BangProd #2 Strategi Dan Tahapan Pengembangan Produk

FAKULTAS REKAYASA INDUSTRI
PENGEMBANGAN PRODUK - IEH3D3

by : Budhi Yogaswara – BYG 93650004
Ully Yunita Nafizah – UYZ 0198879356
Lecture Note #2
STRATEGI PENGEMBANGAN PRODUK
budhiyogas@telkomuniversity.ac.id
BYG 2018 - PENGEMBANGAN PRODUK - IEH3D3 TEL U – FAK. REKAYASA INDUSTRI
LOW COST CARREIR - AIR ASIA

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tetapi 3
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tiket
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 Tidak menggunakan
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bandara
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hidangan di pesawat
What do we mean by
STRATEGY ?
Where do we want to go from here?
Creating A Vision For

The Firm’s Future Direction
What is
STRATEGY about ?
Strategy is all about :
What is
STRATEGYabout ?
Strategy is all about :
How to manage Functional Pieces of The Business
and develop needed capabilities
How to improve The Firm’s Financial & Market Performance
How to compete Successfully, how to grow the business
How to attract and please customers,
How to respond to changing market conditions
How to achieve performance targets.
A company’s strategy is
management’s game plan for
growing the business, staking out a
market position, attracting and
pleasing customers, competing
successfully, conducting operations,
and achieve targeted objectives.
(Thompson, Strickland, and Gamble)
Why do we need a strategy ?
• Without a strategy, we fill our time with...

...what we want, or
…what we think the boss wants, or
…by reacting
• Without a strategy, time an resources are

easily was on piecemeal, disparate
activities
STRATEGY PYRAMID – (WHEELEN, 2002)
I. CORPORATE STRATEGY (WHAT SHOULD WE BE IN?) :

it describes a company’s overall direction in terms of its
general attitude toward growth and the management of its
various businesses and product lines.
II.BUSINESS STRATEGY
it usually occurs at the business unit or product level. it
emphasizes improvement of the competitive position of a
corporation’s product or services in the specific industry or
market segment served by that business unit.
III.FUNCTIONAL STRATEGY
It is the approach taken by a fungtional area to achieve corporate and
business unit objectives and strategies by maximizing resource
productivity. it is concerned with developing and nurturing a distinctive
competence to provide a company ou business unit with competitive
advantage.
CORPORATE STRATEGY
Corporate strategy, the choice of direction of the firm as a whole
and the management of its business or product portfolio and concerns :
Corporate
strategy
Directional Parenting
Portfolio Analysis
Strategy Strategy
Directional strategy Portfolio analysis- Parenting strategy
- the firm’s overall industries or markets in the manner in which management
orientation toward which the firm competes coordinates activities & transfers
growth, stability, or through its products and resources and cultivates capabilities
retrenchment business unites among product lines and business units
CORPORATE STRATEGY – DIRECTIONAL STRATEGY
A corporation’s directional strategy is

composed of three general orientations
(sometimes called grand strategies) :
Stability
strategies make
Growth no change to the Retrenchment
strategies expand company’s strategies reduce
the company’s current activities. the company’s
activities. level of activities.
Directional
Strategies
Growth Stability Retrenchment

Strategy Strategy Strategy
Concentration Diversification
Bankruptcy/
Pause/Proceed
Conglomerate
Turnaround
Divestment
Liquidation
Concentric
No change
with caution
Horizontal
Company
Sell-Out/
Strategy
strategy
Captive
Growth
Vertical
Growth
strategy
Profit

Growth
Strategy
Concentration Diversification
Vertical Horizontal
Concentric Conglomerate
Growth Growth
Vertical growth, Horizontal growth,

taking over the function expansion of operations into other
previously provided by a supplier geographic locations and/or increasing the
or by a distributor range of products and services offered to
current markets
Vertical integration,
the degree to which a firm operates Horizontal integration,
vertically in multiple locations on an the degree to which a firm operates in
industry’s value chain from extracting raw multiple geographic locations at the same
materials to manufacturing to retailing point on an industry’s value chain

Growth Strategy - Concentration
Backward Forward
Integration Integration
Backward integration- assuming a Forward integration- assuming a

function previously provided by a function previously provided by a
supplier distributor
Transaction cost economies- vertical integration is more efficient

than contracting for goods and services in the marketplace when the
transaction costs of buying on the open market become too great

Vertical Long-term
Integration contracts-
agreements
between 2 firms to
Quasi-integration- a provide agreed-
company does not upon goods and
make any of its key services to each
supplies but other for a specific
Taper integration- purchases most of its period of time
a firm internally requirements from
produces less than outside suppliers that
Full integration- a half of its own are under its partial
firm internally requirements and control
makes 100% of buys the rest from
its key suppliers outside suppliers
and completely Vertical Integration Continuum
controls its
distributors
SOURCE: Suggested by K. R. Harrigan, Strategies for Vertical Integration
(Lexington, Mass.: Lexington Books, D.C.Health, 1983), pp. 16–21.

Horizontal growth is achieved through :
Internal Strategic
Acquisitions
Development Alliances

Growth Strategy - Diversification
Diversification
Strategies
Concentric Conglomerate
Concentric (Related) Conglomerate (Unrelated)

Diversification-growth into a Diversification- growth into an
related industry when a firm has a
unrelated industry
strong competitive position but • Management realizes that the current
attractiveness is low. industry is unattractive
• Firm lacks outstanding abilities or skills
that it could easily transfer to related
products or services in other industries
Note : Synergy- when two businesses will generate more

profits together than they could separately

Stability Strategies - continuing activities without
any significant change in direction
Stability Strategy
Pause/Proceed with
No change strategy Profit Strategy
caution strategy
Pause/Proceed with caution No change strategy- Profit Strategies- to do

strategy- an opportunity to continuance of current nothing new in a worsening
rest before continuing a operations and policies situation but instead to act as
growth or retrenchment though the company’s
problems are only temporary
strategy

Retrenchment Strategies - used when the firm has a weak competitive
position in some or all of its product lines from poor performance
Retrenchment
Strategy
Turnaround Captive Company Sell-out strategy/ Bankruptcy/

strategy Strategy Divestment Liquidation
Turnaround Captive Company Sell-out strategy- Divestment-
strategy- Strategy- company management can still sale of a division
emphasizes the gives up obtain a good price with low growth
improvement of independence in for its shareholders potential
operational efficiency exchange for and the employees
when the corporation’s
security can keep their jobs
problems are pervasive
but not critical by selling the
company to another
• Contraction- effort to quickly “stop the bleeding” firm
across the board but in size and costs
• Consolidation- stabilization of the new leaner
corporation
CORPORATE STRATEGY – PORFOLIO ANALYSIS

 Portfolio analysis - management views its product lines and business units as a series of
investments from which it expects a profitable return
Popular Portfolio Analysis

Techniques
GE Business Screen
BCG Matrix

Portfolio Analysis – BCG Matrix
• Question marks- new products with the potential for success
but require a lot of cash for development
• Stars- market leaders at the peak of their product cycle and are
able to generate enough cash to maintain their high market share
and usually contribute to the company’s profits
• Cash cows- products that bring in far more money than is
needed to maintain their market share
• Dogs- products with low market share and do not have the
potential to bring in much cash
BCG Matrix- Limitations

 Use of highs and lows to form categories is too simplistic
 Link between market share and profitability is questionable
 Growth rate is only one aspect of industry attractiveness
 Product lines or business units are considered only in relation
to one competitor
 Market share is only one aspect of overall competitive
SOURCE: Reprinted from Long Range Planning, Vol. 10, No. 2, 1977, Hedley, “Strategy and
position the Business Portfolio,” p. 12. Copyright © 1977 with permission from Elsevier.

General Electric’s Business Screen GE Business Screen - Limitations
 Complex and cumbersome
 Numerical estimates of industry
attractiveness and business
strength/competitive position give the
appearance of objective, but are actually
subjective judgments that can vary from
person to person
 Cannot effectively depict the positions
of new products and business units in
developing industries
SOURCE: Adapted from Strategic Management in GE, Corporate Planning and Development,
General Electric Corporation, Reprinted by permission of General Electric Company.
CORPORATE STRATEGY – CORPORATE PARENTING
Corporate Parenting, views a corporation in terms of resources and capabilities that

can be used to build business unit value as well as generate synergies across business units
 Generates corporate strategy by focusing on the core competencies of the parent
corporation and the value created from the relationship between the parent and its
businesses
Developing a Corporate Parenting Strategy

1. Examine each business unit in terms of its strategic factors
2. Examine each business unit in terms of areas in which performance can be improved
3. Analyze how well the parent corporation fits with the business unit
COMPETITIVE STRATEGY
 An organization’s Competitive Strategy defines a

basic approach to market and products with
respect to competitors.
 The choice of which opportunities to pursue
can be guided by this strategy.
 Technology leadership, Cost leadership,
Customer focus, and Imitative (Ulrich &
Eppinger).
COMPETITIVE STRATEGY
Technology
Cost Leadership Customer Focus Imitative
Leadership
• To implement this • This strategy requires • To follow this strategy, • Involves closely following
strategy, the firm places the firm to compete on the firm works closely trends in the market,
great emphasis on basic production efficiency, with new and existing allowing competitors to
research and either through customers to assess their explore which new
development of new economies of scale, use changing needs and products are successful
technologies and on the of superior preferences. for each segment.
deployment of these manufacturing methods, • This strategy may result • When viable
technologies through low cost labor, or better in a broad product line opportunities have been
product development management of the featuring high product identified, the firm
production system variety in order to quickly launches new
• Design for manufacturing address the needs of products to imitate the
methods are therefore heterogeneous customer successful competitors.
emphasized in the segments • A fast development
product (and process) process is essential to
development activities effectively implement this
under this strategy strategy.
NEW-PRODUCT STRATEGIES
 The potential rewards and risks from developing successful

new products are high and many factors can impel
organizations to consider new product development activities.
 Although some organizations may survive by trying one
product after another in the market until success is achieved,
there is a better way..
 Most organizations find it more profitable to approach new-
product development with an effective managerial strategy that
is likely to achieve success, but at the same time minimize cost
and risk.
 A good strategy includes a portfolio of product development
strategies that are balanced to the demand of the situations
the corporation faces.
Relationship NPD to CORPORATE STRATEGY

:
Corporate strategy is a New-product strategy is

framework that gives an one part of the overall
organization its overall corporate strategy. It is a
directions and impels it to means to implement an
action organization’s corporate
overall strategy
What are we good at ?

Why have we succeeded in the past?
Where are we vulnerable ?
What technological changes can we expect?
What products and markets must be defended
to maintain the corporate image ?
Where are our major products in their life cycles?
Here are some of the
questions that reflect the What actions will the government take that will affect us?
interface between
corporate and new-product Can synergies with existing products be exploited?
strategy
ALTERNATIVE PRODUCT DEVELOPMENT STRATEGIES
One of the basic strategic decisions is to be reactive or proactive
A reactive product strategy

is based on dealing with the
initiating pressures as they
occur
A proactive strategy would

explicitly allocate resources to
preempt undesirable future
events and achieve goals
One of the basic strategic decisions is to be reactive or proactive
REACTIVE STRATEGY :
• It is based on dealing with the
initiating pressures as they
REACTIVE STRATEGY : occur.
• It would explicitly allocate to • I.E : A reactive view of the
preempt undesirable future competition is to wait until
events & achieve goals. the competition introduces a
• i.e : it would be based on product and copy it if it is
preempting competition by successful
being first on the market with
a product competitors would find
difficult to match or improve
PROACTIVE STRATEGY
 Can be based on R & D : IBM, Hewlett-Packard,
and Microsoft  devote considerable energies
to the potential of technological innovation
 Proactive in identifying customer needs and
developing products that provide the benefits to
satisfy those needs
 Use forms of cooperation to put together a
new product portfolio of skills that lead to
success in the market. Acquisitions, joint
ventures  General Motors and Toyota
membuat NUMMI ( New United Motor
Manufacturing)
REACTIVE STRATEGY
Based on dealing with the initiating pressures, as they occur.
Example :
a reactive view of the competition is to wait until the
competition introduces a product and copy it if it is successful
DEFENSIVE
RESPONSIVE IMITATIVE
SECOND-BUT- BETTER
REACTIVE STRATEGY
DEFENSIVE Defensive Strategy : protects the profitability of

existing products by countering competitive new
products.
Example : Datril attack Tylenol with product positioned

RESPONSIVE
IMITATIVE
“the same ingredients as Tylenol, but less expensive” 
The maker of Tylenol reacts with reducing its price
SECOND-BUT- BETTER
REACTIVE STRATEGY
DEFENSIVE
• Imitative strategy: based on quickly copying a
new product before its maker is assured of being
successful.
RESPONSIVE
IMITATIVE
• This “me too” approach is common practice (!) in
the fashion and design industries for clothes,
furniture, and small appliances
• Once Cuisinart demonstrated that a market existed for

expensive food processors, many of the major appliance
companies followed with products that imitated Cuisinart
SECOND-BUT- BETTER
REACTIVE STRATEGY
Second-but-better strategy: the firm does not DEFENSIVE

just copy the competitive product, but identifies
ways to improve the product and its positioning.
RESPONSIVE
Example : Spreadsheet
IMITATIVE
Due to the lack of a patent, which until then had never been SECOND-BUT- BETTER
issued for a computer program, none of the developers of
the VisiCalc clones had to pay any royalties to VisiCorp
REACTIVE STRATEGY
DEFENSIVE
Responsive strategy: purposively reacting to

customers’ requests.
RESPONSIVE
IMITATIVE
Scientific instruments users often modify and
improve the equipment they use, manufacturers can
identify new opportunities ( and new design)
SECOND-BUT- BETTER

 Require concentration on existing products or markets
 Can achieve little protection for innovation
 Are in market too small to recover development costs
 Are in the danger of being overwhelmed by competitive imitation
Reactive
Strategies
Proactive
Strategies
 Require rapid sales growth
 Provide high volume or margins
 Offer a capability of achieving patent or market protection
 Provide reasonable power in distribution channel
WHEN DO COMPANIES APPLY A REACTIVE AND PROACTIVE STRATEGY?

(URBAN, 1993)
1. GROWTH OPPORTUNITIES
2. PROTECTION FOR INNOVATION
3. SCALE OF THE MARKET
4. STRENGTH OF THE COMPETITION
5. ORGANIZATION ‘S POSITION IN THE PRODUCTION/ DISTRIBUTION

SYSTEM
CROSS FUNCTIONAL INTEGRATION IN NEW PRODUCT STRATEGY

(URBAN, 1993)
The success of a new-product strategy depends on more than integration of marketing and R&D
R&D
Engineering
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MARKETING PRODUCTION
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Question???
REFERENCE
 “Concepts and Executing Strategy”, Arthur A. Thompson Jr., et.al, McGraw-Hill
International
 labqim.wordpress.com
FAKULTAS REKAYASA INDUSTRI
PENGEMBANGAN PRODUK - IEH3D3
by : Budhi Yogaswara – BYG 93650004
Ully Yunita Nafizah – UYZ 0198879356
Lecture Note #2-2
PROSES PENGEMBANGAN PRODUK
budhiyogas@telkomuniversity.ac.id, ullyyunita@telkomuniversity.com
PRODUCT DEVELOPMENT GENERIC PROCESS
Four Phases of Product Development
 This phase begin with corporate strategy and includes assessment of technology
developments and market objectives.
 The output of the planning phase is the project mission statement, which specifies
the target market for the product, business goals, key assumptions, and constraints
PLANNING – PRODUCT PLAN

 Portfolio of products to be developed by the organization and the timing of their
introduction to the market.
 A set of projects approved by the planning process, sequenced in time
XEROX LAKES PROJECT EXAMPLE A PRODUCT PLAN

Inadequate coverage of target
markets with competitive
products
Frequent changes in project Poor timing of market

directions. Problems introduction of products
with NO
PRODUCT
PLAN
Initiation and cancellation of Poor capacity planning and

ill-conceived projects under-utilizing or
development resources.

Four Types of Product Development Projects
Derivatives Of Incremental
Fundamentally New Product
Existing Product Improvements To
New Products Platforms
Platforms Existing Products
• New product or • New products for • Use existing • Only add or
production familiar markets product platforms modify some
technology for and product to better address features of existing
new and unfamiliar categories familiar markets products to keep
markets with new products. the product line
current and
competitive

PRODUCT PLANNING QUESTIONS
What mix of fundamentally new products, platforms,
and derivative products should be pursued?
What product How do the various

development projects projects relate to each
will be undertaken? other as a portfolio ?
What will be the timing and

sequence of the projects?
1. PLANNING – IDENTIFY OPPORTUNITIES
Identify opportunities :
 Marketing and sales personnel
 Research and technology development organizations
 Current product development teams
 Manufacturing and operations organizations
 Current and potential customers
 Third parties such as suppliers, inventors, and business partners
PRODUCT DEVELOPMENT
OPPORTUNITY
Improvements, variants, and cost
Horizon 1 reduction of existing one.
OPPORTUNITY
New territory of one or both of the

Horizon 2 market and technology dimensions.
New category of product/service

Horizon 3 with great uncertainty.
OPPORTUNITY IDENTIFICATION PROCESS
Generate
Reflect on
Develop Select the result
Establish a and sense Screen promising exceptional and process.
charter many opportunities
opportunities opportunities
opportunities
TECHNIQUES FOR GENERATING OPPORTUNITIES
Pull Opportunities From Capabilities

Follow a Compile Bug (Resources).
Personal Passion Lists Valuable, rare, not easy to imitate, non-
substitutable.
Study Consider
Imitate But Mind Your
Implications of
Customers Improve. Internal Sources.
Trends
OPPORTUNITIES BEGIN THE PRODUCT PLANNING AND PRODUCT

DEVELOPMENT PROCESSES
Opportunity Tournament
Exceptional Opportunities
Concept System-Level Detail Testing and Production

Planning Development Design Design Refinement Ramp-Up
PHARMACEUTICAL DRUG DEVELOPMENT
HOLLYWOOD FILM STUDIOS
OPPORTUNITY IDENTIFICATION EXAMPLE
FROLICAT SWAY OPPORTUNITY FUNNEL
1 1 1
mission statement PD process product launch
3
explored
50 7
opportunities selected budhiyogas@telkomuniversity.ac.id
CAR CONCEPTS
TOOTHBRUSH
Source: Lunar Design

TOOTHBRUSH
THE FUNNEL IN VARIOUS INDUSTRIES
WHERE DO OPPORTUNITIES COME FROM?
Source:
Terwiesch and Ulrich survey of 524 managers in diverse
service and product industries, October 2006.
WHAT DRIVES THE QUALITY OF THE OPPORTUNITIES?
 Mean Quality of The Opportunity

Identification Process.
 Variance In Quality of The
Opportunity Identification Process.
 Number of “Draws” From The
Opportunity Identification Process.
 Accuracy of Discerning The Best
Subset of Opportunities Generated.
Quality of Opportunities :
 Is there a real market and a real
product?
 Can we win?
 It is worth doing it?
PROJECT DOWN SELECTION : THE PD PROCESS FUNNEL
Concept System- Detail Testing and Production

Planning Ramp-Up
Development Level Design Design Refinement
2. PLANNING – EVALUATE AND PRIORITIZE PROJECTS
Evaluate and Prioritize Projects:

 Competitive strategy
 Market segmentation
 Technological trajectories
 Product platform planning
 Evaluating fundamentally New Product Opportunities
 Balancing the portfolio

2.1 For Existing Platforms Or Markets, Depend On
Competitive Market Technological Product Platform Planning
Strategy Segmentation Trajectories
by focusing on • Divide the • Consider when • Product platform: a set of assets such as components
at least one of market into to adopt a and subassemblies, shared across a set of products in
the following segments in technology in its the company
• Technology order to be S-shape curve of • Platform development projects may take 2-10 times as
leadership more focused use. much time and money as derivative product
(R&D) on the customer development projects
• Cost leadership and competitors • Technology roadmap is usually used to represent the
• Customer expected availability and future use of various
focus technologies relevant to the product being considered.
• Imitative (lead
time
leadership)
See a roadmap in EX4-7 on page 62.

2, PLANNING – EVALUATE AND PRIORITIZE PROJECTS

 Market Segmentation - Market Segment Map
65 ppm 65 ppm
network
$23k $31k
55 ppm 60 ppm
Department Lakes network
$20k
Project
$35k
Lakes
40 ppm
$16k
Extensions
25 ppm
$10k
35 ppm
$15k
40 ppm
$20k
Legend
Xerox
Workgroup product
30 ppm 40 ppm
network compe titor
$10k $20k product
Hodaka Project pot ent ial

20 ppm 25 ppm 30 ppm compe titor
$8k $9k $10k
Personal
20 ppm
$7k
1997 1998 1999 2000 Year of

Release

 Technological Trajectories
 In technology-intensive business, a key product planning decision is when to adopt a new basic
technology in a product line
 Technological S-curves : conceptual tool to help think about such decisions

 Product Platform Planning
 Platform: set of assets shared across a set of products
Research and
Technology
Development
Legend
Platform
Product Platform A Platform B Project
Development Product
Release
Derivative
Product
Development
time

Product Platform Planning
• Platform: set of assets shared across a set of products
• Product platform: a set of assets Research and
such as components and Technology
subassemblies, shared across a Development
set of products in the company

• Platform development projects Legend
Platform
may take 2-10 times as much Product Platform A Platform B Project
time and money as derivative Development Product
Release
product development projects
• Technology roadmap is usually
used to represent the expected
availability and future use of Derivative
Product
various technologies relevant to Development
the product being considered.
time
See a roadmap in EX4-7 on page 62.

 Technology Roadmap

2.2 For New Markets or New Technologies, consider
 Market size (annual sales x unit price)
 Market growth rate
 Competitive intensity (competitors and their strength)
 Depth of the firm’s existing knowledge of the market.
 Depth of the firm’s existing knowledge of the technology
 Fit with the firm’s other products
 Fit with the firm’s capabilities
 Potential for patents, trade secrets, and other barriers for competitors to enter
 Existence of product champion within the firm

2.3 Balancing The Portfolio - Product-Process Change Matrix
 The choice of competitive
strategy affects the
product development
portfolio
 Use of the product-
process change matrix to
balance the portfolio, as
shown in page 63.
 Product development is
closely coupled with
technology development,
though it is usually not in
the company’s control.
3. PLANNING – ALLOCATE RESOURCES AND PLAN TIMING
 Every company has finite resources

 It estimates resource requirements for each project in the plan by
month, quarter, or year.
 The resources plan is usually prepared at aggregate level by major
resource categories, as shown on page 65
3. PLANING - ALLOCATE RESOURCES AND PLAN TIMING
The effort of resource planning and

project timing should also consider:
Timing for
Technology Market
Product Competition
Readiness Readiness
Introduction

Aggregate Resource Planning

Aggregate Resource Planning
4. PLANNING – COMPLETE PRE-PROJECT PLANNING
 Finalize a mission statement for each project

 Sign up key members
4. PLANING - COMPLETE PRE-PROJECT PLANNING

 Finalize a mission statement for each project that includes
 A brief (one sentence) description of the product
 Major benefit proposition
 Key business goals
 Primary and secondary markets for the product
 Assumptions and constraints for the development effort
 Stakeholders
 Sign up key members of the development staff

Project’s Mission Statement
1. Market segments to be considered for the product design and its

features.
2. New technologies (if any) to be incorporated into the new product
3. Manufacturing and service goals and constraints
4. Financial targets for the product design
5. Budget and time frame for the project

Mission : Develop a networked, mid-range, digital platform for imaging,
marking, and finishing
Product Description Assumptions and Constraints
 Networkable, digital machine with copy, print, fax, and scan  New product platform
functions
 Digital imaging technology
Key Business Goals  Compatible with Centre Ware software
 Support Xerox strategy of leadership in digital office  Input devices manufactured in Canada
equipment
 Serve as platform for all future B&W digital products and  Output devices manufactured in Brazil
solutions  Image processing engine manufactured in both
 Capture 50% of digital product sales in primary market USA and Europe
 Environmentally friendly Stakeholders
 First product introduction 4thQ 1997
 Purchasers and Users
Primary Market  Manufacturing Operations
 Office departments, mid-volume (40-65 ppm, above 42,000  Service Operations
avg. copies/mo.)  Distributors and Resellers
Secondary Markets
 Quick-print market
 Small ‘satellite’ operations Xerox Document Centre 265
4. PLANNING – COMPLETE PRE-PROJECT PLANNING
 generate good product opportunities?

 firm’s competitive strategy?
 most important opportunities?
 team accept the challenge as stated in mission statement?
 resources sufficient and effectively?
5. PLANNING - REFLECT ON THE RESULT AND PROCESS

1. Does the opportunity funnel generate good product opportunities?
2. Does the product plan support the firm’s competitive strategy?
3. Does the product plan address the most important opportunities?
4. Does each project core team accept the challenge as stated in mission statement?
5. Are resources sufficient and effectively utilized?
 A concept is a description of the form, function, and features of a product and is usually accompanied
by a set of specifications, an analysis of competitive products, and an economic justification of the
project.
 In this phase, the needs of the target market are identified, alternative product concepts are generated
and evaluated, and one or more concepts are selected for further development and testing.
CONCEPT DEVELOPMENT : FRONT END PROCESS
Mission Development
Statement Identify Establish Generate Select Plan Plan
Set Final
Customer Target Product Product Downstream
Specifications
Needs Specification Concepts Concept(s) Development
Perform Economic Analysis
Benchmark Competitive Products
Build and Test Models and Prototypes
 Includes the definition of the product architecture and the decomposition of the product into
subsystems and components.
 The output of this phase usually includes a geometric layout of the product, a functional specifications
of each of the product subsystems, and a preliminary process flow diagram for the final assembly
process.
 Includes the complete specifications of the geometry, materials, and

tolerance of all of the unique parts in the product
 The output of this phase is the control documentation for the product
– the drawings or computer files describing the geometry of parts and
tooling, the specifications of the purchased parts, and the process plans
for the fabrication and assembly.
 Involves the construction and evaluation of multiple

preproduction versions of the products
 Prototypes.
 In this phase, the product is made using the intended production system.
 The purpose of the ramp-up is to train the work force and to work out
any remaining problems in the production process
 Products produced during production ramp-up are sometimes supplied
to preferred customers and are carefully evaluated to identify any
remaining flaws
ADAPTING THE GENERIC PRODUCT DEVELOPMENT PROCESS
 The process described is generic, and particular processes will differ in accordance
with a firm’s unique context.
 The generic process is most like the process in the market-pull situation : a firm
begins product development with a market opportunity and uses whatever available
technologies are required to satisfy the market needs
 Technology-Push Products : begin with proprietary technology and look for an
appropriate market in which to apply this technology
QUESTION ???

BangProd #2 Strategi Dan Tahapan Pengembangan Produk

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BangProd #2 Strategi Dan Tahapan Pengembangan Produk

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FAKULTAS REKAYASA INDUSTRI

PENGEMBANGAN PRODUK - IEH3D3

LOW COST CARREIR - AIR ASIA

COST REDUCTION - INDONESIA AIR ASIA

Creating A Vision For

• Without a strategy, we fill our time with...

• Without a strategy, time an resources are

STRATEGY PYRAMID – (WHEELEN, 2002)

I. CORPORATE STRATEGY (WHAT SHOULD WE BE IN?) :

CORPORATE STRATEGY – DIRECTIONAL STRATEGY

A corporation’s directional strategy is

CORPORATE STRATEGY – DIRECTIONAL STRATEGY

Growth Stability Retrenchment

CORPORATE STRATEGY – DIRECTIONAL STRATEGY

Vertical growth, Horizontal growth,

CORPORATE STRATEGY – DIRECTIONAL STRATEGY

Backward integration- assuming a Forward integration- assuming a

Transaction cost economies- vertical integration is more efficient

CORPORATE STRATEGY – DIRECTIONAL STRATEGY

CORPORATE STRATEGY – DIRECTIONAL STRATEGY

CORPORATE STRATEGY – DIRECTIONAL STRATEGY

Concentric (Related) Conglomerate (Unrelated)

Note : Synergy- when two businesses will generate more

CORPORATE STRATEGY – DIRECTIONAL STRATEGY

Pause/Proceed with caution No change strategy- Profit Strategies- to do

CORPORATE STRATEGY – DIRECTIONAL STRATEGY

Turnaround Captive Company Sell-out strategy/ Bankruptcy/

CORPORATE STRATEGY – PORFOLIO ANALYSIS

Popular Portfolio Analysis

CORPORATE STRATEGY – PORFOLIO ANALYSIS

BCG Matrix- Limitations

CORPORATE STRATEGY – PORFOLIO ANALYSIS

CORPORATE STRATEGY – CORPORATE PARENTING

Corporate Parenting, views a corporation in terms of resources and capabilities that

Developing a Corporate Parenting Strategy

 An organization’s Competitive Strategy defines a

 The potential rewards and risks from developing successful

Relationship NPD to CORPORATE STRATEGY

Corporate strategy is a New-product strategy is

What are we good at ?

ALTERNATIVE PRODUCT DEVELOPMENT STRATEGIES

One of the basic strategic decisions is to be reactive or proactive

A reactive product strategy

A proactive strategy would

ALTERNATIVE PRODUCT DEVELOPMENT STRATEGIES

One of the basic strategic decisions is to be reactive or proactive

DEFENSIVE Defensive Strategy : protects the profitability of

Example : Datril attack Tylenol with product positioned

• Once Cuisinart demonstrated that a market existed for

Second-but-better strategy: the firm does not DEFENSIVE

Responsive strategy: purposively reacting to

ALTERNATIVE PRODUCT DEVELOPMENT STRATEGIES

WHEN DO COMPANIES APPLY A REACTIVE AND PROACTIVE STRATEGY?

2. PROTECTION FOR INNOVATION

3. SCALE OF THE MARKET

4. STRENGTH OF THE COMPETITION

5. ORGANIZATION ‘S POSITION IN THE PRODUCTION/ DISTRIBUTION

CROSS FUNCTIONAL INTEGRATION IN NEW PRODUCT STRATEGY

Lecture Note #2-2

PROSES PENGEMBANGAN PRODUK

PRODUCT DEVELOPMENT GENERIC PROCESS

Four Phases of Product Development

PRODUCT DEVELOPMENT GENERIC PROCESS

Four Phases of Product Development