etm551lecture02 product planning

8/12/2019 ETM551Lecture02 Product Planning

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Product Design &Development

Product Planning


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Product Planning positioning

The product planning phase precedes the

product development process

Planning

Planning Concept

Development

Concept

DevelopmentSystem-Level

Design

System-Level

DesignDetail

Design

Detail

DesignTesting and

Refinement

Testing and

RefinementProduction

Ramp-Up

Production

Ramp-Up

Four Phases of Product Development


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Product Planning The Product Planning Process

Identify Opportunities

Evaluate and Prioritize Projects

Allocate Resources and Plan Timing Complete Pre-Project Planning

Summary


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Xerox Lakes Project Example

Xerox Document Centre 265


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The Product Planning Process

Questions

What PD projects will be undertaken?

What mix of new products, platforms, and

derivative products to pursue?

How do the various projects relate to eachother as a portfolio?

What will be the timing and sequence of

the project?


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Mission Statement 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?


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The Product Planning Process


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The Product Planning Process The product plan identifies the portfolio of

products to be developed by theorganization and the timing of their

introduction to the market


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The Product Plan

The product plan identifies the portfolio of

projects to be pursued by the developmentorganization

The plan may divide projects into fourcategories: new platforms, derivatives of

existing platforms, product improvements,

and fundamentally new products (SeeExhibit 3-2)


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Four Types of Product

Development Projects

New product platforms

Derivatives of existing product platforms

Incremental improvements to existing

products Fundamentally new products


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The Process Identify opprtunities

Evaluate and prioritize projects

Allocate resources and plan timing

Complete pre-project planning Reflect on the results and the process


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Identify Opportunities

Idea Sources for New Products

Marketing and sales personnel

Research and technolgy developmentorganizations

Current product development teams Manufacturing and operation organizations

Current or potential customers

Third parties such as suppliers, inventors,

and business partners.


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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


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Competitive Strategy Technology leadership

Cost leadership

Customer focus

mitative


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Market Segmentation Dividing a market into segments allows the

firm to consider the actions of competitersand the strength of the existing products of

the firm wrt each well defined group of

customers.


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Technological Trajectories In technology intensive businesses, a key

product decision is when to adopt a newtechnology in a product line.

Technoloy S-curves are conceptual tool tohelp to think about such decisions.


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Technology S-curves

Light-LensTechnology

Digital

Technology

Time

CopierPerforma

nce


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Product Platform Planning 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 thetechnology roadmap.


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Platforms vs Derivatives

time

Platform B

Platform

ProductDevelopment

Derivative

ProductDevelopment

Legend

ProjectProductRelease

Research and

Technology

Development

Platform A


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Allocate Resources and Plan

Timing

Resource allocation (Wheelwright and

Clark (1992)


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Project Timing Timing of product introductions

Technology readiness

Market readiness

Competition


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Complete Pre-Project Planning Core team

Product vision statement

Mission statements


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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


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Reflect on the results and the

process Is the opportunity funnel collecting an

exciting and diverse set of productopportunitie?

Does the product plan support the

competitive strategy of the firm? Does the core team accept the challeges

of the resulting mission statement?

How can the product planning process beimproved?


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Summary Product planning involves a five-step process:1.

Identify opportunities, 2. Evaluate and prioritizeprojects, 3. Allocate resources and plan timing,4. Complete pre-project planning, 5. Reflect onthe results and the process.

The opportunity funnel collects possibilities fornew product platforms

A mission statement for each PD project

documents, the product vision, business goals,target matkets, critical assumptions, and theproducts stakeholders.

etm551lecture02 product planning

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