Module: Phase 1 Conceive
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Phase 1 Conceive
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Module: Phase 1 Conceive
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AGENDA
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Core Concepts
Inputs
Tasks
Tools
Deliverables
Gate Meetings and the Decision Process
Roles associated with the Innovation Process
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Module: Phase 1 Conceive
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EXAMPLE:
COMPASSION INTERNATIONAL
• 1700 ideas
• 35 synthesized and vetted ideas
• Top 20 ideas ranked by executive team
• Market research to identify need an interest
• Top idea moved into the new product development process
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Module: Phase 1 Conceive
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EXAMPLE:
COMPASSION’S WATER OF LIFE
• The Result:
water.compassion.com
– A simple and highly effective water filtering system
for third-world countries
– A successful partnership with Sawyer
– Most successful product launch on radio outlets
– And, hundreds of thousands of kids with clean water!
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Module: Phase 1 Conceive
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THE NEW PRODUCT DEVELOPMENT PROCESS
New Product Development Process –
A process that consists of phases of activities and decision
gates, that produces new and improved products and
services for an organization.
Managed Front
End
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Product
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(AIPMM, 2011)
Module: Phase 1 Conceive
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YOU AND THE NEW PRODUCT DEVELOPMENT
PROCESS
• Big picture:
– Problem
– Voice of the Customer
– Planning for a win
• Core NDP team
• We find answers:
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What are the expressed needs of the market?
What is the stated customer need? What is the job or problem that
drives that need?
Is the job or problem difficult enough to warrant searching for a
solution that customers will pay for?
Module: Phase 1 Conceive
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THINGS TO REMEMBER DURING PHASE 1 CONCEIVE
• Time and effort on the front end reduces time on the back
end.
• Listen to your customers and build solutions for
problems/jobs that the customers will buy.
• Opinions, feelings, and beliefs are worth nothing –
data drives everything.
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(AIPMM, 2011)
Module: Phase 1 Conceive
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INPUTS
• All Managed Front End Documents
• Preliminary Business Case
• Others?
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(AIPMM, 2011)
Module: Phase 1 Conceive
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WHO DOES WHAT
• Innovation Project Team
• New Business Group
• Technical / Development Group
• Marketing / Market Research Group
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(Crawford & DiBenedetto, 2010)
Module: Phase 1 Conceive
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TASKS: PROJECT TEAM
Write or create:
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Project Charter and/or Product Innovation Charter
Concept Statement
Protocol Statement
Feasibility Study
Solution Design Selection
Resource Plan
Outline of a Project Plan
Presentation & Recommendations for Gate Meeting
(Gorchels, 2003)
Module: Phase 1 Conceive
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TOOLS: PROJECT TEAM
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Project Charter and Product Innovation Charter - Template
Concept Statement –Definition and Template
Protocol Statement – Definition and Template
Feasibility Study - Template
Detailed Resource Plan &Project Plan – Project Management
Tools
• Lean New Product Development
• Agile Development
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(Crawford & DiBenedetto, 2010; Gorchels, 2003)
Module: Phase 1 Conceive
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TASKS: NEW BUSINESS GROUP
Update or Create:
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Competitive Analysis
Customer Value Creation Statement
Value to Organization & Value Chain Information
Sales Forecasts
Business Case/Plan
Breakeven and profit projections
Other required financial data
(Gorchels, 2003)
Module: Phase 1 Conceive
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TOOLS: NEW BUSINESS GROUP
• Business Case – template
• Competitive Analysis
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techniques and templates
• Value to Organization & Value Chain Information
• Cost and Time Projections
– techniques and templates
• Sales Forecasts
– expert judgment, historical data, models
• Breakeven and Profit Projections
– Program Return Maps
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(Gorchels, 2003)
Module: Phase 1 Conceive
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TASKS: TECHNICAL GROUP
Create or Design:
– Customer Requirements Document (CRD)
– Product Requirements Document (PRD)
– Updated Determination and Ranking of Benefits, Attributes, and
Features
– Detailed Development Plan
– Regulatory/Agency/Intellectual Property & Licenses Plans
– Alpha Testing Plan of Proposed Solutions (Product Use Testing)
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(Gorchels, 2003)
Module: Phase 1 Conceive
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TOOLS: TECHNICAL GROUP
• Design Tools
• Storyboarding
• Prototyping
• Testing Protocols
• House of Quality and QFD
• Risk Management Tools
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(Product Innovation Educators , 2011)
Module: Phase 1 Conceive
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TASKS: MARKET RESEARCH/MARKETING GROUP
Update, Create, or Conduct:
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Customer Analysis and Market Strategy
Market Research – including Product Strategic Advantage
Marketing Plan
Brand Equity and Positioning
Market Testing Plan
Sales Plan
Distribution and Launch Plan
Program Map
Road Map
(Product Innovation Educators , 2011)
Module: Phase 1 Conceive
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TOOLS: MARKET RESEARCH/MARKETING GROUP
• Market Research Data – primary and secondary data on
markets, competitors, populations, target markets.
• Voice of Customer Tools – storyboarding, focus groups,
interviews, etc.
• Concept Testing – prototypes, focus groups, pseudo sales
• Marketing Plan – forecasts, distribution, selling strategy
• Marketing Strategies – branding strategies, advertising
strategies, social media strategies
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(Product Innovation Educators , 2011)
Module: Phase 1 Conceive
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CONCEPT TESTING EXAMPLE
$100 Concept Test:
logo design, website creation, three 3-D graphical prototypes,
tracking analytics
Source: www.eddyloo.com. Used by permission.
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Module: Phase 1 Conceive
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DELIVERABLES
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Fit to Strategy
Concept Statement
Customer Requirements Document including ranking of benefits, attributes and features
Customer Value Statement
Organizational Value Statement
Market Research including Concept Test Results and Updated Competitor Analysis
Proposed Design for Solution
Alpha Testing Results
Detailed Business Plan
Value Chain
Marketing Plan
Technology Requirements/Risks
Program Map
Road Map
Risk Analysis and Risk Management Plan
Identification of Show Stoppers
Create Regulatory/Agency/Intellectual Property Plans
Recommendation for Gate Meeting
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(Product Innovation Educators , 2011)
Module: Phase 1 Conceive
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KEY DOCUMENTS
• Business Case
• Protocol Statement
• Product Requirements Document
• Marketing Plan
• Market Research Plan
• Project Plan
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Module: Phase 1 Conceive
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BUSINESS CASE: PROJECT DEFINITION, PROJECT
JUSTIFICATION, & ACTION PLANS
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Product concept
Scope of project
Relationship to existing products
Target market and competitors
Expected benefits and value proposition
Features and specifications
Product positioning and price
Business rationale
Strategic impact in core competency assessment
Financial analysis
Risk assessment
Recommended decision
Resource plan
Timeline
Module: Phase 1 Conceive
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PROTOCOL STATEMENT:
DRIVES DESIGN AND DEVELOPMENT
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Target market
Product positioning
Product attributes (features, functions, benefits)
Competitive comparisons
Marketing requirements
Financial requirements
Production requirements
Regulatory and agency requirements
Corporate strategy requirements
Show stoppers
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(Crawford & DiBenedetto, 2010)
Module: Phase 1 Conceive
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PRODUCT REQUIREMENTS DOCUMENT:
COMMUNICATES REQUIREMENTS FOR THE PRODUCT
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Purpose and scope
Stakeholder identification and analysis
Customer analyses:
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Requirements
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Voice of the Customer findings (ranked needs)
User Profiles/Personas
Product use cases
Functional
Performance
Constraints
Interface
Security
Proposed design for solution
Evaluation / Alpha test plan
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(Kotler, 2011)
Module: Phase 1 Conceive
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MARKETING PLAN: DESCRIBES THE MARKET AND
STRATEGIES FOR THE PRODUCT
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Market Description
Product Review
Competitive Review
Customer Review
SWOT Analysis
Positioning Strategy
Pricing Strategy
Distribution Strategy
Marketing Communications Strategy
Market Research
Budgets
Product roadmap
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(Kotler, 2006)
Module: Phase 1 Conceive
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MARKET RESEARCH PLAN: UNDERSTAND THE
MARKET AND CONSUMER
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Competitive Analysis
Voice of the Customer
Concept Testing and Findings
Product Use Testing and Findings
Market Segments
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Module: Phase 1 Conceive
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PROJECT PLAN: FOCUSED ON THE TRIPLE
CONSTRAINT
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Scope & Schedule
Resources
Cost
Risk
IP Plan
Production Plan
Distribution Plan
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Module: Phase 1 Conceive
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KEY DOCUMENTS – ITERATIVE PROCESS
• Business Case
• Protocol Statement
• Product Requirements Document
• Marketing Plan
• Market Research Plan
• Project Plan
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Module: Phase 1 Conceive
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DECISION
Go, No, Send Back, Refer, Park
Gate Meetings are decision points that occur when the
assigned Gate Team meets to review work that has been
done in the Phase. The Gate Team makes decisions about
moving forward (or not) with a new product idea/concept.
Managed Front
End
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New
Product
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(AIPMM Glossary, 2011)
Module: Phase 1 Conceive
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DECISION: GATE MEETING – ROLES
• Gate Team Members
• Presenter
• Innovation Project Team
• Process Manager
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(Product Innovation Educators , 2011)
Module: Phase 1 Conceive
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GATE MEETINGS
Gate Actions
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Review all information, ask questions, identify gaps, etc.
Review of show stoppers
Determine if additional information is needed
Evaluate information against Gate criteria using scorecard or
checklist
• Make Decision: Go, No, Send Back, Refer, Park
• Communicate decision to stakeholders
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(Product Innovation Educators , 2011)
Module: Phase 1 Conceive
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EXAMPLE: PHASE 1 GATE MEETING CHECKLIST
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(Product Innovation Educators , 2011)
Module: Phase 1 Conceive
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Up Next…Plan
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