The marketing group will need to determine the channels necessary to distribute the widget, how to develop a sales and marketing strategy, and determine estimates for pricing, profit, breakeven point, etc. Essentially, there are many moving parts to successfully launching a product. Where do products come from? Figure 1.2 shows some (but not all) of the points whereby ideas for new products are generated.
Figure 1.2 Types of optimization models.
How This Book Is Organized
It is suggested the reader go through each chapter in sequence. This is because each chapter builds on concepts presented in the previous chapters. Also, developing products should have a structured approach and this book provides this in the correct order.
In many chapters, there are “Tabletop Discussion” questions. These are provided for group discussions and should have about a 30-minute time frame. These should encourage students or product teams thinking about key topics and how to address them.
Case studies are included to reinforce the concepts presented in each chapter. While there are one or two “hypothetical” cases, most of the cases presented are real-world examples. The author has had significant experience in rescuing projects (or product developments) that were in deep trouble. In these instances, it would be in poor taste to name companies or individuals. Many of these cases challenge the reader with questions pertaining to how they would have addressed, prevented, or rescued these difficult issues.
Key points are summarized at the end of each chapter, followed by questions for students or readers to answer.
The answers to both the case studies and questions are also provided.
Subsequent chapters include:
Chapter 2 – The Role of Marketing
This provides an overall perspective on the basics of marketing, how it is different from sales, and how pricing, product, promotion, and place are part of a strategy. Marketing many times drives new products; indeed, a marketing professional may be placed in charge of a product’s development. Marketing also performs competitor analysis, obtains customer feedback (e.g., focus groups), and develops sophisticated models – usually an Excel spreadsheet – to evaluate pricing sensitivity.
Chapter 3 – The Role of Engineering
Engineers play a key role in the development of products. And there are many disciplines in this field. Listed in Chapter 3 are the types of engineering – mechanical, electrical, instrumentation, etc. – and how they work together to develop a project. There is a controlled approach to defining and solving engineering problems. Also, computer modeling can reduce development time and reduce the number of prototypes that are produced.
In addition to the technical challenges, engineers often have to design a product with the potential to be misused, either accidentally or intentionally. This brings into focus the need to consider ergonomics (human factors engineering) and product liability issues.
Chapter 4 – Core Team and Teamwork
Which groups and who should be involved in the product’s development? What is the role of executive management in the process? These questions are evaluated from the perspective that a team is required. How do teams work together to be most effective? The use of matrixed teams – so common in many large companies – can be positive or detrimental depending on the organization. Teamwork and leadership relative to product development will be explored.
This chapter will also look at the role of the accounting, finance, and supply chain (procurement) departments. Having a product that continuously goes over budget will affect its profitability and have the potential for product cancellation, if left unchecked. This chapter is important as it clearly defines the roles of these functional areas and their contribution to a product’s development.
Chapter 5 – Getting Started
Once a product/project has been approved by senior management, how do we get started? The reader will learn how the business case, typically a marketing function or feasibility study, is the springboard to developing an action plan. Also, the differences between basic and applied research will be presented. How does R&D (research and development) participate in a product’s development?
The concepts of formal project management (and several case studies) will be offered along with the top reasons that projects, or product developments, fail. Both agile and traditional project management theories will be presented and understanding when to use them.
Chapter 6 – Product Development for Small Firms and Entrepreneurs
Small firms have a set of challenges that are unique. Many times, obtaining credit, business loans, or investors is a challenge. This is not something a larger, well-established firm is concerned with. However, this chapter delves into sources of funding (venture capital, angel investors, etc.) and where to find local incubators, which are set up to assist small companies and inventors with skills, training, and business contacts.
Many times, small firms or inventors do not have access to talent such as engineering or manufacturing companies. These are discussed along with product roadmaps and when or if to obtain a patent.
Chapter 7 – Manufacturing the New Product
A history of Japan’s focus on quality and manufacturing is explored along with a history of America’s car companies from the 1960s. Technology, government policies, foreign competition, and other factors can impact design and manufacturing. Just-in-time and lean manufacturing are presented with the benefits and drawbacks to each.
A review of small vs. large manufacturers and domestic vs. offshore will be offered. Further, an overview of current manufacturing techniques will be offered as well as a discussion on what manufacturing will look like in the future: 5 G, artificial intelligence, the Internet of Things, and robotics.
Chapter 8 – Engineering Product Design and Testing
The project lifecycle is introduced along with methods to perform risk reviews. A risk is simply a potential, future problem that can ruin your project. A risk review can assist in identifying problems and developing mitigation strategies.
A discussion and an example of engineering modeling is presented. This illustrates how modeling saves time and can be very reliable. Supply chain is equally important as it must work closely with engineering in issuing RFPs and technical specifications. The chapter closes with a review of new technologies and the importance of identifying stakeholders.
Chapter 9 – Successful Product Launch and Post Review
A review of failed products is presented along with commentary about their demise. This chapter also complements Chapter 2 (Marketing) as launching a product has significant implications for strategy, pricing, sales partners, and positioning.
A post review is a useful exercise to determine what went right in a product’s design, production, and launch for future product development teams. Equally important in the review is what could have been done better? Both sides offer opportunities