Chapter 2

THE NEW PRODUCTS

PROCESS
IN THIS CHAPTER SAYS THE COMBINATION OF STEPS,
ACTIVITIES, DECISIONS, GOALS AND SO ON THAT, IF
PERFORMED WELL WILL PRODUCED SOMETHING
WITH A NEW PRODUCT THE ORGANIZATION
NEEDED.
The product innovation charter
(PIC)
• It is like having a mission statement value innovation. And a
mission statement provides useful guidance to the new
product team. An innovation must reach the market and
attract repeat buyers who are satisfied enough to give your
organization a sustainable margin and lifetime customer
value.
The new product process
• New product development is the process of bringing an
original product idea to the market. It can essentially be
broken down into five stages.
1. Ideation
2. Research
3. Planning
4. Prototyping
5. Sourcing
The new product portfolio
• is the collection of all the products or service offered by the
company. It can provide nuanced views on a stock type,
company growth prospects, profit margin drivers , income
contributions market leadership, and operational risk. It is all
important elements of financial analysis because they provide
context and granularity to a firm and its primary operation.
The phases in the new product
process

• Phase 1: opportunity identification and selection

• Phase 2: concept generation
• Phase 3: concept project and evaluation
• Phase 4: development
 Technical task
Marketing task
• Phase 5: launch
Opportunity identification and
selection
• The first phase is strategic in nature and is the most difficult to describe or
define.
The three main streaming of activity feed strategic planning for new product.
1. Ongoing marketing planning
2. Ongoing corporate planning
3. Special opportunity analysis
From these activities, the opportunities identified sort naturally into four
categories
1. An underutilized resources
2. A new resources
3. An external mandate
4. An internal mandate
 Concept generation
• Is a procedure that begins with a set of customer needs and
target specification and result in array of product concept
design alternatives in which a final design will be selected.
This steps requires a more abstract style of thinking than
perhaps most engineers are used to.
 Concept/ project evaluation
• Concept evaluation is the process of grading and evaluating
concept for determination of their merits. It is dine using both
qualitative and quantitative approaches for determining the
technical, and marketing feasibility of a concept
• Project evaluation is a systematic and objective assessment of
an ongoing or completed project. The aim is to determine the
relevance and level of achievement of project objectives,
development effectiveness, efficiency impact and
sustainability.
 Development
• This is the phase during which the items acquires finite forma a
tangible good or a specific sequence or resources and activities
that will performed an intangible service. It is also the phase
which is the market plan and sketch and gradually fleshout.
 launch
• Commercialize the plans and prototypes from development
phase; beginning distributions and sales of the new product,
and manage the launch program to achieve the goals and
objectives set in the PIC.
Evaluation task throughout the
new products process
New product process phase Evaluation task
Direction
Opportunity
Where should we
Identification
look?
And selection
Initial review
Concept generation Is the idea worth
Screening?
Concept/project Full screen
evaluation Should we try to
develop it?
• Progress report
• Have we develop
Development it?
• If not should we
continue to try?

Market testing
launch Should we market
it? If so, how?

In retrospect
What we have then is an evolution product or better
an evolving concept that at the end if its successful,
become new product. Even a new product
announcement just tells the world about a concept,
hopefully a winner, but actually just a temporary
from. Forces are standing by to see what revision
need to be made even now , if it is off track.
Speeding the product market
• One of the most discussed management goals in product
development is the accelerated product development( APD) or
speeding the product market. Accelerating time to market offers
many benefits to the firms. The product will be on the market for
a longer period of time before coming obsolete, it can attract
customers early and possibly block competitors with similar
product that hits the market at a later time, or it can help to build
or support a firms reputation.