MKT 611: NEW PRODUCT MANAGEMENT
Fall 2012
Room 248 Gatton College Building
Instructor:
D. Sudharshan, B.Tech. (EE), Ph.D., James and Diane Stuckert BS/MBA Endowed Chair
and Professor, Dean (2003-2011)
Office:
225B Gatton College of Business & Economics
Phone:
859.257.7653
Fax:
859.257.8938
Email:
Sudharshan@uky.edu (preferred method of contact)
Office hours: By appointment
Prior appointments: University of Illinois at Urbana-Champaign, University of Pittsburgh, Siemens,
Larsen and Toubro, Ltd.
September 24 25 27
October
2 3 5 11 12 15 19 23 31
November 2 5 7 12 13 14 15 16 19 20 26 27 28 29 30
Project Connect Dates
Introduction:
At the very outset I would like to make clear that as a best practice in marketing usage the term
product is used to stand for both goods and services.
Innovation and adaptation are the keys to the survival and growth of any business. In particular,
innovations in new products provide the life blood for organizations. This course focuses
descriptively and prescriptively on the management of new products. Success in new product
development occurs when the strategic objectives of the firm and the objectives of its customers
(its exchange partners) are attained. This mutual satisfaction of exchange can occur only if the
firm has a purposeful and well managed internal process that includes a thorough understanding
of its customers, in terms of their values, their purchasing behavior, and their usage behavior.
This course approaches new offering management from a marketing viewpoint.
Task Objectives:
There are five main task objectives of the course:
1. To study and understand the state of the art knowledge on NPD processes and principles.
2. To study and understand state of the art NPD tools and techniques.
3. To study and learn from a wide variety of published NPD cases.
4. To develop a new product concept and business plan, as part of Project Connect, that is
expected to lead to a targeted xxx (please fill in the level that you would use as a hurdle
rate or aspiration level) increase in revenue or new employment opportunities in your
organization (based on respective Project Connect partner’s guidance) by year 5 after the
launch of the new product.
5. To reinforce teamwork and outcome and purpose driven management skills.
Course Philosophy:
I truly believe that learning occurs when we fill in gaps in our knowledge and that such gaps are
made most apparent and meaningful when they are discovered in the process of solving a
problem, building a solution and owning the outcome. The challenges are: to know what the gaps
are and to know how to fill them in correctly. This has a parallel to problem solving in general
and in particular to managerial practice. The parallel is that good managerial practice and
decision making are contingent on defining the problem at hand appropriately. In order to define
a problem appropriately, I believe we have to and do approach a situation with a stock of
knowledge. The better this stock of knowledge, the better we should be at defining the problem
to solve. However, this stock of knowledge may also be an albatross. It may be incomplete (or
wrong), or outdated and so it may limit our worldview. Thus, we have to be humble to admit that
any individual’s stock of knowledge cannot even be as complete as all the knowledge (even on a
topic) that already exists and so as a matter of principle and deliberate operation it is always
helpful to see what else is out there. In other words, to define a problem we need to ensure that
our stock of knowledge is as best as it can be, or to put it crudely, that we have done our
homework. We may find that one’s knowledge stock and available knowledge may not be
sufficient and that is where innovation enters the picture. As we begin to solve the bigger
problem we will encounter smaller problems/questions that need to be answered. Posing these
problems/questions will require a further interaction between one’s knowledge stock,
supplementing it with available knowledge and innovation of new knowledge.
As the instructor my role is to help identify a good starting point of available knowledge, set an
assignment that allows a student to identify knowledge gaps, provide help in understanding
where and how knowledge can be searched for, assist in guiding innovation and testing its
validity and facilitating progress by periodically providing feedback on a student’s progress and
finally providing a relative assessment of a student’s accomplishments in the course.
Course Outline:
1. Central Task
The central task that is assigned to each team is to develop a new product concept
and an accompanying business case and marketing plan that will be in accordance
with the goals of the Project Connect partner.
2. Starting Stock of Knowledge
Two books constitute a stock of knowledge that each student will be expected to
have broad knowledge of before class starts and be able to use as leverage to learn
more deeply to apply to their task. These books are:
a. Robin Karol and Beebe Nelson, (2007), New Product Development For
Dummies, Hoboken, NJ: Wiley Publishing Co. (I realize that you are not
dummies and so no insult is intended)
b. Eric Ries, (2011) The Lean Startup: How Today's Entrepreneurs Use
Continuous Innovation to Create Radically Successful Businesses,
Crown Publishing Co.
Cases assigned for the course may be found at Course Pack Link:
http://cb.hbsp.harvard.edu/cb/access/14663948
Reference books have been placed in The Engineering Library.
3. Flow of Course
a.
Week 1: Understanding the course and its requirements. Develop a first
pass on approaching the core project. Understand how to approach a
marketing research program for new products. Explore the value of
elegance and design in NPD. Learn a collaborative project management
tool.
b. Week 2: Develop the strategic goals, constraints and domain for your NPD
efforts. Develop a methodology for performing a competitive analysis.
Develop a methodology to identify gap(s) to be filled by your new product
efforts. Develop an ideation charter: how will you obtain ideas, how many,
how will you screen them out or in, set goals and schedules.
c. Week 3: Develop a methodology to estimate market potential. Develop a
methodology to estimate costs. Develop a methodology to design a supply
chain.
d. Week 4: Perform competitive analysis. Identify gaps. Develop a new product
charter. Perform ideation.
e. Week 5: Evaluate ideas. Iterate till satisfied with a short set of ideas to
proceed with.
f. Week 6: Develop concepts to point of testability. Begin testing chosen
concept.
g. Week 7: Develop artifacts and continue iterative development and testing till
satisfied.
h. Week 8: Develop a market test and entry plan. Ensure that objectives are met.
i. Week 9: Develop final report and presentation.
j. Week 10: Final Business case due. Final presentations and receive thanks and
celebrate.
4.
Sources for State of the Art Knowledge
a. Product Development Management Association. PDMA is the premier
advocate and comprehensive resource for the profession of product
development and innovation. http://www.pdma.org/
b. American Marketing Association.
http://www.marketingpower.com/Pages/default.aspx
c. Journal of Marketing
d. Journal of Marketing Research
e.
f.
g.
h.
i.
j.
Management Science
Marketing Science
Research Policy
Journal of Innovation and Technology Management
Journal of Product Innovation Management
University of Kentucky Library (The above journals and more are
available in electronic form through UK) http://libraries.uky.edu/
5. Sources for State of the Art in Practice Knowledge
a. Cases from Harvard Business, European School Case Clearing House
(www.ecch.com), Intercollegiate Case Clearing House
(http://openlibrary.org/authors/OL4506240A/Intercollegiate_Case_Clearin
g_House_%28Boston%29)
b. Wired
c. Fast Company
d. Inc.
e. Bloomberg Business Week, The Economist, Fortune, Forbes
f. Various blogs
g. Google Trends
h. Robert. G. Cooper, 2011, Winning at New Products: Creating Value
Through Innovation, Basic Books (http://www.proddev.com/cooper_edgett.php). Links to a hyperlinked version of an earlier
edition with Excel templates (several folders with several files in each)
i. Robert. G. Cooper and Scott J. Edgett, 1999, Product Development for
the Service Sector, Perseus Books
j. Robert. G. Cooper, Scott J. Edgett and Elko J. Kleinschmidt, 2001,
Portfolio Management for New Products, Perseus Boks. Links to a
hyperlinked version with Excel templates; Service Platforms
k. Glen L. Urban and John R. Hauser, 1993, Design and Marketing of New
Products, Prentice Hall
l. Marc Meyer and Alvin Lehnerd, 1997, The Power of Product
Platforms, Free Press. Links
m. Michael J. Roberts; Lauren Barley, Feb 02, 2012, How Venture Capitalists
Evaluate Potential Venture Opportunities, 805019-PDF-ENG HBS Case
n. Richard G. Hamermesh; Paul W. Marshall; Taz Pirmohamed, Feb 02,
2012, Note on Business Model Analysis for the Entrepreneur, 802048PDF-ENG, HBS Case
6. Deliverables (Specific requirements are provided in Section 9)
a. Demonstration of awareness of stock of knowledge (Individual)
b. Demonstration of ability to access, learn and discuss one state-of-the art
knowledge article from an academic publication (Individual)
c. Presentation/Pitch to board of decision makers to get the project funded
(Team)
d. Demonstration of the ability to access, learn and use state-of-the-art
practice knowledge (Individual)
e. New product concept artifact (Team)
f. Business case for new product (Team)
g. Demonstration of ability to diagnose and solve a business dilemma.
Analyze 2 instructor selected cases (problem definition, situation analysis,
specification of alternatives and their analysis and recommended solution)
in format provided (Team)
h. Demonstration of ownership of knowledge acquired in course- concepts,
tools, analytics, insights (Individual)
7. Suggested List of Reference Books: For your convenience these books have been
placed on reserve in the Engineering Library. (This library will only be open until
9pm Mondays-Thursdays. They close at 4:30pm on Fridays and
are not open at all over the weekends.)
Fast Cycle Time by Christopher Meyer, Free Press, 1993
Product Design and Development by Karl T. Ulrich and Steven D.
Eppinger, McGraw Hill, 1995
Marketing Norms for Product Managers by F. Beaven Ennis, Association
of National Advertisers, 1985
Marc Stickdorn, Jakob Schneider, (2010) This is Service Design Thinking:
Basics - Tools – Cases, B IS Books, Amsterdam; The Netherlands
Product Management by Donald R. Lehmann and Russll S. Winer, Irwin
Simulated Test Marketing by Kevin Clancy, Robert S. Shulman and
Marianne Wolf, Lexington Books, 1994
The Sources of Innovations by Eric von Hippel, Oxford University Press,
1988
Customer Connections by Robert E. Wayland and Paul M. Cole, Harvard
Business School Press, 1997
Marketing Strategy by D. Sudharshan, Prentice Hall, 1995
Power Pricing by Hermann Simon and Robert J. Dolan, Harvard Business
School Press, 1999
Inside the Tornado by Geoffrey A. Moore, HarperBusiness, 1995
Smart Pricing: how Google, Priceline, and leading businesses use pricing
innovation for profitability by Jagmohan Raju and Z. John Zhang, Prentice Hall,
2010
Steve Jobs: an authorized biography by Walter Isaacson, Simon &
Schuster, 2011
Digital Body Language by Steven Woods, New York Publishing LLC,
2009 (recommended by Paul Rooke, President Lexmark)
Strategic management of technology and innovation by Robert A.
Burgelman, Clayton M. Christensen and Steven C. Wheelwright, McGraw-Hill
Irwin, 2004
Various books by Clayton M. Christensen
Creativity in Product Innovation by Jacob Goldenberg and David
Mazursky, Cambridge University Press, 2002
Other Resources (If the links do not work, copy and paste the URL)
Innovation
Entrepreneurship
Technology
NPD Process
Project Management
New Product Marketing
Consumers
Design
Magazines
DIGITAL
PRINT
Innovation
Inspired Innovations
http://www.blueoceanstrategy.com/downloads/
Case%20Summary%20final%20for%20web.p
df
http://www.blueoceanstrategy.com/
Lessons From Breakthrough Strategic Moves
Over the Last Century
Harvard n°: BOS 010
TN:Harvard n°: BOS 011
http://www.quirky.com/
http://www.slideshare.net/venturehacks/thelean-startup-2
http://www.startuplessonslearned.com/2009/08
/minimum-viable-product-guide.html
http://www.slideshare.net/startuplessonslearne
d/eric-ries-lean-startup-fundamental-feedbackloop-and-workshop-info-from-web-20-expoleanstartup
http://www.mayoclinic.org/development/scienc Jacob Goldenberg and David
e-of-health-care-delivery.html
Mazursky,(2002), creativity in product
innovation, Cambridge University
press
Genrich Altschuller, (1996), And
suddenly the inventor appeared,
Technical innovation center, Inc.
Xerox Parc videos/presentations
http://www.slideshare.net/parcinc
Innometer
http://www.tataquality.com/UI/APage.aspx?Se
ctionId=030409155445797804
Open Innovation
http://ibmnews.tmcnet.com/news/2011/09/30/5818931.h
tm
Tom Kelly and Jonathan
Littman,(2005),The Ten Faces of
Innovation: IDEO's Strategies for
Defeating the Devil's Advocate and
Driving Creativity Throughout Your
Organization, Doubleday
The Lemson Center podcasts
http://invention.smithsonian.org/video/
Listening In Urban and Hauser
Web page Morphing Urban et al
Designing in Word of Mouth
Worthiness Kraft et al
Entrepreneurship
Lean Entrepreneurship
http://venturehacks.com/articles/minimumviable-product-examples
http://ecorner.stanford.edu/authorMaterialInfo.
html?mid=2289
Eric Ries, (2011), The Lean Startup:
How Today's Entrepreneurs Use
Continuous Innovation to Create
Radically Successful Businesses ,
Crown Publishing Group.
Technology
http://www.slideshare.net/PARCInc/howtechnology-is-recreating-the-21stcenturyeconomy-parc-forum
http://techcrunch.com/2010/03/25/build-a-bettermousetrap/
http://www.fastcompany.com/magazine/147/builda-better-mousetrap.html
Avinash Kaushik,(2010), Web Analytics 2.0:
The Art of Online Accountability and Science
of Customer Centricity, Wiley Publishing.
Animation Dynamics Kate Ertman@GOK8
Profiting From external Innovations
Alar Kolk
When Machines Run The World Brian
Arthur
Internet Trends 2012 Mary Meeker
NPD Process
Robin Karol and Beebe Nelson,
(2007), New Product development for
Dummies, Wiley Publishing.
http://wn.com/New_Product_Develop
ment_The_Product_Innovation_Charte
r
Ulaga W, Reinartz W. Hybrid
Offerings: How Manufacturing Firms
Combine Goods and Services
Successfully. Journal Of Marketing
[serial online]. November
2011;75(6):5-23.
IfM and IBM. (2008). Succeeding
through service innovation: A service
perspective for education, research,
business and government. Cambridge,
United Kingdom: University of
Cambridge Institute for Manufacturing.
ISBN: 978-1-902546-65-0.
http://wpcarey.asu.edu/csl/upload/080
501_Cambridge_SSME_Whitepaper.p
df
Legalzoom.com
Project Management
AVATA http://www.avatatech.com/
New Product Marketing
Glen L. Urban and John R. Hauser,
(1993) Design and Marketing Of New
Products (2nd Edition), Prentice Hall
Advertising_Templates
Global Advertising Trends
http://www.google.com/doubleclick/adv
ertisers/dfa.html
doubleclick_for_advertisers.pdf
Consumers
Dev Patnaik, (2009) Wired to Care:
How Companies Prosper When They
Create Widespread Empathy , FT
Press, Upper Saddle River, NJ.
Steven Woods, (2009), Digital body
language, New York publishing LLC,
Danville , Ca
Dan Ariely, (2010), Predictably
Irrational, Revised and Expanded
Edition: The Hidden Forces That
Shape Our Decisions, Harper Collins
Dan Ariely, (2010), The Upside of
Irrationality, HarperCollins
V. S. Ramachandran,
(2011), The Tell-Tale Brain: A
Neuroscientist's Quest for What Makes
Us Human, W.W. Norton and
Company
Word Of Mouth Worthiness Kraft et al
Design
Design blog from my learning notes
Marc Stickdorn, Jakob Schneider,
(2010) This is Service Design
Thinking: Basics - Tools – Cases, B IS
Books, Amsterdam; The Netherlands.
Magazines
McKinsey Quarterly(http://www.mckinseyquarterly.com/home.asp)
AdAge(http://www.adage.com/)
American Demographics (http://www.inside.com/default.asp?entity=AmericanDemo)
BusinessWeek Corporate Interviews (www.businessweek.com/mediacenter/)
8. Some Templates to consider as starting points:
a. http://www.planware.org/businessplansoftware.htm
b. http://www.planware.org/marketingplansoftware.htm
c. http://office.microsoft.com/enus/templates/results.aspx?qu=business%20plan&CTT=1
d. http://office.microsoft.com/enus/templates/results.aspx?qu=new+product+plan&ex=1&CTT=1
e. http://know.about.com/Business_Case
f. http://www.prospringstaffing.com/Resource/HowtoBuildaBusinessCase.p
df
g. http://www.subjectivelyspeaking.net/2010/09/29/writing-a-business-case/
h. http://owl.english.purdue.edu/owl/resource/590/1
i. http://www.businessplanpro.com/500_samples_business_plans.php
j. Useful pruning/ editing tips
http://writingforresults.net/Acro_3/4_msg/2_format/4-p_memo.pdf
k. http://www.demandmetric.com/content/product-development-strategymethodology
l. Market Thinker
m. Target Cost and Conjoint Analysis Based Design Specification (Excel
Spreadsheet example)
9. Course Assignments and evaluation:
The assignments are to help you advance in all of the areas below:
Knowledge: Do you know the material?
Use of knowledge: Are you able to use the appropriate knowledge?
Gap identification: Are you able to know what needs to be known?
Knowledge access and search: Are you able to access the material
that is needed for the task at hand?
Use of analytics: Are you able to use the appropriate analytical
tools?
Insight: Are you able to make new connections among ideas,
concepts, customer needs, capabilities, etc. that (a) you did not
have before, and (b) you had to show others?
The assignment/evaluation items correspond to the deliverables listed in
Section 5.
You will be evaluated on your work products. Remember the
only way that others know that you know is if you can
explain/demonstrate your knowledge to them!
Your work products should exude passion and confidence and
appropriate accuracy and precision for them to be persuasive
and make an impact.
Accuracy depends on what you say you are wanting to measure.
For example, one needs a simpler instrument to measure
accurately whether it is day or night than it is to measure time
in hours, minutes and seconds. Similarly, the instrument to to
say whether a powder is a detergent or powdered milk is a
simpler one than one to determine how well a powder acts as a
detergent or how pure a powder is.
As you start to develop a business case, it will inevitably be a
set of rough ideas that iteratively will become increasingly
sharper and will eventually appear to be accurate and perhaps
precise at the right level of focus or perspective. The more
accurate and precise a document feels to readers, the more
confidence it inspires in them. Since you are attempting to
perform for or influence an audience you need to understand
how they will feel or evaluate the accuracy or precision of your
plan and assess your confidence in order to make your case.
This may involve showing your audience a way to evaluate
your case.
Assignment
Objecti Delive Due
ves
rables date
Book report on New
Product Development
For Dummies
1.To
kick
start
the
course
2.To
provide
the
starting
vocabu
lary
and
overarc
hing
ideas in
NPD
3.To
build a
high
enough
1.
State
ment
that
you
have
read
the
book
2. List
of
questi
ons
that
you
still
have
First
day
of
class
Evalua
tion
dimen
sions
Eval
uatio
n
Weig
ht
Compl Must
etion
comp
of
lete
assign to
ment
start
cours
e
awaren
ess of
stock
of
knowle
dge
Maintain Journal
1.
(Individual)
Record
of what
was
done
2. Selfassess
ment of
progres
s on
goals
Case analyses (2)
1.
(Team)
Develo
Course Pack Link:
p
http://cb.hbsp.harvard ability
.edu/cb/access/14663
to
948
define/
diagnos
ea
manage
rial
proble
m at
the
right
level
and in
an
actiona
ble
fashion
2.
Sharpe
n the
One
Week Accur
page
ly
acy,
memo
amoun
t of
effort,
insight
5%
(Indi
vidua
l)
1. One
page
memo
as per
specifi
cation
s
provid
ed
in
Link1.
Appen
dices
are
permi
ssible.
2.
Expla
nation
of
why
these
two
10%
(= 2*
5%)
(Tea
m)
Set
your
own
sched
ule
but
let
instru
ctor
know
by
week
2
Thoro
ughne
ss, use
of
availa
ble
knowl
edge
(conce
pts,
frame
works
and
analyti
cal
tools),
insight
s,
believ
ability
use of
logic
and
insight
to
develo
p
alternat
ive
solutio
ns
3.
Learn
to
clearly
underst
and the
assump
tions
necessa
ry to
arrive
at a
recom
mendat
ion
4.
Learn
to
arrive
at a
persuas
ive
recom
mendat
ion
5.
Learn
to
commu
cases
were
chose
n and
not
the
others
.
Report on an
academic paper
(Individual)
Business case for
new product (Team)
nicate a
case
analysi
s
1.Learn
to
identify
an
academ
ic
paper
that
will
improv
e your
core
task
2.Dem
onstrat
e
ability
to
transfer
state of
the art
knowle
dge
Develo
p and
demons
trate
ability
to
persuas
ively
make a
case for
a new
product
1.One
page
report
2.Oral
presen
tation
to
team
Set
your
own
sched
ule
but
finish
by
week
8
5%
(Indi
vidua
l)
1.
Draft
sectio
ns of
busine
ss
case
LINK
3
2.
Final
busine
1.For
drafts
, set
your
sched
ules
and
provi
de to
the
instru
ctor
60%
(=40
%
instr
uctor
s,
20%
client
s)
(Tea
m)
concept ss
case
docu
ment
3.Pres
entati
on
Class participation
(Individual)
by
week
2.
The
dates
shoul
d also
be
part
of
your
proje
ct
mana
geme
nt
sched
ule.
2.For
the
final
report
the
due
date
is any
time
durin
g the
last
week
Develo In
Obser
p
class vatio
ability observ ns in
to
ation class
demons
by
trate
instru
knowle
ctor
dge and
to
Extent
of
partici
pation,
insight
s
shown
,
ability
10%
(Indi
vidua
l)
inform
a group
discuss
ion
Contribution to team Develo
(Individual)
p
ability
to work
and be
a team
leader
to lead
group
opinio
n,
ability
to
inspire
confid
ence,
help
class
in
seeing
a
situati
on in a
new
way
Team To be
feedb assign
ack
ed by
team
memb
ers
based
on
their
assess
ment
of the
leader
ship
exhibit
ed in
the
team
(every
team
memb
er has
10%
(Indi
vidua
l)
Concept artifact
(Team)
the
opport
unity
to
exhibit
leader
ship)
Develo Comp Latest Aesthe
p an
lete
by
tics,
underst artifac final useful
anding t
prese ness,
of the
ntatio integra
value
n
tion
of
into
artifact
persua
s, how
sivene
to
ss of
create
busine
them
ss case
and use
(See
them
3M
persuas
laser
ively
disc
examp
le)
Nece
ssary
to
obtai
n
grade
Total
100
%
10. Essential parts of business case:
Business case parts: use appropriate vocabulary, tools, frameworks and
insights
1. Background
2. Understanding of corporate strategy and need for new product (Product
innovation charter)
3. Competitive environment
4. Understanding of customers
5. Fit to company
6. Why should customers be expected to change their behavior?
7. Marketing plan
8. Expected results
9. Risk assessment and management
10. Process Management Plan
11. One Page Memo
(http://extremepresentation.typepad.com/blog/2006/09/the_pg_1page_me.html) SORRY
THIS LINK IS NO LONGER WORKING_ 10/15/2012
1. The Idea. What are you proposing? This is typically one sentence.
2. Background. What conditions have arisen that led you to this recommendation? Only
include information that everyone agrees upon in the Background - this is the basis for
discussion, so it needs to be non-debatable.
3. How it Works. The details. In addition to How, also What, Who, When, Where.
4. Key Benefits. This is the "Why?" There are usually three benefits: the recommended
action is on strategy, already proven (e.g. in test market or in another business unit), and
will be profitable. You can think of these three in terms of the old Total Quality mantra of
"doing right things right." The first (on strategy) means you're doing the right thing. The
second and third mean you're doing things the right way, because you're being effective
(proven to work) and efficient (profitable).
5. Next Steps. Who has to do what and by when for this to happen?
12. Product Innovation Charter
A typical Product Innovation Charter may contain
(http://www.brainmates.com.au/brainrants/the-use-of-a-product-innovation-charter-inproduct-development;
http://wn.com/New_Product_Development_The_Product_Innovation_Charter):
A. Background
The background of a PIC includes key points from a PEST analysis (Political,
Economic, Social, and Technology) or situation analysis.
Questions addressed in this section of a PIC may include:


What is the business about?
Why has this strategy been developed?
B. Focus
The focus of a PIC includes the company’s core competencies and how best to use the
company’s core competencies to derive value.
Questions addressed at this stage of a PIC may include:

What are your company’s core competencies?
What is your company’s competitive advantage and the value that your company
can bring to the target market?
 What are your advantages in relation to your target market’s needs, wants, and
consumption trends?
 What are your company’s marketing capabilities?

C. Goals and Objectives
The goals and objectives section describes the company’s short term and long term
objectives of the new product. The goals and objectives should be measurable.
D. Guidelines
The guidelines component of the PIC is essentially a road map written by the Product
Manager for the entire organization. It includes the time and entry to market, costs,
product quality and so forth.
Having a PIC doesn’t necessarily guarantee success but it is nevertheless important to
chart your product’s entrance into the marketplace.
13. Cases
Course Pack Link: http://cb.hbsp.harvard.edu/cb/access/14663948
There are four cases assigned for class discussion. Every student is expected to be
prepared to participate in discussing every case in-class.
Each team is expected to provide a written analysis of any two cases from the set of
four.
The four cases are:
American Well: The Doctor Will E-See You Now (Harvard Business Publishing, 9510-061, June 11, 2010)
Optical Distortion Inc. (HBS Premier Case Collection, 575072, January 01, 1975)
Flare Fragrances Company, Inc.: Analyzing Growth Opportunities (Harvard Business
Publishing, 4551, May 5, 2010)
Millipore new product commercialization: a tale of two products (Harvard Business
School 594010, July 13, 1993)
Other interesting cases
State Street Bank and Trust Co.: New Product Development
(Harvard Business School Publication, 696087, March 21, 1996)
Strategic Industry Model: Emergent Technologies (Harvard Business School 592086,
March 17, 1992)
Design Thinking and Innovation at Apple (HBS Premier Case Collection 609066,
January 09, 2009)
Rohm and Haas (A): New Product Marketing Strategy (HBS Premier Case Collection
587055, August 06, 1986)
GUEST SPEAKERS
Tue Sept 25
Michael Speaks (UK- College of Design)
Wed Sept 26
Eswar Subramanian UK MSME (AVATA Tech)
Wed Oct 3
Mon Nov 5
Wayne Fisher (P&G)
Vishnu Sivagnanalingam UK BSME and MBA
(Nissan)
Suggested Readings by Topic:
Books from which suggested readings have been chosen:
Winning at New Products: Accelerating the Process from Idea to Launch by Robert
G. Cooper, 3rd edition, Perseus Books, 2001
Managing the new product development process by Robert J. Dolan, Addison
Wesley, 1993
Concurrent Engineering: The Product Development Environment for the
1990s by Donald E. Carter and Barbara Stilwell Baker, Mentor Graphics Corporation, 1991
TOPIC
Week 1
Introduction to course
Introduction to students
Introduction to professor
Week 1
Introduction to Design
thinking
Objectives
1. To create a collaborative climate
2. To create an inquiry orientation
3. To understand what the course requires
READINGS
Pre-readings + Syllabus
1. To introduce the importance of design in
NPD
2. To highlight the need to incorporate design
principles from the very beginning
Marc Stickdorn, Jakob Schne
This is Service Design Think
Tools – Cases, B IS Books, A
The Netherlands
Week 1
New Product Success
Factors
1. Know how to measure NPD success
2. Know what factors are associated with NPD
success
3. Know what factors are associated with NPD
failure
Week 1
Advanced topic: How
product markets change
1. To understand the nature of disruptive
technologies and how to manage markets
anticipating them
2. To understand how knowledge, technology
and product markets are linked
1. “PDMA’s Success Meas
Project: Abbie Griffin an
JPIM, Nov 1996 and 19
published 2009.
2. Winning at New Produc
Cooper ch 3 and 4
1. “Disruptive Technologie
wave,” Joseph L. Bower
Christensen, Harvard Bu
1995, January-February
2. HP Disruption Example
3. “The Role of Boundarie
Market Emergence:
A Multidisciplinary Con
Methodological Framew
Teresa Alexandre, Olivi
Sudharshan, 2001. Slide
4. “Where do markets com
Harrison C. White, Ame
Sociological Review, vo
November 1981, pp. 517
Week 1
Process topic: Quality
Function Deployment
(QFD)
Weeks 2 and 3
Step 1: Market Selection
Weeks 2 and 3
The Product
Development
Environment
1. To understand a disciplined approach to cross
functional communication in new product
development
2. To understand how to use a voice of the
customer approach through a simple example
1. Know the factors that are important to market
selection
2. Understand how to perform and use market
profile analysis
1. Understand the key changes in product
development engineering environments
2. Distinguish between committed costs and
incurred costs in NPD
3. Know and be able to use a framework for
calculating the cost of being late to market
Weeks 2 and 3
Step2: Concept/Idea
Generation
1. To know alternative ideation techniques that
are available
2. To be able to understand and use lead user
analysis
Week 2:
Process topic 2: The
Stage Gate Process
1. To understand what a stage gate process is
2. To know how to use a stage gate process
Week 3
Market segmentation
across the life cycle
1. To understand the life cycle qualitatively
2. To understand differences in high tech
customer segments across the life cycle
3. To understand product development goals
across the diffusion curve
1. To understand how a single product diffuses
over time
2. To be able to model a diffusion process
3. To calculate sales at peak To calculate time
to peak
Week 4
Back to basics: market
understanding and
management
1. “House of Quality,” Joh
Don Clausing, Harvard
Review, May-June 1988
2. Exercise
1. Urban and Hauser Chapter 4
2.HP Return Analysis
1. Carter and Baker Chapte
2. Business Week data
3. Urban and Hauser Chap
Table 4.3
4. The inverse of square ro
entry rule from: “Order
Established empirical ge
emerging empirical gene
future research,” Gurum
Kalyanaraman, William
and Glen L. Urban. Mar
vol. 14, no. 3 part 2 of 2
G212-G221.
1. “Creating Breakthrough
von Hippel, Stephan Th
Sonnak, Harvard Busine
September-October 199
2. Lillien’s evaluation pape
3. Short paper for small bu
Winning at New Products by Ro
Cooper Ch 5 and 11
Skim: Inside The Tornado by Ge
1. Urban and Hauser Ch 4
2. Exercise
3. “Diffusion of New Prod
generalizations and man
Vijay Mahajan, Eitan M
Bass, Marketing Science
no. 3, part 2of 2, pp. G 7
Week 4
Step 3: Concept
Optimization-Conjoint
analysis (Marketing
Research)
1. To know what conjoint analysis is
2. Know the steps involved in performing
conjoint analysis
TOPIC
Objectives
To understand how
conjoint analysis can be
used
To understand the process
by which conjoint analysis
may be best used
To understand the basics
of perceptual mapping
An introduction to
trial/repeat models
Week 4
Step 3: Concept
Optimization-Conjoint
analysis
1.
Week 4
Step 3/4: Concept
optimization/Pre test
marketing- Perceptual
and preference mapping
(Marketing Research)
Week 4
Step 4: Pre test marketing
alternative method
1(Marketing Research)
Week 4
Step 4: Pre test marketing
alternative method 1
(contd.) (Marketing
Research)
Week 4
Step 4: Pre test marketing
alternative method
2(Marketing Research)
1.
Week 5
Beta Testing and Test
marketing
1. Know how to conduct test
markets
2. Know the principles of test
marketing
2.
2.
1. To know how Assessor
Conjoint Analysis: A Manager’s
pp. 111-128
Three Sensory Systems
READINGS
Example Case: Strategic Industry
Model: Emergent Technologies
Perceptual Mapping: A Manager’s
Guide in Dolan pp. 95-111
Forecasting share
Case: Johnson Wax (A)
works
2. To make decisions based
on Assessor results
To understand in detail how
Assessor calculations are made
1. To know how Bases works
2. To make decisions based
on Bases results
Case: Johnson Wax (B)
Case: Nestle Refrigerated Foods:
Contadina Pasta & Pizza (A)
Read: “Clancy, Shulman and Wolf
ch 4, pp. 49-78
1. Urban and Hauser ch 16
pp. 472-474
2. Urban and Hauser ch 17
3. Industrial Market
3. Know how to make the
decision to test market
Week 6
Advanced topic: Product
platform thinking
Advanced topic: Multi
generation market
management
1. To know the meaning of
product platforms
2. To know how to achieve
sustained success in new
product development by
renewal of platform
architectures and their
manufacturing processes
by integrating advances in
core product and process
technology development.
3. To know a process for
defining platform strategy
in company.
4. To apply the concept of
product platforms to
services
5. To know the difficulties in
transitioning from single
product thinking to
platform based service
development
1. To understand the timing
of product introductions
2. To understand and make
choices in responding to
competitor’s new
generation product
Research: Beta test
Management by Robert J.
Dolan Note 6 pp. 221-232
4. Eric Ries, (2011) The Lean
Startup: How Today's
Entrepreneurs Use
Continuous Innovation to
Create Radically
Successful Businesses,
Crown Publishing Co.
5.
1. The Power of Product
Platforms by Marc Meyer
and Alvin Lehnerd, Free
Press, 1997 chapters
2. “Perspective: Creating a
platform-based approach
for developing new
services,” Marc C. Meyer
and Arthur DeTore, Journal
of Product Innovation and
Management, 2001, vol.
18, pp. 188-204
1. “Timing, Diffusion, and
Substitution of Successive
Generations of
Technological Innovations:
The IBM Mainframe
Case,” Mahajan, Vijay and
Eitan Muller,
Technological Forecasting
and Social Change, 1996,
51 (2), 109-32.
2. “Optimal response to a
next generation new
product introduction: to
imitate or to leapfrog?” D.
Sudharshan, Ben ShawChing Liu and Brian
Ratchford, 2001
Process topic: The
Organization Assessment
tool
More about the
environment: The
Product Development
Environment
1. Know key characteristics
of the organization related
to NPD
2. Know how to use the
organizational assessment
tool
1. Understand the key
changes in product
development
environments-food
industry
2. Know differences in
product development
environments between
regions of the world in the
food industry
3. “Dynamic capabilities,
multiple product
generations and market
rhythm management,”
Scott G. Dacko, Olivier
Furrer, Ben Liu and D.
Sudharshan, 2001
Concurrent Engineering: The
Product Development Environment
for the 1990s by Donald E. Carter
and Barbara Stilwell Baker, chapter
3, pp. 70-95
Assessment Tool
Reuters Business insights (book) pp