…

…
…
… Introducing New Market Offerings
…
…
…
… Coverage

• Creating Value – Market Driving vs. Market Driven

• NPD Process
• Product failures
• Sequential vs. Flexible Product Development

2
…
…
…
… Creating Value

• Market Driven Strategy

– begin with unmet customer needs
– Incremental
• Market Driving Strategy
– begin with a new technology
– breakthroughs

3
 …
…
…
… Creating Value

Market Driven Market Driving

Strategy Strategy
Nature of Product / Incremental Innovation Breakthrough Innovation
Service
Creates New Product, Line Truly new product
Extension platform, new category
Customer Goal Satisfy / delight current Create customers
customers
Nature of customer Expressed Latent
needs
Nature of Market Quantitative Research Qualitative Research
Research methods (surveys, market Methods (lead user
tests) observation, focus groups)
4
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…
…
… New Offerings

• M.Paani https://youtu.be/Ipx6_yp1Tz4
• Khushi Baby https://www.youtube.com/watch?v=fZjiRXoiHhk
• Id Vada@Home https://youtu.be/01_eOCGNYN8

5
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…
…
… Diffusion of Innovation

Source: Everett Rogers, “Diffusion of Innovation”

6
 …
…
…
… The Chasm

Source: Geoffrey Moore, “Crossing the Chasm”

7
 …
… New Product Development Process
…
…
Opportunity Identification Go Design
Market Defn. Consumer Measurement
Positioning
Idea Generation
Forecasting sales potential
No
Product Engineering
Marketing Mix
Reposition

Go No

Introduction Testing
Go
Launch Planning Ad & Product
Tracking the launch Pretest Mkt. Forecasting
No Test Marketing
Go No
Profit Management
DSS
Market Response Analysis
Innovation at Maturity
Product Portfolio Mgmt.
Harvest 8
 …
…
…
NPD Processes - Plan vs. Reality
…
Exultation
Idea Generation

Disenchantment
Screening and
Refinement
Confusion

Test Marketing Search for the

guilty

Launch Punishment of
the innocent

Distinction for
the uninvolved
9
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…
…
… Stage Gate Process - Innovation Tunnel

Gate

Gate
Gate

Idea Generation Capability Launch

Preparation
Feasibility

Launch
Launch
Contract Proposal
Charter

10
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…
…
…

Product Development on Internet Time

11
…
…
…
… Two Critical Variables

Complexity
Indicated by the time required to complete a project

Novelty
Indicated by the response time for dealing with the
unpredictability of technology and context

12
…
…
…
… “Sequential” Product Development Works if:

Stage Gate Product Development:

Concept Design Prepare Produce

time to complete a project

response time relevant to technology and context

13
…
…
…
… “Sequential” Product Development Does Not Work if:

Stage Gate Product Development:

Concept Design Prepare Produce

time to complete a project

response time relevant to

technology and context

14
…
…
…
… Flexible Product Development

Flexible Product Development:

Concept

Design, Prepare, and Produce

time to complete a project

response time relevant to

technology and context

15
…
…
…
… Netscape: Navigator 3.0

Start Specs Complete

Input from User Feedback Full Release

Objectives

Feature Design & Coding

Integration
Stabilize
Beta 0 Beta 1 Beta 2 Beta 3 Beta 4 Beta 5
Internal
Beta 6

Jan Feb Mar Apr May Jun Jul

16
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…
…
…

We want to run our business as though we were driving a car on the

highway. The car is fast and especially, really maneuverable. A lot
of cars will follow us closely, all going very fast.
Then we want to turn, quickly and unpredictably, and cause a big
wreck behind us.
Then we want to speed up again but not too much so that other cars
can follow us closely again. Then we want to turn again and have
another wreck and so on.
We need to remember that we can’t get out too far out front, or the
others will see us turn too early.

17
…
…
…
…
Summary

• Creating Value – Market Driving vs. Market Driven

• NPD Process

• Product failures

• Sequential vs. Flexible Product Development

18
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…
…
…

Thanks
More Questions?

19