New Product Introduction Comparison

1. New Product Introduction Comparison Prepared by Paul Tumolo

2. NPI Model – Stage Gate • Stage Gate NPI processes are the sequential in nature, with fully predictable specific tasks and milestones, driven by meticulous and careful planning. • This process is semi rigid in it’s design and implementation, with a set roadmap of deliverables with defined time requirements • Waterfall NPI processes are somewhat flexible in terms of rapid changes from internal or external sources • Product driven • Designed for predicable new product development, with a stable product development roadmap

3. Stage Gate NPI Model The Process is Sequential Spec is Defined Capture, Develop & Validate Specification Conceptual Design Prototyping Testing Customer Beta Product Launch Decision Gate Decision Gate Decision Gate Decision Gate Time to Market Validity and feasibility are screened at every gate for proper execution Communication is serial

4. NPI Model – Waterfall • Waterfall NPI processes are the sequential in nature, driven by a semi stable product roadmap. • This process is somewhat flexible in it’s design and implementation, with a set roadmap of deliverables with defined time requirements • Waterfall NPI processes are somewhat flexible in terms of rapid changes from internal or external sources • Equivalent to the critical path method (CPM) in project management practice • Process driven • Designed for semi stable new product development, with some changes as the project progresses.

5. NPI - Waterfall Spec is Semi Defined The Process is serial Capture, Develop & Validate Product Specification Conceptual Design Prototype Customer Beta Launch Time to Market Validity and feasibility are carried forward for proper execution Communication is semi serial

6. NPI Model - Agile • Agile NPI models are adaptive in nature, using the principles of concurrent inputs that result in rapid changes and testing. • This model relies highly on collaboration internally with the the project team, as well as externally with continuous customer and market inputs • Highly flexible in terms of product changes, adapting to new requirements on an ongoing basis • People driven • Designed for “Fuzzy” front end design – many unknowns

7. Agile NPI Model Typical Process is Concurrent Conceptual Design Spec is Fuzzy Capture, Develop & Validate Product Specification Prototype Testing Customer Beta Product Launch and Revisions Time to Market Validity and feasibility are evaluated in real time for timely execution Communication is parallel and continuous

8. Waterfall Planned Product Driven Control Semi Parallel Communication Customer Important Mid Flexibility Cadence Semi Constrained Product Driven Slow to market Some customer input Some Front End Uncertainty Agile Adaptive/Flexible People Driven Collaboration Parallel Communication Customer Critical High Flexibility Adaptability Unconstrained Market Driven Faster to market More customer input Fuzzy Front End NPI Process Types Stage Gate Predictive/Planned Process Driven Command/Control Serial Communication Customer Important Low Flexibility Cadence Constrained Product Driven Slower to market Some customer input Minimum Front End Uncertainty

9. Research Credits • www.aberdeen .com • www.accenture.com • www.kpmg.com • www.deloitte.com • Business Week – “How Failure Breeds Success” J.McGregor, July 2008 • Living on Internet Time – HBSP # 9-697-052 • Jharna Software – HBSP # HKU613 • Reducing Risks for New Product Development - HBSP # 47214 • www.npd.com

10. Research Credits – cont. • “Mistakes into Assets – Thoughts on Product Innovation” Garud &Warren, Penn State, 2006 • Project Management, MGT118 – Harvard Extension School, Paul Tumolo, 2007/2008