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Product Generation a.k.a. Product Management

Product Generation a.k.a. Product Management. Ken Homa. Product Generation. New Product Development Product / Process Linkage Product Line Management Branding Strategy. Product Life Cycle. Typical pattern, highly varied by product, geography Cash flow critical

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Product Generation a.k.a. Product Management

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  1. Product Generationa.k.a. Product Management Ken Homa

  2. Product Generation New Product Development Product / Process Linkage Product Line Management Branding Strategy

  3. Product Life Cycle • Typical pattern, highly varied • by product, geography • Cash flow critical • Mature ‘lend’, growth ‘borrow’ • Manage the PLC • Differentiated tactics • Revitalization

  4. Product Line MangementThe Issue “Owning a customers’ lifetime profitability requires a full line that keeps competitors out. The incremental costs of line extensions are low & computers handle the complexity.”

  5. Product Line MangementThe Issue “Owning a customers’ lifetime profitability requires a full line that keeps competitors out. The incremental costs of line extensions are low & computers handle the complexity.” “Pareto lives. Stay focused and simplify. Pick your winning products and customers, bet big on them, and be willing to walk away from some business.”

  6. Product Line ManagementThe Issue A broad product line is required to fully cover all (or most) customer / market requirements ...and to erect barriers from competition.

  7. Product Line ManagementThe Issue A broad product line is required to fully cover all (or most) customer / market requirements ...and to erect barriers from competition. But, complexity & costs increase exponentially as product lines get long

  8. Product Line Proliferation • Size, color, pack • Special & derivative models • Accessories • Ancillary products • Multiple generations Combinations & permutations ...

  9. DRILLS SAWS OTHER Power Tools The evolution of a product line ...

  10. DRILLS SAWS OTHER Power Tools PROFESSIONAL CONSUMER

  11. BEST PROFESSIONAL BETTER CONSUMER GOOD Power Tools DRILLS SAWS OTHER

  12. BEST PROFESSIONAL BETTER CONSUMER GOOD Power Tools CORDLESS (DC) CORDLESS (DC) CORDED (AC) CORDED (AC) DRILLS SAWS OTHER

  13. FEATURES SIZES COLORS PACKS Variable speed 1/4”, 3/8”. 1/2” drills Pro black DeWalt yellow Redistribution, Kits Power Tools

  14. Strategic Models Supplementary Brands Complementary Products Accessories Global / Regional Models Flagships, fighters, derivatives Sub-brands, private label Cordless tools, chargers Drill bits, saw blades 110/240 V Power Tools Generational Recycling ...

  15. Product Line ManagementBreadth & Depth of Line Key : product line / item profitability • Imprecise, but enlightening

  16. Product Line ManagementBreadth & Depth of Line Key : product line / item profitability Each andevery item has associated costs : some visible, some hidden • Cannibalization • Inventory • Administration • Repairparts

  17. Product Line ManagementBreadth & Depth of Line Key : product line / item profitability Each andevery item has associated costs : some visible, some hidden Paretoisalive, well... andapplicable • Rule of 80 / 20

  18. Product line managementKeys to Success Strive for shortest lineTreat incremental items as major decisions

  19. Product line managementKeys to Success Strive for shortest line Watch for “line creep” Especially when new generations launched

  20. Product line managementKeys to Success Strive for shortest line Watch for “line creep” Prune aggressively Tie pay to line profitability

  21. Product line managementKeys to Success Strive for shortest line Watch for “line creep” Prune aggressively Link product & process design Mass customization

  22. Design Elements Technical Efficacy Innovation Functionality Ergonomics Aesthetics Manufacturability

  23. Design Elements Technical Efficacy Innovation Functionality Ergonomics Aesthetics Manufacturability

  24. Product / Process LinkageMass Customization Common components Standardized parts Modularplatforms “Virtual inventory” Postponement End of line customization More RIP ... less FG ... faster cycles

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