New Product Development

1. New Product DevelopmentA mythical fablewith apologies to Dr. Seuss, and all poets who know how to rhyme.Prof. David GoldsmithPS March 29, 2007

2. New Product Development • In a faraway land • Just outside Timbuktu • A long time ago • In the year of ought, two • A king ruled the land • Over subjects galore • A benevolent fellow • Or so goes the lore

3. New Product Development • This king had a business • And made things a plenty • Red, blue, yellow, green things • More than 10 score and twenty • The king loved new products • Invented them weekly • Big, little, thin, wide ones • But marketed them meekly

4. New Product Development • The King oft asked his salesmen • Named Horton and Who • “Am I doing ok? • Do you like what I do”? • And they answered in kind, • (For they hadn’t a clue) • “Why king you’re the best • Don’t stop, move more through”

5. New Product Development • They thought to themselves • “He’s old and he’s daft” • But the commissions are fine • And we’ll have the last laugh • “Make more products they urged • Both cheap and real dear • We’ll sell them as closeouts • You’ll have a great year”

6. New Product Development • New products galore • Filled the royal store shelves • But costs were too high • So the subjects rebelled • “We’re mad”, they all cried • “Your products confuse • Make them better or simpler • Make things we can use”

7. New Product Development • And the subjects complained • “Where’s the green eggs or ham”? • And the king came to realize • I’m in a real jam • And the royal warehouse • Grew bigger and taller • Until bricks there were none • And the profits were smaller

8. New Product Development • And the evil vizier • Who was devious and foxy • (He was the king’s banker) • Threatened takeover by proxy • The king looked to his staff • To his behavior condone • But his yes men all pointed • “You screwed up alone!”

9. New Product Development • The desperate king called • A consultant, or wizard • “Help me, help me”, he cried • “Help me save my big biz, Sir” • The wizard did conjure • Fingers flew on his abacus • Until he exclaimed, “King” • “Eureka, I’ll save us” Photo courtesy of Davidgoldsmith.com

10. New Product Development • “I know what is wrong.” • “It’s the products you’re picking” • “You do what you please” • “With no screening or thinking” • “You have products blue, • Green, red, yellow and black. • But if customers want white • Why you haven’t got that.”

11. New Product Development • Your sundials are so • Profitable, and sell great • You think every product • Will achieve the same fate • But alas, my dear king • Your empire is crumbling • You failures are the norm • And that is so humbling

12. New Product Development • “You need a new process • I invented of late. • It’s the rage of the land, • It’s called the stage-gate” • “Let me give you a taste, • Don’t think me a wise-ass • I made the King of Siam • As rich as old Midas”

13. New Product Development • “Pretend your idea • Is a telescope that’s thinner”. • Your salesmen say, “King” • “You’re a genius, it’s a winner”. • Step back for a second, • Is the idea quite the best? • Ask the royal astronomer • Would he like to invest?

14. New Product Development • Ask the queen and the jester • Ask the butler and cook. • “Would you buy this product? • Would you take a second look?” • If some say, “nay, King” • “I wouldn’t buy it.” • Then hold back the product, • And ask some to try it

15. New Product Development • Now the King did see red, • And called for his axes • “Kill the naysayers”, he cried • And raise everyone’s taxes • But the wizard was calm, • And said, “King wait your turn” • You’re really no tyrant • You do want to learn.

16. New Product Development • So the King asked the wizard, • “Please Wiz, tell me more” • But the wizard replied, • “Not yet, I won’t bore” • Next week we’ll be thorough • And learn what to do • Controls, gates and checkpoints • And how it helps you

17. New Product Development • Even a smart King • Needs market research • So chill and you’ll find, • You’ll grow more in wealth • Your homework, my highness • List all products, pray tell • Then honestly rank them • By how well they sell

18. New Product Development • We’ll go through a process • Called stage-gate, you know, • What products to plant • What products to sow • But also my Leader • What products to slay • For not every idea • Belongs to this day

19. New Product Development • Your pie-tins for example • No customers do buy • For until two more decades • Will man invent pie • Your gel filled foot insoles • No one can yet use • For not one in the kingdom • Can yet afford shoes

20. New Product Development • So open your mind, King • And rest up your bones • We will debunk your theories • That must be from gnomes • The next lesson will look at • Products, service and more • And fix all your problems • Or your fees I’ll restore.

21. New Product Development • Now nightfall did pass • And the King still was yearning • So the Wizard was summoned • And they resumed learning • Now King, the first lesson • Is called ideation • It’s nothing much more • Than a massive creation

22. New Product Development • A creation of ideas • Collected near and far • From any who have some • Throw them all in a jar • Ideas from your own mind • Ideas from all others, • You servants and flunkies • Your sisters and brothers

23. New Product Development • Ideas from competitors • Ideas from the staff • Ideas from the customers • Both the wheat and the chaff • Then shake the idea jar • And keep only the best • To the royal dragon • Please feed all the rest

24. New Product Development • The king said , “That’s great • I’ll happily choose • But the Wiz said, “No wait” • If you choose, you’ll lose • You need someone else • Someone younger and, yes, • Someone who shops always • Said the King, “Ah, the princess!”

25. New Product Development (This page not for homes with young children) • But the princess was sleeping • From a night filled with clubbing • Not properly waltzing • But bumping and rubbing • And drinking many potions • And shots made with Jell-O • And dragged in during morn • With this strange looking fellow CENSORED

26. New Product Development • Said the King, How could I • Be so damn darn obtuse • That I let my own daughter • Be so free and footloose • I’ll lock her away • Until my wrath she has felt • And I’ll speed the invention • Of the chastity belt

27. New Product Development • But the Wizard intervened • King, think of sales essentials • You’ve lost touch with youth • And their market potential • The young are big customers • They buy products new • They’re open and curious • And not like we two

28. New Product Development • Said the King, Here’s a lesson • Its not all about me • I build products I’d like • And think all will agree • The sales staff all praise me • Say my products are sweet • But the young and trendy • Think them all obsolete

29. New Product Development • But unknown to the king • Cause the Wizard was clever • A coincidence was brewing • To change history forever • Without any fanfare • Without blowing horns • Within this very kingdom • Big business would be born

30. New Product Development • As the royal vizier • Who was cursing the wizard • Had his witch make a potion • With toadstools and lizards • He sprinkled it liberally • All through the palace • And watched as is worked • With glee for his malice

31. New Product Development • His curse was a creation • A bane to theocracy • For here was the first • Authentic bureaucracy • Bureaucrats were born • To confuse good ideas • And to act as gatekeepers • The king cried, “Oh please!”

32. New Product Development • But the wizard just smiled • And said King, “just wait” • We’ll turn what seems lemons • To sweet lemonade • You’ll need some smart staffers • To gather out yonder • To help make decisions • Whenever you ponder

33. New Product Development • But the king still was cocky, • “I believe in my widgets • And a bureaucrat’s IQ • Is only single digits” • But the Wiz said, “we’ll train them • To be quite objective • And they’ll demonstrate wisdom • Just fine in collective

34. New Product Development • Ideas we created • And screened and rejected • Need now to pass muster • Need now be elected • We call this Gate 1 • And the bureaucrats of new • Shall let only practical • Ideas pass on through ROYAL GATE 1

35. New Product Development • And the king was beginning • To learn some new thoughts • I liked all my ideas before, • But many none bought • By screening ideas • We’ll make fewer things • But ones people buy • Like clothing and rings

36. New Product Development • Now, King we’re not done • For we still have too many • We need much more info • Before spending a penny • If we don’t do more research • You’ll still likely fail • You’ll choose products poorly • Stores won’t choose for sale

37. New Product Development • Let’s move on the cycle • To stage number one • It’s where we decide • Which products have won • We call this one screening • For things we can do • Not things we just dream of • Like your spaceship for two

38. New Product Development • We ask many questions • Of products we invent • Will anyone buy it? • Will it pay the rent? • We search all the kingdom • For voids and for clones • To see if this product • Is truly our own

39. New Product Development • And again we take all • The ideas we have sorted • And air them all out • And rank them in order • The best ones remain • And the ones that we lag on • Become the desert • For the fat royal dragon

40. New Product Development • For the good ones we ask • Our lawyer, named Shyster • Can we build these products? • Or should we say “Bye, Sir” • If all is agreed • Then we go on and do • The ones that get past • What we say is Gate 2 ROYAL GATE 2

41. New Product Development • Now it’s time for stage two • Where we really get busy • The King said, Slow down, • My head’s getting dizzy” • Stage two said the Wiz • Hangs ideas from the soffit • And sees if they’ll sell well • And sees if we’ll profit

42. New Product Development • Convene all the wise men, • And those not so smart • The bureaucrats and more, • The prince and his tart • Let them study the concept • Let them do some research • Let them see if makes sense • Study much till it hurts

43. NEW PRODUCT DEVELOPMENT • Now here use the princess • Who shops morn til eve • Let her try all new products • Will they anger or please • Does she like yours much better • Than those from Tibet • Or will she say, “Nay Dad • Your goods are all wet”

44. New Product Development • Then assemble a trusted • Decision committee • Ask Horton and Who • Workers big and itty-bitty • You need the thing-makers • And packers and mystics • The ones called production • The ones called logistics

45. New Product Development • If all do agree that • A product will float • We’ll stamp it with seal wax • Dump the rest in the moat • We then with great fanfare • And royal decree • Pronounce it has passed • Royal gate number three ROYAL GATE 3

46. New Product Development • Now it’s on to Stage 3, King • With groups we name focus • And here we do prototypes • And much hocus-pocus • We do testing called alpha • Said the Wiz, in this stage • We do market research • And results we do gauge

47. New Product Development • It’s important to see • Before big bucks we spend • Can we make it ok? • Can we cut, shape and bend? • Will it fit in the boxes? • Can they sell it, the staff? • Can Horton and Who • Get the price that we ask?

48. New Product Development • Will the royal accountant • His blessing do say • Will the princess say “Great, Dad, • Or Dad, that’s passé” • Will the sample look right • And get subjects to buy • Or will word of mouth • Cause the product to die.

49. New Product Development • If all are agreed • That the product is clever • If all are assured • It’s among the best, ever • Then proclaim to kingdom • With honors galore • This product moves on • It has gone through Gate 4 ROYAL GATE 4

50. New Product Development • Said the King, “Now we’re done” • Said the Wiz, “hold your horses” • We’ve only a sample • We’ve another two courses • Stage 4 is now coming • Or you’re betting the farm • On an untested product • With potential to harm