Product Design L2- Development processes and organizations Dr. Husam Arman 1

Generic Development Process

The concept Development phase

4 Generic (Market-Pull) Process Technology-Push Products Platform Products Process-Intensive Products Customized Products Variants of the Generic Development Process

5 Generic Process and Its Variants Generic (Market Pull) Products – Firm begins with a market opportunity, then finds technology to meet customer needs – Examples: tools, sporting goods, furniture

6 Generic Process and Its Variants Technology-Push Products – Firm begins with a new technology, then finds an appropriate market – Distinction with generic additional activity matching: technology and market concept development assumes a given technology – Examples: Gore-Tex rainwear, Tyvek envelopes

7 Generic Process and Its Variants Platform Products – Firm assumes new product will be built around same technology as an existing product – Distinction with generic concept development assumes a technology platform – Examples: consumer electronics, computers, printers

8 Generic Process and Its Variants Process-Intensive Products – characteristics of the product are highly constrained by the production process – Distinction with generic both process and product must be developed together from the beginning, or existing process must be specified from the beginning – Examples: chemicals, semiconductors, snack foods, cereal

9 Generic Process and Its Variants Customized (“Parametric”) – New products are slight variations of existing configurations – Distinction from generic similarity of products allows for highly structured development process development process almost like a production process – Examples: switches, motors, batteries, containers

Product development organizations

Criteria for choosing an organizational structure How important is cross-functional integration? How critical is cutting-edge functional expertise to business success? Can individuals from each function be fully utilized for most of the duration of a project? How important is product development speed? 11

Product Planning

Product Design and Development Karl T. Ulrich and Steven D. Eppinger 2nd edition, Irwin McGraw-Hill, Chapter Table of Contents 1.Introduction 2.Development Processes and Organizations 3. Product Planning 4.Identifying Customer Needs 5.Product Specifications 6.Concept Generation 7.Concept Selection 8. Concept Testing 9.Product Architecture 10. Industrial Design 11.Design for Manufacturing 12.Prototyping 13.Product Development Economics 14.Managing Projects

Product planning Corporations typically plan products many years in advance Product planning ensures that products support overall business strategy – Determine mix of new products vs. upgrades – Optimize past experience as leverage into new products – Decide which market segments to target 14

Planning Product Development Process Concept Development Concept Development System-Level Design System-Level Design Detail Design Detail Design Testing and Refinement Testing and Refinement Production Ramp-Up Production Ramp-Up Four Phases of Product Development The product planning phase precedes the product development process.

The Product Planning Process Questions 16 What PD projects will be undertaken? What mix of new products, platforms, and derivative products to pursue? How do the various projects relate to each other as a portfolio? What will be the timing and sequence of the project?

Mission statement 17 What market segments to consider? What new technologies to incorporate? What are the manufacturing and service goals and constraints? What are the financial targets of the project? What are the budget and time frame for the project?

Product plan The product plan identifies the portfolio of products to be developed by the organization and the timing of their introduction to the market The plan may divide projects into four categories: new platforms, derivatives of existing platforms, product improvements, and fundamentally new products 18

Xerox Lakes Project Example Xerox Document Centre 265

A Product Plan Types of product development projects:  New product platforms, derivatives of existing platforms, incremental improvements to existing products, and fundamentally new products

The Product Planning Process 1. Identify opportunities 2. Evaluate and prioritize products 3. Allocate resources and plan timing 4. Complete pre-project planning 5. Reflect on the results and the process  Product “Mission Statement”

S1. Identify Opportunities Idea Sources for New Products Marketing and sales personnel Research and technology development organizations Current product development teams Manufacturing and operation organizations Current or potential customers Third parties such as suppliers, inventors, and business partners. 22

S2. Evaluate and Prioritize Projects Opportunity funnel can collect 100s or even 1000s of opportunities during a year. Select the most promising projects to pursue. Basic perspectives to prioritize: – Competitive Strategy, – Market segmentation, – technological trajectories, – and product platforms 23

Competitive Strategy Technology leadership Cost leadership Customer focus Imitative 24

Market Segmentation Dividing a market into segments allows the firm to consider the actions of competitors and the strength of the existing products of the firm with respect to each well-defined group of customers. 25

Market Segment Map Market Segment

Technological Trajectories In technology intensive businesses, a key product decision is when to adopt a new technology in a product line. Technology S-curves are conceptual tool to help to think about such decisions. 27

Technology S-Curves Light-Lens Technology Digital Technology Time Copier Performance

Product Platform Planning 29 A platform development project creates the architecture of a family of products. Derivative Products may be included in the initial platform development effort or derivative products may follow thereafter. One technique for coordinating technology development with product planning is the technology roadmap.

Product Platforms 30

Platforms vs. Derivatives

Technology Roadmap

Product-Process Change Matrix Extent of Production Process Changes Extent of Product Changes New Core Process Next Generation Process Single Department Upgrade Tuning and Incremental Changes No Process Change New Core Product Next Generation Product Addition to Product Family Minor Product Enhancement No Product Change Lakes Project Research and Technology Development Breakthrough Development Projects Platform Development Projects Derivative Product Development Current Product/Process Support

S3. Allocate Resources and Plan Timing Aggregate Resource Planning

Lakes Project Mission Statement Product Description  Networkable, digital machine with copy, print, fax, and scan functions Key Business Goals  Support Xerox strategy of leadership in digital office equipment  Serve as platform for all future B&W digital products and solutions  Capture 50% of digital product sales in primary market  Environmentally friendly  First product introduction 4thQ 1997 Primary Market  Office departments, mid-volume (40-65 ppm, above 42,000 avg. copies/mo.) Secondary Markets  Quick-print market  Small ‘satellite’ operations Assumptions and Constraints  New product platform  Digital imaging technology  Compatible with CentreWare software  Input devices manufactured in Canada  Output devices manufactured in Brazil  Image processing engine manufactured in both USA and Europe Stakeholders  Purchasers and Users  Manufacturing Operations  Service Operations  Distributors and Resellers

Xerox Lakes – video 36

Project Timing Timing of product introductions Technology readiness Market readiness Competition 37

Mission statements Brief (one sentence) description of the product Key business goals Target market(s) for the product Assumption and constraints that guide the development effort (Manufacturing, Service, Environment) – Stakeholders 38

Reflect on the results and the process Is the opportunity funnel collecting an exciting and diverse set of product opportunities? Does the product plan support the competitive strategy of the firm? Does the core team accept the challenges of the resulting mission statement? How can the product planning process be improved? 39