Concept testing and Full screen

Question 1

What is the full screen? (3)

Answer 1

1. A step often seen as a necessary evil, yet very powerful and with long-lasting effects.
2. Forces pre-technical evaluation, and summarises what must be done
3. Methods range from simple Checklists to complex mathematical models.

Question 2

What are the purposes of the full screen? (3)

Answer 2

1. To decide whether technical resources should be devoted to the project (can we do it?, do we want to do it?)
2. To help manage the process: recycle/rework it, rank good concepts, track failed ones.
3. To encourage cross-functional communication

Question 3

What are screening alternatives? (3)

Answer 3

1. Judgment/Managerial opinion (SME’s)
2. Concept test followed by sales forecast
3. Scoring models

Question 4

What are technical success factors of industrial research institute scoring model? (5)

Answer 4

1. Proprietary position
2. Competencies/skills
3. Technical complexity
4. Access to and effective use of external technology
5. Manufacturing capability

Question 5

Who are the scorers? and what are their problems? (3 & 6)

Answer 5

Scoring team:

1. Major functions (marketing, technical, operations and finance)
2. NP managers
3. Staff specialist (IT, procurement HR)

Problems:

1. May be always optimistic/pessimistic
2. May be moody
3. May always score neutral
4. May be less reliable or accurate
5. May be easily sawed by the group
6. May be erratic

Question 6

What are some must-meet criteria’s (yes/no)? (7)

Answer 6

1. Strategic alignment
2. existence of market need
3. Likelihood of technical feasibility
4. Product advantage
5. Environmental health and safety policies
6. Return versus risk
7. Show stoppers (killer variables)

Question 7

What are some should-meet criteria’s (rated on scales) ? (6)

Answer 7

1. Strategic (alignment and importance)
2. Product advantage (unique benefits, meets customer needs, provides value for money)
3. Market attractiveness
4. Synergies
5. Technical feasibility (complexity, uncertainty)
6. Risk versus return (ROI, payback, NPV)

Question 8

Why is financial analysis for new product difficult? (9)

Answer 8

1. Target users don’t know and if they know they might not tell us.
2. Poor market research
3. Market dynamics
4. Uncertainties about marketing support
5. biased internal attitudes
6. Poor accounting
7. Rushing products to market
8. Basing forecasts on history
9. Technology revolutions

Question 9

How are problems in financial analysis handled? (9)

Answer 9

1. Improve your existing new product process
2. use the life cycle concept of financial analysis
3. Reduce dependence on poor forecasts
   - forecast what you know
   - approve situations not numbers (potholes)
   - commit to low cost development and marketing
   - be prepared to handle the risks
   - don’t use one standard format for financial analysis
   - improve current financial forecasting methods