Product Development Strategy & Design Iteration

Clement Uwajeneza, AXIS

2011 AXIS

About AXIS
Created in 2006, AxIS is today the Rwandan leader in innovative Software and Web Presence Solutions. AXIS has a team of 12 People (7 ICT Experts) AXIS has successfully implemented more than 20 ICT Projects AxIS was awarded the ICT Best SME 2010 RDB Business Excellence Award. AxIS assists its clients at every stage of their organization sizes in three areas: Information Systems consulting, Software Implementation projects management, Web Presence and eBusiness Solutions.

2011 AXIS

Structure the Lecture

Theory
Concepts related to Product Development Strategy

Cases
Products developed at AXIS Projects conducted for Clients

2011 AXIS

Highlights
New Product Development Strategy New Product Development Design New Product Development Types New Product Development Process New Product Development Levers

2011 AXIS

Why a strategy?
New Product Failures
Overestimating market size Poor marketing research Design Problems Excessive development Costs Incorrectly positioned, priced or advertised Competitive reaction Cases: KIVU Coffee Company MIS RBO

2011 AXIS

New Product Development Strategy

2011 AXIS

NPD Strategy - Approaches

Original Product (ex: Akabanga) Acquisition (ex: Googles Android, MS Skype) Product Improvements (ex: iPhone5 Vs. iPhone4) Product Modifications (ex: Tuza Accounting System) New Brands through R&D (ex: Amazons Kindle)
2011 AXIS

NPD Strategy Value Add

2011 AXIS

NPD Strategy Planning Level

Cases: AXIS RBO eDocs Knownet

2011 AXIS

New Product Development Process

2011 AXIS

New Product Development Types

2011 AXIS

NPD Types

2011 AXIS

New Product Development Process

2011 AXIS

NPD Process

New Product Development Process

2011 AXIS

NPD Process - Opportunity

Internal Sources Company Employees at all level External Sources Customers Competitors Distributors Suppliers Outsourcing

Cases: RBO Tuza Accounting System

2011 AXIS

NPD Process Idea Generation

Cross Functional Team Generate Ideas Brainstorming Suspend judgment Encourage creativity Identify Opportunity Areas Problem solving to bring new ideas to the table Sketching or prototype Idea prioritization Generate New Product Concepts and evaluate against a set of parameters.

Cases: KIVU Coffee Company MIS

2011 AXIS

NPD Process Concept Development

Done by Marketing and/or Advertising Agency Conducting Focus Groups Objectives Judge whether the concept fits the opportunity area, and constraints Refine and / or describe the product concept o What it is : o What benefit(s) will it deliver to the user oKey information size, varieties, package, price Cases: Bus Ticketing System

2011 AXIS

NPD Process Concept Screening

Produce a Concept Board Conduct a survey Representative sample of end users via Internet, Panel Show concept and ask buying intent, uniqueness, value Analyze the results Compare scores to internal criteria, benchmarks, norms Forecast Trial If end user shows interest in trying the product during the trial forecast, then the concept qualifies for development It clears the first stage gate.

Cases: Tuza Accounting System

2011 AXIS

NPD Process Product Development

Initial stages with broad design parameters Produce early prototypes Show and obtain feedback from end users Refine design Fine tune & finalize design Vary formulations on key ingredients Conduct product testing amongst end users Experimental designs offer most powerful learning Optimize final design and packaging

Cases: RBO Tuza AS

2011 AXIS

NPD Process Position Development

Develop positioning Target : Benefit(s) : Frame of Reference : Support Develop communications strategies Media strategy Test & refine copy Qualitative research Communications Check Produce, test and refine the advertisements Conduct final test (Stage Gate Review)

Cases: RBO

2011 AXIS

NPD Process Marketing Plan

Final Positioning Statement Cases: Sales Plan (Who will sell it? : Where will it be sold?) RBO Advertising Media Plan (How will we advertise it?) Promotion Plan Consumer promotion (coupons), Trade promotion (on-sale) Production Plan How will we make it? (make / buy analysis) Financial Plan How do we make the profit necessary to satisfy our share holders? Fixed Costs : Variable Costs : Breakeven : Targeted ROI

2011 AXIS

NPD Process Test Marketing

Two Stages: Simulated Test Market (Beta testing) Live Test Market (On market testing)
Cases: RBO

2011 AXIS

NPD Process Product Development

National expansion of product Develop market rollout plan Can involve significant capital investment Can involve distribution costs Slotting fees : Sales incentives Build product into a Platform Maintain growth and sustain competitive advantage
Cases: RBO

2011 AXIS

New Product Development Levers

2011 AXIS

NPD Levers Time to Market

2011 AXIS

NPD Process Product Development

New Product Development Process is used to reduce the risk of failure, and produce new winning products It should start with an opportunity identification step The Fuzzy Front End considers a lot of alternatives

Business analysis occurs throughout the process

Stage Gates are built in: At the concept test stage to justify development costs At the test market stage to justify going to market. The Marketing Plan includes a comprehensive set of plans that involve Sales, Finance, Promotions, Advertising and Production
2011 AXIS