1zm16 - Management of product development (MOPD) Flashcards
Define services and name 2 types of services &
explain them
Services are widely recognized as intangible, inconsistent and inseparable.
๐๐ ๐ฝ๐น๐ถ๐ฐ๐ถ๐ ๐๐ฒ๐ฟ๐๐ถ๐ฐ๐ฒ๐ = proces / technology based (banking)
๐ง๐ฎ๐ฐ๐ถ๐/ experiential ๐๐ฒ๐ฟ๐๐ถ๐ฐ๐ฒ๐ = delivered by other people (massages) -> interpersonal interaction
Describe the 4 dimensions along which new product succes can be measured & describe them
Also the gates (of stage gate) are verified according to these dimensions.
๐ง๐ฒ๐ฐ๐ต๐ป๐ถ๐ฐ๐ฎ๐น= e.g. met quality and performance specs
๐ง๐ถ๐บ๐ถ๐ป๐ด = e.g. entry timing, break even time, time to critical mass
๐ ๐ฎ๐ฟ๐ธ๐ฒ๐ = e.g. satisfaction, loyalty, market share
๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น = e.g. profitability, ROI, RAI
performance can be benchmarked against competitors, objectives and/or prior projects
Describe the 4 key roles in the front end
๐๐ผ๐ฟ๐ฒ ๐๐ฒ๐ฎ๐บ = cross functional team responsible for phase 1 & 2โs key activities
๐ฃ๐ฟ๐ผ๐ท๐ฒ๐ฐ๐ ๐น๐ฒ๐ฎ๐ฑ๐ฒ๐ฟ = facilitator, communicator & motivator
๐ฒ๐ ๐ฒ๐ฐ๐๐๐ถ๐๐ฒ ๐ฟ๐ฒ๐๐ถ๐ฒ๐ ๐ฐ๐ผ๐บ๐บ๐ถ๐๐ฒ๐ฒ = provides checkpoints troughout NPD process
๐๐ฒ๐ป๐ถ๐ผ๐ฟ ๐บ๐ฎ๐ป๐ฎ๐ด๐ฒ๐บ๐ฒ๐ป๐ = general guidance underlying the formulation of the product strategy,
portfolio & resource plans
name the 4 front end succes factors & describe them
๐ฝ๐ฟ๐ผ๐ฑ๐๐ฐ๐ ๐๐๐ฟ๐ฎ๐๐ฒ๐ด๐ = e.g. strategic allignment, product positioning & portfolio planning
๐ฝ๐ฟ๐ผ๐ฑ๐๐ฐ๐ ๐ฑ๐ฒ๐ณ๐ถ๐ป๐ถ๐๐ถ๐ผ๐ป = e.g. early/sharp definition & customer needs analysis
๐ฝ๐ฟ๐ผ๐ท๐ฒ๐ฐ๐ ๐ฑ๐ฒ๐ณ๐ถ๐ป๐ถ๐๐ถ๐ผ๐ป = e.g. project priorities & resource allocation planning
๐ผ๐ฟ๐ด๐ฎ๐ป๐ถ๐๐ฎ๐๐ถ๐ผ๐ป๐ฎ๐น ๐ฟ๐ผ๐น๐ฒ๐ = e.g. project managerโs role, team organization & communications
Name the 4 dimensions of front-end fuziness & describe them
๐จ๐ป๐ฐ๐ฒ๐ฟ๐๐ฎ๐ถ๐ป๐๐ = lack of (clarity of) information & knowledge
๐๐พ๐๐ถ๐๐ผ๐ฐ๐ฎ๐น๐ถ๐๐ = existence of multiple and conflicting interpretations
๐๐ผ๐บ๐ฝ๐น๐ฒ๐ ๐ถ๐๐ = range of difference, amount of interdependancies & information overload
๐ฉ๐ฎ๐ฟ๐ถ๐ฎ๐ฏ๐ถ๐น๐ถ๐๐ = rate & intensity of change
๐๐๐ฏ๐ท๐ฒ๐ฐ๐๐ถ๐๐ฒ ๐๐๐ = part of team has knowledge
๐ผ๐ฏ๐ท๐ฒ๐ฐ๐๐ถ๐๐ฒ ๐๐๐ = full team has knowledge
Name the 4 different strategy typologies, describe them & explain how they are different
(Package 3)
๐ฃ๐ฟ๐ผ๐๐ฝ๐ฒ๐ฐ๐๐ผ๐ฟ๐ = Value being first to market, even though not always profitable
๐๐ง๐๐ฅ๐ฒ๐ณ๐๐ซ๐ฌ = Rarely first to market, quickly follow up with cheaper/better product
๐๐๐๐๐ง๐๐๐ซ๐ฌ = Locate & maintain secure niche in a stable market, protect marketshare
๐๐๐๐๐ญ๐จ๐ซ๐ฌ = not too aggresive in maintaining established products, only respond when
forced strongly
Each requires different NPD succes measures
The speed by which an organization responds to change differentiates the strategies
Name 4 micropolitical strategies & describe them
๐๐ผ๐ฎ๐น๐ถ๐๐ถ๐ผ๐ป ๐ฏ๐๐ถ๐น๐ฑ๐ถ๐ป๐ด = building support & consensus around colleagues to win approval
๐๐ฟ๐ฎ๐บ๐ถ๐ป๐ด = presenting the product such that it appears to be linked to the existing products, strategies, and competitive thrusts of business unit
๐๐ผ๐บ๐ฝ๐ฟ๐ผ๐บ๐ถ๐๐ฒ = modifying the product as a concession to get it approved for development
๐๐ถ๐ฑ๐ถ๐ป๐ด = secret development of the new product
NPD teams should be carefully using coalition building when the technology newness is high and framing the market newness is high.
What does โdifferentationโ mean within NPD teams & why is it important?
creating functional diversity within NPD teams helps in segmenting uncertainty, though there is a risk of isolation with higher diversity
Which 4 kinds of NPD teams do we distinguish between?
๐๐๐ป๐ฐ๐๐ถ๐ผ๐ป๐ฎ๐น ๐ด๐ฟ๐ผ๐๐ฝ๐ = work is done by various departments, very little project focus
๐๐ถ๐ด๐ต๐๐๐ฒ๐ถ๐ด๐ต๐ ๐๐ฒ๐ฎ๐บ๐ = team of people from various departments, current work dominates
๐๐ฒ๐ฎ๐๐๐๐ฒ๐ถ๐ด๐ต๐ ๐๐ฒ๐ฎ๐บ๐ = team of people from various departments, project dominates (project people first and functional people second)
๐๐๐๐ผ๐ป๐ผ๐บ๐ผ๐๐ ๐๐ฒ๐ฎ๐บ๐ = people pulled out of department to work on project full-time
What is an incubator and which 3 kinds of incubators do we know?
๐๐ป๐ฐ๐๐ฏ๐ฎ๐๐ผ๐ฟ= ventures with external entrepeneurs (alliances, co-development etc.)
๐ฆ๐ฝ๐ถ๐ป-๐๐ฝ= venture is merged with mother firm (formed into a business unit)
๐ฆ๐ฝ๐ถ๐ป-๐ผ๐๐ = keep investing & wait for further development (additional time, potential successful project)
๐ฆ๐ฝ๐ถ๐ป-๐ผ๐ณ๐ณ = project removed from portfolio
Which 3 types of organizational control do we know? & which is the best?
๐ข๐๐๐ฐ๐ผ๐บ๐ฒ ๐ฐ๐ผ๐ป๐๐ฟ๐ผ๐น = Specifying quantitative performance objectives & monitoring,
evaluating and rewarding teams based on how well they adhere to these.
๐๐ฒ๐ต๐ฎ๐๐ถ๐ผ๐๐ฟ ๐ฐ๐ผ๐ป๐๐ฟ๐ผ๐น = Specification of rules & procedures that a team needs to follow,
monitor, evaluate & reward teams based on how well they adhere
๐๐น๐ฎ๐ป ๐ฐ๐ผ๐ป๐๐ฟ๐ผ๐น = Motivating team members to embrace common values, norms, goals &
commit to shared objectives โ> implicit guide for what is (not)
acceptable, not needing formal monitoring to ensure compliance
A skillfull blend off all works best - clan control is generally the best because it promotes an environment of mutual trust where members can share information freely, all to the benefit of X products. The strict rules of outcome/behaviour control are generally not in favour of developing X products.
Name the 4 perspectives to integrated portfolio management & describe them
๐ข๐ฝ๐๐ถ๐บ๐ถ๐๐ฎ๐๐ถ๐ผ๐ป = making sure to have the best projects in a firms innovation portfolio
๐ฆ๐๐ฟ๐ฎ๐๐ฒ๐ด๐ถ๐ฐ = IPM as a central process to turn strategy into action
๐๐ฒ๐ฐ๐ถ๐๐ถ๐ผ๐ป ๐บ๐ฎ๐ธ๐ถ๐ป๐ด = Dynamic process of constantly updating NPD portfolio
๐ข๐ฟ๐ด๐ฎ๐ป๐ถ๐๐ฎ๐๐ถ๐ผ๐ป๐ฎ๐น = IPM as multi-level collective of decisions and parties
All four components should be incorperated for IPM succes
Name 4 challenges to achieving good portfolio management
(Let op: rijtje in rijtje)
(Package 4 - Summary)
- Setting the right portfolio objectives =e.g. alignment, max portfolio value, balance, #projects)
- Formulating decision criteria to achieve objectives
- Selecting which portfolio tools to use
- Deciding on the decision making process
Look to the summary of theory package 4, page 30!
Which 2 factors constitute to NPD portfolio succes antecedents
Portfolio succes & Decision making effectiveness
Name & describe all 4 dimensions of NPD portfolio success (under section setting the right portfolio objectives)
๐ฆ๐๐ฟ๐ฎ๐๐ฒ๐ด๐ถ๐ฐ ๐ฎ๐น๐ถ๐ด๐ป๐บ๐ฒ๐ป๐ = how well the NPD portfolio reflects a firmโs strategy+objectives
๐ ๐ฎ๐ ๐ถ๐บ๐ฎ๐น ๐ก๐ฃ๐ ๐ฝ๐ผ๐ฟ๐๐ณ๐ผ๐น๐ถ๐ผ ๐๐ฎ๐น๐๐ฒ = the NPD portfolio has an optimal ratio between resource input and return
๐ก๐ฃ๐ ๐ฝ๐ผ๐ฟ๐๐ณ๐ผ๐น๐ถ๐ผ ๐ฏ๐ฎ๐น๐ฎ๐ป๐ฐ๐ฒ = a balanced portfolio in risk, depth & breadth
๐ฅ๐ถ๐ด๐ต๐ #๐ป๐๐บ๐ฏ๐ฒ๐ฟ ๐ผ๐ณ ๐ฝ๐ฟ๐ผ๐ท๐ฒ๐ฐ๐๐ = the right amount off projects for the available resources
Name & describe the 3 dimensions of decision making effectiveness
(Kester 2014)
๐ฃ๐ผ๐ฟ๐๐ณ๐ผ๐น๐ถ๐ผ ๐บ๐ถ๐ป๐ฑ๐๐ฒ๐ = The firm has a complete overview of the entire portfolio and has in-depth
knowledge about each project, interdependencies & relations to company goals
๐๐ผ๐ฐ๐๐ = focus effort on projects important to the companyโs long term goals
๐๐ด๐ถ๐น๐ถ๐๐ = how quickly a firm can make & implement changes to itโs portfolio composition
trade-off effect
(Package 6 - Summary)
A decrease in one variable leads to an increase in another variable or vice versa
-> Two variables
trade off effects only occur after reaching the โefficient frontierโ
Off-setting effect
A positive effect of one variable is ofsett by a negative effect of another variable
This can only occur with 3 or more variables (spyder chart)
CT-costs-sales
CT-quality-sales
Efficient frontier
The point at which improvements are no longer possible without compromising somewhere else (trade-off effects occur)
Describe the 2 types of launch decisions for products (industrial & consumer)
๐ฆ๐๐ฟ๐ฎ๐๐ฒ๐ด๐ถ๐ฐ =
- include the nature of the new product to be developed (product strategy)
- the nature of the market into which it will be launched (market strategy)
- competitive position of the new product (competitive stance)
- firmโs overall orientation toward NPD efforts (firm strategy)
(They occur prior to launch and are difficult to change)
๐ง๐ฎ๐ฐ๐๐ถ๐ฐ๐ฎ๐น = central to the marketing aspects of the actual commercialization of the new product -> are about the marketing mix (4Pโs)
differences exist in (successful) launch decision for industrial & consumer goods
See summary page - 42 for pictures
Market defense strategies (definition)
initiatives of established competitors to deter or slow the entry of potential competitors in their market
name & describe the 3 strategic process aspects (and relation shape)
(Influence of characteristics of the new product introduction process on firm value)
(Package 6 - Sharma 2018)
๐ฃ๐ฎ๐ฐ๐ฒ = speed of product introductions ( โฉ )
๐๐ฟ๐ฟ๐ฒ๐ด๐๐น๐ฎ๐ฟ๐ถ๐๐ = lack of rhythm or consistency in product introductions ( โฒ )
๐ฆ๐ฐ๐ผ๐ฝ๐ฒ = spread of products across different markets ( โฉ (non-complex))
Strategic emphasis -> negative influence on irregularity and product scope.
Product complexities -> negative influence on irregularity and product scope.
Absorbative capacity
Firms are bound in terms of cognitive scope & rationality and thus in terms of the amount of the information that can be processed & utilized
Time compression disecenomies
The time to acquire a skill or resource trough learning, experience or training cannot be compressed endlesly without performance losses (trade-off effects)
Time diversification
Portfolio risk declines as the investment horizon grows (time in market > timing the market)
launch decisions
Decisions that help increase the proficiency of a new product launch trough dedication of sufficient relevant resources that support the introduction of a new product or service
incumbent inertia
The larger a firm is, the slower & less intense the reaction of that firm is to entry of competitors.
(Larger incumbents, zittende partijen, retaliate less strongly and more slowly)
name the 3 brand types & explain them
๐ฏ๐ฟ๐ฎ๐ป๐ฑ ๐ฒ๐พ๐๐ถ๐๐ = differential effect of brand knowledge on consumers response to the
marketing of a brand (customers pay more if positive brand equity)
๐ฏ๐ฟ๐ฎ๐ป๐ฑ ๐ฎ๐๐ฎ๐ฟ๐ฒ๐ป๐ฒ๐๐ = the strength of a brand in the consumerโs memory
๐ฏ๐ฟ๐ฎ๐ป๐ฑ ๐ถ๐บ๐ฎ๐ด๐ฒ = brand associations that consumers retain
name the 4 price promotion tactics
๐ฟ๐ฎ๐ฝ๐ถ๐ฑ ๐๐ธ๐ถ๐บ๐บ๐ถ๐ป๐ด = high promotion, high price
๐๐น๐ผ๐ ๐๐ธ๐ถ๐บ๐บ๐ถ๐ป๐ด = low promotion, high price
๐ฟ๐ฎ๐ฝ๐ถ๐ฑ ๐ฝ๐ฒ๐ป๐ฒ๐๐ฟ๐ฎ๐๐ถ๐ผ๐ป = high promotion, low price
๐๐น๐ผ๐ ๐ฝ๐ฒ๐ป๐ฒ๐๐ฟ๐ฎ๐๐ถ๐ผ๐ป = low promotion, low price
NPD cycle time
time from idea generation to market introduction
name the 4 types of gate decisions & explain them
๐๐ผ; to next stage
๐ฅ๐ฒ๐ฐ๐๐ฐ๐น๐ฒ; in current stage
๐๐ผ๐น๐ฑ; put project on hold
๐ฆ๐๐ผ๐ฝ; the project definitively
You cannot hold a decision & motivate people after killing a project
name some gatekeepers rules & explain their importance
1) gatekeepers must attend in person
2) gatekeepers must review the deliverables & presentation before the meeting
3) serious concerns should be communicated before the meeting (no surprise attacks)
4) no cross-examination allowed
5) final vote must be unanimous
6) you cannot hold a decision, otherwise team has to wait (however project can be set on hold)
7) continue decision means adequate resources come with it
8) decisions to be made based on gate criteria, not own opinion
9) gatekeepers cannot require and/ or base decisions on info outside of the scope of the stage being reviewed
As gatekeepers are part of a multi-disciplinary decision-making team they have to be governed, if they are too vicious there wonโt be any new projects in the future.
which 3 things should be considered when deciding on a formal vs. cultural front end?
๐ฝ๐ฟ๐ผ๐ฑ๐๐ฐ๐ ๐ฐ๐ผ๐ป๐๐ฒ๐ ๐ = incremental vs. radical
๐บ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐ฐ๐ผ๐ป๐๐ฒ๐ ๐ = B2B vs. B2C & leadership v.s. new market
๐ผ๐ฟ๐ด๐ฎ๐ป๐ถ๐๐ฎ๐๐ถ๐ผ๐ป๐ฎ๐น ๐ฐ๐ผ๐ป๐๐ฒ๐ ๐ = compatibility between roles of core team & senior management
name the 2 internal & 3 external team dynamic factors
๐ฆ๐ผ๐ฐ๐ถ๐ฎ๐น ๐ฐ๐ผ๐ต๐ฒ๐๐ถ๐ผ๐ป = degree to which teams have personal connections (introduce ideas freely)
๐ฆ๐๐ฝ๐ฒ๐ฟ๐ผ๐ฟ๐ฑ๐ถ๐ป๐ฎ๐๐ฒ ๐ถ๐ฑ๐ฒ๐ป๐๐ถ๐๐ = degree to which members identify with the team and itโs goals (promotes cooperation & holistic view)
๐บ๐ฎ๐ฟ๐ธ๐ฒ๐-๐ฏ๐ฎ๐๐ฒ๐ฑ ๐ฟ๐ฒ๐๐ฎ๐ฟ๐ฑ ๐๐๐๐๐ฒ๐บ = incentive system to reward teams based on long term market based outcome (intrinsic motivation)
๐ฃ๐น๐ฎ๐ป๐ป๐ถ๐ป๐ด ๐ฝ๐ฟ๐ผ๐ฐ๐ฒ๐๐ ๐ณ๐ผ๐ฟ๐บ๐ฎ๐น๐ถ๐๐ฎ๐๐ถ๐ผ๐ป= degree to which rules & procedures (bad for creativity*)
๐๐ป๐ฐ๐ผ๐๐ฟ๐ฎ๐ด๐ฒ๐บ๐ฒ๐ป๐ ๐๐ผ ๐๐ฎ๐ธ๐ฒ ๐ฟ๐ถ๐๐ธ๐ = degree to which management encourages risks (unique ideas)
name the 4 barriers to cooperation
- Poor communication
- Insensitivity towards eachother
- Lack of senior management support for integral NPD approach
- Differences in cultures & personalities
explain the difference between a gate dominant approach & a portfolio dominant approach
๐ด๐ฎ๐๐ฒ ๐ฑ๐ผ๐บ๐ถ๐ป๐ฎ๐ป๐ = project evaluated on pre-determined gate criteria and project decision is made. The projectโs overall gate score is used to benchmark it against other projects and portfolio decision is made
(More used in stable markets where projects can be judged according to criteria that remain constant over time)
๐ฝ๐ผ๐ฟ๐๐ณ๐ผ๐น๐ถ๐ผ ๐ฑ๐ผ๐บ๐ถ๐ป๐ฎ๐ป๐ = all projects are up for auction and considered together. Review is rarer & replaces gates. The gates only serve as checks on project finances & schedule.
(Used in more turbulent and dynamic markets
stable markets vs. turbulent markets
best to use both
What are some advantages of pioneering? (6)
- Favorable awareness & reputation effects
- Locking in customers
- Economies of scale
- Learning effects
- Patents
- Price skimming possibilities
in which 5 dimensions can retaliation be conceptualized? & explain why it is important to anticipate the reactions of competitors.
(Kuester, Homburg, Robertson, 1999)
- ๐๐ป๐๐๐ฟ๐๐บ๐ฒ๐ป๐๐ฎ๐น ๐ฑ๐ฒ๐ฐ๐ถ๐๐ถ๐ผ๐ป = type of 4P used for reaction, using the same instrument; reciprocal retaliation (type of marketing instrument)
- ๐๐ป๐๐ฒ๐ป๐๐ถ๐๐ = the weight placed behind the marketing instrument
- ๐๐ฟ๐ฒ๐ฎ๐ฑ๐๐ต = the number of marketing instruments used to retaliate
- ๐ฆ๐ฝ๐ฒ๐ฒ๐ฑ = the time lag between competitive threat and response (immediate vs delayed)
- ๐๐ผ๐บ๐ฎ๐ถ๐ป = the market in which the incumbent firm counter-attacks
The way a firm responds to competitive actions can add substantially to itโs ability to sustain or enhance competitive advantage and may determine its ultimate organizational performance.
Retaliation: wraak (sort of declaration of war)
Name the 5 target market strategies
(Summary - page 42)
๐๐ถ๐ป๐ด๐น๐ฒ-๐๐ฒ๐ด๐บ๐ฒ๐ป๐ = only serve 1 segment (small business)
๐๐ฒ๐น๐ฒ๐ฐ๐๐ถ๐๐ฒ ๐๐ฝ๐ฒ๐ฐ๐ถ๐ฎ๐น๐ถ๐๐ฎ๐๐ถ๐ผ๐ป = multiple segments, only change promotion (baggage options)
๐ฝ๐ฟ๐ผ๐ฑ๐๐ฐ๐ ๐๐ฝ๐ฒ๐ฐ๐ถ๐ฎ๐น๐ถ๐๐ฎ๐๐ถ๐ผ๐ป = specialize in specific product across different segments (shoes)
๐บ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐๐ฝ๐ฒ๐ฐ๐ถ๐ฎ๐น๐ถ๐๐ฎ๐๐ถ๐ผ๐ป = offer multiple products to the same market (healthcare)
๐ณ๐๐น๐น ๐บ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐ฐ๐ผ๐๐ฒ๐ฟ๐ฎ๐ด๐ฒ = attempt to serve the entire market (Unilever)
When should you aim to pioneer?
high sales growth rate; be first with high-performance
long window of opportunity & flat development costs; be first with high-performance or follow with even better performance
agile artefacts
Agile is a project management method from software development:
sprints
daily scrums
retrospective meeting - reflection after sprint, before new sprint
agile tools
Agile is a project management method from software development:
sprint/product backlogs
scrum board
burndown chart
agile roles
Agile is a project management method from software development:
product owner
scrum master
development team
NPD integration
๐๐ผ๐ผ๐ฝ๐ฒ๐ฟ๐ฎ๐๐ถ๐ผ๐ป= alignment of interests vs. opportunistic behaviour
๐๐ผ๐ผ๐ฟ๐ฑ๐ถ๐ป๐ฎ๐๐ถ๐ผ๐ป = alignment of actions due to lack of (accurate) shared knowledge
integration is needed to utilize functional diversity
Name the (1+)5 stages of the stage-gate model
๐๐ฑ๐ฒ๐ฎ ๐ด๐ฒ๐ป๐ฒ๐ฟ๐ฎ๐๐ถ๐ผ๐ป= value proposition & first evaluation
๐ฆ๐ฐ๐ผ๐ฝ๐ถ๐ป๐ด= product definition & resource+milstone planning
๐๐๐๐ถ๐ป๐ฒ๐๐ ๐ฐ๐ฎ๐๐ฒ= market & technology proven, economics evaluated
๐๐ฒ๐๐ฒ๐น๐ผ๐ฝ๐บ๐ฒ๐ป๐= product & production equipment developed
๐ง๐ฒ๐๐๐ถ๐ป๐ด & ๐๐ฎ๐น๐ถ๐ฑ๐ฎ๐๐ถ๐ผ๐ป= testing of new product
๐๐ฎ๐๐ป๐ฐ๐ต (+๐ฝ๐ผ๐๐๐น๐ฎ๐๐ป๐ฐ๐ต ๐ฟ๐ฒ๐๐ถ๐ฒ๐)= production ramp-up & review
Definition = breaking down the traditional new product development process into a set of discrete and identifiable stages
Describe 6 dimensions/types along which NPD projects can classified & describe the importance of NPD project classification
New to the world (NTW) = New products that create an entirely new market.
New to the company (NTC) = New products that, for the first time, allow a company to enter an established market.
Additions to existing product lines (AEL) = New products that supplement a companyโs established product lines.
Product improvements (PI) = New products that provide improved performance or greater perceived value and replace existing products.
Product repositioning (PR) = Existing products targeted to new markets or market segments.
The project strategy is compared on a; newness to firm - newness to market continuum.
different projects require different; actions, resources, success measures etc. This way firms can position projectโs market strategies (strategic aspect) and technology aspects (product & process) accordingly.
+ Know the figure! (X-axis = Newness to the market, Y-axis= Newness to the firm)
Describe 5 characteristics in which Front-end innovation differs from the development & commercialization stages of the new product development process & explain why it is important to recognize these differences
๐ก๐ฎ๐๐๐ฟ๐ฒ ๐ผ๐ณ ๐๐ผ๐ฟ๐ธ - Experimental & creative V.S. Disciplined & controlled
๐ฆ๐๐ฎ๐๐ฒ ๐ผ๐ณ ๐ฎ๐ป ๐ถ๐ฑ๐ฒ๐ฎ - Fuzzy & easy to change V.S. Specific & difficult to change
๐ฝ๐ฒ๐ผ๐ฝ๐น๐ฒ ๐ถ๐ป๐๐ผ๐น๐๐ฒ๐ฑ - individual / small team V.S. multifunctional development team
๐ฏ๐๐ฑ๐ด๐ฒ๐ - none/small V.S. large & designated
๐ป๐ฎ๐๐๐ฟ๐ฒ ๐ผ๐ณ ๐ถ๐ป๐ณ๐ผ๐ฟ๐บ๐ฎ๐๐ถ๐ผ๐ป - Qualitative V.S. Quantitative
Measure of progress - Strengthened concept v.s. Milestone achievement
Budget - Small/ none v.s. Large/ designated
Managers should recognize these differences as they require a different approach. Different characteristics also have different success measures
what is ๐ฑ๐ถ๐ณ๐ณ๐๐๐ถ๐ผ๐ป & which factors make a ๐ฑ๐ถ๐ณ๐ณ๐๐๐ถ๐ผ๐ป ๐ฐ๐๐ฟ๐๐ฒ?
(Theory package 5 - Summary page 40)
The spread of a new product from its source of creation to its ultimate adopters over time.
The diffusion curve depends on:
- Rate of diffusion -> speed at which sales occur
- Pattern of diffusion -> shape of the diffusion curve
- Penetration level -> max. cum. adoption over time
who are the typical attendees at a gate review and identify if they recommend or vote
(Package 1 - Summary)
CTO (asking for project)
CFO (pay for project)
MT (pay for project)
Team members (only recommend a decision)
Experts (only recommend a decision)
name 5 bad gatekeeper behaviors
- Executive pet projects getting a special treatment
- Single person gate decisions
- Gate meeting cancelled because of no-show gatekeepers
- No decision made or postponed
- Go/ Kill decision based on opinion rather than facts
name 5 common mistakes when using a stage-gate process
- Bad gatekeeper behaviors
- Misapplying cost-cutting models
- Portfolio management without stage-gate process
- Deliverables overkill
- Too much reliance on software
name 5 improvements for the stage-gate model
๐๐น๐ฒ๐
๐ถ๐ฏ๐ถ๐น๐ถ๐๐ (no activity or deliverable is a must)
๐๐ณ๐ณ๐ถ๐ฐ๐ถ๐ฒ๐ป๐, ๐๐๐๐ก & ๐ฟ๐ฎ๐ฝ๐ถ๐ฑ ๐๐๐๐๐ฒ๐บ (use value stream analysis)
๐ ๐ผ๐ฟ๐ฒ ๐ฒ๐ณ๐ณ๐ฒ๐ฐ๐๐ถ๐๐ฒ ๐ด๐ผ๐๐ฒ๐ฟ๐ป๐ฎ๐ป๐ฐ๐ฒ (gates with teeth & scorecards)
๐ผ๐ฝ๐ฒ๐ป ๐ถ๐ป๐ป๐ผ๐๐ฎ๐๐ถ๐ผ๐ป ๐๐๐๐๐ฒ๐บ
๐ฎ๐ด๐ถ๐น๐ฒ-๐๐๐๐๐ฒ๐บ
holistic front end
Linking product strategy, product definition, project definition & organizational roles (Front-end succes factors)
this can be achieved either with a formal or a cultural approach
What are the advantages of the hybrid idea generation process?
The hybrid process generates more, unique & better ideas
Still hybrid teams suck at selecting good ideas
what 5 factors makes the usage of intuition in selecting creative ideas worse?
incremental projects
inexperienced team members
multiple goals
rational decision culture
hierarchal or democratic rules
intuition (+rationality) is good for selecting early creative ideas, but not later when finances or strict criteria are used. use intuition for radical; more complex patterns & ambiguity
in which 3 (+1) ways can NPD start?
๐ข๐ฝ๐ฝ๐ผ๐ฟ๐๐๐ป๐ถ๐๐= business or technology gap that exists between the current situation and an envisioned future
๐๐ฑ๐ฒ๐ฎ= embryonic form of an envisioned situation to solve a problem
๐๐ผ๐ป๐ฐ๐ฒ๐ฝ๐= has a well-defined form, both written & visual description that includes customer benefits combined with an understanding of the technology needed
or
Problem or threat
What are the 3 must-meet criteria for idea selection
๐ข๐ฟ๐ถ๐ด๐ถ๐ป๐ฎ๐น๐ถ๐๐= (novelty) product should have a unique advantage
๐๐๐๐๐ผ๐บ๐ฒ๐ฟ ๐ฏ๐ฒ๐ป๐ฒ๐ณ๐ถ๐= (meaningfulness) meet customer needs & create benefit
๐๐ฒ๐ฎ๐๐ถ๐ฏ๐ถ๐น๐ถ๐๐= (meaningfulness) of technology, costs, timeframe etc.
3 types of market signals
(Package 6 - Summary 48)
- ๐๐ผ๐๐๐ถ๐น๐ถ๐๐ ๐๐ถ๐ด๐ป๐ฎ๐น= extent to which the incumbent firm views the launch by an entrant as hostile (gewelddadig)
-> strong, but not fast reaction - ๐๐ผ๐บ๐บ๐ถ๐๐บ๐ฒ๐ป๐ ๐๐ถ๐ด๐ป๐ฎ๐น= extent to which the incumbent firm views the entrant firm to be committed to its product
-> strong, but not fast reaction
3.๐๐ผ๐ป๐๐ฒ๐พ๐๐ฒ๐ป๐ฐ๐ฒ๐ ๐๐ถ๐ด๐ป๐ฎ๐น= Incumbentโs perception (forecast) of the new productโs launch on its own competitive position
-> fast, but not strong response from incumbent
NP & MP creativity
NP= new product
MP= marketing plan
creativity= novelty & meaningfulness
only NP creativity leads to improved PCA
what is the difference between market entry-timing strategy & window of opportunity?
The market entry timing decision is about getting the moment of entry right in terms of the new productโs window of opportunity
Describe 4 myths about stage-gate & explain how stage-gate should be applied
not a ๐น๐ถ๐ป๐ฒ๐ฎ๐ฟ ๐๐๐๐๐ฒ๐บ= inside stages a lot of looping, stages are allowed to overlap
not a ๐ฑ๐ฎ๐๐ฒ๐ฑ ๐๐๐๐๐ฒ๐บ= evergreen system that is always updated with best practices
not a ๐ฏ๐๐ฟ๐ฒ๐ฎ๐๐ฐ๐ฟ๐ฎ๐๐ถ๐ฐ ๐๐๐๐๐ฒ๐บ= objective is a systematic, streamlined process
not ๐ฝ๐ฟ๐ผ๐ท๐ฒ๐ฐ๐ ๐บ๐ฎ๐ป๐ฎ๐ด๐ฒ๐บ๐ฒ๐ป๐= Stage-gate is a macro process, project management tools should be used inside the stages
stage gate is a conceptual map for moving NPD projects from idea to launch. Itโs a blueprint to improve NPD efficiency & effectivity
product mortality curve
the product mortality curve represents the progressive rejection of projects throughout the development stages
By changing different stages you can change the mortality curve
explain why & how dividing up an NPD project into several feasible shorter-term objectives helps to better achieve a projectโs long term objective (3)
-tangible short term goals are easier to reach
-clear objectives allow a team to work more efficiently
-forced reduction of uncertainty
Describe 4 cultural challenges associated with applying stage-gate & how 3 ways how solve this
(Package 1 - Summary)
perceive constant stopping as;
๐ฝ๐ฒ๐ฟ๐๐ผ๐ป๐ฎ๐น ๐ณ๐ฎ๐ถ๐น๐๐ฟ๐ฒ
๐ฑ๐ถ๐๐ฟ๐๐ฝ๐๐ถ๐๐ฒ ๐ฎ๐ป๐ฑ ๐n๐๐ฎ๐๐ถ๐๐ณ๐๐ถ๐ป๐ด (constantly starting new projects not finish)
๐๐ต๐ฟ๐ฒ๐ฎ๐ ๐๐ผ ๐ท๐ผ๐ฏ ๐๐ฒ๐ฐ๐๐ฟ๐ถ๐๐ (killing projects implies an insecure position)
๐๐๐ฟ๐ฒ๐๐ ๐ฎ๐ ๐ฟ๐ฒ๐๐ถ๐ฒ๐ ๐๐ถ๐บ๐ฒ (insecure what is success and excellence)
1)if a project is stopped it should not be perceived as failure but as trying to be effective
2)prepare for stage-gate
3)motivate people after a killed project; trying=good!
Describe 3 types of portfolio management decision-making criteria & describe their (dis)advantages
(Package 4 - Summary)
๐๐๐ถ๐ฑ๐ฒ๐ป๐ฐ๐ฒ; objective judgement & easily judged ๐ฉ.๐ฆ. favours incremental & hard to achieve strategic alignment
๐ฃ๐ผ๐๐ฒ๐ฟ; Quick decision-making ๐ฉ.๐ฆ. often not in the best interests of the firm
๐ข๐ฝ๐ถ๐ป๐ถ๐ผ๐ป; Quick, long-term & higher risk projects ๐ฉ.๐ฆ. inappropriate decision when not an expert
๐ฃ๐ผ๐๐ฒ๐ฟ & ๐ผ๐ฝ๐ถ๐ป๐ถ๐ผ๐ป; quick & innovative not disadvantaged ๐ฉ.๐ฆ. overfull portfolio, hard to achieve strategic allignment
๐๐๐ถ๐ฑ๐ฒ๐ป๐ฐ๐ฒ & ๐ผ๐ฝ๐ถ๐ป๐ถ๐ผ๐ป; both incremental & radical projects + strategic alignment ๐ฉ.๐ฆ. time consuming & resource intensive
Summary page 31 for advantages and disadvantages
Name the 4 marketing instruments
Price
Promotion
Place
Product
Name 4 generic dimensions on which a gate deliverable is typically being evaluated by the gate committee.
Market
Technology
Time
Resources
what is ๐ฒ๐๐ฐ๐ฎ๐น๐ฎ๐๐ถ๐ผ๐ป ๐ผ๐ณ ๐ฐ๐ผ๐บ๐บ๐ถ๐๐บ๐ฒ๐ป๐
When someone or a group face increasingly negative outcomes from a decision, action, or investment and nevertheless continues to keep going with the project or behavior
portfolio management
set of managerial activities that allows a firm to select, develop and commercialize a range of new products
The benefits of unconscious processing for FFE decision making. (4)
(Eling, 2014 - Package 2)
Traits (Onderscheidende kenmerken)
๐๐ถ๐ด๐ต ๐ฐ๐ฎ๐ฝ๐ฎ๐ฐ๐ถ๐๐= taking large amounts of information into account
๐๐ฐ๐ฐ๐ฒ๐๐ ๐๐ผ ๐ถ๐บ๐ฝ๐น๐ถ๐ฐ๐ถ๐ &๐๐ฎ๐ฐ๐ถ๐ ๐ธ๐ป๐ผ๐๐น๐ฒ๐ฑ๐ด๐ฒ= taking relevant experiences into account
O๐ฝ๐ฒ๐ป๐ป๐ฒ๐๐= reconsidering decisions when things change
Precise weighting = The unconscious weights information and decision attributes
M๐ฎ๐๐ฐ๐ต๐ถ๐ป๐ด ๐ฐ๐ผ๐บ๐ฝ๐น๐ฒ๐
๐ฝ๐ฎ๐๐๐ฒ๐ฟ๐ป๐= recognizing situations & patterns
Processes
Making new associations = Unconscious processing combines stimuli from the environment with stored knowledge into new and meaningful patterns or interpretations.
Matching complex patterns = The unconscious recognizes complex decision situations by matching environmental stimuli with stored patterns and schemas.
What are 3 disadvantages of unconscious processing?
(Eling, 2014 - Package 2)
๐ป๐ผ๐ ๐๐ป๐ถ๐๐ฒ๐ฟ๐๐ฎ๐น๐น๐ ๐ฎ๐ฝ๐ฝ๐น๐ถ๐ฐ๐ฎ๐ฏ๐น๐ฒ= wrong when using strict criteria
๐ป๐ผ ๐ฝ๐ฟ๐ผ๐ฐ๐ฒ๐๐ ๐ฎ๐๐ฎ๐ฟ๐ฒ๐ป๐ฒ๐๐= under high fuzziness, intuition may be wrong (see article) -> equivocality
๐ต๐ฎ๐ฟ๐ฑ ๐๐ผ ๐ฐ๐ผ๐บ๐บ๐๐ป๐ถ๐ฐ๐ฎ๐๐ฒ= intuition is individual (different members might not experience the same intuition) -> reasons supporting an intuition not delivered
name 3 conflict management styles
๐ฃ๐ฟ๐ผ๐ฏ๐น๐ฒ๐บ ๐๐ผ๐น๐๐ถ๐ป๐ด= find a solution that fits both parties
๐๐ผ๐บ๐ฝ๐ฟ๐ผ๐บ๐ถ๐๐ถ๐ป๐ด= reach a compromise solution that fits both parties
๐๐ฎ๐ฟ๐บ๐ผ๐ป๐ถ๐๐ถ๐ป๐ด= aim for a superficial solution, for the sake of the group (minimizing the differences between parties)
The first three are functional, the last three are dysfunctional management styles
๐๐๐ผ๐ถ๐ฑ๐ถ๐ป๐ด= avoid the disagreeable party
๐๐ผ๐ฟ๐ฐ๐ถ๐ป๐ด= impose a solution on parties, even if they donโt want to agree
name 3 advantages of following
-lower costs
-use superior 2nd generation technology
-learn from mistakes pioneer
name 8 criteria to asses the window of opportunity and identify when they are attractive
Potential penetration level (High)
Length of PLC (Long)
Perceived product advantage (High)
Time to-peak sales (Long)
Sales growth rate (High)
Rate of margin decline during diffusion (Low)
Competitors (relative) marketing strength (Weak)
Competitors (relative) product advantage (Low)
what are the differences between a ๐ฝ๐ฟ๐ฒ-๐ฎ๐ป๐ป๐ผ๐๐ป๐ฐ๐ฒ๐บ๐ฒ๐ป๐ & ๐ฟ๐๐บ๐ผ๐๐ฟ๐?
๐ฟ๐๐บ๐ผ๐๐ฟ;
-unnoficial
-unconfirmed
-uncontrolled
๐ฝ๐ฟ๐ฒ-๐ฎ๐ป๐ป๐ผ๐๐ป๐ฐ๐ฒ๐บ๐ฒ๐ป๐;
-oficial
-confirmed
-controlled
They both disseminate new product information prior to launch
what are 4 antecedents of cycle time reduction?
process charachteristics
team characteristics
firm characteristics
team competences
What are three major FFE tasks
(Eling, 2014 - Package 2)
1) Problem definition: basic market and technology analysis and idea or solution generation and selection activities
2) Idea generation: information gathering and analysis and idea or solution generation and selection activities
3) Concept development: refining of the idea into a concrete new product concept, planning of the NPD project, and development of a new product business case
How is intuition described in Elling, 2014
(Package 2)
A seemingly unsubstantiated attitude toward a decision alternative or course of action that communicates the result of unconscious processing to the conscious mind of the decision maker
Connect different strategies with the different business strategy typologies.
Focus of product development differs across the 4 typologies.
(Package 3)
Prospectors and analyzers = growth through developing new products
- Prospectors, being pioneers, will more frequently seek to develop more innovative products, even at the expense of short term profitability.
- Analyzers are more imitative rather than innovative
Defenders = place less emphasis on product development, but emphasizing line extensions that provide additional market penetration.
Reactors = emphasis on product development varying in response to environmental pressures.
Connect the Project-level succes measures with the different project strategies according to Griffin, A. and Page, A.L. (1996)
(Package 3)
New to the world projects = measured by customer acceptance and satisfaction
New to the company projects = measured by profits, product competitive advantage, and market share
Product improvements = measured by profits, competitive advantage, and customer satisfaction
Line extensions = measured by profits and competitive advantage
Product repositioning = measured profit and competitive advantage and customer acceptance
Cost reduction projects = measured by margin (because many overhead and other costs of the project can influence the profit)
These results can be found on page 486 of the article
Connect the most useful success measures with the different business strategies according to Griffin, A. and Page, A.L. (1996)
(Package 3)
Prospectors =
- % Profits from products < โnโ years old
- Degree todayโs products lead to future opportunities
- % Sales from products < โnโ years old
Analyzers =
- Degree products fit business strategy
- Development program ROI
- % Profits from products <โnโ years old
- Succes/ failure rate
Defender =
- Development programs ROI
- Degree products to fit business strategy
Reactor =
- Development program ROI
- Succes/ failure rate
- Degree products fit business strategy
- Subjective overall Programm success
Define technology and market newness.
(Package 3)
Technology newness = product involves new technologies, engineering and design skills, production processes
Market newness = product targets new markets and requires new sales and customer service infrastructure
Define the 10 successful project team management elements that is required for cross-functionality (Successful NPD teams)
(Package 3 - Summary)
- Early involvement in the project cycle
- Well defined purpose , work, process & structure
- Clear interfaces with other parts of the organization
- Staffing with right number and right expertise
- Clear reward systems and management support
- Training in team building and team processes
- A high-performance image and excitement about goal
- Clear direction
- Management of team conflicts and issues
- Effective internal communication channels
Define and describe 4 different project types
(Package 3 - Summary)
Breakthrough = products that are entirely new (autonomous)
Platform = products that form the base for a product family (heavyweight)
Derivative = products that are derived from other products, or extension of the production line (lightweight)
Enhancements = products having minor changes in technology, marketing and processing (functional of lightweight)
Define and describe the two different levels of formality
(Package 3 - Summary)
Formal control = the articulation of rules for NPD team members
Informal control = entails the persistent social influence across NPD teams that leads to mutual understanding and commitment to joint development goals
Define โInnovation portfolio managementโ (IPM)
(Package 4 - Meifort)
It addresses the resource allocation across a firmโs portfolio of new product development projects consistent with new corporate strategy
Define the consequences of New product development speed (dev. speed on -> โฆ)
Also measures of new product succes
(Package 5 - Cankutaran)
operational outcomes:
- Development costs
- Market entry timing
- Technical product quality
- Product competitive advantage
external outcomes:
- Customer-based outcomes
- Financial outcomes
Can be measured at different levels (project, team, SBU, organization)
Define โcycle timeโ
(Package 5 - Summary)
The time that elapses between the initial development, which includes conception and definition, and commercialization.
(important concepts: time to market, speed to market)
Define and explain the MRW hierarchy to shorten the development time.
(Package 5 - Summary page 38)
- Simplify
- Eliminate steps
- Parallel processing
- Eliminate delays
- Compress activities
(Look at summary page 38 for explanation)
Define the moment of entry
(Package 5 - Summary page 40)
The firmโs ability to exploit the new productโs window of opportunity by balancing the risks of premature and missed opportunity to late entry
What is the difference between a rumor and pre announcement?
(Package 6 - Summary page 45)
Rumor: (e.g. online blogs to shape expectations, steering rumors in favorable direction)
- Unofficial
- Unconfirmed
- Uncontrolled
Pre announcement:
- Official
- Confirmed
- Controlled
What is the difference between price skimming and penetration?
(Package 6 - Summary page 45)
- Price skimming sets prices higher to attract customers most interested in the product or service to maximize short-term profits
- Penetration pricing uses lower prices to build a customer base for new products or services
What does price elasticity mean? (Difference between high and low)
(Package 6 - Summary page 46)
Measure of the sensitivity of a change in the price of a good to the quantity demanded of that good.
If high -> demand is greatly influenced by a price change
Describe the term โMarket signaling theoryโ.
Argues that the scope, intensity and competitiveness of a new product launch generate a set of market signals that explain competitive reaction from incumbents.
Scope: narrow vs. broad
Intensity: low vs. high
Competitiveness: competitive vs. non-competitive
Remedies to overcome critique on stage gate (5)
Fluidity: overlapping stages
Fuzziness: conditional/ situational decisions instead of absolute
Flexibility: scalable process, not all stages are required for every project
Focused: building in portfolio decisions
Agility: Spiral or Agile-Hybrid-Stage-Gate-Models
(See TP1 slide 25)
Describe the advantages of integrating agile (scrum version) into stage-gate, by keeping the stages and gates and applying agile in some of the stages. (5)
Observed advantages of first trials:
- More adaptive response to changing customer needs
- Voice of the customer all the way through the process
- Better in-team communication
- Improved development productivity
- Faster to market
(Package 1 - Cooper and Sommer, 2016)
Define product advantage factors for both radical and incremental products.
(Package 1 - Summary page 4 and 5)
Rogers (Radical):
- Observability +
- Triability +
- Relative advantage +
- Compatibility +
- Complexity -
- Risk -
Cooper & Calantone (Incremental):
- Uniqueness +
- Superiority +
- Innovativeness +
- Quality +
- Durability +
- Lower costs +
What are the advantages of using a stage-gate type of process? (5)
(Package 1 - Summary page 5)
- Tangible shorter-term goals for each NPD project
- Forced education of market and technical uncertainty
- Resource commitment to projects with continued succes potential only
- Effective decision making at the gates, based on technology, market, cost and timing criteria
- Better portfolio management and coordination between projects
What doe Agile brings as a project management method to the process?
(Package 1 - Cooper 2016)
Agility
Adaptability
Speed
What are the two most important drivers for product vs service succes?
Services:
- Launch proficiency: proficiency with which a firm launches and communicates the new service
- Absorptive capacity: The process through which a firm recognizes the value of new information, assimilates it, and applies it to performing development activities
Products (goods):
- Product advantage:
- Market orientation: Degree of orientation towards its internal, competitor, and customer environments
