Product Development &

Entrepreneurship
Development
Processes and
Organizations

September 21, 2010

Development Processes and

Organizations
Questions

Is there a standard development process that will work for

every company?
What role do experts from different functional areas play in the
development process?
What milestones can be used to divide the process into
phases?
Should the organization be divided into groups corresponding
to projects or functions?

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A Generic Development Process

The product development process is the

sequence of steps or activities that an
enterprise employs to conceive, design, and
market a product.

September 21, 2010

Benefits

A well-defined development process offers:

Quality assurance
Coordination
Planning
Management
Improvement.

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Generic Development Process

Six phases
0. Planning
1. Concept development
2. System level design
3. Detail design
4. Testing and refining
5. Production ramp-up

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MISSION STATEMENT

September 21, 2010

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 MARKETS

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

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Scope of Effort (product planning)

Mission Statement

Specifies direction to go but not the precise

destination or a particular way to proceed.

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Mission Statement
May include:

Brief (one-sentence) product description stating key

customer benefits
but not product concept
Key business goals:

Timing of new product introduction, market share targets,

and desired financial performance.

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Mission Statement (cont)

Target market(s).

Assumptions constraining devoted effort:

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There may be several.

Identify primary and secondary markets.
Although these may restrict generation of product
concepts they can help to maintain a manageable
product scope.

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Mission Statement (cont)

Stakeholders:

All players who will be influenced by the product:

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end users
sales force
production department
service department, etc.

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Mission Statement for the course project

Team composition (name, number)

Product description
Hypothetical key business goals
Target market (primary and secundary)
Assumptions
Stakeholders
one-page document

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September 21, 2010

Concept Development

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Identify customer needs

Establish target specification
Analyze competing products
Generate design concepts
Select best design concept
Refine specifications
Economic analysis
Project planning

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Concept Development

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September 21, 2010

Adapting the Generic Process

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Market pull
Technology-push products
Platform products
Process intensive products
Customized products
High-risk products
Quick-build products
Complex systems

September 21, 2010

Market pull

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A firm begins product development with a

market opportunity and then seeks out
whatever technologies are required to satisfy
the market need.
Sporting goods, furniture, tools,

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Technology push

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A firm begins with a new proprietary technology

and looks for an appropriate market in which to
apply this technology.
Example:Teflon
Product development starts with an additional
phase to match a given technology with a
market opportunity.
Gore-Tex rainwear,

September 21, 2010

Platform Product

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A firm builds a product around a pre-existing

technological subsystem (a technology
platform).
Examples: Sony Walkman, Polaroid cameras,
Apple Macintosh
The initial phase is platform development.
Consumer electronics, computers, printers,

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Process-Intensive Product

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Production process places strict constraints on

product properties.
Snack foods, breakfast cereals, chemicals,
semiconductors, paper,

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Customized Product

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Customized products are a slight variation of

standard configurations developed in response
to a specific order by the customer.
Switches, motors, batteries, containers,

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High-risk Product

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High-risk products entail unusually large

uncertainties related to technology or market
It is therefore necessary to test earlier
Pharmaceuticals, space systems,

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Quick-build Product

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Detail design and testing phases are repeated

a number of times until the product is
completed.
Software, cellular phones,

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Complex systems

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Subsystems and components are developed

by many teams working in parallel, followed by
system integration and validation
Jet engines, airplanes, automobiles,

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September 21, 2010

Product Development
Organizations

Organizations are formed by establishing links

among individuals

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Reporting relationships
Financial arrangements
Physical layout

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Links within organizations

Organizational links may be aligned with

functions, projects or both

A functional organization is organized by functions.

A project organization is organized by projects.

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A function is an area of responsibility calling for specialized

education, training or experience.

Regardless of their functions, individuals apply their

expertise to specific projects.

September 21, 2010

Functional and Project

Organizations

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September 21, 2010

Lightweight and Heavyweight

Project Organizations

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September 21, 2010

Thats all folks !

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September 21, 2010