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Session 01 introduction
1.
New Product Development
Session 1: Introduction June 6, 2010 © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
2.
Agenda •
Let’s breaking the ice • “New Product” defined • Why study New Product Development? • Issues in New Product Development • Course plan © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
3.
Dr. Jay Jootar
ดร. เจน จฑา Professional • Current: Venture Catalyst NECTEC (Executive Board) • Finance: Asset Plus Securities, JP Morgan • Consulting: McKinsey & Co. • Hi-tech: ITT Industries, Intel Corporation, Envoy Network, Verizon Comm., True Corp Education • PhD: MIT Sloan School of Management • MBA: MIT Sloan School of Management • Bachelor of Engineering: Chulalongkorn University © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
4.
Agenda •
Let’s breaking the ice • “New Product” defined • Why study New Product Development? • Issues in New Product Development • Course plan © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
5.
Newness defined • New
to the market – What are customer behavior towards new products? • New to the company – How companies can manage the impacts of new product to the way they do things? © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
6.
Categories of New
Product • New-to-the-world products • New product lines • Additions to existing product lines • Improvements and revisions to existing products • Repositionings • Cost reductions © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
7.
Drivers of New
Product • Technology advances • Changing customer needs • Shortening product life cycles • Increased world competition © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
8.
Agenda •
Let’s breaking the ice • “New Product” defined • Why study New Product Development? • Issues in New Product Development • Course plan © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
9.
Success stories Worldwide
Thailand • Apple Computer • Hi-speed Internet • Microsoft Windows • Raknarok • Microsoft Office • Red Bull • Google • Oishi Green Tea • iPod, iPhone, iPad • Pepsi Max/Diet Coke © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
10.
Apple Computer
Windows 7 Question: Why did Apple lost market share to Wintel (PC based on Intel hardware and Microsoft OS)? © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
11.
Microsoft Windows MS DOS
(on IBM PC) Windows 98 Windows 7 Question: What are the other competing O.S. and how do they compare to Microsoft Windows? © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
12.
Microsoft Office Question: How
important is Microsoft Office to Microsoft as a company? © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
13.
Google Question: How does
Google make money? © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
14.
iPod, iPhone, iPad Question:
What would happen to the competition between iPhone, Android, and Blackberry? © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
15.
hi-speed internet Question: What
are the most important challenge facing True hi-speed in the near future? © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
16.
Ragnarok Question: What is
the basis of competition in online game? © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
17.
Mama
© 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
18.
Red Bull Question: What
is the basis of success for Red Bull? © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
19.
Oishi Green Tea
© 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
20.
Pepsi Max/Diet Coke Question:
What would you do if you were Pepsi to grab more market share from Coke Zero? © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
21.
New product driving
financials • New products (less than 5 years) account for – 33% of U.S. company sales, on average. – In some dynamic industries, the figure is 100%. – In top 22% of the U.S. benchmark firms, 49.2% of sales and profits are derived from new products • For successful new products, – average ROI is 96.9%, – payback period is 2.5 year, – and market share in their defined target markets is 47.3% © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
22.
Product underlies other
3 P’s Marketing Prom ot ion Place Price ( & Quant it y) Pr oduct Know ledge, Process & Syst em , Cult ur e Non-Marketing © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
23.
Agenda •
Let’s breaking the ice • “New Product” defined • Why study New Product Development? • Issues in New Product Development • Course plan © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
24.
High odds of
failure © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
25.
Shrinking life cycles
© 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
26.
Problems and Pitfalls •
A lack of market orientation • Poor quality of execution • Moving too quickly • Not enough up-front homework • A lack of product value for the customer • No focus, too many projects, and a lack of resources • The lack of systematic new product process with discipline © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
27.
Lack of NPD
process consistency © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
28.
Two right things
to do A. Doing the right projects B. Doing the projects right © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
29.
Doing the right
projects • The number one success factor is a unique superior product: a differentiated product that delivers unique benefits and superior value to the customer • Look to the world product – An international orientation in product design, development, and target marketing provides the edge in product innovation © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
30.
Doing the right
projects • Leveraging core competencies is vital to success – “step-out” projects tend to fail • Products aimed at attractive markets do better: market attractiveness is a key project- selection criterion © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
31.
Doing the right
projects • Sharp and early product and project definition is one of the key differences between winning and losing at new products • Successful businesses build tough Go/Kill decision points into their new product process, where projects really do get killed: better focus is the result. © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
32.
Doing the projects
right • A strong market orientation – a market-driven and customer-focused new product process – is critical to success • More predevelopment work – the homework – must be done before product development gets under way © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
33.
Doing the projects
right • A well-conceived, properly executed launch is central to new product success. And a solid marketing plan is at the heart of the launch • The right organizational structure, design, and climate are key factors in success © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
34.
Doing the projects
right • Top management support doesn’t guarantee success, but it sure helps. But many senior managers get it wrong • New product success is controllable: More emphasis is needed on completeness, consistency, and quality of execution of key tasks from beginning to end of project © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
35.
Doing the projects
right • The resource must be in place- there is no free lunch in product innovation. • Speed is everything! But not at the expense of quality of execution • Companies that follow a multistage, disciplined new product success fare much better © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
36.
Agenda •
Let’s breaking the ice • “New Product” defined • Why study New Product Development? • Issues in New Product Development • Course plan © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
37.
Objective 1. Provide understanding
of end-to-end management of new product development process 2. Equip with necessary tools for different stages in the process 3. Practice the skills for building a successful products/service © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
38.
Methods Lecture •
Background Theory • Methodology review and practice • Case examples Papers • Real business and execution plan development © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
39.
Process-oriented Lecture Conceptualize
Develop Launch Opportunity Product Pre-launch testing development System Architecting and Planning Market Space Development process Managing through Mapping Life-Cycle Project Management Product Decisions Marketing Business Model Pricing New Product Design Sales and Channel Marketing Strategy Management Total Business Marketing Case Development Communication © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
40.
Class schedule
TOPICS Assignment Due INTRODUCTION 1 06-Jun-10 Introduction CONCEPT 2 13-Jun-10 Opportunity Development 3 20-Jun-10 Market Space Mapping 4 27-Jun-10 Positioning and Core Capabilities Assignment 1 5 04-Jul-10 Business Model Design 6 11-Jul-10 Marketing Strategy 7 18-Jul-10 Total Business Case Development DEVELOP Product 8 25-Jul-10 System Architecting 9 01-Aug-10 Development Process Assignment 2 10 08-Aug-10 Project Management Marketing 11 15-Aug-10 Pricing New Product 12 22-Aug-10 Sales and Channel Management 13 29-Aug-10 Marketing Communication LAUNCH 14 05-Sep-10 Launching new product 15 12-Sep-10 Business plan presentation Assignment 3 © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
41.
Grade Score breakdown
Percent of total Paper #1: Opportunity 15 Paper #2: Business Model 25 Paper #3: Total Project Plan 35 Group Business plant presentation 15 Class participation 10 Individual 100 © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
42.
Papers •
Group of at most 4 students • Act as group of entrepreneurs eager for capital from investors with real markets & products • Submit paper and present business case and execution plan to review for capital request • Potential for a real business after class © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
43.
Text Book • Cooper,
R. G., “Winning at New Products: Accelerating the process from idea to launch”, 2001, Basic Books © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
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