Managing the Front End of Innovation

1. >> Accelerating ideas to profits >>
Managing The Front End of Innovation
“Discover, cultivate and transform
good ideas into exciting new
products and services ”
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

2. NPD Life Cycle
Pre-Phase 0
NPD
(ongoing) << Front End >> Execution
Preliminary
Opportunity
Identification
Go / No-Go Specification
& Design
Idea Decision
Generation, Prototype Test
Market & & Validate
Technology
Analysis Volume
Phase Zero: Phase One:
Manufacturing
Product Feasibility and
Concept Project Planning
Market
Product & Launch
Portfolio
Strategy
ONGOING Product & Portfolio Strategy Formulation and Feedback
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

3. Uncertainty vs. NPD Strategy
Market Uncertainty
Market Radical
High
Innovation Innovation
Incremental Technical
Low
Innovation Innovation
Low High
Technical Uncertainty
Source: Lynn and Akgun
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

4. MFEI: Balancing Creativity with Structure
Chaos Order
Creative Balance Structured
Lots of ideas, minimal VOC Centric, Flexible, Systematic approach
constraints Iterative & with process models
Experiential Approach
Nothing gets done or Customer and Market Incremental
Solutions looking for focus. Market Improvements & “Me-
problems understands and too” products
values innovation
No revenue Innovation and Risk of market decline
Breakthrough
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

5. Design Thinking Balance
Desirability
Viability
Feasibility
Source: Tim Brown - IDEO
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

6. The ideal Product
• Customer’s reception of the product is
overwhelming!
• The product performance is absolutely
amazing – beats all the competition
• The cost is extremely low – much lower
than all the competitors!
• The product is so unique that nobody else
delivers a similar product
• Quality and reliability is best in class
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

7. Reality Gaps in the NPD Process
• Customer reception is low
– VOC information incorrect?
• Product performance is inadequate
– Flawed information transformation process and
information & creation process
• Excessive cost
– Development, Production, Operational
• Excessive competition
– Me too product
• Inadequate quality and reliability
– Upfront design flaws – immature technologies
– Lack of quality and development discipline
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

8. FEI & NPD is a “Learning” Process
• Learning what the customer really
wants and values
• Learning how to create and deliver
that value
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

9. Creative Process
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

10. Innovation Diamond & Four Points of
Performance
A clearly articulated
Product Innovation &
Technology Strategy for
the business
The right climate &
environment for Business's New Resource commitment &
Innovation: commitment, Product focusing on the right
support, effective NPD Performance projects: Portfolio
teams, role of sr mgmt Management
An idea-to-launch
framework for doing NPD
projects right: i.e. Stage-
Gate
Source: Dr. Cooper
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

11. Product Strategy: Four important questions:
• Who will be the target customers?
– Target customers, market boundaries
• What products will be offered?
– Includes determining breadth and depth of
product line
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586

12. Product Strategy: (continued)
• How will products reach the customers?
– Specifies distribution channels to be used
• Why will the customers prefer our products
to those of competitors?
– Spells out the distinctive attributes and value
customers look for
www.inpdcenter.com * ideas@inpdcenter.com * 760.505.3586