new product development segway

An investigation of the NPD Process: a case study of

SegwayTrang Nguyen

Problem

• Case study: Segway– A controversial and interesting product– First ever self balancing human transporter– Many successes and failures experienced– Many lessons learnt for management

Segway Inc.• US-based company

• Founded in 1999 by Dean Kamen

• Vision: to develop highly-efficient, zero-emission transportation solutions using “dynamic stabilization” technology

• Segway on sale on Amazon.com in 2002

• As of 2007, present in 60 countries

• Main consumers: security, police, mass retailers, university, theme parks

Opportunity identification and selection

• Dean Kamen saw opportunity to solve urban problems– Create vehicles of

minimal space, able to maneuver and use on pavements

• Inspiration from IBOT wheelchair, a 6-wheel balancing machine for the disabled

Concept generation

Concept evaluation

Development

Launch

• Segway was one of the most eagerly anticipated pieces of new technology in history

• The subject of unprecedented speculation about what it might be, or do

• Thus when Segway was revealed to the US, it was an anti-climax

• Kamen later described the information leak about Segway as 'the single worst thing that has ever happened to me in business'.

What went wrong?

Analysis

• Concept generation– Consumer research found wanting in terms

of price and safety

• Concept evaluation– No proper forecasting method

• Launch– Miscalculated marketing strategy– Wrong distribution channel– Insufficient advertising– Lack of diverse expertise from management

Conclusion • Better financing options to alleviate high

price• Better safety measures and testing• More consumer research• More accurate forecasting method• Control the information flow in the media• Stages of preview provided• Aggressive advertising during launch• Better choice of distribution channel• A diverse team of management