New Product Development (NPD)

A process for New Product Development (NPD) designed to be used within an organization that already has products in the market.

1. New Product Development
1.Product Portfolio [Resource Allocation]
2.The NPD Situation – It’s chaotic
3.Ideation Process
4.Product Development Process

2. Breaking It Down
•What investments are we making with our available resources
and where we need to make changes?

3. Breaking it Down Further
•When we look closer, we see that each type of investment will
impact the business differently and will have different risk
tolerance and therefore a different approach to requirements
Run: Changes to existing
market offerings that do no
impact the functional
requirements of the offering
Tune: Changes to existing
market offerings that require
functional changes to the
offering in order to improve
value
Grow: New market offerings
that require market analysis,
new functional requirements
and path to market

4. The NPD Situation
Guiding Principles
The Fantasy
1. Define the Market Problem 2. Define the Solution 3. Build it…

5. The NPD Situation
Guiding Principles
1. What the heck is this? 2. Is this what it is?3. Maybe this is it…
The Reality
The Fantasy
1. Define the Market Problem 2. Define the Solution 3. Build it…

6. The NPD Situation
Guiding Principles
1. What the heck is this? 2. Is this what it is?3. Maybe this is it…
The Reality
The Fantasy
1. Define the Market Problem 2. Define the Solution 3. Build it… What can we do about this?
1. Accept that it’s chaotic and
2. Implement a process!

7. Ideation Process
1.A managed process with
resources allocated to
identify and develop
new ideas
2.New ideas sourced via
focused efforts to
interview people across
the entire company
3.Support this process by
creating incentives for
new ideas that make it
to Commissioned Status

8. The Development Process
•Each phase along the way has unique requirements needs
•In the New Product Development process, this is most clear
At the Concept State, we
want to understand the
Market Requirements
At the Market Testing
stage, we want to
understand the Core Use
Cases we can commit to.
At the Design Stage, we
want to understand the
functional and technical
requirements.

9. Business Plan
The
“Pitch”
Each new product needs it’s own
business plan. The business plan
needs to incorporate the
companywide business plan.

10. Stage 1 – Concept Development
•Concept
–Simple, high-level description of the market, the
problem, the solution and the economics
•Business Case
–How do we think this concept will make money? How
does it fit into our strategy? What are the criteria for
success?
•Market Requirements Document
–Detailed analysis of the market, the opportunity, the
competitors, etc.

11. Stage 2 – Market Testing
•Pilots
–Hands on interaction with motivated early adopters
in the target market to understand the roles and the
problem/opportunity
•Prototyping
–Early concepts of what the solution might do and
how it might work: interactive/visual/scenarios, etc.
•Use Cases
–What are the roles and scenarios that we can firmly
articulate as critical to the success of the offering?

12. Stage 3 – Product Design
•PRD
–Detailed product requirements, including
services, documentation, support, rollout, etc.
This document needs to harmonize with the
technical development methodology.
•Functional Spec
–Detailed depiction of the functionality of the
product; could be in the form of a working
prototype
•Technical Spec
–Detailed technical design and architecture,
including core technology, design pattern,
hardware, tools, etc.

13. Stage 4 – Product Development
•Develop
–Development team, methodology and
project plan: code, test, validate, release
•Launch
–Marketing release, including PR, web site,
and other campaigns as outlined in the BP
•Support
–Hand off to support for ongoing tuning,
enhancements, and improvements

14. Prototyping Process
•Prototypes are disposable tools to test, measure and learn
•Prototypes inform our understanding of the market need
AND the technology design

15. Outside the Box Innovation
•“Inside the Box”
innovation means
that we work
within the current
platform
constraints
•“Outside the Box”
innovation means
we go beyond the
current platform
constraints and
look for ways to
re-invent the
platform

16. So How do we Get there?
•“We want to take a more formalized approach to product
development, but how do we navigate the changes?”
•Start by modeling a requirements management process
Model
- Define
- Test
- Document
Deploy
- Right Team
- Right Project
- Learn
Refine
- Feedback
- Change
- Communicate