Session 7 Flashcards
reflect upon the type of new product matrix structures and link this to the continuum on the degree of projectization depicted by Crawford & Di Benefetto (slide 8)
NEED TO RESEARCH ANSWER
describe the profile and major characteristics of heavyweight PM
Cross functional coordination & communication (production, sales, engineering … translate from & to customers) – direct/open communication lines hroughout the entire project (concept to market)
Signing off on specification, cost-target, layout & major component choices
Maintaining direct contact with existing/potential customers
Having broad knowledge on product & process engineering
Years of experience within company and influence!
describe the main challenges associated with team structures & composition during new product development
“ a critical resource for a new product project is the right people to do the job (…) the product manager must negotiate with the various functional department managers”
The role that product managers play in a team:
Transparent - PM can knock on door at different departments and ask for help to accomplish specific projects but the people will still report to their managers and they will typically devote less than 25% of their time to the projects. PM has less decisive power because they report to their managers.
Heavyweight - Has more decisive power over the people.
Autonomous - People are literally taken from different functional departments and work independently on the project.
Diversity in teams is a benefit and important. It helps avoid group think.
There needs to be a balance between enough diversity but not too much because you may end up with too much difficulty agreeing.
Change membership - to avoid loosing the diversity that was had because peoples views can gradually become alligned. Don’t change whole team at same time though.
Avoid simultaneously replacing entire team.
Are you allowed to check phones in meetings? Varying expectations accross team on small issues etc can create tension.
provide some examples on the tools that can be used by PM to better steer project processes (cf. work breakdown structure & critical path & gant shart)
CPM (chart in notes - find an explanation for it)
Gantt chart (in notes but explain in words)
discuss the different types of reviews and testing and the conditions under which these can be applied
Different requirements for different reviews
(1) Business screens = approval business case
Deliverables (product definition, estimation costs & revenues & preliminary product development plan)
(2) Definition checkpoint
Evaluate product specifications, clearer cost handle and market sizing & positioning, manufacturability & availability resources
(3) Development readiness appraisal (cfr.testing/validation)
Prototype testing and validation
Soft new product project reviews by stakeholders
Portfolio Reviews (top management)
Comprises functional & customer testing
In both laboratory & field conditions
Types of tests may involve …
Market testing
In-home testing
Beta testing (customer prototype testing)
Importance beta site selection for launch success
Sufficient knowledge to test/identify problems with product
“Reference value” as success stories at time of launch
Good relationship with salesperson in territory & company to be able to withstand product failure.
explain the phenomenon of “scope creep”! What can product managers do to avoid this ?
Scope creep is defined as adding features (“featuritis”) and functionality (project scope) without addressing the effects on time, costs, and resources, or without customer approval.
Possible causes are …
Lack of clear product definition early in the process
Lack of discipline in following the initial definition
Unanticipated market shifts
WHAT TO DO ABOUT IT
Better upfront definition (good translation market requirements into product specifications – VOC!!)
Establish a “contract” (between project team & executive review committee freezing components)
Discipline in follow-through
Attempt “design around” changes (anticipate & design for uncertainty & flexibility)
discuss benefits and drawbacks of first movers
Timing: “first-mover advantage is more than a myth but far less than a sure thing” (Suarez & Lanzollo in Harvard Business Review)
Combined effect of market and technological change
Capitalize on competitive flaws by delaying entry
Benefit from competitor´s advertising that educates market
Consider impact on rest of company´s product line
Pipeline channel inventory of older product
Beware of risk vacuum period
Minimize cannibalization in case of launch substitutes
Often first movers have high failure rates and early leaders often have higher market share.
Technology leadership and brand loyalty Preemption of scarce assets Key locations Government permits Access to distribution channels Relationship with suppliers
Exploiting buyer switching costs
Reaping increasing returns advantages
High failure rate
Higher costs
R&D expenses
Undeveloped supply and distribution channels
Immature enabling technologies and complements
Uncertainty of customer requirements
IPOD EARLY LEADER!
reflect upon the components of launch plans
Sales training: should educate and motivate salespeople to sell your product
Past sales success (in case of modifications)
Results from test marketing & beta testing
Statements from sales managers indicating their success in a rollout region
Motivators
Financial : commissions, bonuses, contests
Non-financial : reduced sales efforts, selling time, superiority over competition
Distributors, dealers, other resellers: although they are no internal stakeholders, they are crucial to create environment of success for product
Marketing communications: product manager is responsible for translating positioning strategy into a communication message
- Start with PR (open houses, tours, speeches, sponsorships) & publicity (articles, press releases)
- Develop press kit to be used at trade shows/other events
- Draft articles – in case of truly novel products
- Demonstrate during educational sessions
- Continue with advertising following the FAB (features, advantages & benefits) approach
- Determine channel : trade show, sales force, print media, direct mail, website …
- Prepare communication materials for direct salespeople (sales tools, demo´s , data sheets …)
