If you attended my speech at a past IFAI EXPO business track on "Growing Your Business Through New Product Development" at the Orlando Convention Center, or not for that matter, consider this..
Only about 54%* of New Product Development (NPD) Initiatives and 65%* of New Product Launches actually succeed…
Conversely, why do so many fail? There are several reasons why an NPD initiative can fail, but in my experience, it all comes down to these 3 central reasons;
1. Voice of customer was not taken into consideration.
2. There was no process in place.
3. The business culture was not supportive.
Before beginning your NPD initiative, make sure that you;
(A) Get your staff or employees on the same page with regard to what you are trying to achieve with your new strategy
(B) Select the best New Product or Service Development process to use
(C) Embrace the voice of the customer in your innovation process
*Source: Booze-Allen & Hamilton
Brought to you by Dennis Paris of Tangerine Strategies, LLC.
Please share your experiences with dennisparis@tangerinestrategies.com
Sunday, May 1, 2016
Monday, April 18, 2016
Before Investing In New Product Development
Make sure that your operation's capabilities meet or exceed the requirements of your new product development project BEFORE you make a major investment! Assess every requirement before investing in equipment, manpower or even 3rd party manufacturing resources including, but not limited to engineering, production, procurement, sales/marketing and customer services.
Recently, I listened to a horror story by an entrepreneur who took a new product concept to a manufacturing company that boasted a high level of engineering expertise. They reviewed the complexed product specifications and gave it a thumbs-up but missed one attribute of expertise that led to failure...precision.
After $400,000 was invested in new machinery and tooling, it was discovered that the level of precision necessary to convert the drawings into a properly functioning product, exceeded their engineering skill and equipment capabilities. Numerous production attempts consistently fell short of market worthiness and the investment was lost.
Determine if your new product development concept strategically fits your business or that of a 3rd party's manufacturing operation. Identify ALL of the requirements of your new product's attributes and then examine products with similar attributes that have successfully gone through the same engineering, design and manufacturing process. Leave no stone unturned.
Posted by Dennis Paris, Tangerine Strategies, dennisparis@tangerinestrategies.com
Recently, I listened to a horror story by an entrepreneur who took a new product concept to a manufacturing company that boasted a high level of engineering expertise. They reviewed the complexed product specifications and gave it a thumbs-up but missed one attribute of expertise that led to failure...precision.
After $400,000 was invested in new machinery and tooling, it was discovered that the level of precision necessary to convert the drawings into a properly functioning product, exceeded their engineering skill and equipment capabilities. Numerous production attempts consistently fell short of market worthiness and the investment was lost.
Determine if your new product development concept strategically fits your business or that of a 3rd party's manufacturing operation. Identify ALL of the requirements of your new product's attributes and then examine products with similar attributes that have successfully gone through the same engineering, design and manufacturing process. Leave no stone unturned.
Posted by Dennis Paris, Tangerine Strategies, dennisparis@tangerinestrategies.com
Tuesday, March 15, 2016
NEW PRODUCT DEVELOPMENT: Clearing Up The FUZZY Front End... The PIC Exercise
New Product Development “PIC” Exercise
Successful companies translate their corporate strategy into a strategic policy for common vision before initiating the NPD process.
(PIC) Product Innovation Chart:
A 1-2 page document that gets everyone in the organization on the same page (finance, sales, engineering, production, reception). The PIC includes, at a high level;
1. Back ground of product line
2. Customers
3. Market places
4. Core competencies
5. How to make and sustain product advantage
6. Product goals and objectives
7. Tactical approach to market place
The PIC accelerates critical discussions between Engineering and Marketing. It's not difficult to do and takes about 1-2 hours to complete. It is simplistic yet powerful!
Brought to you by Dennis Paris of Tangerine Strategies, LLC
Please share your experiences with dennisparis@tangerinestrategies.com
Successful companies translate their corporate strategy into a strategic policy for common vision before initiating the NPD process.
(PIC) Product Innovation Chart:
A 1-2 page document that gets everyone in the organization on the same page (finance, sales, engineering, production, reception). The PIC includes, at a high level;
1. Back ground of product line
2. Customers
3. Market places
4. Core competencies
5. How to make and sustain product advantage
6. Product goals and objectives
7. Tactical approach to market place
The PIC accelerates critical discussions between Engineering and Marketing. It's not difficult to do and takes about 1-2 hours to complete. It is simplistic yet powerful!
Brought to you by Dennis Paris of Tangerine Strategies, LLC
Please share your experiences with dennisparis@tangerinestrategies.com
Saturday, February 13, 2016
Business Strategy and Planning: What's at risk?
Businesses that operate solely on near term customer perspectives versus a forward looking, market based strategy, carry considerable risk to future growth, particularly due to the shifting economy, and changes in your market's value perceptions. Unlike in the past, current market instability requires more than relying on your sales rep "bagging" the next project, in effect, to save the day...or the next couple of months.
What amazes me is how often business owners and CEOs admit to not having a long or even a short term business plan. And of the business plans that do exist, many do not consider future growth scenarios and projections. They mostly emphasize the obvious, including near term sales projections and not much more.
A forward looking business plan and strategy is crucial to laying the foundation for perspectives and actions that lead to sustainability and future growth. Furthermore, a forward looking plan often results in near term incremental growth, mainly because of new actions taken to support your future plan. For example, product or service market repositioning and expansion, or something as innocuous as recharging your management and staff with a "believable vision" based on solid planning. Future growth planning also positively impacts near term profitability through a review of activity based costing, and the crafting of a new product or service commercialization plan, will typically generate "new" customer interest during market assessments that coincide with an appropriate process for the planning of your new products. Moreover, the surprise to many companies is that, this new customer interest develops around "existing products", as well as with your new impending products and services. In many ways, forward looking planning becomes a super food to the health of your business!
The bottom line is that now more than ever, business strategy, planning and of course execution are critical elements to your business' sustainability and future growth. End of story...Dropping the Microphone!
Dennis Paris
What amazes me is how often business owners and CEOs admit to not having a long or even a short term business plan. And of the business plans that do exist, many do not consider future growth scenarios and projections. They mostly emphasize the obvious, including near term sales projections and not much more.
A forward looking business plan and strategy is crucial to laying the foundation for perspectives and actions that lead to sustainability and future growth. Furthermore, a forward looking plan often results in near term incremental growth, mainly because of new actions taken to support your future plan. For example, product or service market repositioning and expansion, or something as innocuous as recharging your management and staff with a "believable vision" based on solid planning. Future growth planning also positively impacts near term profitability through a review of activity based costing, and the crafting of a new product or service commercialization plan, will typically generate "new" customer interest during market assessments that coincide with an appropriate process for the planning of your new products. Moreover, the surprise to many companies is that, this new customer interest develops around "existing products", as well as with your new impending products and services. In many ways, forward looking planning becomes a super food to the health of your business!
The bottom line is that now more than ever, business strategy, planning and of course execution are critical elements to your business' sustainability and future growth. End of story...Dropping the Microphone!
Dennis Paris
Saturday, January 16, 2016
Innovation/New Product Development Case Study
One of Tangerine Strategies' case studies that has gotten quite a bit of attention is about a Military Contract Manufacturer that engaged our Innovation/New Product Development Services. What is striking about this case study is that, like so many small to mid-sized companies, attempts to develop and commercialize new products result in an extraordinarily high failure rate or, do not achieve expected returns on investment.
Ehmke Manufacturing Inc. did attempt twice to commercialize new products without a structured process and on the 3rd attempt, they engaged our expertise to install a custom process, coach the senior team, help U.S. Special Ops military personnel with transitioning to a product manager role, and then assist with all aspects of planning and commercialization. Since the writing of this case study, Ehmke has hired additional personnel to support this growing business unit.
Read more at: Ehmke Manufacturing, Inc. Case Study
Visit Ehmke's new business unit on line to understand more about the product line addressed in the case study at:
http://www.highgroundgear.com/
Ehmke Manufacturing Inc. did attempt twice to commercialize new products without a structured process and on the 3rd attempt, they engaged our expertise to install a custom process, coach the senior team, help U.S. Special Ops military personnel with transitioning to a product manager role, and then assist with all aspects of planning and commercialization. Since the writing of this case study, Ehmke has hired additional personnel to support this growing business unit.
Read more at: Ehmke Manufacturing, Inc. Case Study
Visit Ehmke's new business unit on line to understand more about the product line addressed in the case study at:
http://www.highgroundgear.com/
Friday, January 1, 2016
Problems We Solve for Clients
- Business Is Slowing Down or Declining
- Business Is Struggling To Get To The Next Level
- Current Marketing Practices Are Ineffective Or Questionable
- There Is Speculation About The Success Of A New Product Or Service Launch Without A Foundational Strategy
- Confusion About How To Test, Best Position Or Enter The Market With A Newly Invented Product.
Copyright © Dennis Paris, 2016
Saturday, December 12, 2015
What executives struggling with execution should learn from the Presidential election!
AN INSIGHTFUL PARALLEL TO A PAST PRESIDENTIAL ELECTION. A GEM OF A BLOG-ARTICLE AND A MUST READ FOR ALL BUSINESS EXECUTIVES!
Written by Elliot Schreiber, Ph.D., one of the world's most knowledgeable and insightful business and market strategists.
The related BLOG will provide you with a thought provoking topic and is meant to stimulate fresh thinking about your business' strategy. This information might make a few recipients, out of thousands reading this blog, just a little uncomfortable. Actually, that is exactly its intent! This BLOG is meant to convey some fresh thinking that can without question, help to make your business more successful.
PLEASE READ THE ENTIRE BLOG-ARTICLE ON THIS TOPIC BY CLICKING ON:
"What Executives Struggling With Execution Should Learn From The Presidential Election."
or cut and past the following into your URL address window: http://schreiberbartgroup.com/article-details.php?id=108#.UJ186GnBI34
TIP: When you read this BLOG, think about both your entire business (as a CXO or Owner), as well as your own department (if you have departmental responsibile). Feel free to let me know your thoughts after reading this article!
Best wishes,
Dennis
Dennis Paris
Tangerine Strategies, LLC
dennisparis@tangerinestrategies.com
Written by Elliot Schreiber, Ph.D., one of the world's most knowledgeable and insightful business and market strategists.
The related BLOG will provide you with a thought provoking topic and is meant to stimulate fresh thinking about your business' strategy. This information might make a few recipients, out of thousands reading this blog, just a little uncomfortable. Actually, that is exactly its intent! This BLOG is meant to convey some fresh thinking that can without question, help to make your business more successful.
PLEASE READ THE ENTIRE BLOG-ARTICLE ON THIS TOPIC BY CLICKING ON:
"What Executives Struggling With Execution Should Learn From The Presidential Election."
or cut and past the following into your URL address window: http://schreiberbartgroup.com/article-details.php?id=108#.UJ186GnBI34
TIP: When you read this BLOG, think about both your entire business (as a CXO or Owner), as well as your own department (if you have departmental responsibile). Feel free to let me know your thoughts after reading this article!
Best wishes,
Dennis
Dennis Paris
Tangerine Strategies, LLC
dennisparis@tangerinestrategies.com
Sunday, November 15, 2015
What does Failure and a Business Growth Strategy have in common?
... POOR EXECUTION.
Through out my 30 years in business, either on the consulting or on the client side, or in small or even large businesses, how STRATEGY EXECUTION is handled has been one of the top causes of failure. Notice that I did not say "strategy failure".
Ironically, or maybe I should say understandably, the blame is almost always placed on the strategy, where in most cases, the strategy is sound. So we have 3 issues here, a.) what can go wrong with execution, b.) why is the strategy usually the blame and c.) how to assure good strategy execution?
What can, and almost always goes wrong with execution is that while all of the focus is on building perceived value (PV) in the customer market, generating simultaneous PV among the company's employees and its investors (bank, private and/or shareholders) is completely neglected. The results include;
These are only a few examples of the myriad of issues that can arise when execution does not have a plan of its own and, IT IS NOT IMPLEMENTED ACROSS ALL 3 TARGET AUDIENCES! I use the term "target audience" because of the importance of understanding that once we develop, through a meticulous plan of execution, perceived value among all 3 groups, everyone is on the same page. What results are enthusiastic and unsolicited levels of internal problem solving, planing and management of operational efficiencies, customer support and sales-enabling financial oversight. And the effort of all support functions become synergistic. This occurs when (a) everyone clearly understands the strategy and (b) they have translated their own perceptions of the strategy's value to their personal wealth, the wealth of their company and/or their investment in the company.
Once, through proper execution, PV is intentionally developed among the company's investors, management teams, employees and customer markets, something almost magical occurs; efficiencies increase, costs decline, profit goes up, quality goes up, responsiveness increases and the value of your product or service rises. This translates to the movement of your product or services' value, closer to the "price ceiling" in the market place. Simply put, the market will pay more for your product.
This unified synergy is seldom experienced by companies who's strategies have been blamed as the reason for failure. And why not blame strategy? Because the profound effect of (integrated) PV across customers, staff and investors is simply not understood, and rarely experienced! It is easier to blame the strategy when in fact, without effective (connected) execution, a good strategy never had a chance.
So, to assure good strategy execution, a company must factor into the post strategy development timeline, an execution plan that includes not only staff or department readiness, but how to generate a realistic level of perceived value, and what behavior this PV is expected to generate! Not much different than sales and market tactics that target specific customer and market-wide behaviors, a similar plan and tactics executions are required to knit together, a strategy execution engine that will optimize success.
Have you experienced a winning execution plan that led to strategy success? Please share your story or thoughts!
I also want to give credit for the conceptual application of (PV) Perceived Value to Dr. Elliot Schreiber, past Professor of Marketing and Strategy at the LeBow College of Business at Drexel University, Philadelphia, PA. Dr. Schreiber was also the past Chair of the Schreiber-Bart Group, a strategy execution consulting company.
Through out my 30 years in business, either on the consulting or on the client side, or in small or even large businesses, how STRATEGY EXECUTION is handled has been one of the top causes of failure. Notice that I did not say "strategy failure".
Ironically, or maybe I should say understandably, the blame is almost always placed on the strategy, where in most cases, the strategy is sound. So we have 3 issues here, a.) what can go wrong with execution, b.) why is the strategy usually the blame and c.) how to assure good strategy execution?
What can, and almost always goes wrong with execution is that while all of the focus is on building perceived value (PV) in the customer market, generating simultaneous PV among the company's employees and its investors (bank, private and/or shareholders) is completely neglected. The results include;
- Internal tension between support groups, particularly between Sales and Operations.
- Disconnects on what the strategy is between executive management, middle management and staff.
- Confusion in the market over the company's evolving position, including a disconnect between its promises and, level of responsiveness by support resources.
- A decline in profitability.
- Misalignment between how investors or the board, view the company's direction and that of senior management.
These are only a few examples of the myriad of issues that can arise when execution does not have a plan of its own and, IT IS NOT IMPLEMENTED ACROSS ALL 3 TARGET AUDIENCES! I use the term "target audience" because of the importance of understanding that once we develop, through a meticulous plan of execution, perceived value among all 3 groups, everyone is on the same page. What results are enthusiastic and unsolicited levels of internal problem solving, planing and management of operational efficiencies, customer support and sales-enabling financial oversight. And the effort of all support functions become synergistic. This occurs when (a) everyone clearly understands the strategy and (b) they have translated their own perceptions of the strategy's value to their personal wealth, the wealth of their company and/or their investment in the company.
Once, through proper execution, PV is intentionally developed among the company's investors, management teams, employees and customer markets, something almost magical occurs; efficiencies increase, costs decline, profit goes up, quality goes up, responsiveness increases and the value of your product or service rises. This translates to the movement of your product or services' value, closer to the "price ceiling" in the market place. Simply put, the market will pay more for your product.
This unified synergy is seldom experienced by companies who's strategies have been blamed as the reason for failure. And why not blame strategy? Because the profound effect of (integrated) PV across customers, staff and investors is simply not understood, and rarely experienced! It is easier to blame the strategy when in fact, without effective (connected) execution, a good strategy never had a chance.
So, to assure good strategy execution, a company must factor into the post strategy development timeline, an execution plan that includes not only staff or department readiness, but how to generate a realistic level of perceived value, and what behavior this PV is expected to generate! Not much different than sales and market tactics that target specific customer and market-wide behaviors, a similar plan and tactics executions are required to knit together, a strategy execution engine that will optimize success.
Have you experienced a winning execution plan that led to strategy success? Please share your story or thoughts!
I also want to give credit for the conceptual application of (PV) Perceived Value to Dr. Elliot Schreiber, past Professor of Marketing and Strategy at the LeBow College of Business at Drexel University, Philadelphia, PA. Dr. Schreiber was also the past Chair of the Schreiber-Bart Group, a strategy execution consulting company.
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