developing your vision (greymouth feb 2012 seminar)

Developing Products to Deliver Value

Developing Your Vision

Using Robust Development processes

A presentation by Jonathan Prince


What are we talking about?

• How good Development Processes add value

• Design Process Overview

• The ‘Great Unknown’ Front End

• Other Major Contributors

• Commercialisation

• The Kiwi Advantage


So, what does a good development process do for your idea?!


1. Improves Innovation/ Design/ Engineering

2. Directs focus on the Customer Need

3. Reduces Development Cost

4. Reduces Time to Market

It’s all about Value – To you & your customer

Increase The Bottom Line


Late to Market

Lost revenue

1 2 3 4 5

Volumes/ Sales

Time

Time to Market- What Lifecycle?!


1. Improves Innovation/ Design/ Engineering

2. Directs focus on the Customer Need

3. Reduces Development Cost

4. Reduces Time to Market

5. Improves Product Quality

Delivering Value – To you & your customer

“Products that come to market six months late but on budget will earn 33% less profit over five years.

In contrast, coming out on time and 50% over budget cuts profits by only 4%.”

- McKinsey and Company

Increase The Bottom Line


The Development Process:

Getting it Wrong & Getting it Right


A Common Little Gem!

Low & behold –We haven’t meet expected ROI!

Project goes back through the Design loop

Review becomes a ‘That’s not what I meant’ scenario

Physical models created

Team jumps straight into design – Interprets needs

Project identified – Needs based on perceptions


Bugger!

• Increased labour, material cost

• Project gets axed

• Increased time to market

• Doesn’t address customer needs

• Costly rework

• Lost opportunity cost

SignificantlyReducedReturns


Production

Standard Stage Gate Process

Conceptdesign

Detaildesign

Feasibility study

Pre Production

Robust Development Process

Clear design briefStakeholder reviews

Design brief

Project Scope Common start point


The ‘Great Unknown’: The Project’s Front End


Designing a Revolutionary Product

• Requires investment in research

• Roughly 1/3 of the project time should be spent on each phase

Tooling and productionisation

Design developmentBrief research and

development

This is where the real breakthroughs occur


• Customer Analysis

– User Centred design approach

• Competitor analysis

– Key Differentiators

• Market Direction

• Technology Optimisation

• Funding opportunities

Feasibility Stage- We know our Customer!

Outcome of stage is a Design Brief/ Project Spec


Design Brief – Why bother?!

• All parties know exactly what’s being designed- And WHY!

• Prevents project from going off track

– Keeps team focused

• Product features are clearly identified and agreed

• Ensures project is:

– Well researched

– Well understood

– Relevant to the market need

Core Document – Absolutely key to project success


Concept Design Stage

• Develop ways of meeting the Design brief criteria

– Address that unmet need

• Explore multiple options cheaply and quickly

– Fail early & Fail fast

• Create accurate costings/ price points early

• Provide Key stakeholders early input and buy in

– Ability to Visualise/ understand product


Embodiment / Detail Design Stage

• Modular design approach

– Reuse of existing data and standard parts where possible

• DFM - Design For Manufacture

• DV&T Program - Design Validation & Testing

– Design Analysis & Optimisation

• Continued User Analysis / Usability Assessment

• Risk Management

– Identification & Mitigation document

– IP Infringement searches


Pre-production / Production

• Final checks before tooling/ cutting steel

• Documentation

– Comprehensive and accurate manufacturing/ assembly drawings

– Quality docs/ Technical specs

– Marketing material

• Supply Chain Development and Management

– Don’t just go for the cheapest source

• Final Testing & Verification


Other Major Contributors


Oi!, You two, Play Nice!

• Collaboration is King

– Cross functional teams

– Industry experts

– Hard & fair customers

– Leverage Suppliers early

• Creative culture

– No Egos

– Being open and honest is expected

– Make it FUN!


• 3D CAD systems – A wonderous beast!

– Develop Assemblies

• Check Fits & Tolerances

– Create BOMs/ Cut lists

– Take a Modular Design approach

• Utilise existing components

– Development of accurate Jigs & Fixtures

– Create comprehensive documentation

– Marketing renderings

It’s called a computer - Leverage it!

Embrace Technology!


• Stress Analysis– Understand loads/ forces early

– Remove unnecessary weight/ material

• Flow Analysis– Can it be made?!

• CAM – Machining– Complex geometries with ease

• Rapid Prototyping– Visualisation– Check fits

Virtual Prototyping- Nah, I’ll just whip one up

Get it right before you cut steel!


• Reduce– No. Components/ weight– Material families

• Reuse– Previously loved materials– Quick refits

• Snap fit parts• Modular design

• Recycle– Recyclable materials– Natural finishes

• Life Cycle Analysis

• Cradle to Grave analyses

Sustainability- Simple Business Sense!


Show me the Money!!

• Protection of IP

– Understand all options – Patents are only one

– Something of value to sell

• Route to Market

– Distribution to mass markets

– Leveraging a great Brand

• Raising Capital

– Look for aligned investors

– Ensure your Business plan is ‘Investment Ready’


Types of Investment

Seed/AngelsFounder/ Family/ Friends

Venture Capital

Private Equity

Extreme risk

Conceptual

Small scale

Emotional

Independent/single deals

High risk

Established

Larger scale

Professional

Pooled/portfolio

Private Equity Continuum


Angel Investing in NZAn emerging structured industry

�Angel Today

Developing Industry

�Angel Past

Cottage Industry

�Angel 2012

Professionalised part of the private capital markets


Angel Association of NZ Members


• Shares - does not want 50%+ of your business!

• Stage – just pre revenue

• Valuation - $500K to $1M

• Involvement – generally Board level

• Deal killers – uncoachable, unrealistic, unprepared

What is an Angel Deal?


What Investors Are Looking For

The PeopleCEO/Team 25%

Market need Painkiller or vitamin? 15%

ProductWell designed – compelling 10%

Sustainable advantageBarriers/first mover/strategic partners 15%

ValuationReasonable for stage 20%

Other 15%


Get in Touch -

Earlier the Better


Source of fresh ideas - Unencumbered thinkers

Teamwork - collaborative, driven, dynamic

Constrained resource, big ambitions

Adventurous and pioneering

The Kiwi Advantage- You bet we can Fly!


Summary

• Implement a Robust Development Process

• Develop a Design Brief template - Do your research!

• Create a Culture of Innovation

• Leverage Technology

• Persevere - Design creates a unique profile for NZ companies


Innovate or Die!