“VARIOUS STAGES IN NEW

PRODUCT DEVELOPMENT”
Submitted By
Mr. SACHIN SULTANE
HPGD/AP18/0114
SPECILIZATION: OPERATIONS

WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

April, 2018
INTRODUCTION:
• The product development process typically consists of several activities that
firms employ in the complex process of delivering new products to the
market.
• Every new product will pass through a series of stages/phases, including
ideation among other aspects of design, as well as manufacturing and
market introduction.
• In highly complex engineered products (e.g. aircraft, automotive,
machinery), the NPD process can be likewise complex regarding
management of personnel, milestones and deliverables.
• Such projects typically use an integrated product team approach.
• The product development process is articulated and broken down in many
different ways, many of which often include the following phases/stages:
Stages:
1. FUZZY FRONT-END (FFE):
• FFE is the set of activities employed before the more formal and well defined
requirements specification is completed.
• Requirements speak to what the product should do or have, at varying degrees of
specificity, in order to meet the perceived market or business need.
• Product design and Product Implementation is a part of FFE.
Product Design:
• Product design is the development of both the high-level and detailed-level design
of the product: which turns the what of the requirements into a specific how this
particular product will meet those requirements.

Product Implementation:
• Product implementation often refers to later stages of detailed engineering design
(e.g. refining mechanical or electrical hardware, or software, or goods or other
product forms), as well as test process that may be used to validate that the
prototype actually meets all design specifications that were established.
Continued…
2. FUZZY BACK-END:
• Fuzzy back-end or commercialization phase represent the action steps where
the production and market launch occur.
• The front-end marketing phases have been very well researched, with
valuable models proposed. Peter Koen et al. provides a five-step front-end
activity called front-end innovation: opportunity identification, opportunity
analysis, idea genesis, idea selection, and idea and technology development.
• Engineering design is the process whereby a technical solution is developed
iteratively to solve a given problem. The design stage is very important
because at this stage most of the product life cycle costs are engaged.
• Previous research shows that 70–80% of the final product quality and 70% of
the product entire life-cycle cost are determined in the product design phase,
therefore the design-manufacturing interface represent the greatest
opportunity for cost reduction.
Continued…
2. FUZZY BACK-END:
• The design team will develop drawings with technical specifications
representing the future product, and will send it to the manufacturing plant to
be executed.
• Solving product/process fit problems is of high priority in information
communication design because 90% of the development effort must be
scrapped if any changes are made after the release to manufacturing.
NPD PROCESS
1. Idea Generation
2. Idea Screening
3. Concept testing
4. Business Analysis
5. Product Development
6. Test Marketing
7. Commercialization
8. Review of Market Performance
Models
1. IDEO APPROACH
2. BAH Model
3. Stage Gate Model
4. Lean Start up Approach
5. Exploratory Product Development Model
6. Fuzzy Front End
7. The Phase Zero of the stage gate model of new
product development
IDEO APPROACH
• The concept adopted by IDEO, a design and consulting firm, is one of the
most researched processes in regard to new product development and is a
five-step procedure. These steps are listed in chronological order:
1. Understand and observe the market, the client, the technology, and the
limitations of the problem.
2. Synthesize the information collected at the first step.
3. Visualise new customers using the product.
4. Prototype, evaluate and improve the concept.
5. Implementation of design changes which are associated with more
technologically advanced procedures and therefore this step will require
more time
BAH Model & Stage gate Model
BAH Model:
• This is the best known model because it underlies the NPD systems that have
been put forward later.
• This model represents the foundation of all the other models that have been
developed afterwards.
• The seven steps of BAH model are: new product strategy, idea generation,
screening and evaluation, business analysis, development, testing, and
commercialization.

Stage Gate Model:

• The Stage-Gate model developed in the 1980s was proposed as a new tool for
managing new products development processes.
• This was mainly applied to the consumers goods industry.
• In return, the companies that adopt this system are reported to receive benefits
such as improved teamwork, improved success rates, earlier detection of failure, a
better launch, and even shorter cycle times – reduced by about 30%.
Lean Start up Approach
• The lean startup methodology seeks to eliminate wasteful practices and
increase value-producing practices during the earliest phases of a company
so that the company can have a better chance of success without requiring
large amounts of outside funding, elaborate business plans, or a perfect
product.
• Customer feedback during the development of products or services is
integral to the lean startup process, and ensures that the company does not
invest time designing features or services that consumers do not want.
• The lean startup methodology asserts that the "lean has nothing to do with
how much money a company raises"; rather it has everything to do with
assessing the specific demands of consumers and how to meet that
demand using the least amount of resources possible.
Exploratory Product Development Model
• ExPD, is an emerging approach to new product development.
• exploratory product development allows organizations to adapt to a
landscape of shifting market circumstances and uncertainty by using a more
flexible and adaptable product development process for both hardware and
software.
• ExPD is more suitable for product development in markets that are unstable
and less predictable.
• Unstable and unpredictable markets cause uncertainty and risk in product
development.
• The primary goal of ExPD is to reduce uncertainty and risk by reducing the
unknown.
• When organizations adapt quickly to the changing environment (market,
technology, regulations, globalization, etc.), they reduce uncertainty and
risk, which leads to product success.
FUZZY FRONT END:
• There have been a number of approaches proposed for analyzing and responding
to the marketing challenges of new product development. Two of these are the eight
stages process of Peter Koen of the Stevens Institute of Technology, and a process
known as the fuzzy front end.
• The Fuzzy Front End (FFE) is the messy "getting started" period of new product
engineering development processes. It is also referred to as the "Front End of
Innovation", or "Idea Management“
• It is the phase between first consideration of an opportunity and when it is judged
ready to enter the structured development process
• The Fuzzy Front End phase ends when an organization approves and begins
formal development of the concept.
• Fuzzy front End distinguish five different front-end elements (not necessarily in a
particular order):
1. Opportunity Identification
2. Opportunity Analysis
3. Idea Genesis
4. Idea Selection
5. Idea and Technology Development
The Phase Zero of the Stage-Gate Model of
New Product Development
• A conceptual model of Front-End Process was proposed which includes
early phases of the innovation process. This model is structured in three
phases and three gates:
• Phase 1: Environmental screening or opportunity identification stage in
which external changes will be analysed and translated into potential
business opportunities.
• Phase 2: Preliminary definition of an idea or concept.
• Phase 3: Detailed product, project or service definition, and Business
planning
• The gates are:
• Opportunity screening
• Idea evaluation
• Go/No-Go for development
• The final gate leads to a dedicated new product development project.
Strategies
1. Lean Product Development
2. Six Sigma
3. Quality Function Deployment
4. User centered design
5. Management
Conclusion
• Thus new product development ideas and prototypes are tested to
ensure that new product will meet target market needs and wants.
There is a test launch during the test marketing stage as a full market
launch is expensive. Finally the commercialisation stage is carefully
planned to maximise product success, a poor launch will affect product
sales and could even affect the reputation and image of the new
product.
Thank

You!