New Product Development

Macro view of new product development Macro environment Competition, finance, economic conditions, legal framework New ideas, suggestions, concepts New products and services The organisation ? How does this process work

Key themes from the product development literature Process timing pre-development activities development activities marketing activities launch activities Organisational structure mechanism style Management authority support technical aspects communication People multifunctional co-ordination product champion communication Information general marketing external communication Successful new products Strategy orientation objectives synergy product characteristics Source: Hart (1995) in Bruce & Biemans, Wiley; Trott (2005), Prentice Hall

Ansoff’s directional policy matrix Purpose : Analyze the variety of growth options available to a business Current products New products Current markets 3. Product development strategy 1. Market penetration strategy 2. Market development strategy 4. Diversification strategy New markets Source: Ansoff, 1968

A product is multi-dimensional Brand name Features Quality specifications price Packaging Level of service Technology

Change a dimension and you have a new product Brand name Features Quality specifications Price Level of service Packaging Technology

Classification of new products New to the world products "New to the firm" products Product line additions Product improvements Repositionings Source: Booz, Allen & Hamilton, 1982Fa

Organisational activities involved in NPD Idea generation Idea screening Concept testing Business Analysis Prototype development Test marketing Commercialization Monitoring and evaluation

How creative are u ? Untuk melatih kreativitas anda, coba tuliskan minimal lima produk baru/modifikasi dari benda-benda sederhana sebagai berikut : Gelas - Pot Bunga Sumpit - Kursi Payung - Sapu Tas - Bohlam Bekas Topi - Botol plastik Batu Kerikil - Kaleng Susu Rumput ilalang - Kawat Source : Yoris Sebastian, Oh My Goodness www.unimedia.ac.id

Be a problem solver Untuk melatih kemampuan Anda sebagai problem solver, cobalah munculkan setidaknya lima ide produk atau layanan baru untuk kejadian – kejadian di bawah ini : Antrean orang di loket bioskop Seorang bapak kerepotan ketika harus membersihkan akuarium Seorang gadis panik karena tasnya kecopetan Banjir yang tiap tahun melanda Jakarta Anak kecil yang sedang asyik makan es krim Seorang nenek yang kesulitan ketika menyebrang jalan Ibu yang kerepotan membawa barang belanjaan Sopir yang sedang mengelap kaca mobil Teman anda mengeluh karena laptopnya rusak terbentur meja Source : Yoris Sebastian, Oh My Goodness www.unimedia.ac.id

Models of New Product Development Departmental-stage models Activity-stage models Cross-functional models Decision stage models Conversion process models Response models Network models

Departmental-stage model New product project Engineering department Marketing department

Activity Stage Model per cent of activity per cent of activity 100 100 commercialisation technical development concept generation strategic planning end duration of product innovation process Source: Crawford, 2000

NPD as a network of interactions External inputs: competitors; suppliers; distributors; customers. External inputs: societal needs; competitors; supplier partnerships; distributors; customers; strategic alliances. Marketing and sales Finance Accumulation of knowledge over time External inputs: competitors; suppliers; distributors; customers; university departments. External inputs: scientific and technological developments; competitors; suppliers; customers; university departments. Engineering and manufacturing Research and development

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