The Business Objective
The fit, the strategy, consistency, differentiating research and development, leverage, continuity, flow, symbiosis, pursuit, singularity versus plurality, market investigation, understanding the marketplace, global product and business development.
The market opportunity:
The business concept embodied in the new product idea, solving the customer’s problem in the product, the product as a business, the competitive game, idea evaluation within the framework of the business, playing the game well, it’s faster changing world, winning the game, new product development as a competitive weapon, the strategic difference between large and small companies, the product evolution flow chart.
Refinement of the product concept into a new product and business:
The idea, competitive analysis, the route to market, strategy and tactics in operational planning, background/format, reducing the risk of new product failure, the assignment, the configuration, mass customization and generic platforms, creeping functionalism, designing to cost, development engineer’s influence on factory cost, manufacturing, global marketing, requirements specification
The product and Business Plan:
The plan, program timing, structuring the business plan, product mix/offering, pricing policy, facilitating change in the business to execute the plan, management focus, the importance of the accounting function, trading time saved for technology, selling the plan.
Justifying a program: The accounting viewpoint
Accounting and finance as partners, financial and economic analysis, timing and lost opportunity cost, critical unit volume during amortization, generating cash and profit, profit in backlog, cost, volume, and profitbreakeven, financial models for the sales transactions, financial impact of lack of continuity,
Stating Out:
A statement about teamwork, identifying the requirements, assembling the team members, organizational form, apprenticeship and mentoring, management of the team, culture of the group, incentives for the development group, management reporting, communicatios systems, the program initiation.
Executing the plan:
Mechanics of product development, managing people, executing the product development plan, product development phases, tracking performance, obstacle removal, key players and backup, dealing with shiting linking objectives, problem solving, issues review, cause assesment, decision management, planning architecture, quality management systems, intellectual property protection.
Manufacturing Development:
Concurrency of development phases, design for manufacturing, manufacturing, process, layout, product configuration, manufacturing process control, certification of manufacturing personnel, procurement and parts configuration, certification of vendors, information retention and recordkeeping, field problems and event status monitoring, forecasting, cycle time managament, sychronization.
The prelaunch checklist: Setting up the organization
Preflight checklist, confirming agency certification, pilot run manufacturing, beta testing program, literature, setting up the infrastructure, training for personnel, applications support, field organization set-up, final pricing.
The Launch:
The product rollout, initial monitoring of results, early modifications for success, the myth of the hockey stick forecast, forecasting and building inventory, product promotion and customer visits, tools, measurements, sales channel and launch objectives, communication, agreement and commitment to objectives. New product development records format: organizational format.
Course outcomes:
At the end of the course the student will be able to:
1. Apply the new product development process
2. Execute product development program to grow business
3. Solve the complexities of planning, execution, timing, problem solving skills
Question paper pattern:
The SEE question paper will be set for 100 marks and the marks scored will be proportionately reduced to 60.
Textbook/ Textbooks
1 New Product Development: From Initial Idea to Product Management Marc Annacchino Elsevier 2003.
2 Product Design and Development Karl Ulrich and Steven Eppinger McGraw-Hill 2011.
Reference Books
1 Handbook of New Product Development Management Christoph Loch, Stylianos Kavadias Elsevier 2007
2 New Product Development: Successful Innovation in the Marketplace Erdener Kaynak, Nicholas Mills, Michael Z Routledge, T&F 2012