Case 3: New Product Development"It's not about ideas, it's about making ideas happen." ~ Scott Belsky, Behance Co-Founder |
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| Situation | A company was focused on its "best" product when the economic downturn reduced its market potential. | |
| Background | Consultant led senior team in a business review and identified line expansion to include lower-priced product was necessary to turn around the business. Our plan was designed to address the fact that prior efforts to expand the product line were unsuccessful (in the past, the company would purchase competitor’s product, causing margin erosion and inadequate design differentiation). | |
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Analysis & Action: Our Process |
- Convened cross-functional team (engineering, manufacturing, sales and finance) to
set priorities for development. - Combined separate engineering and sales “new” product lists to create common features and execution priorities. - Evaluated more efficient design for profitability and operational feasibility; selected most appropriate approach based on specific performance metrics. - Agreed on design standard, prepared project action schedule, conducted prototype tests and passed industry standard performance metrics. |
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| Result |
- Obtained unanimous endorsement from senior management to proceed wtih design.
- Initial product introduced to market in Q2 2011 and additional product lines using the same performance metrics generated over $10mil of added revenue in the first year. |
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