Life Cycle
• 1. Module 7 New Product Development and Product Life-Cycle Strategies Dinesh Kumar LBSIM- New Delhi
• 2. New Product Development Strategy and Process It can be defined as strategy which aims at bringing a new product or service to market. Which involves the following steps. Idea Generation & Screening Concept Development & Testing Business Analysis Beta Testing Technical Implementation Commercialization New Product Pricing
• 3. Brief Explanation to Steps of Product Development Strategy Idea Generation & Screening continuous systematic search for new product opportunities Concept Development and Testing – Testing the product on the parameter of utility, features, reaction of potential customer based on sample questions and the production cost Business Analysis Estimating selling price, sales volume and profitability Beta Testing Producing a physical prototype, test it and make the changes, try selling in the test market area to determine the customer acceptance Technical Implementation Finalizing the Quality Mgt System, resource estimation, Department Scheduling, Supplier Collaboration, plan for Contingencies – what if planning. Commercialization Launching the product, produce and plan advertisement and other promotional activities, Critical path analysis is most useful at this stage
• 4. Disruptive Innovation Disruptive innovation, a term of art coined by Clayton Christensen, describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves ‘up market’, eventually displacing established competitors.
• 6. Disruptive Innovation Theory Explained There is a simple, important principle at the core of the disruptive innovation theory: companies innovate faster than customers' lives change . Because of this, most organizations end up producing products that are too good, too expensive, and too inconvenient for many customers . By only pursuing these “sustaining
• 2. New Product Development Strategy and Process It can be defined as strategy which aims at bringing a new product or service to market. Which involves the following steps. Idea Generation & Screening Concept Development & Testing Business Analysis Beta Testing Technical Implementation Commercialization New Product Pricing
• 3. Brief Explanation to Steps of Product Development Strategy Idea Generation & Screening continuous systematic search for new product opportunities Concept Development and Testing – Testing the product on the parameter of utility, features, reaction of potential customer based on sample questions and the production cost Business Analysis Estimating selling price, sales volume and profitability Beta Testing Producing a physical prototype, test it and make the changes, try selling in the test market area to determine the customer acceptance Technical Implementation Finalizing the Quality Mgt System, resource estimation, Department Scheduling, Supplier Collaboration, plan for Contingencies – what if planning. Commercialization Launching the product, produce and plan advertisement and other promotional activities, Critical path analysis is most useful at this stage
• 4. Disruptive Innovation Disruptive innovation, a term of art coined by Clayton Christensen, describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves ‘up market’, eventually displacing established competitors.
• 6. Disruptive Innovation Theory Explained There is a simple, important principle at the core of the disruptive innovation theory: companies innovate faster than customers' lives change . Because of this, most organizations end up producing products that are too good, too expensive, and too inconvenient for many customers . By only pursuing these “sustaining