Product Development - Managing a Dispersed Process by Ely Dahan and John R. Hauser November 2001 for the Handbook of Marketing Barton Weitz and Robin Wensley, Editors Ely Dahan is an Assistant Professor of Marketing at the MIT Sloan School of Management, 38 Memorial Drive, E56-317, Cambridge MA 02142. He can be reached at 617 253-0492, 617 258-7597 (fax), or [email protected]. John Hauser is the Kirin Professor of Marketing, MIT Sloan School of Management, 38 Memorial Drive, E56-314, Cambridge, MA 02142. He can be reached at 617 253-2929, 617 258-7597 (fax), or [email protected]. This research was supported by the Center for Innovation in Product Development at M.I.T.Managing a Dispersed Product Development Process Table of Contents The Challenge of a Dispersed Product Development Process ..................................................1 Product Development – End to End ..........................................................................................2 An Integrated Process............................................................................................................3 Product Development as an End-to-End Process ..................................................................5 The Product Development Funnel, Stage-Gate, and Platforms.............................................6 The Fuzzy Front End: Opportunity Identification and Idea Generation ...................................9 Surveys and Interviews........................................................................................................10 Experiential Interviews........................................................................................................11 The Kano Model: Delighting Customers ............................................................................12 The Innovator’s Dilemma and Disruptive Technologies ....................................................14 Empathic Design and User Observation..............................................................................16 Underlying Meanings and Values .......................................................................................17 Kansei Analysis and the Mind of the Market......................................................................17 Benefit Chains .....................................................................................................................18 Focusing the Design Team by Identifying Strategic Customer Needs................................20 Team-based Needs-Grouping Methods: Affinity Diagrams and K-J analysis....................21 Customer-based Needs-Grouping Methods: the Voice of the Customer ............................21 New Web-based Methods for the Fuzzy Front End ............................................................22 Ideation Based on Customer Needs (and Other Inputs) ......................................................23 Overcoming Mental Blocks.................................................................................................23 TRIZ (Theory of Inventive Problem Solving).....................................................................24 Inventive Templates ............................................................................................................24 Summary of Methods for the Fuzzy Front-end ...................................................................25 Designing and Engineering Concepts and Products................................................................26 Lead Users...........................................................................................................................26 Employee Feedback: Kaizen and Teian ..............................................................................27 Set-based design and Modularity ........................................................................................27 Pugh Concept Selection.......................................................................................................28 Value Engineering ...............................................................................................................29 Quality Function Deployment and the House of Quality....................................................293 Tradeoffs Among Needs and Features: Conjoint Analysis .................................................31 New Web-based Methods for Designing and Engineering Product Concepts....................39 Summary of Methods for Designing and Engineering Concepts and Products ..................43 Prototyping and Testing Concepts and Products.....................................................................44 Target Costing: Design for Manufacturing and Assembly (DFMA) ..................................44 Rapid Prototyping Methods.................................................................................................45 Parallel Concept Testing of Multiple Designs.....................................................................45 Internet-based Rapid Concept Testing ................................................................................46 Automated, Distributed PD Service Exchange Systems .....................................................47 Information Acceleration.....................................................................................................48 Pretest Market and Prelaunch Forecasting ..........................................................................50 Mass Customization and Postponement..............................................................................51 Summary of Prototyping and Testing Concepts and Products............................................52 Enterprise Strategy ..................................................................................................................53 The Challenge of Developing an Effective Product Development Organization ...............53 Boundary Objects................................................................................................................54 Communities of Practice .....................................................................................................55 Relational Contracts ............................................................................................................55 Balanced Incentives.............................................................................................................55 Dynamic Planning