ICT Innovation Spring 2016 MSc in Computer Science and MEng Telecom. Engineering EIT Masters ITA, S&P,SDE
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1 ICT Innovation Spring 2016 MSc in Computer Science and MEng Telecom. Engineering EIT Masters ITA, S&P,SDE Lecture 02 Product Planning and Opportunities Identification Prof. Fabio Massacci Product Process Planning Concept System-Level Detail Testing and Refinement Production Ramp-Up Four Phases of Product The product planning phase precedes the product development process 03/03/2016 Fabio Massacci - ICT Innovation 2 1
2 Extent of Product Changes Opportunities begin the Planning Process Only makes sense for large organizations with Several product platforms Several product lines Several products If you just sell a single tool don t need much structure either is brand new or it is a change of what you have If you have many things then there are conceptual differences 03/03/2016 Fabio Massacci - ICT Innovation 3 Product-Process Change Matrix Extent of Production Process Changes Research and Technology New Core Product Next Generation Product Addition to Product Family Minor Product Enhancement New Core Process Next Generation Process Breakthrough Projects Lakes Project Single Department Upgrade Platform Projects Derivative Product Tuning and Incremental Changes No Process Change No Product Change Current Product/Process Support 03/03/2016 Fabio Massacci - ICT Innovation 4 2
3 Selecting Opportunities Opportunity Tournament Exceptional Opportunities Planning Concept System-Level Detail Testing and Refinement Production Ramp-Up 03/03/2016 Fabio Massacci - ICT Innovation 5 Project Down selection: The PD Process Funnel Planning Concept System-Level Detail Testing and Refinement Production Ramp-Up 03/03/2016 Fabio Massacci - ICT Innovation 6 3
4 Pharmaceutical Drug 03/03/2016 Fabio Massacci - ICT Innovation 7 Hollywood Film Studios 03/03/2016 Fabio Massacci - ICT Innovation 8 4
5 Opportunity Identification Example 03/03/2016 Fabio Massacci - ICT Innovation 9 FroliCat Sway Opportunity Funnel 1 mission statement 1 PD process 1 product launch 50 opportunities 7 selected 03/03/ explored Fabio Massacci - ICT Innovation 10 5
6 Where do opportunities come from? Source: Terwiesch and Ulrich survey of 524 managers in diverse service and product industries, October /03/2016 Fabio Massacci - ICT Innovation 11 What drives the quality of the opportunities? Mean quality of the opportunity identification process. Variance in quality of the opportunity identification process. Number of draws from the opportunity identification process. Accuracy of discerning the best subset of opportunities generated. 03/03/2016 Fabio Massacci - ICT Innovation 12 6
7 Xerox Lakes Project Example 03/03/2016 Xerox Document Fabio Massacci - ICT Centre Innovation Platforms vs. Derivatives 03/03/2016 Fabio Massacci - ICT Innovation 14 7
8 Market Segment A Product Plan 03/03/2016 Fabio Massacci - ICT Innovation 15 Market Segment Map Department 40 ppm $16k 55 ppm $20k 65 ppm $23k Lakes Project 65 ppm network $31k 60 ppm network $35k Lakes Extensions Workgroup Personal 25 ppm $10k 20 ppm $8k 20 ppm $7k 30 ppm $10k 35 ppm $15k 25 ppm $9k 40 ppm network $20k Hodaka Project 40 ppm $20k 30 ppm $10k Legend Xerox product competitor product potential competitor Year of Release 03/03/2016 Fabio Massacci - ICT Innovation 16 8
9 Copier Performance Technology S-Curves This is your prediction of a new technology but can be wrong (or maybe is right but costs don t go down equally well) Digital Technology This is now Light-Lens Technology Time 03/03/2016 Fabio Massacci - ICT Innovation 17 Aggregate Resource Planning 03/03/2016 Fabio Massacci - ICT Innovation 18 9
10 Lakes Project Mission Statement Product Description Networkable, digital machine with copy, print, fax, and scan functions Key Business Goals Support Xerox strategy of leadership in digital office equipment Serve as platform for all future B&W digital products and solutions Capture 50% of digital product sales in primary market Environmentally friendly First product introduction 4thQ 1997 Primary Market Office departments, mid-volume (40-65 ppm, above 42,000 avg. copies/mo.) Secondary Markets Quick-print market, Small satellite operations Assumptions and Constraints New product platform Digital imaging technology Compatible with CentreWare software Input devices manufactured in Canada, Output devices manufactured in Brazil, Image processing engine manufactured in both USA and Europe Stakeholders Purchasers and Users, Manufacturing Operations, Service Operations, Distributors and Resellers 03/03/2016 Fabio Massacci - ICT Innovation 19 Textbook Product and Karl T. Ulrich and Steven D. Eppinger 5th edition, Irwin McGraw-Hill, Introduction 2. Processes and Organizations 3. Opportunity Identification 4. Product Planning 5. Identifying Customer Needs 6. Product Specifications 7. Concept Generation 8. Concept Selection 9. Concept Testing 10. Product Architecture 11. Industrial 12. for Environment 13. for Manufacturing 14. Prototyping 15. Robust 16. Patents and Intellectual Property 17. Product Economics 18. Managing Projects 03/03/2016 Fabio Massacci - ICT Innovation 20 10
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