MPO Markt- en productontwikkeling

1. MPOMarkt- en productontwikkeling Product planning Deel I 2 februari 2001

2. 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

3. Product management: managing the entire life cycle Product life cycle Introduction Withdrawal Development Operation Phase out Execution Project organisation Execution Standing organisation

4. elopment Strict development Research Development: 3 sub-fases Development Operation Phase Out • Development break through products • Development platform products • Development derivative products ‘Pizza-box‘ interface Product planning • Development product technology • Development process technology

5. Example HP - Filling the ‘pizza bins’

6. Strict development ctplannin Research Product planning = Portfolio planning • Which products need to be. . . • Phased out? • Added to the portfolio? Account 1 Account 2 Account 3 . . . Account n Account n+1 Account n+2 Product planning Product 1 Product 2 Product 3 . . . Product n Product n+1 Product n+2 > P

7. Product development: continuous renewal Introduction Withdrawal Development Operation Phase out Development Development

8. Example Motorola - Life cycle planning

9. Product family concept

10. 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

11. From vision to new ideas

12. The idea funnel From vision to new ideas Assessment of future technological developments Assessment of future market developments

13. 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

14. The idea funnel A 3-step process Generate and select alternative strategies Generate and select search fields Generate and select product ideas

15. Generating and selecting ideas: a three-step process Strategy Selected search fields Selected ideas

16. x x x x x x x x x x x x x x x x x x x x x x The selection process Market potential Technical complexity • Categorise ideas • Create balanced portfolio • Qualify ideas per category • Use category-specific criteria • Test high-potential high-risk ideas that require substantial investment

17. Summary: product planning • ‘Research’ and commercial projects • Product families • ‘Mix’ of projects • Product and process development • Projects and program’s

18. 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

19. Strict development Ideagen Research Idea generation Product planning Idea generation Idea selection

20. 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

21. 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’

22. 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.

23. Creativity as a means of creating new knowledge • “Creativity is seen as the cause and successful innovation as the effect” • Nyström (1979) Creative problem solving techniques Modelling techniques

24. Radical/ breakthrough Next generation/ platform Enhancement/ Hybrid Derivative Front end Middle Back end Need for knowledge creation

25. Creative thinking • “I like to think of creative thinking as the sex of our mental lives” • Roger von Oech

26. How the printing press and movable type was invented

27. The creative cycle

28. Different ways of thinking • Right part of the brain à creative-intuitive thinking • Left part of the bain à logical-rational thinking

29. 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

30. Stepping stone

31. The idea funnel • Two classes of techniques: • Divergent • Convergent The idea funnel

32. Categories of divergent techniques • Associative techniques • Creative confrontation techniques • Systematic techniques

33. Associative techniques • Based on the following ways of thinking: • Association • Provocation

34. 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)

35. 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?

36. Provocation: slay a sacred cow • Groningen is NO fun as a student!!!

37. Creative confrontation techniques • Stimulate creativity by confronting the problem with: • Words that contain analogies • Randomly chosen words

38. Analogies • Direct analogies • Personal analogies • Symbolic analogies • Fantasy analogies

39. Direct analogies

40. 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. . .? At the Rotterdam marathon every runner had an electronic communication device tied to one of her/her shoelaces McLaren services it’s cars through a satelite link-up

41. Why is not everybody using these techniques? • Techniques are often: • Unknown • Misused • The reasons for this are: • Insufficient training • Inexperience • Resistance to change

42. 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 unknownor misused

43. 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

44. 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

45. Example: strategy - search field - idea Strategy Selected search fields Selected ideas To capture the market for ‘collectivities’ by delivering additional services in order to counter competition Example Administrative services that make life easier for companies with collective insurance • Example • Automatic mutation process for companies with a changeable workforce

46. 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’

47. Process

48. 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

49. MPOMarkt- en productontwikkeling Product planning Deel II 2 februari 2001

50. 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