New Product Development

Transcription

1 New Product Development DIY (Do It Yourself) Sample Design Project Stephan Sorger New Product Development Stephan Sorger 2010: DIY Design.DIY.1

2 Sample Project: AddPort Project: AddPort adds ipod port to existing receiver by using phono input Function: Implements inverse RIAA filter (Recording Industry Assoc. of Amer.) Problem Too many devices; Too few ports Audio Receiver CD AUX Phono Solution AddPort: Frees up Phono input port Audio Receiver CD AUX Phono RIAA only Add Port Competitors Hagerman IRIAA, $49 Electronic Design Lab, $48 New Product Development Stephan Sorger 2010: DIY Design.DIY.2

3 DIY Design: Ten Step Process 1. Assemble Design Team 2. Identify Market Need 3. Define Product Spec. 4. Generate Product Concepts 5. Select Product Concepts 6. Design New Product 7. Protect Intellectual Property 8. Prototype And Test 9. Develop Economic Model 10. Launch Product in Market New Product Development Stephan Sorger 2010: DIY Design.DIY.3

4 Step 1: Assemble Design Team Project: Team Members; Structure; Roles Team Members: Stephan Sorger Structure: See chart Roles: See chart Project Manager -Lead -Schedule -Budget Engineering Manufacturing Industrial Des. Technician Finance Legal Marketing -Calculations -Design parts -Create ideas -Manufacturability-Aesthetics -BOM -Human Factor -Processes -User Interface -Prototype -Testing -Rework -Funding -Costs -Break-even -Name -URL -Patent -Market Need -Competition -Launch New Product Development Stephan Sorger 2010: DIY Design.DIY.4

5 Step 2: Identify Market Need Project: Need Identification; Solution Alternatives; Segments Need Identification Find needs & wants Improve on existing Identify trends Solution Alternatives How solved now Competitors Substitutes Segments ipod Owner Aflluent Audiophile Budget Audiophile Example Consumers need place to plug in ipod HagTech unit unattractive, inconvenient Ergonomic devices for aging baby boomers Buy unit/ Make unit/ Go without HagTech, Electronic Design Labs DIY Convenience: Plug ipod into unused phono input Quality: Test performance of receiver Hobbyist: Debug & Burn-in phono preamp New Product Development Stephan Sorger 2010: DIY Design.DIY.5

6 Step 3: Define Specifications Project: Technical; Design; Cost Discipline AddPort HagTech ESDL Technical: Electrical - Accuracy (10Hz-100kHz) +/-.25dB +/-.25dB? - Power Source No batteries No batteries No batteries - 50 & 600 ohm sources No Yes No - Connections Std. RCA Std. RCA ¼ phono (?) Technical: Mechanical - Size (w x d x h, inches) 2 x 1 x 1 4 x 2 x 1 3 x 3 x 1 - Weight <1/2 pound <1/2 pound <1/2 pound - Heat: Self-cooling Yes Yes Yes Design - Intuitive Operation Yes No Yes - Convenience Factors Cable-based Case req d? Enclosure - Aesthetic Design Yes No Yes Cost $12.00 $8.00 (?) $15.00 (?) New Product Development Stephan Sorger 2010: DIY Design.DIY.6

7 Step 4: Generate Product Concepts Project: Methods; Concepts; Insights Methods Brainstorming Competitive Study User Input Storyboard Decomposition Concept PCB Box Cable Surgery Insights Users Competitors Methods Team Meet in conference room; shout out ideas Evaluate competitors designs Interview extreme users of product (affluent audiophile) Day in the life of a product; Great for services too Break down problem into chunks (see also textbook) Printed Circuit Board (PCB) with parts soldered to it Build stand-alone box/enclosure (like ESDL) Incorporate parts in interconnect cable Open receiver; Modify existing input circuitry Connect many different devices, not just ipod HagTech offers complete phono product line User input method gave valuable insights Team much more creative on 2 nd meeting New Product Development Stephan Sorger 2010: DIY Design.DIY.7

8 Step 5: Select Product Concepts Project: Criteria; Ranking; Improvements Selection Criteria: +; 0; - Cable PCB Box Accuracy (follows RIAA curve) Noise (no electrical noise) 0-0 Power (no batteries) Installation (standard RCA) Size (small size) Weight (low weight) Operation (intuitive) 0-0 Aesthetic (style) Purchasing (ordering) Price $39 (+) $49 (0) $48 (0) Total (+ = +1; 0=0; - = -1) + 4 (winner) Improvements PCB source ohms PCB low weight Box ruggedness (Use ideas from losing concepts) Consider 2 versions: Standard & Audiophile Study if weight hanging off input jacks is an issue Reinforce parts within cable assembly for protection New Product Development Stephan Sorger 2010: DIY Design.DIY.8

9 Step 6: Design New Product Project: Engineering; Industrial Design; Cost Engineering Industrial Design Cost Input R C1 C2 Output Output (to receiver) Bill of Materials (8ea) $2.00 (4ea) $2.00 (4ea) $2.40 (1ea) Labor, Assembly $6.00 Total $ = RIAA (RIAA) -1 Flat Input (from ipod) Module with electronic parts Reduce Costs: - Economies of Scale: Quantity - Experience Curve: Time - DFM: Design for Manufacturing New Product Development Stephan Sorger 2010: DIY Design.DIY.9

10 Step 7: Protect Intellectual Property Project: USPTO, URL, Patent Strategy USPTO Trademark Availability GoDaddy URL Availability Patent Strategy Patent Type Patent Class Inventors Patent Search Features Provisional; United States only Art 2614; Class 381 Electrical Audio Signal Processing Me 2 Similar patents found; #111 and #222 (Describe) (List characteristics of invention for Claim process) New Product Development Stephan Sorger 2010: DIY Design.DIY.10

11 Step 8: Prototype and Test Project: Prototype(s); Advertisement; Test Results Prototyping Aesthetic Prototype - Gauge market reaction - Test industrial design Functional Prototype - Engineering development - Robust design + Market Testing Ad Market Test Survey Interview Segments Announcing the AddPort - Value Prop - Segment(s) - Messaging Results 50% would buy Expect at BestBuy Easy to use Work with iphone? Music lovers Audiophiles Hobbyists New Product Development Stephan Sorger 2010: DIY Design.DIY.11

12 Step 9: Develop Economic Model Project: Cost & Revenue Tables; ProForma; Break-Even Cost (Start-Up) Development $2,000 Ramp-Up $1,000 Marketing $2,000/yr Revenue (per unit) Unit Price $39.99 Unit Cost $12.40 Contribution $27.59 Pro-Forma Income Statement Element Year 1 Year 2 Year 3 Revenue $3,999 $7,998 $4,799 (Units x Price) (100 x $39.99) (200 x $39.99) (120 x $39.99) - COGS $1,240 $2,480 $1,488 (Units x Variable Cost) (100 x $12.40) (200 x $12.40) (120 x $12.40) Gross Margin $2,759 $5,518 $3,311 Break-Even Break-Even = (Fixed Cost) / (Price Variable Cost) = $5,000 / ($ $12.40) = 181 units New Product Development Stephan Sorger 2010: DIY Design.DIY.12

13 Step 10: Launch Project: Product; Price; Place; Promotion Product Value Proposition Positioning (Internal) Messaging (External) Extra port/ Test amplifier/ Burn-in amplifier Convenient, elegant extra port at lower price 3 Messages for 3 market segments Price Retail $39.99 List price Competition $ $49.99 Discounts 8% (Amazon) 40%+ (BestBuy & other channels) Place Amazon BestBuy Fry s Promotion Google Search Google AdWords Channel Quick Start Guide: 4 Steps to Becoming a Merchant Broaden reach, but large discounts expected Last resort; store positions product as commodity Ask prospects for search terms Ask prospects for keywords Online keywords search; Placement in store New Product Development Stephan Sorger 2010: DIY Design.DIY.13

14 Group Guidelines: Size, Selection, Suggestions Size: 3-7 members Minimum Good Maximum Selection: Select group members to fall within certain geographical area North Bay SF Peninsula East Bay South Bay Suggestions: Select Roles Engineering Manufacturing Marketing Project Manager & Finance Industrial Design New Product Development Stephan Sorger 2010: DIY Design.DIY.14