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New Product Development MKTG 4320.002. Dr. Audhesh Paswan Spring 2006 M 2:00-4:50 PM (BUSI 330). DML-COBA. THE FULL SCREEN CHAPTER 10. The Full Screen. A step often seen as a necessary evil, yet very powerful and with long-lasting effects.
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New Product DevelopmentMKTG 4320.002 Dr. Audhesh Paswan Spring 2006 M 2:00-4:50 PM (BUSI 330) DML-COBA
The Full Screen • A step often seen as a necessary evil, yet very powerful and with long-lasting effects. • Forces pre-technical evaluation, and summarizes what must be done. • Methods range from simple checklists to complex mathematical models.
Purposes of the Full Screen • To decide whether technical resources should be devoted to the project. • Feasibility of technical accomplishment -- can we do it? • Feasibility of commercial accomplishment -- do we want to do it? • To help manage the process. • Recycle and rework concepts • Rank order good concepts • Track appraisals of failed concepts • To encourage cross-functional communication.
Screening Alternatives • Judgment/Managerial Opinion • Concept Test followed by Sales Forecast (if only issue is whether consumers will like it) • Scoring Models
A Simple Scoring Model Answer: Go boating.
A Scoring Model for Full Screen Note: this model only shows a few sample screening factors. Factor Score (1-5) Weight Weighted Score Technical Accomplishment: Technical task difficulty Research skills required Rate of technological change Design superiority assurance Manufacturing equipment... Commercial Accomplishment: Market volatility Probable market share Sales force requirements Competition to be faced Degree of unmet need...
The Scorers • Scoring Team: Major Functions (marketing, technical, operations, finance) New Products Managers Staff Specialists (IT, distribution, procurement, PR, HR) • Problems with Scorers: May be always optimistic/pessimistic May be "moody" (alternately optimistic and pessimistic) May always score neutral May be less reliable or accurate May be easily swayedby the group May be erratic
Technical success factors: Proprietary Position Competencies/Skills Technical Complexity Access to and Effective Use of External Technology Manufacturing Capability Commercial success factors: Customer/Market Need Market/Brand Recognition Channels to Market Customer Strength Raw Materials/Components Supply Safety, Health and Environmental Risks IRI Scoring Model Source: John Davis, Alan Fusfield, Eric Scriven, and Gary Tritle, “Determining a Project’s Probability of Success,”Research-Technology Management, May-June 2001, pp. 51-57.
Alternatives to the Full Screen • Profile Sheet • Empirical Model • Expert Systems • Analytic Hierarchy Process
Criteria Based on the New-Prod Studies • Must-Meet Criteria (rated yes/no): • Strategic alignment • Existence of market need • Likelihood of technical feasibility • Product advantage • Environmental health and safety policies • Return versus risk • Show stoppers (“killer” variables)
Criteria Based on the NewProd Studies(continued) • Should-Meet Criteria (rated on scales): • Strategic (alignment and importance) • Product advantage (unique benefits, meets customer needs, provides value for money) • Market attractiveness (size, growth rate) • Synergies (marketing, distribution, technical, manufacturing expertise) • Technical feasibility (complexity, uncertainty) • Risk vs. return (NPV, IRR, ROI, payback)
