The Development Funnel

Question 1

Managing the development funnel involves a set of different tasks and challenges.
Describe these

Another version:
“Managing the so called”development funnel” involves a set of different challenges. Describe these key managerial challenges as described by Wheelwright and Clark.”

Answer 1

Widening the mouth of the funnel: How to generate as many ideas as possible in order to get a wide range of concepts and alternatives. There is a need for diverse input, which can come from many parts within the company, as well as externally.

Narrowing the neck of the funnel: How to screen out the generated ideas, choose among concepts which one to go forward with. This can be done with help from gates, you need to see how well the concept fits with companies strategy. You can also decide to include concepts in platforms.

Manage the selected projects: To make the development successful you need to consider the framework for development and manage the parts, for example: project definition, project organization and staffing and project management and leadership.

Question 2

What is a development funnel?

Answer 2

A development funnel provides a graphic structure for thinking about the generation and screening of alternative development options, and combining a subset of these into a product concept. A variety of different product and process ideas enter the funnel for investigation, but only a fraction become part of full development project.

Question 3

Describe Funnel Model 1

Characteristics
Benefits
Weaknesses
Suitable for

Answer 3

Characteristics:

• wide mouth
• Ideas from R&D
• Uses a series of screens and to gradually reduce number of projects
• Often involving peer review to gather a manageable set of products for market introduction
• Often multiple introduced products

Benefits:
- The several introduced products increases the chances of hitting target with at least one.

Weakness:

• Multiple projects = Expensive, especially as not al projects reach the market.
• Multiple projects = Conflicting interests, People tend to favor their own project and not the best.
• All products may not fit perfectly with strategy

Suites:

• Large companies
• Fast-pased markets and technologies

Question 4

Describe model 2

Characteristics
Benefits
Weaknesses
Suitable for

Answer 4

Characteristics:

• Gathers ideas from outside of the Org.
• One big bet, early in the process

Benefits:

• Few projects = Total commitment by team and also cheaper.
• Total management focus and influence
• All experts in one team ensures higher quality

Weakness:

• If it can’t be done, or the product doesn’t sell you are fucked.
• Not suitable if different market segments exist.

Suites:

• Small companies / start-ups
• Stable and predictable markets

Question 5

Describe Model 3

Characteristics
Benefits
Weaknesses
Suitable for

Answer 5

Characteristics

• Super wide mouth
• Ideas from entire org, not just R&D
• Ideas from outside of organization, e.g. Academy, Supplier, Competition
• A combo of Model 1 and 2
• First screening by cross-func team.
• Second Screening is go-no go made by senior management, passing screen 2 means funding.

Benefits
Weaknesses
Suitable for