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Product Development Tactics

Product Development Tactics. Stephanie Johns-Chin New Product Development and Marketing Group Membership Association Division New York Life Insurance Company . Product Development. Tactics T he Constant Flow of Ideas Effective Use of People Management of Process .

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Product Development Tactics

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  1. Product Development Tactics Stephanie Johns-Chin New Product Development and Marketing Group Membership Association Division New York Life Insurance Company

  2. Product Development • Tactics • The Constant Flow of Ideas • Effective Use of People • Management of Process

  3. The Constant Flow of Ideas • Connections • The Pipeline • Communication

  4. Connections Connections are made from ideas….. like ripples in a pond

  5. Connections How Did? Lead To Popularity of underwear in the 12th century Invention of the printing press in 14th century James Burke, Connections, Simon and Schuster, 1995

  6. Connections

  7. The Constant Flow of Ideas The Pipeline • Systems/Technology • Web • Economy • Financial Services Industry • Regulatory • Demographics • Marketing Channels • Competitors • Insurance Industry • Your products

  8. The Pipeline • Economy • Global • Credit crunch and the Mortgage Industry • Retirement incomes are largely dependent on stock market • Systems/Technology • Data modeling • STP/e-signature • Communication – Cell/Blackberry/Laptop/Wireless • Web • Information/Advice/Price • Buy – Retail • Internet Communities • Financial Services Industry • Branch Banking/Credit Card Companies • Cross-Sell • Premium billing vehicles • Competing products • Convergence - Banks buying insurance Co’s • Regulatory • Healthcare • Gramm-Leach-Bliley (GLB) Act – privacy • HIPAA • Pension Protection Act • Do-Not-Mail/Call/email • Actuarial Guideline CCC

  9. The Pipeline • Demographics • Multi- • Generational • Cultural • Multi-lingual • PopulationDistribution –From 1990-2000 • Growth of 32.7 million people • Biggest increases in South and West • 54% of population live in 10 most populated states • Marketing Channels • Email • Banner Ads • SEO • IM • DRTV • Direct Mail • Telemarketing • Social Networks • Twitter • Blogs • Facebook • Linked In • Etc… • Second Life

  10. The Pipeline • Your Products • Take a regular look • Go back to basics • What about repositioning? • Competitors • Products • Channels • Market Share • News • Client Service • Best Practices • Ratings • Insurance Industry • Other Sectors (i.e., Life/Health P&C) • Other Lines (i.e., Group Individual) • Research organizations • LIMRA • EBRI • NAIC • iii • Industry Publications • National Underwriter • Bank Insurance & Securities Marketing • Employee Benefit Advisor • Think Tanks • Corporate Executive Board – IAB • Trade Association • American Council of Life Insurers • American Insurance Association

  11. The Constant Flow of Ideas • Communication • Run a “News Service” • Keep an Open Door …and Ear • Share Ideas in Incubation Stage

  12. Effective Use of People • Leadership • Core Team • Technical Experts • Managing the Team • Environment

  13. Leadership Area with Primary Accountability for Product Development * LIMRA 2007 Individual Life Insurance Product Development Process Research

  14. Leadership • Dedicated Resource • Charged with product, market, channel • development and competitive analysis • Marketing background – diverse market experience • Alien in their midst • Share information, experiences, • insights, ideas and instigate discussion • Manages the process

  15. Core Team • Keep the team on the smaller side - larger groups generate fewer ideas • Diverse teams way out perform homogeneous teams over the long term • Diversity allows the team to step into the intersection of disciplines, cultures, and domains in which one can specialize through education, work, hobbies or other life experiences. Marketing

  16. Technical Experts Other Business Units Marketing Our Business Unit

  17. Managing The Team Herding Cats Financial Underwriting Medical Underwriting Service and Administration Actuarial Claims 17

  18. Managing the Team How Key Individuals Are Held Accountable for Product Development Results LIMRA 2007 Individual Life Insurance Product Development Process Research

  19. Environment • Survey Says…. • Four out of five companies have dedicated product development teams* • For half of these, team members work exclusively on product development* • Full Time Focus • Faster timeline • Focused • Stale • Part Time Focus • Exposure to day-to-day • Flexibility in Team composition • Extends timeline *LIMRA 2007 Life Insurance Product Development Research

  20. Environment Stay away from • Avoid passing judgment on each other’s ideas • Be constructive and look for ways to overcome obstacles Land of NO! Land of NO!

  21. Environment • Respect Diversity • Ongoing Feedback • Honest Open Communication • Empowerment • Access to key executives • Time for people to participate • Dedicated Resources - Must have a point person • Allocation of Funds

  22. Process • Traditional Approach • Recent Trends • I Would Add…. • Bumps in the road • Keys to Success

  23. Traditional Approach • The Tried and True Method • Developed by technical areas (underwriting, • actuarial, claims) • No market research conducted • Typically - One size fits all • Long cycle time to develop • Build it and they will come mentality • Marketing Department not involved until product • is completed • Sold by an Agent (Insurance is not bought, it’s • sold)

  24. 87% of companies implemented new approaches for the design of new products Recent Trends • Companies now have: • Formalized development process • Enhanced testing process • More tightly controlled sign-off • procedures • Improved communication • Outsourced IT function • Quality assurance testing done by business analysts • Moved tasks from “Day 1” to “Day 2” LIMRA 2007 Life Insurance Product Development Research

  25. I Would Add….. • Establish • Timeline/Schedule which must be reasonable and defined with some built in flexibility • Build in periodic reviews/vetting process of ideas • Accountability for delivery of assignments • Ensure Measurement • Response Rate • Client Adoption • Profitability • Be Prepared to Re-evaluate and Respond • Marketing is a great place for the process to reside It’s not just Fire and Forget!

  26. 91% Product Design/Pricing IT 69% Organizational priorities 66% 22% Corporate requirements 19% Legal issues 16% Admin req. Bumps in the Road Most Common Reasons for Schedule Changes LIMRA 2007 Life Insurance Product Development Research

  27. Keys to Success • Strongest correlation of success is the number of ideas you explore and build upon • Companies that cut R&D costs can actually accelerate innovation, boost growth and increase profit*. • Apple is considered an innovative company • Spends only 3% of its yearly revenue on R&D. Foster an open environment allows for true brainstorming • Produce as many ideas as possible • Produce ideas as wild as possible • Build upon each other’s ideas • Make it fun *Michael Davies, MIT Sloan School of Management

  28. Final Thought….. Don’t get caught up in your underwear!

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