| New Product Development |
Article Index for New |
Website Links For New |
Information AboutNew Product Development |
| CATEGORIES ABOUT NEW PRODUCT DEVELOPMENT | |
| product development | |
| systems engineering | |
|
TYPES OF NEW PRODUCTS There are several types of new products. Some are new to the market, some are new to the firm, and some are new to both. Some are minor modifications of existing products while some are completely innovative. These are displayed in the following diagram. ''Types of new products'' THE PROCESS There are several stages in the new product development process: #Idea Generation
#Idea Screening
#Concept Development and Testing
#Business Analysis
#Beta Testing and Market Testing
#Technical Implementation
#Commercialization
These steps may be iterated as needed. Some steps may be eliminated. To reduce the time the process takes, many companies are completing several steps at the same time (referred to as concurrent engineering or ''' Time To Market '''). Most industry leaders see new product development as a ''proactive'' process where resources are allocated to identify market changes and seize upon new product opportunities before they occur (in contrast to a ''reactive strategy'' in which nothing is done until problems occur). Many industry leaders see new product development as an ongoing process (referred to as ''continuous development'') in which a new product development team is always looking for opportunities. For the more innovative products indicated on the diagram above, great amounts of uncertainty and change may exist, which makes it difficult or impossible to plan the complete project before starting it. In this case, a more Flexible Approach may be advisable. Because this process typically requires both engineering and marketing expertise, Cross-functional Team s are a common way of organizing a development project. The team is responsible for all aspects of the project, from initial idea generation to final commercialization, and they usually report to senior management (often to a vice president). In those industries where products are technically complex, development research is expensive, and product life cycles are short, strategic alliances among several organizations helps to spread the costs, provide access to a wider skills set, and speeds the process. Also, notice that because engineering and marketing expertise are usually both critical to the process, choosing an appropriate blend of the two is important. Observe (for example, by looking at the See also or '''References''' sections below) that this article is slanted more toward the marketing side. For a more holistic treatment of product development, see the Ulrich and Eppinger reference below. People respond to new products in different ways. The adoption of a new technology can be analyzed using a variety of Diffusion Theories such as the Diffusion Of Innovations theory. The unicist approach helps to understand the speed of introduction of an innovation. PROTECTING NEW PRODUCTS When developing a new product many legal questions arise, including: How do I protect the innovation from imitators?; Can the innovation be legally protected?; For how long?; How much will this cost?. The answers are complicated by the fact that several legal concepts may apply to any given innovation, product, process, or creative work. These include Patent s, Trademark s, Service Mark s, Tradename s, Copyright s, and Trade Secret s. It is necessary to know which are applicable and when each is appropriate. This varies somewhat from jurisdiction to jurisdiction. The advice of a lawyer that specializes in these matters is essential. Generally, copyrights are fairly easy to obtain but are applicable only in certain instances. Patents on the other hand, tend to involve complex claims and approval processes, tend to be expensive to obtain, and even more expensive to defend and preserve. FUZZY FRONT END The Fuzzy Front End is the messy "getting started" period of new Product Development processes. It includes all activities from the search for new opportunities over the formation of a germ of an idea to the development of a precise concept. The Fuzzy Front End ends when a Firm begins Development . Although the Fuzzy Front End may not be an expensive part of product development, it can consume 50% of development time (see Chapter 3 of the Smith and Reinertsen reference below), and it is where major commitments are typically made involving time, money, and the product’s nature. Consequently, this phase should be considered as an essential part of development rather than something that happens “before development,” and its cycle time should be included in the total development cycle time. The Fuzzy Front End is also described in Literature as "Front End of Innovation", "Phase 0" or "Pre-Project-Activities". SEE ALSO
REFERENCES
EXTERNAL LINKS
|
|
|