figville proddev jasonpremo 9-14-2015

PRODUCT DEVELOPMENT

Founder Institute GreenvilleMonday Sept 14, 2015

Jason P. Premo

Session Topics

•Why do Products Fail?•Product Life Cycles•Product Development Process• Ideas, Innovation & The Kano Model•Product Management•Tools: Project Management

Why Do Products Fail?See if you can

identify the fatal flaw in the brands

shown here…

Reasons for Development FailureOverestimation of market size

Poor designIncorrect positioning

Wrong timingPriced too high

Ineffective promotionManagement influenceHigh development costs

Competition

Stages of Product Life Cycle

DEVELOPMENT GROWTH MATURITY AGE

Cash Flow

Revenue

Profit

Automotive Product ExampleUnits

PRODUCT,LIFE,CYCLE

Introduction

Market entryGrowing

competitive pressure Replacement

of parts

New vehicle application

End of service Elimination

THREATENED,BY,COMPETITIONEXCLUSIVE Time

Some Products Follow This cycle…

Styles, Fashions & Fads•Style – Comes, Goes, Comes Back Again•Fashion –Comes, Goes Away Slowly•Fad – Comes and Goes Away Quickly

Change is Bad?

Companies want their products to enjoy a

long life cycle.

Hershey’s actively promotes the fact that it has been

“unchanged since 1899”

Product Development ProcessStructure of the product development process in different steps

INNOVATION STRATEGY

DEVELOPMENTOF PRODUCT

IDEASIDEA SCREENING

CONCEPT DEVELOPMENT

AND TEST PHASE

MARKETING STRATEGY

ANALYSIS OFMARKETABILITY

PRODUCT DEVELOPMENT

TESTING IN TEST MARKET

ENVIRONMENTPRODUCT LAUNCH

Development Stage-Gate Process

Model of the development process with a gate at end of each phase

Idea P.I.RGate1

Gate2

Gate3

Gate4

Gate5

Stage1

Stage2

Stage3

Stage4

Stage5

Initialscreen

Decision on

business case

Postdevelopment

review Pre commercializationbusiness analysis

Postimplementreview

Preliminaryinvestigation

Detailedinvestigation(build business

case)

Development Testing &Validation

Full production& Market launch

Secondscreen

INNOVATION PROCESS

„The best way to have a good ideais to have a lot of ideas.“Linus Carl Pauling, Nobel Prize winner

INNOVATION FUNNEL − 3 PHASESFunnel model with phases of the innovation process

1 32Exploration phase Realization phaseProduction preparation phase

Research, pre−development, finance, product concept

Production, market IntroductionQuality, costs, quantity, time

Screen / filter Individual projects Market launch

Product / market strategy

Technology strategy

Ideas: Product Influencing Factors

Factors which largely influence the market success of a product

Usage Availability

Form

Availability

Environmental sustainability

Packing

Image

Service

Price

Quality

Life term

Brand

Product

Product Policy – Customer BenefitsDetermination of performance program

Determination of services like warranties, shipping conditions, customer support, training,

etc. (value-‐added-‐services)

Determination of USP(unique selling position) Unique customer benefit of product to differentiate from competitors

Product Creation through design, functionality,

quality, brand and packing

Benefit

Philosophy: The Kano Model

• SatisfiersThe factors that increase customer satisfaction when delivered (but do not cause dissatisfaction if not delivered).

• DissatisfiersThe minimum requirements which will cause dissatisfaction.

• DelightersDelighters are not expected and excite customers because they exceed their expectations.

A theory of product development and customer satisfaction developed by Noriaki Kano which categorizes customer preferences.

Delighters

Satisfiers

Dissatisfiers

Satisfaction

Requirements

Innovation Strategy – Idea GenerationMethods and sources for idea generation

Develop ideas

Collect ideas

Internal External

IDEA GENERATION§ Creativity techniques

INFORMATION SYSTEMS§ Suggestion scheme§ Idea competitions§ Service gap analysis§ Customer complaints

INVOLVEMENT OF THIRD PARTIES§ Customer and expert workshops§ Client monitoring § Open Innovation

MARKET MONITORING AND BENCHMARKING§ Competition analysis§ Market research§ Trend studies§ Lectures, conferences, seminars, trade shows

§ Literature

Idea Generation FormsFact sheet / form for the description and brief evaluation of ideas

NAME / TITLE OF THE IDEA …

CONCLUSION / RECOMMENDATION ……

DESCRIPTION / BENEFITS ………

FEASIBILITYdifficultmediumeasy

MARKET POTENTIALlowhigh medium

NECESSARY INVESTMENTSlow highmedium

OVERALL EVALUATIONVery good idea OK IdeaGood idea

STRENGTHS§ …§ …§ …

OPPORTUNITIES / BENEFITS§ …§ …§ …

WEAKNESSES§ …§ …§ …

RISKS§ …§ …§ …

PRODUCT IDEA / PRODUCT CONCEPT NO. : XXXXXX

ASSESSMENT CRITERIA WEIGHT(SUM 100%)

POINTS1 TILL10

WEIGHTED POINT VALUES

1. Company related criteria§ technical feasibility§ investment volume§ …

2. Customer related criteria§ customer benefit recognizable§ creation of new customer level§ …

3. Trade related criteria§ additional trading profile§ cooperation willingness of trade§ …

4. Competition related criteria§ gaining completion advantage§ Imitation risk of competitors§ …

5. Environment related criteria§ juristic restriction§ environmental sustainability § …

SUM OF WEIGHTED PRODUCT VALUES

Product Idea Scoring ModelScoring model or point rating system for idea evaluation

Innovation Management – Strategy FitStrategy Fit to Market Strategy Checklist Example

The innovation ...Applicable

NOT LITTLE PARTIALLY CONSIDERABLY COMPLETELY COMMENT

... helps us to realize our vision... helps us to achieve our corporate objectives … supports our market position goals ... concurs with our technology strategy ... meets the requirements of production and logistics strategy... provides a competitive advantage... builds on our existing core competencies

Innovation Management - StrengthsSummarizes the results of potential and competitive analysis and evaluates the

strategic advantages and disadvantages in comparison main competitors

Evaluation criterion very good good average bad Very bad

Product quality

Price−performance ratio

Customization

…

…

…

Know−how in R & D

Marketing Know−how

Management know−how

Technological level

Own company (product) Main competitors (competing product)

Innovation Management - PrioritzeMatrix with strategic relevance and relationship to the idea of prioritization by ranking

1

2

3

4

5

6

Name of the ideaDescription

Name of the idea Description





"TRY IT!" OK−ideas

"SAVE IT!" back−up ideas

"DO IT!" top− ideas

12

3

4

5

6

RankingLow High

High

Stra

tegi

c rel

evan

ceLow

PRODUCT DEVELOPMENT

& PROJECT MANAGEMENT

Project Management Guiding PrinciplesDetermine the guiding philosophy through

guidelines and their implementation

Development of personal objectives

with employees (management by objectives)

To elaborate on personal development needs, skills and problems of employees

Time for staff appraisals (open door policy)

Employee motivation,

foster achievement potential

Assure enough compensation

time for the team members

(work hours, vacation)

Ensure adherence

to team rules

1 2 3 4 5 6

FUNCTION / ROLE MAIN TASKS COMPETENCIES RESPONSIBILITIES

ClientContribution to company development Point of project review

Project assignmentCompany’s interest (overall responsibility)Compatibility of the project with company strategy

Project Manager

Project planning and organization of the project resources, coordination of tasks

Signature authority up to xxx Dollar (predefined max. amount)

Schedule goals, cost targets and quality objectivesEvaluation of results

Project

Employee

Deadlines work package contentSupport of planning

Task related competence Professionalism

Project

Committee

ExpertiseSupport of planningInterface management

Recommendations, decisions, guidelines

Conflict-‐ and Problem solvingProfessionalism

Definition of tasks, competencies and responsibilitiesProject Organization - Roles

Project Organization− Staff LevelLine organization of the company, project management as staff

coordinates tasks with no decision-‐making or managerial authority.

1 2 3

DEPARTMENT A DEPARTMENT B DEPARTMENT C

PROJECT MANAGER STAFF

CORPORATE MANAGEMENT 1,2,3 = Project Employee

Project Organization− Task ForceProject staff work under the guidance of the Project Management only

(full time) for the project

Task-‐Force-‐Group or autonomous project organization

1,2,3 = Project Employee

1 2 3 1 2 3


STAFF

PROJECT MANAGER

CORPORATE MANAGEMENT

Mixed form with separation of responsibilities between project management and organizational lines. Project management is fully responsible for the project

and delegates responsibilities to the departments.

1,2,3 = Project Employee

1 2 3


STAFF

CORPORATE MANAGEMENT

PROJECT MANAGER

Project Organization - Matrix

LINE-‐AND-‐STAFFPROJECT ORGANIZATION1 PURE

PROJECT ORGANIZATION2 MATRIX-‐PROJECT ORGANIZATION3

WHE

N? § Small project

§ Few staff members§ Low project scope / lowrisk / low level of innovation

§ Major projects§ Many employees§ Long project duration and outmost project scope / time pressure / high degree of innovation

§ Combination of 1 and 2§ If coordination is too§ High for line-‐and-‐staff project organization

AD-‐

VANTA

GES § Less organizational effort § Uniform management by project

§ Obvious group membership§ Project manager fully responsible§ Advancement of expertise of employees§ Flexible allocation of staff resources

DISA

D-‐VA

NTA

GES § No one really responsible

§ Neglect of short-‐term project task§ Problem of reintegration after project completion through the transfer of project participants

§ Conflicts regarding prerogatives if not clearly defined

Field of application, advantages and disadvantagesProject Organization Pros/Cons

Product Management PhasesProduct management as a process with different steps and phases

Quality / Brand / PackingService / Assortment

Innovation / Variation / EliminationDifferentiation / Diversification

Situation analysis of performance programPHASE 1

Product politic objectivesPHASE 2

Development of product strategiesPHASE 3

Budgeting product policy instrumentsPHASE 4

Planning, application and implementationPHASE 5

Control of performance programPHASE 6

INTE

GR

ATIO

N IN

M

AR

KET

ING

-MIX

Initiation Projectsetup Planning Realization Introduction Acceptance

PROJECT KICK OFF COMPLETIONPROJECT CONSTRUCT

PROJECT APPROVAL RELEASE PLANNING IMPLEMENTATION

RELEASEIMPLEMENTATION RESULTS

DISCHARGE OF PROJECT TEAMS

PROJECT MANAGEMENT PHASESGeneral overview of all activities during the project implementation

PHASE 1Project definition

Actual analysis / output analysis

Goal setting / goal definition

Domains of action / task clarification

Feasibility Analysis / Risks

Project Marketing / Reporting

Project assignment / Kickoff

Timing and resource requirements

PHASE 2Project planning

General planning

Action Plan / List of activities / milestones

Project organization / team / Responsibilities

Procedure planning / scheduling

Detailed Planning

Project structure plan

Profitability analysis / risk analysis

PHASE 3Project management

Exchange of information / meetings / procurement

Control / Project Controlling

Documentation / Reporting

Identification of plan deviations

Employee motivation / control

Conflict Management

Staff Management / Team Development AC

TIVITIES

PHASE 4Project management

Project Acceptance / Conclusion Meeting

Touchdown / Rollout

Variance analysis

Experience backup / reporting

Costing / Reviews / Development

Final documentation

Resolution of the Project Organization

PROJECT MANAGEMENT MODELGeneral overview of all activities during project execution

PROJECT GOAL CRITERIA − SMARTThe 5 criteria that define a goal so that it can be used in project

SSPECIFIC

Objectives have to be specific and

positively described.

MMEASURABLE

A goal achievement should be measurable.

AATTAINABLEIt should be

attractive for the project team to reach the goal.

RREALISTIC

The object needs to be achievable ina realistic way.

TTIME-‐BOUNDThe goal has to

have a time frame.

Project Target Definition and BenefitsSummary of all relevant information and clear statement on the

agreement of the process during implementation.

PROJECT NAME / NO. Insert name of the Project (PM 11/2011) ACCOUNT / ORDER 110

CLIENT Max Doe (Position) PROJECT MANAGER Lisa Doe (Position)

DATE 01.01.2015

Top field with project information

PROBLEM / ACTUAL CONDITION Description of the context and problem description. Strategic purpose and reason for the project.

TARGET DESCRIPTION / EXPECTED RESULTS

Result of the project? Detailed description of the target state / Concrete expectations (not approach, but the final state)

TASK What needs to be done?

Question and answer form (part 1)

FUNCTION NAME PHONE E-MAIL TIME PORTION (%)

<Your Function> <Your Name> <phone number> <e-mail address> 100%




Alternative: Department

Project TeamProject Name:Proposal Project Manager:

Proposal Project Team:

FUNCTION NAME PHONE E-MAIL LEAVE OF ABSENCE

Project Manager <Your Name> <phone number> <e-mail address> -

PERSONFUNCTION

CLIENT PROJECTMANAGER

EMPLOYEE A

EMPLOYEE B

EMPLOYEE C … PROJECT

COMMITTEE

Project assignment R I I I

Assign Project manager R

Overall project management R

Reporting

Assign project team

Specification book

Design project plan

Prepare decisions

Requirement Specifications A R C C

Issuing sub-‐assignments

Budget responsibility

Clarification of conflicts

RACI MATRIX / AUTHORITY MATRIXDefinition of the functions of all people involved in the project

R = Responsible A = Accountable, Approved C = Consulted I = Getting Informed

Project Team GoalsResources that are critical for strategic success

* Personnel but also material and financial resources

Resource* Success relevance /explanation Strengths Weaknesses

PROJECT TEAM Placeholder for text Placeholder for text Placeholder for textR & D DEPARTMENT Enter your text Placeholder for text Enter your text

MARKETING Enter your text Enter your text Enter your text

DISTRIBUTION This is a placeholder text This is a placeholder text This is a placeholder text

PRODUCTION Enter your text Enter your text Enter your text

… … … …

… … … …

… … … …

… … … …

… … … …

TOPIC Name of Meeting

DATE 01.01.2015 TIME 00:00 – 00:00 LOCATION Room 104

PARTICIPANTS <Name 1>, <Name 2>, <Name 3>, <Name4 >

COPY TO <Name 5>, <Name 6>

PRIORITYTOPIC / CONTENT OBJECTIVE RESPONSIBLE /

PRESENTERTIME FRAME / DURATIONA B C

x <Text> <Text> <Name 1> 30 Min.



x … … … …

x

Project Name:Project Meeting Schedule

Project OrganizationCoordination of project planning vacations and absences

NO. EMPLOYEE ABSENT DAYS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 311 <Name> A A A A A A A A A2 <Name> A3 <Name>4 <Name>5 <Name>6 <Name>7 <Name>8 <Name>9 <Name>10 <Name>11 <Name>12 <Name>13 <Name>14 <Name>15 <Name>16 <Name>17 <Name>

A Absences Vacations

Project Structure Plan (PSP)Hierarchical structure of the performance scale (main and sub-‐tasks, work

packages), necessary to achieve the project objectives.

Description of the organizational examination

Blocks of tasks resulting from the main task

Detailed described, defined, measurable activities that accrue to the team members during the investigation

SUBTASK 1.1 SUBTASK 1.2

Work package 1.1.1

Work package 1.1.2

…

Work package 1.2.1

Work package 1.2.2

…

Work package 2.1

Work package 2.2

…

SUBTASK 3

Work package 3.1

Work package 3.2

…

MAIN TASK (PROJECT)

SUBTASK 1 SUBTASK 2 SUBTASK 3

NO. TASK DURATION JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

1 Text 45

1.1 Text 100

1.2 Text 55

1.3 Text 135

1.4 Text 220

2 Text 20

2.1 Text 50

2.2 Text 75

2.3 Text 32

2.4 Text 80

Project Plan - Gantt Chart Project Plan Name:

Text

Text

Text

Text

Text

Text

Text

BOOK PROJECT DAYS AUGUST SEPTEMBER OCTOBER NOVEMBER1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Create Book Concept 6Start of Project 0Concept Meeting 1Concept Phase 5Concept is Finished 0

1. Create first Draft 40Text work 40Draft 10Final Draft 201. Draft is Finished 0

Execute corrections 20Correction Lector 20Correction Author 20Approval 0

Presentation 16Layout 15Presentation Preparation 10

Presentation Day 1

Target Pres. Conclusion 0

Project Plan - Gantt Chart Project Plan Name:

Risk Categories

The implementation of Project Management is frequently associated with risks.

To control these risks is the challenge of the risk management as a part of quality management.

A risk list covers all aspects and conditions for risks of time (deadlines), costs and quality of results.

All risks, depending on the probability of occurrence and impact on the Project are classified in five risk categories.

Depending on the classification, you have to react differently to the possibly of imminent problems.

Assessment Scheme for the Qualitative Risk Assessment

high> 75

low<25

medium

high

medium

low

IMPACT ON THE PROJECT(Deadlines, Costs, Quality)

OCCURRENCEPROBABILITY

(%)

THE MOST COMMON PROJECT RISKS

QUALITATIVE/SUBSTANTIVE RISKS

SCHEDULE RISKS

FINANCIAL RISKS / RESOURCES

SOCIAL / CULTURAL RISKS

FINANCIAL RISKS / RESOURCES

§ Risk 1§ Risk 2§ Risk 3

§ Risk 1§ Risk 2

§ Risk 1§ Risk 2

Project Name:Project Risk Item Log

PHASE / PROCESS STEP

DESCRIPTION OF RISK INDICATORS IMPACT

COUNTERMEASURES PRO-BABILITYPREVENTIVE CORRECTIVE

<Text> <Text> <Text> <Text> <Text> <Text>80%

very likely

<Text> <Text> <Text> <Text> <Text> <Text>60%likely

20%very unlikely

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Project Name:Risk Analysis & Countermeasures

Implementation Plan & BudgetProject Title:

Work Item Description Time Deadline Responsible Costs

Title / No. This is a placeholder text XX h MM.DD.JJJJ Name, First name X.XXX,XX $


Title / No. Placeholder text XX h MM.DD.JJJJ Name, First name X.XXX,XX $


Title / No. Placeholder text XX h MM.DD.JJJJ Name, First name X.XXX,XX $

TOTAL XX D XX h XX.XXX,XX $

NO. WORKPACKAGE

TOTAL COSTS (PLANNED)

COSTS (ACTUAL) DIFFERENCE MEASURESType of

costType of

costType of

cost Total

1.11.21.3…

Implementation Plan & BudgetProject Title:

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TYPE OF COSTS JAN FEB MAR MAY JUN JUL AUG SEP OCT NOV DEC YEARStaff Costs 50 100 150

Service 100 50 100 250

Material 50 100 150

Travel Expenses 50 100 50 50 250

Advertisting Expenses 50 100 150

Rent 100 100

Hardware 100 100 200

Software 100 50 150

Work Equipment 50 100 100 250

Other Expenses 100 100

TOTAL OF COSTS 750 500 0 100 50 100 100 100 50 0 0 1750

Budget PerformanceProject Title:

18 16

35

7065

40

10

25

55

3025

55

20 22

40

66

75

35

5

15

3732

20

38

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Planned Costs Actual Costs

PLANNED / ACTUAL-COMPARISONPLANNED COSTS VS. ACTUAL COSTS

26 5

-‐4

10

-‐5 -‐5

-‐10

-‐18

2

-‐5

-‐17Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

TYPE OF COSTS JAN FEB MAR MAY JUN JUL AUG SEP OCT NOV DEC YEARPlanned Costs 50 100 150Actual Costs 100 50 100 250VALUE DIFFERENCE -‐50 50 -‐100 0 0 0 0 0 0 0 0 -‐100

Budget Performance Report

PROJECT NAME / NO.DATE 01.01.2015 AUTHOR <Name>

TIME / DEADLINES COSTS / BUDGET REQUIREMENTS OVERALL STATUS

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§ If you don’t want to use the style and size of the fonts

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Project Name:Project Status Report

YES NO OVERALL STATUS

Will the Project be completed on time?

Will the Project be completed within budget?

Were all project issues successfully addressed and implemented?

Were the desired project results achieved with an acceptable quality level?

Were change requests implemented successfully?

Were the Project risks mitigated successfully?

Were all concerns of the clients considered and implemented?

…

PROJECT NAME / NO.DATE 01.01.2015 AUTHOR <Name>

Project Name:Project Action Plan Checklist

PROJECT NAME / NO. <Text>

YOUR FUNCTION DURING PROJECT

Project team 1

Project team 2

Project team 3

Project team4

SteeringCommittee Expert

How do you rate the quality of the job description and to goal achievement by the team? Poor Average Very good

How satisfied are you with the advice ofproject management and planning team? Unsatisfied Average Very

satisfiedHow significant do you estimate your own contributionto problem solving and success of the project?

Unsatisfied Average Verysatisfied

How significant do you estimate your own contribution to problem solving and success of the project?

Very low Average Very high

How satisfied are you with theimplementation of the project's objectives? Unsatisfied Average Very

satisfiedHow satisfied are you with the cost and time frame of the project? Unsatisfied Average Very

satisfied

What specific suggestions and recommendations do you have for future projects?

§ Proposal 1§ Proposal 2§ Proposal 3

Project Name:Project Feedback

01.01.15

Date Signature Client Signature Project Manager

The project (<Project name>) has been sufficiently discussed with all stakeholders. This presentation / document contains the current version (<version number>) of all scheduled milestones, conditions and available resources in order to award the project required precision. The project will be outlined here as released and implemented.

Project Release & Approval Closeout

Project Name:

figville proddev jasonpremo 9-14-2015

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