technology management & innovation

1. technology management & innovation new product development (NPD) tm&i 2010

2. innovation & technology development BASIC APPLIED NEW PRODUCT DEVELOPMENT ON MARKET Universities & Research Institutes Companies (both small & large) Some large Corporations Governments & Research Councils Private investors Venture Capital Firms Corporate R&D Sales Revenue (ROI) tm&i 2010 From Technology Strategy Board,

3. new product development (NPD) is a critical part of the overall process in transforming new technologies into functional products tm&i 2010

4. technology development process* Technology Transfer Product Development Product Innovation Early Phase • Fundamental development & proof of principle • Patent filings • Product & license opportunities Mid Phase • Business & marketing strategy • Product developments • License negotiations Late Phase • Transfer to manufacture • On-going IP management • On-going development tm&i 2010 *slide courtesy of Erasmus Technology LLP http://www.erasmus.eu.com

5. new product development is a process IP technology know-how $ capital market awareness new product NPD time • NPD has inputs & outputs, and requires time to complete tm&i 2010

6. manufacturing marketing R&D sales traditional NPD process compartmentalised (department or function-based) processes serial flow from one division to the next multiple “handover” points plenty of scope for misunderstandings little or no opportunity for design changes R&D function isolated from end users tm&i 2010

7. product C product manufacturing manufacturing manufacturing product A marketing marketing marketing R&D R&D R&D sales sales sales product launch date A B C time integrated product development C-TEAM B-TEAM B A-TEAM tm&i 2010

8. manufacturing marketing R&D sales integrated PD process advantages • cross-functional teams • work flow is project (product) based • core team is responsible for product from concept to completion • integrated approach bridges communication gaps between different business functions • design improvements/changes more easily incorporated • product is more closely aligned to end-user’s needs the cross-functional core team are responsible for the full product design cycle, from concept through to completion tm&i 2010

9. sales introduction new product development time product life cycle curve*sales vs time maturity decline growth introduction *reproduced from ‘Product Innovation: leading change through integrated product development’. D. Rainey. CUP (2005), p.82. tm&i 2010

10. the standard product life cycle curve is a plot of sales against time • there are four distinct phases: • introduction, growth, maturity & decline • the purpose of NPD is to replace those products, or product families, that are in decline tm&i 2010

11. the six phases of the NPD process* concept development & selection NPD programme planning idea generation pre-commercial design & development validation *reproduced from ‘Product Innovation: leading change through integrated product development’. D. Rainey. CUP (2005), p.113 tm&i 2010

12. new product development • NPD translates technology innovations into products • it’s a business process, with inputs & outputs • integrated NPD uses cross-functional teams in order to produce better products, quicker • products in the market tend to follow a “life cycle” • the business objective of NPD is to replace ageing products (in decline) with innovative new products tm&i 2010