THE PLAN

• What is a new product?

• Innovation and product strategy

• Innovation outcomes

• Types of innovation
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 RECAP
Clones
Strategy ?
Information / Data
Experience
Simplicity
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Innovation , Product Life Cycle

And

Strategy

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 SIX MYTHS OF PRODUCT DEVELOPMENT
1. High utilization of resources will improve performance.

2. Processing work in large batches improves the

economics of the development process.

3. Our development plan is great; we just need to stick

to it.

4. The sooner the project is started, the sooner it will be

finished.

5. The more features we put into a product, the more

customers will like it.

6. We will be more successful if we get it right the first

time.
Six Myths Of Product Development : Stefan Thomke and Donald Reinertsen .
HBR May 2012 4 Ramesh Venkateswaran
 NPD PRACTICES – US WEST
! Focus on probing – not measuring

! Limit large scale quantitative research – qualitative methods

! Make a little , sell a little

! Plan resource commitment over the life of the NPD process

! Build distribution channels appropriate to the product

Ref : Pioneering Practices for new Product development at US West: MM Winter 2000

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WHAT IS A NEW PRODUCT ?

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HOW CAN WE VIEW A NEW PRODUCT ?

NEW
PRODUCT

MARKET COMPANY

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 NEW PRODUCT – MARKET PERSPECTIVE

Effect on consumption - degree of learning /

behaviour change

LOW MEDIUM HIGH

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 MARKET NEWNESS AND COMPANY NEWNESS
NEWNESS TO MARKET
C
O
LOW MEDIUM HIGH
M
P
A
N LOW
Y

N
MEDIUM
E
W
N
E HIGH
S
S
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 PRODUCT NEWNESS AND MARKET RESPONSE
B MARKET PERCEPTION OF BENEFITS
E
H LOW MEDIUM HIGH
A
V
I LOW
O
U
R MEDIUM
C
H
A HIGH
N
G
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PRODUCT EVOLUTION PROCESS

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PRODUCT EVOLUTION AND INNOVATION

POTENTIAL

AUGMENTED

EXPECTED

GENERIC

CORE

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INNOVATION AND

PRODUCT STRATEGY

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THE INNOVATION CHALLENGE

Get
Identify Create
Acceptance

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Focus – what to
do – what not to
do
The more features
we put into a
product, the more
customers will like
it.

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 CORE AND CONTEXT
CORE

Any aspect of a company’s operation that creates

differentiation leading to customer preferences during
purchase decisions

CONTEXT

Everything else , all other work performed by the

enterprise
Dealing with Darwin : Geoffrey Moore

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 START : INNOVATION - OUTCOMES

DIFFERENTIATE

NEUTRALISE

PRODUCTIVITY IMPROVEMENTS

WASTE
Dealing with Darwin : Geoffrey Moore
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 TIME BUDGET VS COST BUDGET

SCHEDULE = 2 X

COST = 16 X

Six Myths Of Product Development : Stefan Thomke and Donald Reinertsen . HBR May 2012

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 TYPES OF INNOVATION
DISRUPTIVE - INCREMENTAL

PRODUCT - PROCESS

PRODUCT - PLATFORM

COMPETENCE ENHANCING - DESTROYING

7/1/21
Strategic Management of Technological
Innovation : Melissa A Schilling P 43 19 Ramesh Venkateswaran
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21 Ramesh Venkateswaran
7/1/21 22 22 Ramesh
Ramesh Venkateswaran
Venkateswaran