the new product development process concept screening february 13, 2007

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The New Product Development Process Concept Screening February 13, 2007

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Page 1: The New Product Development Process Concept Screening February 13, 2007

The New Product Development Process

Concept ScreeningFebruary 13, 2007

Page 2: The New Product Development Process Concept Screening February 13, 2007

Concept Selection / Screening

Page 3: The New Product Development Process Concept Screening February 13, 2007

The NPD Process

Phase 1:Opportunity

Identificationand Selection

Phase 2:Concept

Generation/Ideation

Phase 3:Concept

Screening & Testing

Phase 4:Development

“Fuzzy” Front End

Page 4: The New Product Development Process Concept Screening February 13, 2007
Page 5: The New Product Development Process Concept Screening February 13, 2007
Page 6: The New Product Development Process Concept Screening February 13, 2007

Prioritizing Interpreted Needs

Kano Classification (one approach) L = Linear Satisfiers (“The more the merrier.”) N = Neutral/Indifferent (“No big deal.”) M = Must Haves (“I won’t buy without!”) D = Delighters (“What an unexpected treat!”)

Page 7: The New Product Development Process Concept Screening February 13, 2007

Kano’s Model of (Non-Linear) Customer Satisfaction

Customer Satisfied

CustomerDissatisfied See (1) Matzler, et al.., 1996,

Journal of Product & Brand Mgmt (2) Matzler and Hinterhuber, 1998, Technovation (3) Center for Quality Mgmt

Must Have (M)Must Have (M)

Delighter (D)Delighter (D)

Linear Satisfier (L)Linear Satisfier (L)

RequirementFulfilled

RequirementNot Fulfilled

Indifferent (I)Indifferent (I)

Page 8: The New Product Development Process Concept Screening February 13, 2007

Concept Selection How can the team choose the best

concept (even though the designs are still being developed)?

How can a decision be made that is embraced by the entire team?

How can the “good” attributes of “weak” concepts be identified and used?

How can the decision process be systematic?

Page 9: The New Product Development Process Concept Screening February 13, 2007

Selecting Concepts All teams use some method

first concept considered; external decision; product champion; intuition; voting; pros & cons; prototype & test; decision matrices

Potential benefits of a structured method include:

objectivity in decisions a customer-focused product a competitive design reduced time to product introduction effective group decision making and coordination documentation of process

Page 10: The New Product Development Process Concept Screening February 13, 2007

Concept Screening & Scoring

Prepare the selection criteria and create the selection matrix

Rate the concepts Rank the concepts Combine and improve the

concepts Select one or more concepts

Page 11: The New Product Development Process Concept Screening February 13, 2007

Principles & Caveats Decomposition of concept quality

basic theory assumes selection criteria are independent and thus does not directly capture non-linear relationships between criterion

Subjective Criteria some criteria (eg, aesthetics) are highly subjective; the team’s

judgments on these dimensions should be supplemented with the opinions of representative consumers from the target market (perhaps using prototypes, mock ups)

To Facilitate Improvement of Concepts the team should make notes of any outstanding (+ or -)

attributes, as well as identify any features that might be used to improve the concept

Page 12: The New Product Development Process Concept Screening February 13, 2007

Step 1 Prepare Selection Matrix:

What are possible criteria for evaluating your “automotive dining” concepts? Ability to meet each interpreted need Manufacturing costs Market need, growth, size Compatibility with firm’s other products/culture Compatibility with firm’s current

technology Market competitiveness

(cost to maintain position)

Page 13: The New Product Development Process Concept Screening February 13, 2007

Step 2 Rate the Concepts

Using a reference point Relative performance

much worse than reference = 1 worse than reference = 2 same as reference = 3 better than reference = 4 much better than reference = 5

Page 14: The New Product Development Process Concept Screening February 13, 2007

Step 3 Rank the Concepts

Use criteria weights (if multiple segments)

Total score for each concept

Page 15: The New Product Development Process Concept Screening February 13, 2007

Next Steps

4. Combine and Improve the Concepts

5. Select One (or More) Concepts6. Move on to Concept Testing

(Next Week…)

Page 16: The New Product Development Process Concept Screening February 13, 2007

The New Product Theorem All commercially successful

new products are solutions to problems.