New Product Management
By: Monika • Essay • 408 Words • May 18, 2010 • 1,085 Views
New Product Management
Chapter 2: The New Products Process
- The overall new products process-that combination of steps/activities/decisions/goals, and so on that, if performed well, will churn out the new products the organization needs.
- The process is not over when the new product is launched. It ends when the new product is successful, usually after some in-flight corrections (such as with the special in-store display piece).
- Basic New Product Process (some firms refer to it as a stage-gate process):
o Opportunity Identification and Selection
o Concept Generation
o Concept/Project Evaluation
o Development
o Launch
- Advantages of this process:
o Improvement in product teamwork
o Less rework
o Greater success rate with new product
o Earlier identification of failures
o Improved launch
o 30% shorter cycle times
- Overlapping phases occur in the process because there is much pressure for firms to accelerate time to market for new products.
- Product development is a multifunctional program, where all functions work together as a cross-functional team to accomplish the required tasks.
- Phase 1: Opportunity identification and selection
o Ongoing marketing planning
o Ongoing corporate planning
o Special opportunity analysis
- Opportunities identified for the activities above:
o An underutilized resource
o A new resource
o An external mandate
o An internal mandate
- The process of creatively recognizing the opportunities is called opportunity identification. Most firms have ongoing strategies covering product innovation.
- Product Innovation Charter (PIC).
- Phase 2: Concept Generation
- Product concepts – creating new product ideas.
- Phase 3: Concept/Project Evaluation
- Concept test – to see what the potential consumers thought about the new product.