Achieving Planned Innovation A Proven System for Creating Successful New Products and Services

by Butler, Thomas W.; Bacon, Frank R.

• ISBN13: 9781416573210
• ISBN10: 1416573216
• Format: Paperback
• Copyright: 2007-08-21
• Publisher: Free Press

Summary

Despite promising marketing research, most new products and services fail. However, with Frank R. Bacon's and Thomas W. Butler's Planned Innovation system, any firm, of any size, in any country in the world can achieve high rates of success in new-product innovation. Like a preflight instrument check done by a cockpit crew, Planned Innovation is a disciplined and practical step-by-step sequence of procedures for reaching the intended destination point -- successful products -- every time. In an easy-to-read fashion, the authors explain their Planned Innovation system -- their action-oriented program for continuous success in new-product innovations without major failures. Their practical program features five steps to success, including: (1) a disciplined reasoning process, (2) lasting market orientation, (3) proper selection criteria that reflect (a) both strategic and tactical business objectives and goals, (b) dynamic matching of resources to present and future opportunities, and (c) positive and negative influences of major external trends affecting present and future business opportunities, (4) scientific reasoning to determine requirements before making major expenditures, and (5) proper organizational staffing. With this market-tested five-element paradigm, the authors explain what to do and why in evaluating the potential of any new product or service, ranging from ventures in retail distribution to the manufacture of products as diverse as bicycles, motorcycles, aerospace communication and navigation equipment, small business computers, food packaging, and medical products.Other topics covered include how to cultivate a lasting market orientation, how to choose selection criteria that reflect strategic objectives and tactical goals, and how to assess the positive and negative influences of external trends on business opportunities. The authors also explain how to creatively exhaust all the 'near-in' opportunities available, from modifying existing products for familiar existing markets and extending their product-life cycles -- with minimal cost, time and risk.

Author Biography

Frank R. Bacon, Jr., is a professor of marketing at Michigan State University. The originator of the Planned Innovation process, he has assisted many foreign and domestic companies in the development of market-oriented plans and new products for commercial, industrial, military, and aerospace markets. He lives in East Lansing, Michigan.

Table of Contents

Prologue: How Planned Innovation Was Developed and Where It Has Been Used

What This Book Is All About

What We Mean By a High Rate of Success

Achieving Accelerated, Sustained Growth

Growth Through Improvements in Existing Products

Providing Guidance to R&DWould Planned Innovation Have Value to Your Firm ?

What Is Planned Innovation?

The Planned Innovation System

A Disciplined Scientific Reasoning Process

Lasting Marketing Orientation

Proper Selection Criteria

Using Scientific Reasoning to Determine Requirements Before Making Major Expenditures

Ensure Multifunctional Involvement

Establishing a Disciplined Scientific Reasoning Process for New Product Innovation

The Model of Requirements for Successful Innovation

Model for Identifying Economic and Emotive Value

Four Questions to Address in Each Segment of Focus

Opportunity Selection Criteria Become the Optimizing Function

Forming a Lasting Market Orientation

Definition of Business Orientations

Blue Jeans -- a Universal Example

Functional Product-Market Definition

Definition of "Product"

Definition of "Functional Need"

Definition of "Customer"

Definition of "Geography"

Marketing Strategy, Mix, and Plan

Examples of Functional Product-Market Definitions for Blue Jeans

Changing to a Market Orientation

The Value of Opportunity Selection Criteria

Selection versus Screening Criteria

Selection Criteria Can Also Be Used for Screening

Issues Involved in Opportunity Selection Process

Importance of Integrating Strategy and Tactics

Matching Resources to Opportunities

Success Must Be Tactical and Strategic

Obtaining Proper Inputs to Opportunity Selection Criteria

Mission Statements Guide New Product Innovation

Statement of Financial Goals Needed

The Role of Functional Objectives

Defining Capabilities, Strengths, and Weaknesses

Competitive Opening and Advantage

External Trends

The Mental Work Required Is Well Worth the Effort

The Power of Scientific Thought Process in New Product Opportunity Analysis

The Technique of Strong Inferenc

The Benefit of Hypotheses of Cause-Effect

Scientifically Based Opportunity Analysis Can Be Valuable at Any Stage of New Product Development

Opportunity Analysis: Initial Assessment Phase

First, Define the Opportunity

Second, Verify that Opportunity Meets Selection Criteria and Establish Priority

Third, Identify Critical Issues

Fourth, Formulate Hypotheses Based on Critical Issues

Fifth, Determine What Information Would Provide the

Most Decisive Test of Hypotheses

Sixth, Go for the Jugular in Obtaining Information

What Should Be Accomplished in the Initial Assessment Phase

Opportunity Analysis: Range of Requirements Phase

Testing Hypotheses Regarding Range of Requirements

Sample Size Required

Need for a Carefully Structured Questionnaire

Analysis of Competition

What Should Be Accomplished in the Range of Requirements Phase

Opportunity Analysis: Quantitative Confirmation of Market Potential Phase

Design of a Stratified Random Sample

What Should Be Accomplished in the Quantitative Confirmation Phase

Application of Opportunity Analysis to Different Types of Products and Markets

Parallel Activities Are Possible

Determining Requirements for Consumer Products

Implementing Planned Innovation to Achieve Multifunctional Involvement

Managerial Support Required

Multifunctional Involvement

Qualification and Training of Analysts

Maintaining the Flow of Ideas

Implementing the Planned Innovation System

The Planned Innovation Board

Recurrent Training

Epilogue: How Planned Innovation Provides Answers to Popular Myths Regarding New Product Innovati

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