3. Products that are new to the company but not
new to the market.
Eg.
Technology Infrastructure (support
services,BPO) are the services helpful in
boosting the sales revenue.
4. Revision to the existing product in the
existing markets.
Eg.
Polaris Software Lab launched its new banking
software product called ‘Intellect Court’ to target
large banking organizations worldwide. It was a
fine tuned version of earlier product ‘ OrbiOne’.
5. Addition to the existing product lines with
additional markets.
Eg.
ICICI launched a new product ‘Orion Advantage’ in thr
ERP for SMEs. This was for identification of market
segments.
6. Reasons for success of NPD
Product superiority and uniqueness .
Perfect market knowledge.
Technical and production capability.
7. The NPD process
Idea Generation.
Idea Screening.
Concept development and Testing.
Business analysis.
Product development.
Market testing.
Commercialization.
8. Idea generation
Eg.
A company wanted to increase the production of transformer coil to meet
the increasing demand asked one of its suppliers to develop coil
winding machines to solve its problem.
CustomersCustomers
EmployeesEmployees
DistributorsDistributors
CompetitorsCompetitors
R & DR & D
ConsultantsConsultants
Creative ThinkingCreative Thinking
Sources ofSources of
New-ProductNew-Product
IdeasIdeas
Sources ofSources of
New-ProductNew-Product
IdeasIdeas
9. Idea Screening
Selection of those ideas which are likely to succeed
after brainstorming.
Few questions are asked by the new product
committee as in:
Is the new product in line with the company?
Do we have adequate resources?
Is it useful for the customer? etc
10. Concept development and testing
A product concept is a detailed version of the
product idea that is stated in the meaningful
customer terms.
11. Concept testing
The concept can be presented by developing 3
dimensional models (stereo lithography) or
simulation.
This technique creates computer generated 3D
plastic prototypes which take short time to get ready.
After experiencing these models are organizations
are interviewed and asked questions.
12. Business Analysis
The basic objective of this is to develop an estimated
projection of sales, cost and profitability.
Focuses on:
(a)Detailed Investment.
(b)market potential
(c)sales forecast
(d)cost of product development.
13. Product Development
It’s a process in which engineers & technicians create
the desired product. the R&D develops one or more
prototypes of the product concept.
The process is as follows:
Design Process engineering Tooling Manufacturing
Testing Final Product
14. Market Testing
In Industrial marketing various methods are used
for this purpose:
(a) Alpha & Beta Testing.
(b) Introducing them to the trade shows.
(c ) testing in distributors showroom.
(d) test marketing.
15. Commercialization
It is commercialized when introduced to the target
market.
The activities like recruiting, training of sales force,
product catalogues, introductory advertisements.
Etc.
16. The NP marketing plan should clearly define:
(a) timing of market launch.
(b) marketing objectives and goals.
(c) market segments.
17. PLM
It is about managing the product throughout its life cycle.
Modern product development system should have
following:
1. the ability to create digital products.
2.cross functional collaborations throughout the value
chain of the product.
3.controlling and managing product information and
development throughout the life cycle.
4.developing, collecting and updating digital data to all the
people involved in the product development process.
18. Benefits of PLM
Reduction in product development time.
Minimization of process errors.
Reduction in product development travel expenses.
Minimization of time to market.
