New Product Development – Case Study

Case Study
– Market Research
– Market Segmentation and new market entry planning
– Product conceptualisation
– Product development strategy
– SWOT analysis vs competitors
– Break Even Analysis
– Financial plan
– Business Plan
PLAN

PRESENTATION

Vision Vs Execution

Vision and execution cannot be combined..vision has to think ahead
..execution has to think immediate…
Like execution vision also require time and effort and thinking of much greater scale..

Read this Blog: http://mjskok.com/resource/vision-vs-execution

The Mission Statement and Vision statement are aligned with strategy chosen like Peter Drucker cost Leadership strategy. But besides there is product vision which also align with strategy but many disruptive technology make new rules as when break through is reached it continuous process.
Cutting or Leading Edge technologies also strategy gets refined as stages are reached it continuous process. E.g. would be success of iPod driven Apple to rethink and bring back iPod to refine or improve strategy in History.
Today we see Microsoft changing its device vision as market gets inundated by Mobile devices haves good processing power and can process more in Background in Cloud using Compute services available on cloud. Desktop OS sales are not growing as quick and Mobile OS sales. It has been caught earlier by Google Andriod and Apple iPhone. So they have early mover advantage.. So Strategy and product vision are disruptive and keep refining as we proceed.
Day to Day Execution issues are different from after 5 yrs vision although once u are neck deep in it you can realize what is going to come.
Can you say what ? how? When? Where ? we do things now will be same in future. Then can daily toil on task can set future vision ? But surely on u know fundamentals you know directions.
its like road to a hill station you are following to reach the peak. You cannot know its optimum till you cannot see from the top. When you are viewing from top many ways more efficient stands out. Its same called vision.

Retail sector Innovations ,economics and Software

Retail sector has redefined they way goods are sold to customer. Sociology helps to decide where society is moving thus what possible product can be made for changing society preferences. Marketing just present those choices to potential customers. Sociology does play a front End to marketing. As be see behavioural Economics coming to for front to vindicate these facts last 2 decades.
Software innovation in Retail : from Retail Inventory planning software tracking inventory, to sensor and tags tracking goods through RFID, Retail non tactical , non structured management planning BI systems using SAP BO, IBM Cognos, Microstrategy BI, SQL server SSRS BI. look Manathan BI (www.manthansystems.com/) which is based on SSRS. Read details big data, retail andRFID:
https://sandyclassic.wordpress.com/2011/10/26/big-data-and-data-integration/

Read How Software is Eating Retail: 
https://sandyclassic.wordpress.com/2011/10/30/groupon-on-top-5-along-with-facebooklinkedin-can-rediff-deals-do-the-same-in-india/

As Philip Kotler defined 5C and 5P of marketing. 5P (product, promotion, place, price,People) and 5 C being (Custmer, Company, collaborator, competition, context)
Read future trends: http://www.kotlermarketing.com/phil_questions.shtml
Read Book :
MarketingKotlerhttp://www.amazon.com/Marketing-Management-Philip-Kotler/dp/0130336297
In Retail sector out of 5P (Place) is very important centrally located , easy accessible to potential customers place can act as magnet for pulling in customers to mall. Then (Promotion) free car parking ,cleaning, or less than cost ice cream at Mac Donald s to attract consumers. (Price) This is where Wall mart is very famous for keeping prices low by attracting many sellers on same floor competing with each other thus like perfect competition condition goods are sold almost at price of Cost of production and supply chain are kept at level of minimal inventory to keep cost down. Supply Chain side automations brings down cost as well more rotation of goods.
Like how P&G and Nestle maintain there Physical warehouses see products by this company
you can register a see complete movie how its done.
http://warehouseoptimization.com/
Like maintaining Go-down with efficient warehousing management and quick reordering based alert issued by sensor on shelf following the (Reorder-level). Thus one of the Cost leadership strategy given by peter Ducker.
just Read few thoughts by author:
http://www.goodreads.com/author/quotes/12008.Peter_F_Drucker
Book:Drucker Management
http://www.amazon.com/The-Essential-Drucker-Management-Essentials/dp/0061345016
T
here was a classic case : On Grass cutting company On account of being marginalized in perfect competition floor of  thus not able to achieve set price to by providing differentiated product said No to walmart
Read : Man who said No to Walmart
http://www.fastcompany.com/54763/man-who-said-no-wal-mart
Retail moved a long was towards innovation last 2 decade from merchandising by experts and procurement experts dealing with suppliers always thinking about the assortment they need to present to customer entering the Mall. Tracking Eyeball of consumer picking up consumer behaviour to schedule the products related to each other in one shelf or in nearby place. Creating products variety is assortment planned so as to achieve variety and meeting matrix of operational efficiency of (price, quality, time  flexibility).
Any shopping mall place with promotion pulls up potential customer called prospect to store area. Then Each vendor has its strategy of luring in customer because once in the store and customer start spending then customer does not think much about cost also like mac Donald less cost ice cream example other Items does get ordered out of expected value a consumer may derive. The rational choice theory does also play important role. It has been Noble prize winning theory by prof Daniel Kahneman (2002) and Gary Becker (1992).  Read : http://en.wikipedia.org/wiki/Rational_choice_theory
Consumer Behaviour is getting shaped by the behavioural Economics of Rationality which is inherent in our thinking process.
Not only does it help justify Stock behaviour it does tell consumer preferences after entering into store.
From the format of stores and their strategies
1. Retail Store: Super Store, department store , Hypermarts, discount store,
Read Strategy here : http://en.wikipedia.org/wiki/Retail#Types_of_retail_outlets

2. Wholesale stores/Warehouse Club : for small vendor taking bulk orders at once. Like metro  http://en.wikipedia.org/wiki/Warehouse_club
These differentiation help to achieve variety and specialization and hence more premium is available in terms of not cost but volume.
Its like classical economics “Supply will create its own demand” Although its not much relevant but surely its in play say (10%) of cases. Because there are other factors as well which dominate its not sellers market its buyers market.

Strategies For Software Services/product Companies next decade

 

 

 

These requirement are going to stay for next decade:Strategy-Small1Where can Software services/product firms lay emphasis for next stage of development. Or the areas which will see maximum amount of work coming in future..

Or What areas of knowledge should software companies develop manpower on:
1. Game development and Gamification:
https://sandyclassic.wordpress.com/2012/06/27/future-of-flex-flash-gamification-of-erp-enterprise-software-augmented-reality-on-mobile-apps-iptv/

read: https://sandyclassic.wordpress.com/2013/09/16/new-age-enterprise-resource-planning-systems/

2-7. Each of the Seven areas in development:
https://sandyclassic.wordpress.com/2013/09/18/new-breed-of-app-development-is-here/

read: https://sandyclassic.wordpress.com/2013/09/20/next-generation-application-developement/

As you read you realize software which can take advantage of multiple processor available on the devices None of sotware present in market today is written to take advantage of this fact. It may be possible an new language may come up to take benefit of this fact of we can still use old java/C++ threads more offen or we can distribute load on server by more specific COM/ DCOM or Distributed Common Request broker Architecture CORBA to processor level at server.. We have virtual switches and VM ware or Zen virtualisation which can exploit maximum benefit from it.
8. More virtualised network stack: this I wrote 2 yrs back still valid to quote here:
https://sandyclassic.wordpress.com/2012/07/16/cloud-innovation-heating-up-network-protocol-stack-and-telecom-stack/

private and public cloud new API will emerge: https://sandyclassic.wordpress.com/2011/10/20/infrastructure-as-service-iaas-offerings-and-tools-in-market-trends/

9. from SDLC V model to Agile and now to lean Agile ..use of six sigma to control process is just one part of mathematics being used for quality control but there would be new data model which will be tested based to mathematical modelling like probability distributions new model industry specific models would keep emerging.
like how for security project how security user stories are plugged into model
https://sandyclassic.wordpress.com/2013/01/05/agile-project-management-for-security-project/
or read https://sandyclassic.wordpress.com/2012/11/12/do-we-really-need-uml-today/

10.  BI would be Everyware:
https://sandyclassic.wordpress.com/2013/09/20/next-generation-application-developement/
parallelism , map reduce algorithm and cloud
https://sandyclassic.wordpress.com/2011/10/19/hadoop-its-relation-to-new-architecture-enterprise-datawarehouse/

New age Enterprise resource planning systems

Activity based accounting has changed the accounting system where even cost centre inputs to bottom line is also appreciated , calculated and accounted and apportionment is run not only to profit centre but also to cost centre.

This led to renewed influence of new cost centre based new module reporting like Human resource Accounting/Analytic ( Profit centre based system were preferred early and coast centre were neglected )which not only introduced new module in the Enterprise Resource planning ERP also changed the interlinking between modules such as Human resource management system , human resource accounting influence to General ledger and to profit and loss account.

– as each activity is apportioned into management accounting there are changes which are happening in the Analytics as more deeper ,cross functional analytic measure are used last 5 yrs leading to huge changes in business thinking for top line and bottom line growth.
– as BI becomes pervasive and ubiquitous it leads to deeper granular analysis to system thinking by lower level staff leading to bottom up innovation.
https://sandyclassic.wordpress.com/2013/05/03/classifying-ubiquitious-data-images-into-emotion-for-target-advertisement-campaign/
cloud and mobility has introduced pay per use model which influenced more pervasive BI and ERP usage by all staff giving fillip to bottom up thinking. Capital expenditure changed to operating expenditure leading to more acceptability to mid size companies as well large scale companies.
– real time updates using sensor based tracking of supply chain items , stock keeping unit SKU in Retail and in-memory system (SAP HANA, Oracle Exadata, IBM Cognos TM1)  making update faster and possibility of including more compressed data into primary memory for analysis.
https://sandyclassic.wordpress.com/2011/11/04/architecture-and-sap-hana-vs-oracle-exadata-competitive-analysis/

Gamification/AJAXifying of ERP:
https://sandyclassic.wordpress.com/2012/06/27/future-of-flex-flash-gamification-of-erp-enterprise-software-augmented-reality-on-mobile-apps-iptv/
A
dobe forms and increasing replaced SAP forms and even Oracle apps forms in AJAXified ERP systems. Augmented reality on AJAX making possible Gamification of ERP.
Javascript and AJAX dominates the Java on client side. increasing used of Node.js making server side javascript dominance a possibility with less requirement for strictly typed languages like Java and easy callback references.
https://sandyclassic.wordpress.com/2013/05/03/classifying-ubiquitious-data-images-into-emotion-for-target-advertisement-campaign/

Strategic Information Systems will be in focus again next 5 yrs

So many business are wiped out due to Strategic Information System (SIS). SIS will be important again.

SIS is effective only when it valuable and imperfectly imitable. Sources of imperfect imitability:

1. Unique Solution

2. Patentable technology

3. Organizational Culture

4. Teamwork

5. Internal Politics

If SIS is non-imitable then competitor cannot replicate and hence cannot benefit from it.

Operational management SIS example:

American Hospital Supply inventory control system installed on customer premises

Financial management SIS example

Organizational planning must be tied to financial analysis. There is always a greater opportunity to develop strategic systems when the financial systems are in place, and required figures can be readily retrieved from them.

How SIS help in strategic competitive advantage:

  1. Lower cost with respect to Quality of product, services that will make product attractive or yield better Return on Investment ROI.
  2. Differentiations:  Deliver product or service that differentiate company. There is emotional intelligence people can feel company is doing something extra for them.
  3. Market Segment: able to provide the capabilities of defining, expanding, and filling a particular niche or segment.
  4. Innovation: greatest example is Disruptive intelligence by intel.

Cost ,differentiation are mutually exclusive.

Basic competitive forces:

  • the threat of new entrants
  • the threat of substitute products or services
  • the bargaining power of suppliers
  • the bargaining power of buyers and the intensity of the rivalry among existing competitors

The problem is to determine how a business can outperform the industry average and attain a sustainable competitive advantage .answer lies in information technology together with good management.

Comparing Enterprise Framework

Enterprises can be large and complex, the models associated with the discipline also tend to be large and complex.Enterprise Architecture framework help reduce this complexity by offering:

  • Views : provide the mechanisms for communicating information about the relationships that are important in the architecture
  • Methods : provide the discipline to gather and organize the data and construct the views in a way that helps ensure integrity, accuracy and completeness
  • Training/Experience : support the application of method and use of tools

Enterprise Architecture

NIST_Enterprise_Architecture_Model

A list of ALL ENTERPRISE FRAMEWORKS…

– Business Frameworks (e.g. BMM, Six Markets, Porters 5 Forces, McKinsey 7S, etc)
– Architecture Frameworks (e.g. PEAF, MODAF, TOGAF, TEAF, IAF, Zackman etc)
– Programming Frameworks (e.g. .NET, J2EE, etc)
– Project Management Frameworks (e.g. PRINCE2, MSP, etc)
– Service Management Frameworks (e.g. ITIL, etc)
– Industry Operations Frameworks (e.g. eTOM, Pragmatic Marketing, etc)
– Any other type of framework in any other domain so long as it is related to an ENTERPRISE.

There is endless list of model basically modeled around either Zackman or TOGAF.
Like this one for security. Building Security In Maturity Model. The BSIMM is a study of real-world software security initiatives organized so that you can determine where you stand with your software security initiative and how to evolve your efforts over time.
http://bsimm.com/online/
then like sharewood which like modeled on zackman
http://en.wikipedia.org/wiki/Sherwood_Applied_Business_Security_Architecture