New Product Development Professional Studies > NPD Process > Flashcards

NPD Process Flashcards

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1
Q

Business fit or ______ is postively related to NP success

A

Synergy

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2
Q

Controllable factors that can affect in the short term are

A
  • proficiency in
    • pre-development activities
    • market related activities
    • techological activities
  • Product Advantage
  • Protocol
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3
Q

What situations / environment (fixed) describe the setting for the project?

A
  • Market potential
  • Market competitiveness
  • Market synergy
  • Technological synergy
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4
Q

What factor fits into partially controllable / partially uncontrollable by the project leader & team?

A

Top Management involvement

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5
Q

Definition of NPD Process

A

Disciplined and defined set of tasks and sets that describe the normal means a company repetitively converts embryonic ideas into salable products & services.

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6
Q

What factors have influenced an organization’s approach to the NP process?

A
  • organizational culture
  • pace of market change
  • capital intensity
  • technological hurdles
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7
Q

A concept statement includes 2 of the 3 following that come together to make a potential product.

A
  • form
  • benefit
  • technology
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8
Q

Concept Statement Template is comprised of

A
  • Unmet need
  • how it works
  • features
  • customer/company benefits
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9
Q

What is a negative success factor?

A

Market competitiveness

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10
Q

The PIMs study revealed that ____________ was a major determinant of profitability

A

Product quality

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11
Q

Project New Product revealed this set of success factors

A
  • having a unique, superior product in the eyes of the customer
  • one with a real differential in the marketplace
  • having strong market knowledge and inputs
  • having technological and production synergy and proficiency
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12
Q

SAPPHO projects found the following significant to project outcomes

A
  • understanding of users’ needs
  • attention to marketing and publicity
  • efficiency of development
  • effective use of outside technology
  • seniority & authority of responsible managers
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13
Q

The Conference Board study over 16 years identified what weaknesses in firms’ new product failures

A
  • inadequate market analysis
  • product defects
  • lack of effective marketing efforts
  • high costs
  • bad timing
  • competitive strength
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14
Q

GE Labs - Roberts & Burke showed a close link to ________ needs as key to success

A

Market

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15
Q

____ % of the best companies surveyed in 2004 had a well defined / structured NPD process

A

80%

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16
Q

____% increase in success from co’s using a structured NPD process

A

400%

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17
Q

Using an NPD process can result in ____ % decrease in time to market

A

200%

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18
Q

Using an NPD process can result in an ____% increase in being first to market

A

25%

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19
Q

Benefits of Concept Testing

A
  • eliminates poor concepts
  • confirms buyer wants/needs from product and are willing to pay for value it brings
  • assists in measuring buyer intent
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20
Q

What is included in the Protocol Statement?

A
  • Agreement of needs to do the work
  • Focus on benefits of product
  • Drives / informs technology development
  • Communicates measurable requirements
  • Defines length of process or cycle times
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21
Q

Define A-T-A-R sales forecasting model

A

A - Awareness (hears about the product)

T - Trial (buys / uses the product)

A - Availability (effort to find the product)

R - Repeat (buys the product again)

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22
Q

Success factors in Globe’s study of radical innovations

A
  • recognition of technical opportunity
  • market need recognition
  • proficient R&D management
  • well executed venture decisions
  • ample development resources
  • technical enterpreuner
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23
Q

Myers & Marquis

showed that most NP processes were ______ driven and only ____% were technology driven

A

Market driven

21%

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24
Q

Besides the ATAR sales forecasting model, name 2 others

A

Diffusional Model

Life cycle forecasting

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25
Value of Scoring Models
- provides agreement of success factors prior to evaluation | - helps eliminate poor concepts / ideas
26
Scoring Models Examples of non-financial criteria
Fit to Strategy Product Advantage Fit to core competencies Customer value / benefit
27
Scoring Models Examples of Financial Criteria
ROI Risk vs. Reward Break even point EBITDA
28
What does the NPD process look like?
A define and disciplined series of tasks / work + stages
29
What are the decision points in the NPD process called?
Gates
30
What are the typical product decisions at each stage / gate?
Kill Go Park
31
What are the 5 NPD Process Stages?
Stage 1. Opportunity Identification 2. Concept Generation 3. Concept Evaluation 4. Development 5. Launch
32
What is a fuzzy front end?
Stages 1, 2 and 3 Opportunity identification Concept Generation Concept Evaluation
33
Booz Allen estimated ____% of products launched fail commercially
35%
34
Booz Allen stated that approximately ____% of the resources devoted to product development and commercialization go to unsuccessful projects
46%
35
What does Crawford call the all party, pre-developments agreement on the product strategy, target market definition and product benefits?
Protocol
36
What are the NPD Basic Process Gates?
- Direction (markets / segments) - Idea Review - Full screen of idea - Solution review - Decision to launch - Market testing plan
37
What is a Concept Statement?
A statement of a product idea or concept for customers to react to.
38
What is Full Scale market testing?
Test marketing (georgraphy or demographic) Rollout by application, influence, geography
39
Market Testing Method - Controlled Sale (please buy)
- informal setting - direct marketing - mini marketing
40
Market Testing Method - what is a Pseudo Sale (would you buy)
- speculative | - simulated tests
41
What are the contents of the business case?
- cover - exec summary - framing - business need & strategy - market assessment - product description - project proposal - assumptions, forecasts, financials - ops and investment - risk and contingencies
42
Name the 3 methods of Market Testing
Pseudo sale Controlled Sale Full Sale
43
Definition of Market Testing
Where the new product and its marketing plan are tested together customers evaluate the marketing plan for a new product in a market setting
44
What is the role of the Protocol?
- gain agreement on target market - agreement on product strategy ahead of product development
45
What do "Strategic Arenas" include?
Markets Products Technologies
46
Project Innovation Charter (PIC) includes...
``` - background \- focus / arenas - 1 clear technology - 1 clear market dimension - goals and objectives - guidelines ```
47
What are the 6 items that comprise product superiority?
- unique benefits to the customer - product quality - reduced customer cost - product innovativeness - product superiority in customers' eyes - solution to a customer's problem
48
What are the most critical steps in Protocal and pre-development activities?
- initial screening - preliminary technical and market assessments - marketing research - business / financial analysis
49
What is included in the Market Opportunity Analysis?
- size of market - market segment growth rates - expected profit margins - # of competitors - strength of suppliers - threats of change - alternatives - unique attributes
50
Crawford - Anova study - What was the #1 strongest of all constructs?
Product Advantage
51
Crawford - Anova | What was the 2nd significant hypothesis in this study?
``` Market Potential (payback period + opportunity windows) ```
52
True or False There appears to be little, if any, relationship between market competitiveness and new product success.
True
53
Crawford - Anova Study The strongest success factors based on # of correlations and strength of correlations
Product advantage proficiency of pre development activities Protocol
54
What is the #1 factor in influencing commercial product success?
Product Superiority
55
Tools for success gate decision making include
- good leadership - scoring models - checklists - data - definition of terms - strategy and goals of the company
56
What are 5 decision making issues?
1. cost of decision making 2. time 3. immature decision making 4. professional decision making 5. decision making paralysis
57
Senior Mgmt roles for NPD process
- strategy / direction setter - allocate resources - culture of support - hold org responsible for results - appoint gate members
58
Roles and Responsibilities for Process Mgr in NPD
- ensures timely flow of ideas & projects - mid-level mgr - ensures compliance with NPD process - provides process materials and training for team members
59
Roles and Responsibilities for Product / Project Sponsor in NPD
- Sr mgr - authorizes and funds project - defines project goals
60
What is the role of the Gate Team?
decision makers for NPD process
61
What is the Process Champion's role?
daily promotion of NPD process throughout organization
62
Roles and Responsibilities for Product Mgr in NPD
- ensures product meets needs of customers - monitors, modifies - product mix - communication strategy - distribution channels - price
63
What is the role of the Leadership Team within the NPD process?
Responsible for innovation
64
What are the 5 up front steps of Protocol?
1. target market 2. customer needs, wants and preferences 3. product concept what benefits how positioned 4. product attributes / features 5.
65
What are the most critical steps in NPD process?
Project definition and Early pre-development activities
66
Why is understanding new product success factors important?
1. provides guidelines for screening NPD projects | 2. leads insights into how new product projects should be managed
67
Booz Allen estimate product introductions _____ from 1981 - 1986
Doubled
68
Crawford - Anova Marketing synergy was positively and strongly tied to meeting...
Sales and profits objectives (relative sales & profitability level) Negative to packback period
69
Crawford - Anova Study What were the results?
- Product advantage - Market Potential - Market Synergy - Technological Synergy - Protocol - Proficiency of pre-development - Proficiency of market related activities - Proficiency of technological activities
70
True of False Gates follow stages
True
71
Technical Synergy includes
R&D Engineering Production Resources and Skills
72
Booz Allen says that by the end of 1986, new products introduced in the previous 5 years accounted for ____% of sales
40%
73
Crawford - Anova results Which hypothesis gained limited support from the analysis?
Top Management Support
74
What are the 3 "Streams" (areas of work)
1. Marketing 2. Technical Development 3. Evaluation
75
What stage is commercialization?
Stage 5 - Launch
76
Purpose of Stage 1 - Opportunity Identification
creatively recognizing new product opportunities
77
Sources of Stage 1 - Opportunity Identification
- Ongoing market planning - Ongoing corporate planning - Special opportunity analysis
78
Stage 1 - Opportunity Identification - Tasks
- fit to strategy - market attractiveness - segmentation selection - technical feasibility - identify killer variables
79
Stage 1 - Opportunity Identification - Tools
- SWOT analysis - Market opportunity analysis - Economic overview / trends - Environmental scanning
80
Stage 1 - Opportunity Identification - Research Methods
- Review of industrial / market data (secondary research) | - VOC / Customer Visits (primary research)
81
Stage 1 - Opportunity Identification - Deliverables
- Selected Markets (opportunity) - Support of NPD Strategy - PIC
82
Stage 2 - Concept Generation - Tasks
- Ideation activities and system\ - competitive analysis - prelim tech assessment - prelim market assess - customer value and assessment
83
Stage 2 - Concept Generation - Tools & Methods
- Ideation / brainstorming - Forecast models (ATAR, Diffusion, LifeCycle) - ROI, IRR, other financial - Data - Buisness Case Template
84
Stage 2 - Concept Generation - Research Methods
- VOC and customer visits - Ethnographic research - Surveys - Secondary market / customer research
85
Stage 2 - Concept Generation - Deliverables
- Prelim Business Case 1-2 pages | - Concept Statement
86
Stage 3 - Concept Evaluation - Purpose
Evaluting, screening and sorting concepts | 'pre-technical evaluation'
87
Stage 3 - Concept Evaluation - Tasks
- attributes & req's development - financial, sales, investment - concept testing - full screen - Product Protocol - Project plan
88
Stage 3 - Concept Evaluation - Evaluation Tools
- Concept Statement template - sales forecasting models - concept testing methodology - product protocol template - business case template
89
Stage 3 - Concept Evaluation - Research Methods
Concept Testing Focus Groups
90
Stage 3 - Concept Evaluation - Deliverables
Detailed Business Plan Protocol Statement Project Plan
91
Stage 4 - Development - Purpose
Synthesis of prior stages Development of the product marketing plan comprehensive business plan
92
Stage 4 - Development - Tasks
- develop prototype - product use testing - design for production - operations planning - launch, service, distribution plans - resolve regulatory / legal requirements
93
Stage 4 - Development - Research Methods
Product Use Testing (focus groups) Alpha / Beta Tests
94
Stage 4 - Development - Launch Plan
Includes: Distribution Plan Marketing Plan Sales Training Plan Sales Plan
95
Stage 4 - Development - Tools
- Spec / scope / req's - rapid prototyping - development checklist - Engineering tools (CAD, DEX, etc) - Testing guidelines - pre launch checklist
96
Stage 4 - Development - Launch Planning Components
``` Value Prop Goals and measures project plan / resources pricing strategy competitive assessment channel strategies operations ramp up outstanding issues / risks ```
97
Stage 4 - Development - Deliverables
Proven prototype | Updated business case
98
Stage 5 - Launch - Tasks
- Market testing - implementation launch plan - launch mgmt - implement ops plan - apply distribution channels - transfer to mainstream business - operationalize production and distribution
99
Stage 5 - Launch - Research Methods
Marketing Testing
100
Stage 5 - Launch - Deliverables
- New product introduction - post launch evaluation - monitoring process
101
Stage 4 - Development - Charateristics
- systems are prototyped, developed and tested - may have multiple stages - design requirments - engages IP, Regulatory & Approval req's - Gets ready for launch
102
What is the acronym for the Theory of Inventive Problem Solving, which is a Russian, systematic method of solving problems and creating multiple-alternative solutions?
TRIZ
103
NPD process for the service sector is typically?
Less complex than for manufacturing
104
What is the evaluation of potential new product concepts during the discovery phase of a product development project?
Concept screening
New Product Development Professional Studies
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