’s a business process, with inputs & outputs• integrated NPD uses cross-functional teams in
order to produce better products, quicker• products in the market tend to follow a “life
cycle”• the business objective of NPD is to replace
ageing products (in decline) with innovative new products