New Product Development
| Date: | June 2008 |
| Author: | Richard Phillipson |
| Price: | £500 to non-members of the Investit Intelligence Member service |
That Intelligence members asked for this research shows an awareness of a skill to be honed. New Product Development is part of the wider activity of product management, a function not formally described or allotted in many fund management firms. The research therefore looks at the roles involved in NPD including:
- Product management is the job of ensuring that the products in the firm’s portfolio are as profitable as they can be and are developed over their lifetime to perform and satisfy the client need they were designed to meet.
- Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.
NPD has three distinct roles:
- Gathering ideas and developing them into products.
- Managing the governance of what the firm spends time and money on.
- Running the permanent rolling programme of ideas, business cases and implementations.
We describe the NPD process in terms of stages and gates. Each stage of work gathers information to inform a decision: whether to pursue the germ of an idea, whether to build a business case based on estimates of cost of change to the firm and potential revenues, whether to choose four incremental changes over a significant development in capability and whether the product and its service support is robust enough to launch.
| Management Summary | 1 | ||
| 1.0 | Introduction | 3 | |
| 1.1 | Structure of this paper | 4 | |
| 1.2 | Methodology | 5 | |
| 2.0 | Product Portfolio Management | 7 | |
| 2.1 | Have we got marketing? | 8 | |
| 2.2 | What business are we in? | 10 | |
| 2.3 | Product management | 12 | |
| 2.4 | Are new products important? | 14 | |
| 2.5 | Operational impact | 15 | |
| 2.6 | Product maintenance | 16 | |
| 2.7 | Product closure | 17 | |
| 3.0 | NPD Management | 19 | |
| 3.1 | Formalising NPD | 20 | |
| 3.2 | NPD in the organisation | 22 | |
| 3.3 | Supplier management | 26 | |
| 3.4 | Measuring NPD success | 29 | |
| 4.0 | Idea Generation | 31 | |
| 4.1 | Evolution or revolution | 32 | |
| 4.2 | Research | 34 | |
| 4.3 | Treating Customers Fairly and NPD | 38 | |
| 5.0 | Product Selection | 41 | |
| 5.1 | Business case outline | 42 | |
| 5.2 | Product selection | 46 | |
| 6.0 | Implementation | 47 | |
| 6.1 | Project background and purpose | 48 | |
| 6.2 | Project description and objective | 48 | |
| 6.3 | Project organisation | 48 | |
| 6.4 | Risks and assumptions | 49 | |
| 6.5 | Constraints and dependencies | 49 | |
| 6.5 | Communication | 49 | |
| 6.6 | Workarounds | 49 | |
| 6.7 | The post implementation review | 50 | |
| 7.0 | Towards Best Practice | 51 | |
| 7.1 | Product portfolio management | 52 | |
| 7.2 | NPD management | 53 | |
| 7.3 | Idea generation | 54 | |
| 7.4 | Product selection | 55 | |
| 7.5 | Implementation | 56 | |
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