Lecture 4

New Product Development

Lecturer: Phuong Tu Nguyen (Msc)

 Outline

1. New Product Failure

2. Critical successful factors of New Product Development
3. Goals of a NPD process
4. An overview of the Stage-Gate Process
Why New Product Fails?
 Reasons for new product failure
• A lack of a market orientation.( thiếu định hướng thị trường)
• Poor quality of execution.
• Bad Timing. Moving too quickly.
• Meager competitive advantages. A lack of product value for the
customer.( cạnh tranh quá khắc nghiệt)
• No focus, too many projects, and a lack of resources.( tập trung nhìu
vào 1 dự án)
• The lack of a systemic new product process with discipline (
 New Product
Development The
key to succeed
 The key to Successful New Product
Deveopment
1. Unique superior product: a differentiated product that delivers unique benefits
and superior value to the customer.( sản phẩm phải vượt trội hơn đối thủ)
2. Strong market orientation - a market-driven and customer-focused new product
process. S---T----P ( Segmentation . Target, position)
3. Look to the world product: An international orientation in product design,
development, and target marketing provides the edge in product innovation.
4. More predevelopment = market research theo tiêu chí SMART work must be
done before product development gets under way.
5. Sharp and early product and project definition
6. A well-conceived, properly executed launch and a solid marketing plan is at the
heart of the launch.
7. The right organizational structure, design, and climate.
8. Top management ( ng sáng lập kim luôn điều hành) support doesn't guarantee
success, but it sure helps.
9. Leveraging core competencies ( lợi thế cạnh tranh chủ đạo để có cuộc sống mới
trong công ty)
10. Products aimed at attractive markets
11. Build tough Go/Kill ( làm thì phải lam cho tới) decision points into their
new product process: better focus is the result.
12. More emphasis is needed on completeness, consistency, and quality of
execution of key tasks from beginning to end of project.
13. The resources must be in place - there is no free lunch in product
innovation.
14. Speed is everything. But not at the expense of quality of execution.
15. Follow a multistage ( đa bước , làm theo modul, theo trình tự,
disciplined new product process
 8 Goals of a
New Product Process
• Goal #1: Quality of Execution
• Goal #2: Sharper Focus, Better Prioritization
• Goal #3: Fast-Paced Parallel Processing ( làm việc vs tốc độ nhanh, và song song
với đối thủ cạnh tranh)
• Goal #4: A True Cross-functional Team Approach ( nhóm đa chức năng, mỗi thành
viên có một điểm mạnh riêng sẽ tạo thành điểm mạnh cho cty)
• Goal #5: A Strong Market Orientation with Voice of the Customer Built In
• Goal #6: Better Homework Up-Front (ôn lại kiến thức nền tảng)
• Goal #7: Products with Competitive Advantage ( sp phải tốt hon, rẽ hơn, chất
lượng hơn so vs đối thủ)
• Goal #8: The process or game plan must be designed to manage risk
From failure to success: The
stage-gate process
Stage-gate Process
 The stages
The key stages consist of the following:
• Discovery: pre-work designed to discover and uncover opportunities
and generate ideas
• Stage 1- Scoping: a quick, preliminary investigation of the project—
largely desk research
• Stage 2 - Building the Business Case: a much more detailed
investigation involving primary research—both market and technical
—leading to a business case, including product and project definition,
project justification, and a project plan
 The stages
• Stage 3 - Development: the actual detailed design and development of
the new product, and the design of the operations or production
process
• Stage 4- Testing and Validation: tests or trials in the marketplace, lab,
and plant to verify and validate the proposed new product and its
marketing and production/operations
• Stage 5 - Launch: commercialization—beginning of full operations or
production, marketing, and selling
 The gates

Deliverables Criterias Outputs

 The gates
• Gate 1: Idea Screen (xem xét ý tưởng , right product)
• Gate 2: Second Screen ( right market)
• Gate 3: Go to Development ( phát triển sp)
• Gate 4: Go to testing ( dung thử sp)
• Gate 5: Go to Launch ( đưa ra thị trường)