The New Product Development Process

1. The New Product Development Process Concept Screening February 13, 2007

2. Concept Selection / Screening

3. The NPD Process “Fuzzy” Front End Phase 1: Opportunity Identification and Selection Phase 2: Concept Generation/ Ideation Phase 3: Concept Screening & Testing Phase 4: Development

6. Prioritizing Interpreted Needs • Kano Classification (one approach) • L =Linear Satisfiers (“The more the merrier.”) • N =Neutral/Indifferent (“No big deal.”) • M =Must Haves (“I won’t buy without!”) • D =Delighters (“What an unexpected treat!”)

7. Delighter (D) Linear Satisfier (L) Requirement Not Fulfilled Indifferent (I) Requirement Fulfilled Must Have (M) Kano’s Model of (Non-Linear) Customer Satisfaction Customer Satisfied Customer Dissatisfied See (1) Matzler, et al.., 1996, Journal of Product & Brand Mgmt (2) Matzler and Hinterhuber, 1998, Technovation (3) Center for Quality Mgmt

8. Concept Selection • How can the team choose the best concept (even though the designs are still being developed)? • How can a decision be made that is embraced by the entire team? • How can the “good” attributes of “weak” concepts be identified and used? • How can the decision process be systematic?

9. Selecting Concepts • All teams use some method • first concept considered; external decision; product champion; intuition; voting; pros & cons; prototype & test; decision matrices • Potential benefits of a structured method include: • objectivity in decisions • a customer-focused product • a competitive design • reduced time to product introduction • effective group decision making and coordination • documentation of process

10. Concept Screening & Scoring • Prepare the selection criteria and create the selection matrix • Rate the concepts • Rank the concepts • Combine and improve the concepts • Select one or more concepts

11. Principles & Caveats • Decomposition of concept quality • basic theory assumes selection criteria are independent and thus does not directly capture non-linear relationships between criterion • Subjective Criteria • some criteria (eg, aesthetics) are highly subjective; the team’s judgments on these dimensions should be supplemented with the opinions of representative consumers from the target market (perhaps using prototypes, mock ups) • To Facilitate Improvement of Concepts • the team should make notes of any outstanding (+ or -) attributes, as well as identify any features that might be used to improve the concept

12. Step 1 • Prepare Selection Matrix: What are possible criteria for evaluating your “automotive dining” concepts? • Ability to meet each interpreted need • Manufacturing costs • Market need, growth, size • Compatibility with firm’s other products/culture • Compatibility with firm’s current technology • Market competitiveness (cost to maintain position)

13. Step 2 • Rate the Concepts • Using a reference point • Relative performance • much worse than reference = 1 • worse than reference = 2 • same as reference = 3 • better than reference = 4 • much better than reference = 5

14. Step 3 • Rank the Concepts • Use criteria weights (if multiple segments) • Total score for each concept

15. Next Steps 4. Combine and Improve the Concepts 5. Select One (or More) Concepts 6. Move on to Concept Testing (Next Week…)

16. The New Product Theorem • All commercially successful new products are solutions to problems.