WELCOME to the NEW PRODUCT MANAGEMENT WORKSHOPS BADM 597B- SUMMER What is the Purpose of the NPD workshops?

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1 WELCOME to the NEW PRODUCT MANAGEMENT WORKSHOPS BADM 597B- SUMMER 2012 Instructor: Dr. Pelin Bicen Office and phone : Burke (814) pxb40@psu.edu Office Hours: M/W 5 pm-6 pm (or by appointment) Meeting times and location: M/W 6:00-9:30 pm Burke 207 What is the Purpose of the NPD workshops? This course is designed as a workshop series. In each workshop, we will be working not only on the challenging task of developing elegant and innovative solutions to strong customer needs, but also on how to creatively market these ideas in the form of products and services. This challenge is common for start ups and large companies, for selling products and services, for individual customers and companies. We will discuss the state of the art frameworks, concepts, and tools that have been recently validated by innovative companies. The structure of the workshop discussions will follow the basic steps of the product development process: (1) how to identify market opportunities (2) how to generate concepts based on these opportunities (3) how to evaluate concepts (4) how to design (5) how to launch New products management can be thought from many perspectives such as enginneering, marketing, and management. The core essence in these workshops will be marketing. NPD workshops will be dynamic, interactive, and an application oriented; and applications will require open-mindedness and creativity. Briefly, I welcome all of you to the land of creative explorations! How you will navigate in the workshops? I will heavily communicate with you through your . Please check your account regularly. I will also post several articles on Angel. You can access ANGEL at the following URL What to read to get most out of the workshops? Instead of inundating you with a required text book, I have selected several up-to-date articles that are critical for your understanding of the product development process. In return, I expect in-depth, critical reading and not skimming the material while on treadmill. I will post the cases and articles on Angel and notify you in advance. For those of you interested to learn the NPD process in a more structured and theoretical way, here are two of my favorite books. I will also be happy to make additional reading suggestions. 1

2 New Products Management by Merle Crawford and Anthony Di Benedetto, 10 th edition, McGraw-Hill, ISBN # Product Design and Development (5 h edition) by Karl Ulrich and Steven Eppinger, McGraw-Hill, ISBN# How will you be assessed in the workshops? There will be three parts in the assessment procedure: (1) contribution to workshop discussions (2) individual assessment (3) team project. Let s have a closer look at each of these assessments: (1) contribution to workshop discussions (20 %): Reading assignments will be posted before the workshop sessions. You will be notified in advance about the upcoming articles. Discussions will revolve around these articles and relevant workshop exercises. Contribution will be judged by quality, not quantity. I will evaluate how your contributions enhance both the content and process of a discussion. You can also share interesting materials with workshop participants. (2) individual assessment (a- 25 %; b- 5 %): (a) You will be maintaining an NPD journal throughout the team project, to be turned in at the end of the sixth week. Journals will be written by each individual and include your individual creative thinking pertaining your project. Think of it as a diary. You are in a free flow in writing this diary: You may sketch and/ or paste pictures, attach business cards, create mind maps or embrace any other way for you to capture ideas, thoughts, and reflections about your product and project. The main purpose in maintaining this diary/journal is to capture ideas about the product itself as you move through the process, but also to document thoughts, reflections and insights on the process of product development process and group dynamics. Inventors use journals as it helps to document when they come up with an original idea (useful in the patenting process); engineers do this to work out complex technical details; and designers do this to generate lots of ideas (as ideas feed off of one another); project managers use journals as a management tool to generate "lessons learned" and "best practices" to help run future product development projects more effectively. You can tailor your journal to your own working style and your unique role within your project team. I will be the only person who sees these journals; no one else will see them unless you choose to share. Your design journal will count towards your individual assignments grade. (b) Pick a company with excellent NPD capabilities and prepare at most a two page summary explaining what makes them excel in the following areas (it can be one or many): (a) identifying market opportunities/understanding customer needs, (b) translating customer needs into outstanding product/service, or (c) launch and market successfully. (3) Team project (40 %): term project will be assessed based on the content and presentation. I will be looking to determine how well you are able to come up with an NPD strategy, identify market gaps and relevant customer needs, translate customer needs into several concepts, evaluate those concepts and turn them into profitable products, and define the value proposition. In addition, I will gather information from all teams on relative contributions to the group project and use appropriate weighting to arrive at the individual scores. You can find the details about the term project at the end of this syllabus. 2

3 Notes and highlights: (a) Grading is not curved. However, attending class everyday and actively participating may improve a student s grade to the next level, if the grade is up-to-three points close to that level, if you are in class everyday and actively participate, it will be raised to the next level. These grade points are firm! (b) You are given 15 bonus pts already. When you don t meet the bonus pts requirements, the pts will be deducted from your account. What are the core policies in workshop conducts? There are five core elements in the team policies of the class: positive interdependence, face to face interactions, individual accountability, social skills, and team processing. Positive interdependence means your success depends on your team s success. The sense of interdependence is made possible by having a common team goal and vision, shared resources and rewards, and complementary roles. Face to face interaction means you are expected to work together, and I will provide encouragement, early and fast feedback. Individual accountability means you will use your individual abilities and talents to ensure the success of the team. You will work in teams to process term project, discussions, and an in-class work, this process helps you to develop social skills and team management skills that are crucial in the workplace. Your group will evaluate all individuals during the semester and this will definitely be taken into account when your grades are assigned. Groups reserve the right to fire a member after consulting with me. You are expected to attend all class sessions and to have read the assigned materials prior to each session. I will not be taking any formal attendance in the classroom. However, there will often be in-class discussions that I will be evaluating. When you miss any activity without any formal excuse, you will get zero (0). There will not be any MAKE-UP for the missing assignments if you do not provide a legitimate reason IN ADVANCE! In-class work (discussion exercises and case studies) can not be made up if you are absent. When you miss a class, you can get the copy of the class notes from your class mates. Also be sure to check ANGEL and your account regularly. You can also meet me by appointment to ask questions about the missing classes. I am always here to help you. Standards of academic integrity will be observed in accordance with Penn State policy, as detailed in Operating Policy (you can find an excerpt from it at the end of the syllabus). Special accommodations to students with disabilities will be made, as detailed in Operating Policy. Student absences for the observance of religious holidays will be allowed, as detailed in Operating Policy. 3

4 What is the assessment structure? POINTS Contribution to workshop discussions 200 pts (20 %) Team project 500 pts (50 %) Individual assignments 300 pts (30 %) TOTAL 1000 pts SCALE LETTER GRADE A A B B B C C D < 599 F DATE May 14 th What is the Workshop Schedule? TOPIC New Product Development Process/ Creativity NPD Project Workshop and Team work orientation W1 May 16 th Opportunity Identification and Selection: Strategic Planning for New Products May 21 st Finding and Solving Customers Problems W2 May 23 rd Analytical Attribute Approaches: Introduction and Perceptual Mapping May 28 th Analytical Attribute Approaches: Trade Off Analysis and Qualitative Techniques W3 May 30 th The Concept Evaluation System June 4 th Concept Evaluation System: Concept Testing and Full Screen W4 June 6 th Sales Forecasting and Financial Analysis June 11 th Design and Product Use Testing W5 June 13 th Strategic Launch Management June 18 th Public Policy Issues W6 June 20 th Team Project Presentations Academic disintegrity (of any kind) will result in the student receiving a Fail in the course. Standards of academic integrity will be observed in accordance with Penn State policy, as detailed in Operating Policy Academic Integrity Policy (Policy 49-20) This course will strictly adhere to the University policies regarding individual academic integrity. Academic integrity comes under two general headings: behavior toward the instructor and other students and general integrity. Violations of any section of Policy is punishable by receiving a failing grade, suspension from class, or other actions as outlined in University policies. To review all aspects of this policy, you may visit the website at : 4

5 NPD PROPOSAL SUMMER TERM PROJECT Description of the project: A key feature of the course is a group (designated teams of 4) project requiring the development of product concepts that will best serve unmet and undefined customer needs. The emphasis will be on the development and refinement of the new product concepts. This course provides the generic background necessary for identifying, understanding, and responding to customer needs; you have the opportunity and freedom to tailor the course towards your interests by your chosen product idea. Your product idea can be about a consumer product, industrial product, service, or not-for-profit. Project scope: Your team is a consulting company and you will be providing service to an established firm or to a new entrant. Identify attractive new product opportunities for the selected firm and develop validated product/service concepts that can be successfully marketed. The project mainly focuses on (1) Opportunity identification (2) concept generation (3) concept evaluation. The final report should include: i. Executive summary: This section should summarize your work (see this wiki document on writing an executive summary: ii. Strategic business objectives iii. Market analysis Market trends, size, and segmentation Competitive analysis Market potential iv. Customer need analysis v. Product concepts (include a concept board or depiction of the product) Product concept validation (fit with unmet needs) vi. Value proposition Key benefits (including competitive advantage and unique selling proposition) Expected pricing Product positioning vii. Appendices 5

6 PROJECT TIMELINE Description Approach/Method Deliverable Due Date Finalize a project idea: emphasis is on customer need-gap accompanied with a brief overview of the innovating firm Team creative thinking/brainstorming Selected firm and a brief background Final project idea: at most two pages providing overview of chosen (i) industry (ii) firm (iii) need-gap/use analysis (weight) May 21 st (via ) Selection of productmarket arena Market segment(s) Competitive products/solutions Customer need clarification: dimensions of the need, use contexts, gaps left by current solutions, desired new product benefits. Idea generation / concept development * at least two concepts on story board or suitable form * commercialized concept statements for each concept Secondary data analysis Team creative thinking/brainstorming Observations, depth interviews, focus group, perceptual mapping Team creative thinking/brainstorming Product Innovation Charter (PIC) and specification of product-market arena: market size and growth rate of the market, market segment(s) description, suppliers, structure of the competition, and competitive products. Free format: buyer motivations, need list, perceptual maps, gap analysis Concept storyboards accompanied by positioning statements and needs analysis May 28 th (via ) (25 %) June 6 th (40 %) Screen/evaluate/select/revi se final concept Select product features and obtain purchase intension estimates Concept tests Purchase intension measures No separate deliverable incorporate findings into the final report June 13 th (25 %) Submit final report Final report with Appendices June 20 th (10 %) 6

7 INITIAL PROJECT IDEAS DUE ON MAY 21 ST The objectives for the term project are (i) to identify market opportunities and select a potentially advantageous one for the firm, (ii) to thoroughly understand the customer need gaps in the chosen market opportunity, and (iii) to present validated product concepts that the firm should develop. Bear in mind that a product is simply a bundle of benefits. It may, therefore, be something mainly tangible (e.g. a cell phone) or mainly intangible (e.g. a restaurant service design). Most products are eventually a combination of both tangible and intangible elements. As a starting point, teams should address the following two issues: 1. Which firm s perspective will your team adopt? You may choose to assume the posture of a consulting unit either for an existing firm that is already a player in this market (e.g. Nokia, if the interest is in personal mobile communications) or a new entrant. The key is to recognize that the new product will have to ultimately fit with the firm s competences including current product line, brand, distribution channels, etc. 2. What product-market arenas are of interest to you, the team members? The important thing is to focus on the user needs and not be thinking in terms of product features yet. So, while it is fine to think of developing a new product in the personal mobile communications area, it is not correct to be thinking of a phone that will have x, y, and z features. Specific features and functions of the product will be defined as an outcome of the new product development process. Your submission: Firm and product-market arena: Submit a brief description (max 1 page) of the product-market arena you will focus on and the firm you will represent. Do not worry about details at this stage simply try to capture and convey your understanding of the product-market scope. 7

8 TERM PROJECT ASSESSMENT Overall project will be graded over 500 pts (50 percent of your overall grade). 400 pts will come from team work and 100 pts will come from the peer evaluations. If you have any issue with any of your team mates during the execution of the project, you will contact with me in advance that I can get in touch with them regarding that problem and provide them with suggestions to increase their performances. I want conflicts to be early detected that everyone can get most out the team work and the project. For that, you will be supporting each other. If that (those) team member(s) do not follow the team and my advises and suggestions, you can penalize them with peer evaluations and I will honor that grade. If they are not warned or given feedback about their performances through me, I will not permit the penalization. Extra-credit opportunity: You will receive extra mile pts. up to 10 pts. The final authority of awarding points rests with me. Some yardsticks in measuring your performance are: intensity to learn, going extra-mile to solve a real world problem, creativity, professional-looking report (e.g., the readability, organization, spelling and grammar, quality of guidelines), and last but not the least, competent demonstration of your ability to apply techniques that you learn in the NPD workshops. Peer evaluation: Each individual in a group has a potential of 100 points. Each member of the group may group those points in any ratio that they see fit. Please submit your evaluations via . You cannot evaluate yourself; you can only evaluate your other group members. The final points will be determined as presented in the following example: In the below case, all members feel that everyone in the group contributed equally. John's Grade Mary s Elisa's Grade Roger's Grade John s Elisa s Roger s Mary s Total 100% 100% 100% 100% Ave. 100 Final Points Awarded Total 8

9 In the following case, some members felt that one member didn t contribute. John s Elisa s Roger s Mary s John's Grade Mary s Elisa's Grade Roger's Grade Total Total Ave Final Points Awarded

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