Product Generation a.k.a. Product Management Ken Homa
Product Generation New Product Development Product / Process Linkage Product Line Management Branding Strategy
Product Life Cycle Typical pattern, highly varied …by product, geography Cash flow critical …Mature ‘lend’, growth ‘borrow’ Manage the PLC …Differentiated tactics …Revitalization
“Owning a customers’ lifetime profitability requires a full line that keeps competitors out. The incremental costs of line extensions are low & computers handle the complexity.” Product Line Mangement The Issue
“Owning a customers’ lifetime profitability requires a full line that keeps competitors out. The incremental costs of line extensions are low & computers handle the complexity.” “Pareto lives. Stay focused and simplify. Pick your winning products and customers, bet big on them, and be willing to walk away from some business.” Product Line Mangement The Issue
A broad product line is required to fully cover all (or most) customer / market requirements...and to erect barriers from competition...and to erect barriers from competition. Product Line Management The Issue
A broad product line is required to fully cover all (or most) customer / market requirements...and to erect barriers from competition. But, complexity & costs increase exponentially as product lines get long Product Line Management The Issue
Product Line Proliferation Size, color, pack Special & derivative models Accessories Ancillary products Multiple generations Combinations & permutations...
Power Tools The evolution of a product line... DRILLS SAWS OTHER
Power Tools DRILLS SAWS OTHER PROFESSIONAL CONSUMER
Power Tools DRILLS SAWS OTHER PROFESSIONAL CONSUMER GOOD BETTER BEST
Power Tools DRILLS SAWS OTHER CORDLESS (DC) CORDED (AC) GOOD BETTER BEST PROFESSIONAL CONSUMER
Power Tools FEATURES SIZES COLORS PACKS Variable speed 1/4”, 3/8”. 1/2” drills Pro black DeWalt yellow Redistribution, Kits
Power Tools Strategic Models Supplementary Brands Complementary Products Accessories Global / Regional Models Flagships, fighters, derivatives Sub-brands, private label Cordless tools, chargers Drill bits, saw blades 110/240 V Generational Recycling...
Product Line Management Breadth & Depth of Line Key : product line / item profitability …Imprecise, but enlightening
Product Line Management Breadth & Depth of Line Key : product line / item profitability Each and every item has associated costs : some visible, some hidden …Cannibalization …Inventory …Administration …Repair parts
Product Line Management Breadth & Depth of Line Key : product line / item profitability Each and every item has associated costs : some visible, some hidden Paretoisalive, well... andapplicable Pareto is alive, well... and applicable … Rule of 80 / 20
Product line management Keys to Success Strive for shortest line Strive for shortest line Treat incremental items as major decisions
Product line management Keys to Success Strive for shortest line Watch for “line creep” Especially when new generations launched
Product line management Keys to Success Strive for shortest line Watch for “line creep” Prune aggressively Tie pay to line profitability
Product line management Keys to Success Strive for shortest line Watch for “line creep” Prune aggressively Link product & process design Mass customization
Design Elements Technical Efficacy Innovation Functionality Ergonomics Aesthetics Manufacturability
Design Elements Technical Efficacy Innovation Functionality Ergonomics Aesthetics Manufacturability
Product / Process Linkage Mass Customization Common components Standardized parts Modularplatforms Modular platforms “Virtual inventory”Postponement End of line customization More RIP... less FG... faster cycles