What Is Design? Has been defined as “the synthesis of technology and human needs into manufacturable products.” In practice, design can mean many things, ranging from styling to ergonomics to setting final product specifications. Design has been successfully used in a variety of ways to help achieve new product objectives. One thing it is not: “prettying up” a product that is about to manufactured!

Contributions of Design to the New Products Process

Product Architecture The process by which a customer need is developed into a product design. Solid architecture improves speed to market, and reduces the cost of changing the product once it is in production. Product components are combined into “chunks,” functional elements are assigned to the chunks, and the chunks are interrelated with each other.

Product Architecture and Product Platforms Product architecture development is related to establishing a product platform. If chunks or modules can be replaced easily within the product architecture, “derivative products” can be made from the same basic platform as technology, market tastes, or manufacturing skills change. Examples: 200 versions of the Sony Walkman from four platforms.

Assessment Factors for an Industrial Design

Prototype Development Comprehensive Prototype: complete, fully- functioning, full-size product ready to be examined by customers. Focused Prototype: not fully functioning or developed, but designed to examine a limited number of performance attributes or features. –Examples: a crude, working prototype of an electric bicycle; a foam or wood bicycle to determine customers’ reactions to the proposed shape and form.

Computer-Aided Design (CAD) Greatly accelerates the design step and allows assessment of multiple possible designs without building expensive prototypes. Design for Manufacturability (DFM): search for ways to minimize manufacturing costs. Design for Assembly (DFA): search for ways to ease assembly and manufacture. Rational for DFM: A seemingly trivial detail in design phase might have huge manufacturing cost consequences later on!

New Developments in CAD Stereolithography (rapid prototyping) Mechanical computer-aided engineering (MCAE)

Some Terms in New Products Organization Functional: People in business departments or functional areas are involved, and product development activity must mesh with their work. Project: The product innovation activity requires people who think first of the project. Matrix: Two people are likely to be involved in any piece of work: project manager and line function head.

Options in New Products Organization 1. Functional 2. Functional Matrix 3. Balanced Matrix 4. Project Matrix 5. Venture These are listed in increasing projectization, defined as the extent to which participants see themselves as independent from the project or committed to it.

Options in New Products Organization 1. Functional: work is done by the various departments, very little project focus. –Usually a new products committee or product planning committee. –Does not lead to much innovation. 2. Functional Matrix: A specific team with people from various departments; project still close to the current business. –Team members think like functional specialists. –Departments call the shots.

Options in New Products Organization 3. Balanced Matrix: Both functional and project views are critical. –May lead to indecision and delay. –Many firms are making it work successfully. 4. Project Matrix: High projectization, team people are project people first and functional people second. –People may drive the project even against department’s best wishes. –IBM PC developed this way. 5. Venture: Team members pulled out of department to work full time on project.

Considerations when Selecting an Organizational Option High projectization encourages cross-functional integration. If state-of-the-art functional expertise is critical to project success (e.g., in a scientific specialty such as fluid dynamics), a functional organization might be better, as it encourages the development of high-level technical expertise. If individuals will be part of the project for only a short time, it might make more efficient use of their time if they were organized functionally. Industrial designers may be involved in any given project for only a short time, so different projects can simply draw on their expertise when needed. If speed to market is critical, higher projectization is preferred as project teams are usually able to coordinate their activities and resolve conflicts more quickly and with less bureaucracy. PC makers often use project teams, as they are under severe time pressure.

Who Are the Team Members? Core Team: manage functional clusters (e.g., marketing, R&D, manufacturing) –Are active throughout the NPD process. Ad Hoc Group: support the core team (e.g., packaging, legal, logistics) –Are important at intervals during the NPD process. Extended Team Members: less critical members (e.g., from other divisions)

Participants in the Product Management Process Project Manager –Leader, integrator, mediator, judge –Translator, coordinator Project Champion –Supporter and spokesperson –May be the project manager –Enthusiastic but play within the rules Sponsor –Senior executive who lends encouragement and endorsement to the champion Rationalist –The “show-me” person

Participants in the Product Management Process Strategist –Longer-range –Managerial -- often the CEO –Spelled out the Product Innovation Charter Inventor –Creative scientist –“Basement inventor” -- may be a customer, ad agency person, etc. –Idea source Facilitator –Enhance team’s productivity and output

Myths and Truths About Product Champions The Myths: Champions are associated with market successes. Champions are excited about the idea. Champions get involved with radical changes. Champions arise from high (or low) levels in the firm. Champions are mostly from marketing. The Truths: Champions get resources and keep projects alive. They are passionate, persuasive, and risk-taking. Champions work in firms with or without formal new product processes. Champions are sensitive to company politics. Champions back projects that align with the firm’s innovation strategy.

Guiding Principles in New Product Process Implementation Clarity of Goals and Objectives Ownership Leadership, at both senior and team levels Integration with business processes Flexibility

Issues in Team Management Team compensation and motivation –Monetary vs. non-monetary rewards? –Process-based vs. outcome-based rewards? Closing the team down

Techniques for Attaining Speed in a New Product Project Accelerating Product Development through Managing the Organization: Use projectization: project matrix and venture teams. Use small groups to thwart bureaucracy. Empower, motivate, and protect the team. Destroy turf and territory. Make sure supporting departments are ready. Clear the tracks in shared departments.

Techniques for Attaining Speed (continued) Other Techniques for Accelerating Product Development: Intensify resource commitments (integrate channel members; parallel or concurrent engineering) Design for speed (CAD design, common components, design for easy testing, design in qualities that lead to fast trial) Prepare for rapid manufacturing. Prepare for rapid marketing.

Key Characteristics of Short-Cycle-Time Firms Extensive user involvement early in the new products process. Cross-functional teams are dedicated to the new product. Suppliers are extensively involved. The firms adopt effective design philosophies and practices. The most adept firms are effective at organizational learning.

The Role of Marketing During Development Marketing is involved from the beginning of the new products process. Advises the new product team on how the product development fits in with firm’s marketing capabilities and market needs. Early involvement of marketing increases product’s chances for success. Think of marketing’s task as more information coordination than information gathering.

Marketing Ramp-Up The “I think we’ve got it” phase. Once this point is reached, the team’s attitude toward the project changes. Marketing’s role increases as marketing people “rev up” their operations. –Plan field sales and service availability. –Begin work on packaging and branding. –Begin work with advertising agency reps. –etc. Marketing “ramps up” for the product launch.

Five Conflict Management Styles

What is Product Use Testing? Product use under normal operating conditions. Some terms: –Alpha testing: done in-house. –Beta testing: done at the customer site. Typical goals of beta testing: to determine if the product works and is free of “bugs.”

Arguments Against Product Use Testing A fortune has already been spent on the product. Market research says the product is a winner. Competitor is working on a similar product. May suggest lack of faith in product. Customers have to learn how to use the product. Competitor may steal our idea and beat us to the market.

Knowledge Gained From Product Use Testing Pre-use sense reactions. Early use experiences ("Does it work?"). Major benefits results (beta tests). Diagnostic information.

Common Pitfalls of Beta Testing Beta test site firm has no internal capacity to test the performance of the product at the required level and lacks the funding to hire an outside firm to do the test. Developer puts in a wishy-washy performance requirement like "user- friendly" which is meaningless without a measurable specification. Testing is done too late in the NPD process, which almost ensures that development time will be extended and production delays will occur. Doing testing in increments throughout the process can avoid this pitfall. Developers attempt to beta-test their own products. By definition they are too close to the product to critically test it and find problems. Developers ignore early negative results, hoping that the product will improve by itself during the NPD process. All beta test results, whether positive or negative, need to be honestly evaluated.

Gamma Testing Beta testing may not meet all the product developer’s requirements. –Does the new product meet customers’ needs? –Is it cost-effective for them? Gamma testing involves thorough use and evaluation of the new product by the end user. It’s an ideal product use test -- but in many cases firms go with beta testing. –Cost and time considerations –Keeping ahead of competitors

Types of Product Use Tests

Data Formats: Like/Dislike

Data Formats: Preference and Descriptive