1. Analyzing Product/Service Risks and Benefits
Chapter 7
Analyzing Product/Service Risks and Benefits

2. Learning Objectives
Discuss the current trends in product/process development
Differentiate the way entrepreneurs develop products from the way they develop services
Describe the product development cycle

3. The Nature of Product/Process Development
Sophisticated customers in fragmented markets
The impact of technology

4. How Entrepreneurs Develop Products & Services
Impact of Insufficient Resources:
Poor execution
Time to market increases
First to market opportunities are missed
Projects are made simpler so that more can be done with less
Team morale declines
And more…
Can you think of some more…?

5. Figure 7.1: The Consequences of Resource Shortfalls for New Product Development

6. How Entrepreneurs Develop Products & Services
New product failure results from:
Lack of good market analysis
Technical problems

7. Figure 7.2: The New Product Development Success Curve
Source: Based on the research of Greg A. Stevens and james Burley in “Piloting the Rocket of Radical Innovation,” Research Technology Management, 46(2):16-26.

8. How Entrepreneurs Develop Products & Services
Strategies to consider when competing effectively in product development:
Design products right the first time
Shorten the time to market
Outsource some product developments tasks

9. Figure 7.3: From Idea to Market

10. The Product Development Cycle
The process cycle components:
Opportunity recognition
Technical feasibility analysis
Design and development of platform
Prototype building and field testing
Initial market tests
Product market introduction and ramp-up

11. Table 7.1: New Product Checklist

12. Outsourcing Product Development
Areas suitable for outsourcing that require
engineering analysis, design and expertise:
Component design
Materials specifications
Machinery to process
Ergonomic design
Packaging design
Assembly drawings & specifications
Parts and material sources (suppliers)
Operator’s and owner’s manuals

13. Let’s Summarize Know the current trends in product/process development
Differentiate the way entrepreneurs develop products from the way they develop services
Describe your product development cycle