New Product Management
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Chapter 2: The New Products Process
The overall new products process-that combination of steps/activities/decisions/goals, and so on that, if performed well, will churn out the new products the organization needs.
The process is not over when the new product is launched. It ends when the new product is successful, usually after some in-flight corrections (such as with the special in-store display piece).
Basic New Product Process (some firms refer to it as a stage-gate process):
Opportunity Identification and Selection
Concept Generation
Concept/Project Evaluation
Development
Launch
Advantages of this process:
Improvement in product teamwork
Less rework
Greater success rate with new product
Earlier identification of failures
Improved launch
30% shorter cycle times
Overlapping phases occur in the process because there is much pressure for firms to accelerate time to market for new products.
Product development is a multifunctional program, where all functions work together as a cross-functional team to accomplish the required tasks.
Phase 1: Opportunity identification and selection
Ongoing marketing planning
Ongoing corporate planning
Special opportunity analysis
Opportunities identified for the activities above:
An underutilized resource
A new resource
An external mandate
An internal mandate
The process of creatively recognizing the opportunities is called opportunity identification. Most firms have ongoing strategies covering product innovation.
Product Innovation Charter (PIC).
Phase 2: Concept Generation
Product concepts — creating new product ideas.
Phase 3: Concept/Project Evaluation
Concept test — to see what the potential consumers thought about the new product.
Project