Developing Your Vision (Greymouth Feb 2012 Seminar)
1. Developing Your Vision
Using Robust Development processes
A presentation by Jonathan Prince
Developing Products to Deliver Value
2. What are we talking about?
• How good Development Processes add value
• Design Process Overview
• The ‘Great Unknown’ Front End
• Other Major Contributors
• Commercialisation
• The Kiwi Advantage
Developing Products to Deliver Value
3. So, what does a good development
process do for your idea?!
Developing Products to Deliver Value
4. It’s all about Value – To you & your customer
1. Improves Innovation/ Design/ Engineering
2. Directs focus on the Customer Need
3. Reduces Development Cost
4. Reduces Time to Market
Increase The Bottom Line
Developing Products to Deliver Value
5. Time to Market- What Lifecycle?!
Volumes/ Sales
Lost revenue
1 2 3 4 5
Time
Late to Market
Developing Products to Deliver Value
6. Delivering Value – To you & your customer
1. Improves Innovation/ Design/ Engineering “Products that come to
market six months late
but on budget will earn
2. Directs focus on the Customer Need 33% less profit over five
years.
3. Reduces Development Cost In contrast, coming out
on time and 50% over
4. Reduces Time to Market budget cuts profits by
only 4%.”
- McKinsey and Company
5. Improves Product Quality
Increase The Bottom Line
Developing Products to Deliver Value
7. The Development Process:
Getting it Wrong & Getting it Right
Developing Products to Deliver Value
8. A Common Little Gem!
Project identified – Needs based on perceptions
Team jumps straight into design – Interprets needs
Physical models created
Review becomes a ‘That’s not what I meant’ scenario
Project goes back through the Design loop
Low & behold –We haven’t meet expected ROI!
Developing Products to Deliver Value
9. Bugger!
• Increased labour, material cost
• Project gets axed
• Increased time to market
Significantly
• Doesn’t address customer needs
Reduced
• Costly rework Returns
• Lost opportunity cost
Developing Products to Deliver Value
10. Robust Development Process
Standard Stage Gate Process
Clear design brief
Stakeholder reviews
Project Scope Common start point
Feasibility Design Concept Detail Pre Production Production
study brief design design
Developing Products to Deliver Value
11. The ‘Great Unknown’:
The Project’s Front End
Developing Products to Deliver Value
12. Designing a Revolutionary Product
• Requires investment in research
• Roughly 1/3 of the project time should be spent on each phase
Brief research and Tooling and
Design development
development productionisation
This is where the real breakthroughs occur
Developing Products to Deliver Value
13. Feasibility Stage- We know our Customer!
• Customer Analysis
– User Centred design approach
• Competitor analysis
– Key Differentiators
• Market Direction
• Technology Optimisation
• Funding opportunities
Outcome of stage is a Design Brief/ Project Spec
Developing Products to Deliver Value
14. Design Brief – Why bother?!
• All parties know exactly what’s being designed- And WHY!
• Prevents project from going off track
– Keeps team focused
• Product features are clearly identified and agreed
• Ensures project is:
– Well researched
– Well understood
– Relevant to the market need
Core Document – Absolutely key to project success
Developing Products to Deliver Value
15. Concept Design Stage
• Develop ways of meeting the Design brief criteria
– Address that unmet need
• Explore multiple options cheaply and quickly
– Fail early & Fail fast
• Create accurate costings/ price points early
• Provide Key stakeholders early input and buy in
– Ability to Visualise/ understand product
Developing Products to Deliver Value
16. Embodiment / Detail Design Stage
• Modular design approach
– Reuse of existing data and standard parts where possible
• DFM - Design For Manufacture
• DV&T Program - Design Validation & Testing
– Design Analysis & Optimisation
• Continued User Analysis / Usability Assessment
• Risk Management
– Identification & Mitigation document
– IP Infringement searches
Developing Products to Deliver Value
17. Pre-production / Production
• Final checks before tooling/ cutting steel
• Documentation
– Comprehensive and accurate manufacturing/ assembly drawings
– Quality docs/ Technical specs
– Marketing material
• Supply Chain Development and Management
– Don’t just go for the cheapest source
• Final Testing & Verification
Developing Products to Deliver Value
19. Oi!, You two, Play Nice!
• Collaboration is King
– Cross functional teams
– Industry experts
– Hard & fair customers
– Leverage Suppliers early
• Creative culture
– No Egos
– Being open and honest is expected
– Make it FUN!
Developing Products to Deliver Value
20. It’s called a computer - Leverage it!
• 3D CAD systems – A wonderous beast!
– Develop Assemblies
• Check Fits & Tolerances
– Create BOMs/ Cut lists
– Take a Modular Design approach
• Utilise existing components
– Development of accurate Jigs & Fixtures
– Create comprehensive documentation
– Marketing renderings
Embrace Technology!
Developing Products to Deliver Value
21. Virtual Prototyping- Nah, I’ll just whip one up
• Stress Analysis
– Understand loads/ forces early
– Remove unnecessary weight/ material
• Flow Analysis
– Can it be made?!
• CAM – Machining
– Complex geometries with ease
• Rapid Prototyping
– Visualisation
– Check fits
Get it right before you cut steel!
Developing Products to Deliver Value
22. Sustainability- Simple Business Sense!
• Reduce
– No. Components/ weight
– Material families
• Reuse
– Previously loved materials
– Quick refits
• Snap fit parts
• Modular design
• Recycle
– Recyclable materials
– Natural finishes
• Life Cycle Analysis
• Cradle to Grave analyses
Developing Products to Deliver Value
23. Show me the Money!!
• Protection of IP
– Understand all options – Patents are only one
– Something of value to sell
• Route to Market
– Distribution to mass markets
– Leveraging a great Brand
• Raising Capital
– Look for aligned investors
– Ensure your Business plan is ‘Investment Ready’
Developing Products to Deliver Value
24. Types of Investment
Founder/ Family/ Seed/Angels Venture Private
Friends Capital Equity
High risk
Extreme risk Established
Conceptual Larger scale
Small scale Professional
Emotional Pooled/portfolio
Independent/single deals
Private Equity Continuum
Developing Products to Deliver Value
25. Angel Investing in NZ
An emerging structured industry
Angel Past Angel Today Angel 2012
Professionalised part
Cottage Industry Developing Industry of the private capital
markets
Developing Products to Deliver Value
27. What is an Angel Deal?
• Shares - does not want 50%+ of your business!
• Stage – just pre revenue
• Valuation - $500K to $1M
• Involvement – generally Board level
• Deal killers – uncoachable, unrealistic,
unprepared
Developing Products to Deliver Value
28. What Investors Are Looking For
The People
CEO/Team 25%
Market need
Painkiller or vitamin? 15%
Product
Well designed – compelling 10%
Sustainable advantage
Barriers/first mover/strategic partners 15%
Valuation
Reasonable for stage 20%
Other 15%
Developing Products to Deliver Value
29. Get in Touch -
Earlier the Better
Developing Products to Deliver Value
30. The Kiwi Advantage- You bet we can Fly!
Source of fresh ideas - Unencumbered thinkers
Teamwork - collaborative, driven, dynamic
Constrained resource, big ambitions
Adventurous and pioneering
Developing Products to Deliver Value
31. Summary
• Implement a Robust Development Process
• Develop a Design Brief template - Do your research!
• Create a Culture of Innovation
• Leverage Technology
• Persevere - Design creates a unique profile for NZ companies
Developing Products to Deliver Value
