new product development segway
DESCRIPTION
TRANSCRIPT
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