new service development process n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
New Service Development Process PowerPoint Presentation
Download Presentation
New Service Development Process

Loading in 2 Seconds...

play fullscreen
1 / 23

New Service Development Process - PowerPoint PPT Presentation


  • 126 Views
  • Uploaded on

New Service Development Process. A Report to GreatWhite Technology Group New York, NY October 23, 2005. GWTG Background. US$100M IT services business Core Competency – Application Integration Financial Management Regulatory Compliance Challenges Low margins Commoditization

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'New Service Development Process' - cecilia-lindsey


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
new service development process

New Service Development Process

A Report to GreatWhite Technology Group

New York, NY

October 23, 2005

gwtg background
GWTG Background
  • US$100M IT services business
  • Core Competency – Application Integration
    • Financial Management
    • Regulatory Compliance
  • Challenges
    • Low margins
    • Commoditization
    • Independent contractors
    • Offshore threat
recommendations
Recommendations
  • Move up the value pyramid
  • Develop new offerings in the areas of:
    • architecture and design services for software
    • strategic advisory in compliance areas (SOX, Basel II, etc.)

Strategic

Strategy

Architecture & Design

Implementation

Operations

Tactical

the development process
The Development Process
  • First step – Create the Development Process
  • Why a Development Process?
    • Higher probability of success
    • Reduces risks of “bad bets”
    • Brings discipline into the process
    • Better teamwork
    • Consistency
  • Just having a process is not enough
    • High correlation between quality of process and profitability*

*Cooper, R.G., “Winning at New Products: Accelerating the Process from Idea to Launch, Third Edition” (New York: Basic Books, 2001)

the development process a high level view

1

2

3

Stage 0

Stage 1

Stage 2

Stage 5

Stage 4

Stage 3

5

4

The Development Process – A High Level View

The Idea Factory

Initial Scope

Business Case

Review

Launch

Market Test & Validation

Service Development

critical success factors
Critical Success Factors
  • Differentiation & superiority
  • Market orientation in the process
  • Define offering in maximum detail
  • Marketing plan is part of the process – not the end
  • Create the right org structure
    • Participation by all stakeholders throughout the process
    • Executive sponsorship throughout the process
  • Stay within core competencies
  • Stick to the process – no shortcuts
cross functional development team
Cross-Functional Development Team
  • CEO – Executive Sponsor
  • Marketing – Program Manager
  • Delivery Management/PMO
  • Sales
  • Channel Partner Management
  • Recruiting/HR
stage 0 the idea factory
Stage 0 – The Idea Factory

“Nothing is more dangerous than an idea when it is the only one you have”

– Emile Chartier, Propos sur la religion, 1938

  • Sources
    • Top down
      • From Marketing & Senior Executives
    • Bottom up
      • From consultants and sales in the field
    • Client projects (replicate)
    • Informal client discussions
    • Partners
    • Industry events
    • Professional associations
    • Competitive analysis
  • Marketing is the idea collection point
gate 1
Gate 1
  • In our competency set?
    • Technology
    • Industry
    • Business process
  • Active and growing market?
  • Technology is legacy or leading-edge?
  • Many or few competitors?
  • Approve resources for initial scoping
stage 1 initial scope
Stage 1 – Initial Scope
  • Talk to some clients informally
  • Determine ability to deliver with existing skills/resources
  • Determine current market rate for similar services
  • Growing vs. shrinking market
  • Determine client buying habits in this space
    • Software vendors vs. service providers
  • Look at competitor’s marketing messages
  • SWOT analysis
gate 2
Gate 2
  • Review by sales management
  • Sufficient market rates
  • Technology is feasible
  • Potential IP issues (esp. if replicating a client project)
  • Approve resources for business case
  • Primary gate for portfolio management
stage 2 business case
Target market

Industry

Size

Geography

In-depth market research

Industry analysts

Client surveys

Partner surveys

Growth projections

Value proposition

Development plan & budget

Delivery model

Full-time staff / subcontractors

Skill development plan

Engagement model

Resources – type & number

Rates

Distribution Strategy

Partners

Choose partner(s)

Create joint benefit proposition

Stage 2 – Business Case
gate 3
Gate 3
  • Unique in
    • Entire market
    • Geography
    • Industry
  • Minimum projected project GM%
  • Approve development plan & budget
  • Is business case thorough?
  • Approve resources for development
stage 3 service development
Stage 3 – Service Development
  • Build delivery capability
    • Technical / business training
    • Recruiting
  • Create delivery methodology
    • Phases and deliverables
  • Create marcom plan
  • Create sales forecast
  • Create sales comp plan
  • Setup partner rules of engagement
  • Sales training – internal & partner
  • Create customer service plan
gate 4
Gate 4
  • What’s our ability to execute?
    • Technical delivery
    • Work with partner
  • Is it easy to buy (not necessarily easy to sell*)?
  • Review minimum projected project GM%
  • Approve resources for testing

*Moore, G., “Crossing the Chasm: Marketing and Selling High Tech Products to Mainstream Customers” (New York: HarperCollins, 2002)

stage 4 market test validation
Stage 4 – Market Test & Validation
  • Pilot at “friendly” client
  • Offer reduced rate for test clients
  • Execute with partner at their existing clients
gate 5
Gate 5
  • Evaluate ability to execute
    • Technical
    • Project Management
  • Analyze test project metrics
    • Duration
    • Resourcing
    • Quality of deliverable
    • GM%
    • Client & partner satisfaction
  • Was testing thorough?
  • Approve resources for launch
stage 5 launch
Stage 5 – Launch
  • Marketing / Demand Generation
    • PR & media
    • Events
    • Partner co-marketing
  • Lead generation
    • Relationship mining
    • Events
review
Review
  • Total revenue against plan
  • GM% against plan
  • Client satisfaction
  • Partner satisfaction
  • Adjust revenue & resource forecast
process rollout plan next steps
Process Rollout Plan – Next Steps
  • Gain support of senior management
  • Identify current practices
  • Created detailed process design with input from cross-functional teams
  • Management approval
  • Evangelize – need to build mindshare up and down the organization
  • Create support materials – guides, etc.
  • IT support for collaboration, project tracking, financial modeling, etc.
  • Training
  • Migrate current projects to the new process
roadblocks to success
Roadblocks to Success
  • Ignorance – “What should we do?”
  • Lack of skills – “How do we do it?”
  • Underestimate the tasks in the process
  • Faulty process
  • “We already know the answers”
  • No leadership
  • In a rush – cut corners
  • Too many projects, not enough resources

Cooper, R.G., “The Invisible Success Factors in Product Innovation,” Journal of Product Innovation Management, 16, 2, April 1999

managing the services portfolio
Managing the Services Portfolio
  • Goals
    • Maximize value
    • Balance
    • Strategic alignment
    • Allocate scarce resources
  • Score and rank projects according to:
    • Strategic fit
    • Market attractiveness
    • Feasibility
    • etc.
  • Compare scores across projects with the goals in mind
  • Implement at Gate 2 (after the initial scoping)