Product Planning

CHAPTER 4
 Product Development Process

• These activities address a portfolio of product

development projects, resulting in a product plan and,
for each selected project, a mission statement.
Xerox Lakes Project Example
 Product Planning
• The Product Planning Process
• Identify Opportunities
• Evaluate and Prioritize Projects
• Allocate Resources and Plan Timing
• Complete Pre-Project Planning
The Product Planning Process
The product plan identifies the portfolio of
products to be developed by the organization
and the timing of their introduction to the
market
 The Product Planning Process
Questions
• What Product Development projects will be
undertaken?
• What mix of new products, platforms, and
derivative products to pursue?
• How do the various projects relate to each
other as a portfolio?
• What will be the timing and sequence of
the project?
 Mission Statement
• What market segments to consider?
• What new technologies to incorporate?
• What are the manufacturing and service
goals and constraints?
• What are the financial targets of the project?
• What are the budget and time frame for
the project?
A Product Plan
 Identify Opportunities
Idea Sources for New Products
• Marketing and sales personnel
• Research and technology development
organizations
• Current product development teams
• Manufacturing and operation organizations
• Current or potential customers
• Third parties such as suppliers, inventors,
and business partners.
 Evaluate and Prioritize Projects
• Opportunity funnel can collect 100s or even
1000s of opportunities during a year.
• Select the most promising projects to pursue.
• Basic perspectives to prioritize: Competitive
Strategy, market segmentation, technological
trajectories, and product platforms
Competitive Strategy
• Technology leadership
• Cost leadership
• Customer focus
• İmitative
 Market Segment Map
65 ppm 65 ppm
network
$23k $31k
55 ppm 60 ppm
Department $20k
Lakes network
$35k
Project Lakes
40 ppm
Extensions
$16k

25 ppm 35 ppm 40 ppm

$10k $15k $20k
Legend
Xerox
Workgroup product
30 ppm 40 ppm
Market Segment

network competitor
$10k $20k product

Hodaka Project potential

20 ppm 25 ppm 30 ppm competitor
$8k $9k $10k
Personal
20 ppm
$7k

1997 1998 1999 2000 Year of

Release
 Technology S-Curves
Copier Performance

Digital
Technology

Light-Lens
Technology

Time
 Technology Roadmap
Functional Elements Technologies

Photo- Cylindrical 3-Pitch Belt n-Pitch Belt

receptor Drum Photoreceptor Photoreceptor

Scanner 2D CCD Array Full-Width, Linear Array

Layout w/Optical Reduc. without Optical Reduction

Toner High Low Melting Low Melting Point,

Type Temperature Point Low Emission

Output Monochrome: Paper, Fax, Scan, Color: Paper, Fax, Scan,

Modes Local Network, Internet Local Network, Internet

User Keypad
Interface Touch Screen Touch Screen, Remote PC

Image Automatic Image Quality

Processing 600 dpi 600/1200 dpi 1200 dpi 1800 dpi

Diagnostics On-Board Remote-Dialup Remote

Diagnostics Diagnostics Repair

Document Document Document Document

Centre Centre Centre Centre
220, 230 240, 255, 265 2XX 3XX
Hodaka Lakes Lakes Next
Project Project Extensions Platform

Time
 Product Platform Planning
• A platform development project creates the
architecture of a family of products.
• Derivative Products may be included in the
initial platform development effort or derivative
products may follow thereafter.
• One technique for coordinating technology
development with product planning is the
technology roadmap.
Platforms vs. Derivatives
 Product-Process Change Matrix
Extent of Production Process Changes
Research and New Next Single Tuning and No
Technology Core Generation Department Incremental Process
Development Process Process Upgrade Changes Change
New Breakthrough
Core Development
Product Projects
Extent of Product Changes

Platform
Next Development
Generation Projects
Product
Lakes
Project
Addition
to Product
Family Derivative
Product
Minor Development
Product
Enhancement

Current
No
Product Product/Process
Change Support
Aggregate Resource Planning
 Lakes Project Mission Statement
Product Description
 Networkable, digital machine with copy, print, fax, and scan functions
Key Business Goals
 Support Xerox strategy of leadership in digital office equipment
 Serve as platform for all future B&W digital products and solutions
 Capture 50% of digital product sales in primary market
 Environmentally friendly
 First product introduction 4thQ 1997
Primary Market
 Office departments, mid-volume (40-65 ppm, above 42,000 avg. copies/mo.)
Secondary Markets
 Quick-print market
 Small ‘satellite’ operations
Assumptions and Constraints
 New product platform
 Digital imaging technology
 Compatible with CentreWare software
 Input devices manufactured in Canada
 Output devices manufactured in Brazil
 Image processing engine manufactured in both USA and Europe
Stakeholders
 Purchasers and Users
 Manufacturing Operations
 Service Operations
 Distributors and Resellers