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Managing New Product Development Teams

The document discusses managing a new product development team, outlining key activities like assembling knowledge, generating business opportunities, developing product prototypes, and testing. It emphasizes organizing cross-functional teams and managing the interface between marketing and R&D. The conclusion stresses managing cross-functional systems and transparency between marketing and R&D to develop successful new products.

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Sunil Singh
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214 views

Managing New Product Development Teams

The document discusses managing a new product development team, outlining key activities like assembling knowledge, generating business opportunities, developing product prototypes, and testing. It emphasizes organizing cross-functional teams and managing the interface between marketing and R&D. The conclusion stresses managing cross-functional systems and transparency between marketing and R&D to develop successful new products.

Uploaded by

Sunil Singh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 18

Managing the new product

development team

• Presented by
Sunil Singh
Group-2
Table of Contents
• New products as projects
• Key activities that need to manage
• Organizational structures and cross- functional
teams
• Marketing/R&D interface
• High attrition rate of new products
• Conclusion
New products as projects

• Focus on new products as a projects.


• For NPD needs to occur reorganize of a variety
of personal from across the organization.
• It helps improve a company’s performance.

Craig and Hart,1992 they introduce the


model of NPD.
Key activities that need to manage

There are following activities are


• Assembling Knowledge
• Generating business opportunities
• Product concept generation
• Development of product prototypes
• market and technical testing
• Market testing
Assembling Knowledge
• A wide range of activities and knowledge that
together to help NPD and maintain a
company’s knowledge base.

• It is from an organization’s knowledge base


that creativity and ideas for a new products
will flow.
The activities are
The generation of business opportunities

• Scanning the environment for the business


opportunities to develop new product.
• The stage of this process are

• Existing products –
Small change to product and introduce new
product line.( Ex- Surf)
• Technology-
Based on absorptive capacity of company to identify
external technology to develop new products.
Cont….
• Unexploited patents – Identify patents that
have not yet been exploited and use for NPD.
• Customers and vendors – focus on customers
demand and life style and network with
vendors. ( Ex- P&G, Unilever)
• Sales force - sales representatives are good
source of new product development.( Ex- sales
force of Shell, BP 3M)
• Senior and top Management- Personal
responsibility to take action for technological
innovation in their company.(Ex- 3M,NOKIA).
Cont…
• Brainstorming and synectics- Build CoP in the
organization for encourage to be liberal and
uninhibited with their suggestions.
• Individuals - Steve jobs , Jack Welch, Kishore Biyani.

Developing Product concepts


For a product idea to become a new product concept
– Crawford argues that three inputs are required .
They are- from, technology and need
Cont…
• Screening of business opportunities- analyze
the own capabilities and market, customers.( To
identify which ideas are going to be
successful)
Ex- Kodak and IBM with Xerox
• Distinguishing between dreams and reality-
Recognizing what is a possible product in the
reality. ( Ex- Xerox and the computer interfcae,
Dyson and the bagless vacum cleaner)
• Customer screen , concept testing
Cont…
• Business analysis- it involves the marketing
plans, technical plans, financial reviews and
projected budgets.

Development of product prototypes


• It is the stage that product designers develop
several similar prototypes with different
styling.
• It includes all aspects of management process.
Cont…
• Rapid prototypes- Reducing the time to develop
products as much as quickly and launch in the
consumer market.( Ex- P&G , Unilever, Biersdorf,3M,
Siemens, AEG)
For this firms using Stereolithigraphy(SLG)
technology and based on CAD program.
• Technical testing.
(Ex- In motor vehicle industry, Engineers may
develop airbag system and test that the material is
suitable)
Market testing and consumer research

• Developing marketing strategy before launching the


new products.

• Analyze statistical survey about the consumers and


their behavior with the products.
(Ex- Disk camera developed by Eastman Kodak in 1980,
Pagers in India, Burger of McDonalds in India)
Market Introduction
• Understand the market before launching the products.
Because most products are improvements of existing
products.
Ex- (Dyson vacuum cleaner, it take five years and 500
prototypes to develop successful products)
Organizational structures and cross
functional teams
• Teams and project management
• Functional structures- it main emphasize on
the hierarchy of the organization that
facilitates the flow of information with in the
organization.
• Matrix Structures- Any organization that
employs a multiple-command system.
Ex- Matrix structure at Siemens
Cont…
• Some features and benefits of a matrix of a
matrix organizational structure.
1) provision of additional channels of
communications.
2) Increase in informal communication
channels.
3) Increase in information loads.
4) Increase in diversity for indiniduals
Cont…
• Corporate venturing-The undertaking of an investment
initiative by a commercial organization to gain
experience of a new technology or an unfamiliar market.
Ex- Nokia, IBM, GE
Marketing/R&D interface
• A common difficulty that the need to manage
communication flows across the marketing and R&D
boundaries.(1970 Rubenestein)
• The main barriers to an effective R&D/marketing have
been found that perceptual, culture, organizational and
language factors.( wang.1976)
High attrition rate of new products
• When the new product launch in the market
then success factor of that products varies and
mostly products fail.
The reasons are

Ex- Coca-Cola with its Dasani brand in europe


Conclusions
• For managing new product development team
firms should manage the cross-functional
system.

• Manage R&D/marketing interface with using


transparency wit each other.

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