Transcript sessie politie 20 mei

MPO
Markt- en productontwikkeling
Product planning
Deel I
2 februari 2001
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Contents
Part 1
 Product planning
 Idea generation
 Case 1: De Friesland Zorgverzekeraar
Part 2
 Success factors
 Idea evaluation and selection
 Tool: NewProd
 Case 2: PTT Post BU Brieven
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Product management: managing the entire life cycle
Product life cycle
Introduction
Development
Execution
Project organisation
Withdrawal
Operation
Phase out
Execution
Standing organisation
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Development: 3 sub-fases
elopment
Development
Operation
Phase Out
Strict development
Product planning
• Development break through products
• Development platform products
• Development derivative products
‘Pizza-box‘
interface
Research
• Development product technology
• Development process technology
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Example HP - Filling the ‘pizza bins’
Time
Sequence of
advanced
development of
product
technology
Product
technologies
Product A
Product B
Product C
Product
generations
Process M
Process N
Process O
Process
generations
Sequence of
project and
process
development
projects
Sequence of
advanced
development of
process
technology
Process
technologies
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Product planning = Portfolio planning
Strict development
Account 1
Account 2
Account 3
...
Account n
Account n+1
Account n+2
ctplannin
Product
planning
Research
Which products need to be. . .
 Phased out?
 Added to the portfolio?
P
Product 1
Product 2
Product 3
...
Product n
Product n+1
Product n+2
>
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Product development: continuous renewal
Introduction
Development
Withdrawal
Operation
Development
Development
Phase out
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Example Motorola - Life cycle planning
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Product family concept
Platform
A1
A1-1
A2
A2-1
A2-1-1
A3
A3-1
A3-1-1
A3-2
A3-2-1
B1
B1-1
B2
B2-1
Version
A series
Failure
Success
Discontinued product
Active product
B series
Time
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Program management
What has the portfolio to look like in
1 year, 3 years and 10 years?
Program 1
{
Program 2
{
1 year
3 years
10 years
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From vision to new ideas
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The idea funnel
From vision to new ideas
Assessment of future
technological developments
Assessment of future
market developments
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The idea funnel
Each selected idea constitutes the input
of a new project
Project definition
•
•
•
•
•
•
Brief description of product idea
Corporate mission
Primary target group
Secundary target group
Assumptions
Stakeholders
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The idea funnel
A 3-step process
Generate and select alternative strategies
Generate and select search fields
Generate and select product ideas
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Generating and selecting ideas: a three-step process
Strategy
Selected search fields
Selected ideas
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The selection process
Market
potential
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Technical complexity
• Categorise ideas
• Qualify ideas per category
• Create balanced portfolio • Use category-specific criteria
• Test high-potential
high-risk ideas that
require substantial
investment
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Summary: product planning
 ‘Research’ and commercial projects
 Product families
 ‘Mix’ of projects
 Product and process development
 Projects and program’s
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Contents
Part 1
 Product planning
 Idea generation
 Case 1: De Friesland Zorgverzekeraar
Part 2
 Success factors
 Idea evaluation and selection
 Tool: NewProd
 Case 2: PTT Post BU Brieven
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Idea generation
Strict development
Product planning
Research
Idea
generation
Ideagen
Idea selection
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Example 3M - How to keep the innovative spirit alive
“If management is intolerant and destructively critical
when mistakes are made, I think it kills initiative.”
William McKnight, the spiritual father of 3M
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Example 3M - Two ground rules
 25% Sales need to come from products introduced in the last five
years
 15% Time may be spend on ‘bootlegging’
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Example 3M - Two ground rules
 25% Sales need to come from products
introduced in the last five years
 15% Time may be spend on ‘bootlegging’
Post-it Notes
The Invention of 3M's Post-it Notes began when
Art Fry dug out an old idea for an adhesive,
because the bookmarks for his choir hymnal
wouldn't stay in place. The idea, applying a strip
of repositionable adhesive to each sheet in a
note pad became a practical innovation now
used in homes and offices worldwide.
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Creativity as a means of creating new knowledge
new knowledge
existing knowledge
Creative problem
solving techniques
know ledge
creation
know ledge
integration
Modelling techniques
“Creativity is seen as the cause and successful innovation as the effect”
Nyström (1979)
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Need for knowledge creation
Radical/
breakthrough
Next generation/
platform
Enhancement/
Hybrid
Derivative
Front end
Middle
Back end
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Creative thinking
“I like to think of
creative thinking as
the sex of our mental
lives”
Roger von Oech
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How the printing press and movable type was invented
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The creative cycle
Inf ormation
Frustration
Incubation
Detail
Insight
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Different ways of thinking
Right part of the brain
Left part of the bain
creative-intuitive thinking
logical-rational thinking
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Mental locks
 The right answer
 That’s not logical
 Follow the rules
 Be practical
 Play is frivolous
 That is not my area
 Don’t be foolish
 Avoid ambiguity
 To err is wrong
 I’m not creative
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Stepping stone
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The idea funnel
Two classes of techniques:
 Divergent
 Convergent
The idea funnel
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Categories of divergent techniques
 Associative techniques
 Creative confrontation techniques
 Systematic techniques
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Associative techniques
Based on the following ways of thinking:
 Association
 Provocation
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Association
Stimulate creativity by thinking along association patterns like:
 Opposites (e.g. high and low, thick and thin)
 Part and whole (e.g. finger and hand, shoelace and shoe)
 Proximity in time and space (e.g.station and train, pen and ink)
 Cause and effect (e.g. wound and pain)
 Form (e.g. swan and duck)
 Sound (life and wife)
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Provocation
Stimulate creativity by asking provoking questions:
 What happens if you turn the problem around?
 How would superman do this?
 What is the worst solution you can think of?
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Provocation: slay a sacred cow
Groningen
is NO fun
as a
student!!!
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Creative confrontation techniques
Stimulate creativity by confronting the problem with:
 Words that contain analogies
 Randomly chosen words
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Analogies
 Direct analogies
 Personal analogies
 Symbolic analogies
 Fantasy analogies
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Direct analogies
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Creative problem solving techniques
Creative confrontation
How do the communication needs of a marathon
runner, a soldier, a car service station, an ambulance,
an insurance agent, and so on compare to those of our
customers. . .?
McLaren services it’s cars
through a satelite link-up
At the Rotterdam marathon every
runner had an electronic communication
device tied to one of her/her shoelaces
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Why is not everybody using these techniques?
Techniques are often:
 Unknown
 Misused
The reasons for this are:
 Insufficient training
 Inexperience
 Resistance to change
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Summary: creative problem solving techniques
 Product ideas may have different sources
 Idea generation may be of an ad-hoc or structural nature
 Creativity is used throughout the NBD process, but most
noticeable during the fuzzy front end
 Creative problem solving techniques stimulate creativity by
unlocking mental locks
 Creative problem solving techniques may be divergent or
convergent in nature
 Creative problem solving techniques are often unknown or
misused
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Contents
Part 1
 Product planning
 Idea generation
 Case 1: De Friesland Zorgverzekeraar
Part 2
 Success factors
 Idea evaluation and selection
 Tool: NewProd
 Case 2: PTT Post BU Brieven
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Background
Company:
 Health care insurance company
 80% Market share in Friesland
 ‘Social’ position towards health care insurance
Market developments:
 Liberalisation of health care insurances
 Cross-regional competition
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Example: strategy - search field - idea
Strategy
To capture the market for
‘collectivities’ by delivering
additional services in order
to counter competition
Selected search fields
Example
Administrative services that
make life easier for
companies with collective
insurance
Selected ideas
Example
Automatic mutation
process for companies
with a changeable
workforce
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Approach
 6 Sessions
 Board of directors, department heads, employees customers
 Generate and select service elements
 Create ‘packages’ of service elements
 Evaluate packages in two ‘rounds’
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Process
#
Session objective
Participants
1
 To generate and evaluate ideas for new service elements
based on an assessment of market needs
 Board of directors
 Department heads
 Employees from different departments
2
 To generate ideas for new service elements based on potential product improvements and an assessment of the
pros and cons of collective insurances
 To evaluate the ideas generated in the first meeting
 Employees from different departments
 Consumers (customer of the customer)
3
 To generate and evaluate (packages of) service elements
from the perspective of companies based on trends, problems, and potential service improvements
 To evaluate the ideas generated in the first meeting
 Employees from different departments
 Lead users (customer)
4
 To select the best four ideas
 Department heads
 Employees from different departments
5
 To select and evaluate the best two ideas
 Board of directors
 Department heads
6
 To decide what service elements to develop
 Board of directors
 Department heads
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Summary: De Friesland Zorgverzekeraar case
 No real sense of urgency
 Fundamental disagreement concerning ‘social’ position
 Internal acceptance of future development projects
 Linking market needs to company means
 Getting people out of their work process
 Short divergence and convergence cycles
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MPO
Markt- en productontwikkeling
Product planning
Deel II
2 februari 2001
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Contents
Part 1
 Product planning
 Idea generation
 Case 1: De Friesland Zoregverzekeraar
Part 2
 Success factors
 Idea evaluation and selection
 Tool: NewProd
 Case 2: PTT Post BU Brieven
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Idea evaluation and selection
Strict development
Product planning
Research
Idea generation
Idea selection
selection
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A common falancy: too many projects
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Innovation is a risky excercise. . .
“Despite more than three decades of empirical research designed to
determine the ‘characteristics of technically progressive firms’ and ‘the
factors associated with success and failure in innovation’, there still
exists no precise prescription or recipe for successful innovation.”
Rothwell (1992)
Failure rate of
fully developed products
39%
24%
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Many products also fail before introduction!
11
The 'mortality curve'
Number of ideas,
concepts or projects
11
46% of all the resources allocated
to product innovation
1
3
1.3
Screening
and
evaluation
Business
analysis
Development
Testing
Commerciali
sation
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1
Bottom line definition of ‘excellence’
Number of ideas,
concepts or projects
The 'mortality curve'
Overall success rate
Success rate of best in class companies
Screening
and
evaluation
Business
analysis
Development
Testing
Commercialisation
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Luck, science or art?
“There is nothing more difficult to plan, more doubtful of success, nor
more dangerous to manage than the creation of a new system”
Machiavelli, Il Principe
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Success factors: SAPPHO
Successful innovators:
had a much better understanding of user needs
made more use of outside technology and scientific advice
payed more attention to marketing and publicity
involved ‘key individuals’ with more seniority and authority
performed their development work more efficiently but not necessarily more quickly
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Success factors: Stanford Innovation Project
Successful products had the following success factors in common:
high market proficiency and
early introduction
significant sales resources
well planned and executed R&D process
high performance to cost ration through in-depth
understanding of the customer and the market
place
high level of top management support
high synergy with existing strengths
high contribution margin
well interfaced and coordinated functions
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Success factors: NewProd
The most important factors were found to be
product superiority and uniqueness
project/ company fit
market need, size and growth
newness to the firm
economic advantage
technological compatibility
competitive market,
product customness
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Summary: success factors
 Success does not depend on mere chance
 No one factor is solely responsible for success
 Lack of understanding of strengths and weaknesses
 Critical activities are often omitted or poorly executed
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Contents
Part 1
 Product planning
 Idea generation
 Case 1: De Friesland Zorgverzekeraar
Part 2
 Success factors
 Idea evaluation and selection
 Tool: NewProd
 Case 2: PTT Post BU Brieven
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Productidea selection tool NewProd
 Model predicts success or failure with an accuracy of 84%
 Model links factors to financial performance based on
experiences with 200 ‘real’ product introductions
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NewProd factors: 4 aspects of success
Product
Technology
Product superiority and uniqueness
Economic advantage
Product customness
Innovativeness
Competitive strength
Technological compatibility
Technological newness
Technological complexity
Determinateness
Competitive market
Newness to the firm
Project/ company fit
Company
Market need, size and growth
Market
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Applying NewProd
Teammembers fill in
standard questionnaire
Scores are entered in
NewProd model
NewProd predicts
chance of success
NewProd’s prediction of
successes and failures
is correct in 84 out of
100 cases
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NewProd process
 Brief the project leader on NewProd and gather information about
the project
 Adapt the questionnaire to the specific context of the project
 Select and invite the participants
 Instruct participants and discuss definitions
 Have participants fill in the questionnaire
 Check if all questionnaires have been filled in completely
 Process the data and analyse the results
 Present the results
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NewProd outcomes
 Prediction of success or failure
 Areas that are strengths or weaknesses
 Areas where information is lacking
 Areas where consensus is lacking
 Team building
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Benefits of NewProd
 Enhances objectivity of the judgement
 Systemizes selection and evaluation process
 Focuses discussion
 Focuses information gathering
 Involves different functional areas and hierarchial levels
 Reduces complexity decision making
Product superiority and
uniqueness
Economic advantage
0,4
Concept development process
Technological
compatibility
0
Technological
newness
Product customness
-0,2
-0,4
Innovativeness
-0,6
Technological
complexity
Innovativeness
Determinateness
Competitive strength
Newness to the firm
Project/ company fit
Competitive market
Market need, size and
growth
Product superiority and
uniqueness
Technological
0,6
compatibility
0,4
0,2
0
Technological
-0,2
newness
-0,4
-0,6
Technological
-0,8
complexity
-1
Economic advantage
0,2
Product customness
Economic advantage
Pre-test
Product customness
Product superiority and
uniqueness
Technological
0,6
compatibility
0,4
Technological
0,2
newness
0
-0,2
-0,4
Technological
-0,6
complexity
-0,8
-1
Innovativeness
Determinateness
Competitive strength
Competitive market
Newness to the firm
Project/ company fit
Market need, size and
growth
Pre-test
Determinateness
Post-test
Competitive market
Competitive strength
Market need, size and
growth
Newness to the firm
Project/ company fit
Improvement?
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Post-test
Drawbacks of NewProd
NewProd does:
 Not yield a very profound evaluation
 Not advise how to improve the project
 Not take organisational aspects into account
 Probably wrongly predict ‘me-too’ project development projects
 Not learn from new projects
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Summary: product idea evaluation and selection
 Products often fail
 Success may be predicted
 Evaluation and selection as early as possible
 Different tools exist (e.g. NewProd)
 Tools structure evaluation and selection process
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Contents
Part 1
 Product planning
 Idea generation
 Case 1: De Friesland Zorgverzekeraar
Part 2
 Success factors
 Idea evaluation and selection
 Tool: NewProd
 Case 2: PTT Post BU Brieven
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PTT Post: the problem
Product ideas from:
• Account managers
• Product managers

No integral prioritisation of ideas

No match with development capacity
Bottleneck
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Consequences
Bottleneck in development of new productideas
Delay in realisation of development projects
Deadlines agreed with
sales and customers can not be met
Priority is given to the loudest mouth
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Different options
Chosen option
‘Smart’ development
Structural
portfolio planning
Increase capacity
PD department
• Reuse by:
• Predict success chance • Outsource development
• modularization
• Prioritise projects:
• Increase department
• Knowledge management
• importance
• Speed up by:
• urgency
• parallelization
• Match with development capacity
• process reengineering
• etc.
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Structural portfolio planning
Generate ideas
(e.g. as part of an product/ account plan)
Input ideas
(described according to template)
AM
PM
Integrate and determine required capacity
(in preparation of strategic meeting)
Evaluate and select ideas
Develop
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Match with existing processes
Generate ideas
AM
Input ideas
PM
Categorise ideas
Custom build for
one customer
Bid/ no bid
review
Generic
product ideas
R&D
ideas
Qualification by
NewProd
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Match with existing processes
Custom build for
one customer
Generic
product ideas
J
N
J
Capacity
requirement larger
than X?
R&D
ideas
N
Mid-term
commercial
potential?
NewProd test
Bid/ no bid
review
Selection and
prioritization by
management
Strategic
management
decision
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Match with existing processes
Large projects
Small projects
300 % of available capacity
Selection and prioritization
by MT Commercie
150 % of available capacity
Selection and prioritization
by Topplatform
100 % of available capacity
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NewProd pilot: ‘Frankeerservice’
 Ease of use
 Big envelop to collect all mail
 Business-like presentation
 Deferred payment with cost overview
 Entry product
 New logistic process
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Success chance ‘Frankeerservice’
Frankeerservice
has a chance of success of
73%
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Success factors
Productsuperioriteit en -uniekheid
Passing tussen bedrijf en project
Marktbehoefte en -omvang
Economisch voordeel voor de gebruiker
Nieuwheid voor het bedrijf
Technische passing
Concurrentie in de markt
Productspecialisatie
-1,5
-1
-0,5
0
0,5
1
1,5
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Summary of strengths and weaknesses
Product
Technology
New
Average price-performance
ratio
Organisation
Not complex
Bad technological fit
Unclear specifications
Market
Small
Right competencies
Strong competitive position
Stable
Existing market need
Little competition
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Impact of price performance ratio
Productsuperioriteit en -uniekheid
Passing tussen bedrijf en project
Marktbehoefte en -omvang
Economisch voordeel voor de gebruiker
Nieuwheid voor het bedrijf
Technische passing
Concurrentie in de markt
Productspecialisatie
-1,5
-1
-0,5
0
0,5
1
1,5
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Impact of organisational fit
Productsuperioriteit en -uniekheid
Passing tussen bedrijf en project
Marktbehoefte en -omvang
Economisch voordeel voor de gebruiker
Nieuwheid voor het bedrijf
Technische passing
Concurrentie in de markt
Productspecialisatie
-1,5
-1
-0,5
0
0,5
1
1,5
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Impact of market potential
Productsuperioriteit en -uniekheid
Passing tussen bedrijf en project
Marktbehoefte en -omvang
Economisch voordeel voor de gebruiker
Nieuwheid voor het bedrijf
Technische passing
Concurrentie in de markt
Productspecialisatie
-1,5
-1
-0,5
0
0,5
1
1,5
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Evaluation of NewProd pilot
“Een team wordt “gedwongen” om een
productidee aan de hand van een aantal
gezichtspunten kritisch tegen het licht te
houden. Daar ontbreekt het in de huidige
praktijk nogal eens aan.”
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Summary: PTT Post case
 Lack of prioritization constitutes real problem for project/program
managers
 Teamwork is most important benefit of tool like NewProd
 Evaluation of single project give good assessment product
development organisation
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