Categories of new products

2. Categories of new products • New-to-the-world ( 3M Post-It Notes) • New product lines for firm • Additions to existing lines • Improvements and revisions to existing products • Repositioning • Cost reductions

3. Resource expenditure by NPD phase

5. Deficiencies in NPD processes • A lack of market orientation • Poor quality of execution • Moving too quickly • Not enough up-front homework • Lack of product value to customer • Lack of focus, too many products • Lack of disciplined approach

6. NewProdTM Study Results on NPD Success (102 successes, 93 failures, 102 companies) • Product has to offer unique benefits and superior value for money to customers • Market orientation leading to marketing research and launch tasks done well • Leveraging technology capabilities and executing well

7. Stanford Innovation Project Study Results on NPD Success(86 successes and 86 failures) • Strong R&D with strong interface with both manufacturing and customer • Technically superior and unique products • Positive market environment: first to market and growing market • Significant value to customers • Leverage capabilities and resources

8. Five ways to improve cycle time profitably • Do it right the first time • homework and definition • organize around a true cross-functional team • employ parallel processing • prioritize and focus

9. Managing complex risky decisions • Break into smaller decisions • each decision process should reduce the risk of the next stage

10. Managing risk • Lessen the amounts at stake • if the uncertainties are high keep the amount at stake low • as the uncertainties decrease the amount at stake can be increased • incrementalize the decision process • be prepared to pay for relevant information to reduce risk • provide for bail-out points

11. Uncertainty-Stakes relationship over time

12. Risk-Stakes in an Out of Control NPD Process

13. Marketing Plan Flow Chart

14. Stage-Gate Launch Plan Meshing