1. Baylon, Jean
Hernandez, Babyl
yn
Niu, Reimond

2. Outline:
Product planning
The Product Planning Process
Four types of Product Development Process
The Process
Step 1: Identify Opportunities
Step 2: Evaluate and prioritize projects
Four basic perspectives
Balancing portfolio
Step 3: Allocate Resources and Plan Timing
Resource allocation
Project timing
The Product Plan
Step 4: Complete Pre-Project Planning
Mission Statement
Assumption and Constrains
Staffing and Other Pre-Project Planning Activities
Step 5: Reflect on the Results and the process

3. Product
planning

4. The Product Planning
Process
Product plan identifies the portfolio
of products to be developed by the
organization and the timing of their
introduction to the market.

5. Organizations that do not carefully
plan the portfolio of development
projects to pursue are often
plagued with inefficiencies such as:
Inadequate coverage of target
markets with competitive
products.
Poor distribution of
Poor timing of market
resources, with some projects
introductions of products. overstaffed and others
Mismatch between aggregate understaffed.
development capacity and the Initiation and subsequent
number of projects pursued. cancellation of ill-conceived
projects.
Frequent changes in the
directions of projects.

6. Four Types of product
Development Projects
New product platforms
Derivatives of existing product
platforms
Incremental improvements to the
existing products
Fundamentally new products

7. Four Types of product
Development Projects
Derivatives of
Incremental
Fundamentally
New product
improvements to
existing product
new products
platforms
existing products
platforms
These type of may only involves adding or
This projects extend anradically adifferent
These projects project involve major
existing product
projects involve
modifying some featurescreate a newproducts of
platform or production of existing familymay
to effort to technologies and in
developmentbetter address familiar markets with
product
order to based on a new, common platforms and
products keep new and unfamiliar markets.
one or more newthe product line current
help to address products.
competitive.

8. The Process
These planning activities focus on a portfolio
of opportunities and potential projects and
are sometimes referred to as portfolio
management, aggregate product
planning, product line planning, or product
management.

9. To develop a product plan and
project mission statements, we
suggest a five-step process:
Identify opportunities
Evaluate and prioritize projects
Allocate resources and plan timing
Complete pre-project planning
Reflect on the results and the process

10. Step 1: Identify
Opportunities

11. Step 2; Evaluate and
Prioritized Projects

12. Step 2; Evaluate and
Prioritized Projects
FOUR BASIC
PERSPECTIVES
Competitive Strategy
Market segmentation
Technological trajectories
Product platforms

13. Competitive
Strategy
An organization’s competitive
strategy defines a basic
approach to markets and
products with respect to
competitors. The choice of
which opportunities to pursue
can be guided by this strategy.

14. Competitive
Strategy
Several strategies:
Imitative
Cost leadership
Technology leadership
Customer focus
The implement requires the firm firmand existing
To firm works closely with new competegreat
This strategy this strategy, the to places on
Involves closely research and development of new
emphasis tobasic following trends needs the in of
customers onefficiency, either through economiesand
production assess their changing
market, allowing competitors to explore which new
preferences. superior manufacturing methods, low-
technologies.
scale, use of
products are successful for each segment. of the
cost labor, or better management
production system.

15. Market
Segmentation
Customer can be usefully
thought of as to distinct
market segments.

16. Technological
Trajectories
In technology-intensive
businesses, a key product
planning decision is when to
adopt a new basic
technology in a product
line.
Technology S-curves are
conceptual tool to help
think about such decisions

17. Technology
S-curve
Digital
Copier Product Performance
Technology
Light-lens
Technology
Today Time

18. Product Platform
Planning
The product platform is
the set of assets shared
across a set of products.
Technology Roadmap is a
way to represent the
expected availability and
future use of various
technologies relevant to
the product being
considered.

19. Platform
Development
Project
Research and
Technology
Development
Legend
Platform
Product Platform A Platform B Project
Development
Product
Release
Derivative
Product
Development
time

20. Functional Elements Technologies
Photo-
receptor
Scanner
Layout
Toner
Type
Output
Modes
User
Interface
Image
Processing
Diagnostic
Document
Document Centre
Document Document
Centre Centre Centre
240, 255
Technolog 220, 203 265 2XX 3XX
y Roadmap Hodaka Lakes Lakes Next
Project Project Extensions Platform
time

21. Evaluating Fundamental
New Product
Opportunities
In addition to new
versions of products in
existing product
categories, the firm
faces many
opportunities in either
new markets or
fundamentally new
technologies.

22. Some criteria for evaluating
fundamentally new product
opportunities includes:
Fit with the firm’s other
Market size.
products.
Market growth rate.
Fit with the firm’s
Competitive intensity.
capabilities.
Depth of the firm’s
Potential for patents, trade
existing knowledge of the
secrets, or other barriers to
market.
competition.
Depth of the firm’s
Existence of a product
knowledge of technology.
champion within the firm.

23. Balancing the Portfolio
There are many methods to help
manager manage an
organization’s portfolio of
development projects.
Product-process change matrix
plots the portfolio of projects
along two specific dimension:
the extent to which the project
involves a change in the product
line and the extent to which the
project involves change in
production processes.

24. Step 3: Allocate
Resources and Plan
Timing

25. Resource Allocation
Many organizations take on too many
projects without regards for the
limited availability of development
resources.
Aggregate Planning helps an
organization make efficient use of its
resources by pursuing only those
projects that can reasonably be
completed with the budgeted
resources.

26. Project Timing
Timing of product introductions
The sooner a product is brought to
market the better.
Technology readiness
Robust technology can be integrated into
products much more quickly and reliably.
Market readiness
Determines whether early adopters buy
the low-end or high-end products.
Competition
anticipated release of competing
products may accelerate the timing of
development products.

27. The Product Plan
The plan may include a mix of
fundamentally new products, platform
projects, and derivative projects of
varying size.

28. Step 4: Complete Pre-Product
Planning
Core team
Activity involves a
small, cross-functional team
of people

29. Mission Statements
Brief description of the product
Benefit proposition
Key business goals
Target market for the product
Assumption and constraints that
guide the development effort.
Stakeholders

30. Mission Statements
1). Brief description of the
product
Identifies the basic function
of the product but avoids
implying a specific product
concept.

31. Mission Statements
2). Benefit proposition
Articulates the critical few reasons
a customer would buy the product
3). Key business goals
Goals for time, cost and quality
4). Target market for the product
Identifies the primary market as
well as any secondary markets that
should be considered in the
development effort.

32. Mission Statements
5). Assumption and constraints that
guide the development effort.
They help to maintain a
manageable project scope
6). Stakeholders
All of the groups of people who
are affected by the product’s success
or failure.

33. Assumptions
and Constraints
Manufacturing
Service
Environment

34. Staffing and Other Pre-
Project Planning
Activities
Involve getting key members of
the development staff to
“sign-up” for a new project .
Budgets are also generally
established during pre-
project planning.

35. Step 5: Reflect on the
Results and the Process

36. Several questions to assess the
quality of both the process and the
results:
Is the opportunity funnel collecting an exciting and
diverse set or product opportunities?
Does the product plan support the competitive strategy
of the firm?
Are the total resources allocated to product development
sufficient to pursue the firm’s competitive strategy?
Have creative ways of leveraging finite resources been
considered, such as the use or product platforms, joint
ventures and partnerships with suppliers?

37. Several questions to assess the
quality of both the process and the
results:
Does the core team accept the challenges of the
resulting mission statement?
Are the assumptions listed in the mission statement
consistent?
Are the assumptions listed in the mission statement
really necessary or is it the project over constrained?
How can the product planning process be improved?