Modul 01. New Product Innovation
Modul 01. New Product Innovation
Modul 01. New Product Innovation
01
Modul ke:
Program Studi
Teknik Mesin
Topic Outlines
1. Introduction
2. What is product?
3. Product Development
4. Innovation
5. Product Innovation
6. Summary
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1. Introduction
• How much do engineering changes cost after
the design has been launched?
10000
8000
6000
4000
2000
0
Design Test Tool Prod
Build
– The cost in the design process is very small
compare to the production process.
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Design vs. Cost
• Costs of manufacture become a great concern to
the profitability of a product
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2. What is product?
• Product may in the forms of:
– Good
– Service
– Idea
• Product consist of a bundle of tangible and
intangible attributes that satisfies consumers
and is received in exchange for money or some
other unit of value.
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Goods
• Something is considered a good if it is a tangible
item.
– That is, it is something that is felt, tasted, heard,
smelled or seen.
– For example, bicycles, cell phones, and donuts are all
examples of tangible goods.
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Services
• Something is considered a service if it is an offering a
customer obtains through the work or labor of someone else.
• Services can result in the creation of tangible goods (e.g., a
publisher of business magazines hires a freelance writer to
write an article) but the main solution being purchased is the
service.
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Why New Products?
• New product development is critical to long-term success
• Approximately one-third of the revenue a business
generates is coming from products they did not sell five
years ago
• Changing environment creates new demands and needs
• Economic development is about product; not jobs.
– Employment is derived from product demand
– Product cycle is real, it affects strategy and implementation
• Productivity is the basis of economic development:
– Increases in earnings come from increases in productivity
through the sale of goods and services
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New Products
• A way of getting new and keeping old customers
• Effective way of obtaining a competitive
advantage
• Source of growth and excitement
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Product Life Cycle
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New Product Categories
• New to the world products
• New product lines
• Product line extensions
• Improvements and revisions to existing products
• Repositioning
• Cost reductions
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Product Development Process
Product
Launch
Test
Marketing
Prototype
Development
Concept
Testing
Market research
and
Opportunity scan
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4. Innovation
Six reasons why we need to
do innovation:
1. Increasing Competition
2. Increasing Globalization
3. Increasing Consumer
Expectations
4. Advancing Technology
5. Changing Workforce
Demographics
6. Changing How We Work
• Every organization has its own priorities, goals, and issues to balance.
• Innovative approaches to tomorrow’s challenges are a differentiator
between those companies that lead and those who chase.
• Innovation is quickly becoming a survival skill. Working towards tomorrow
today is imperative.
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Innovation
• What is innovation?
– Innovation may be defined as exploiting new ideas
leading to the creation of a new product, process or
technology.
– Innovation is the implementation of:
• New product or
• significantly improved product
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Types of innovation
• Novelty in product or service (offering something no one
else does)
• Novelty in process (offering it in a new way)
• Complexity (offer something which others find difficult to
master)
• Timing (first mover advantage, fast follower)
• Add/extend competetive factors (e.g. From price to quality
or choice)
• Robust design (contribute a platform on which other
variations can build)
• Reconfiguring the parts (building more effective business
networks)
• ...
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Why Innovate?
• To diversify the range of products offered
• Expand outreach
• Increase competitiveness
• Reach new market segments
• Overcome barriers of competing with the same products in the
same markets
• Use technological advantages
• Reposition strategy toward new markets
• Increase profitability
• Strengthen short-term social impact
• Create synergy with non-financial services
• Attract new funding
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Drivers for innovation
• Financial pressures to reduce costs, increase efficiency, do
more with less, etc
• Increased competition
• Shorter product life cycles
• Stricter regulation
• Industry and community needs for sustainable development
• Increased demand
• Demographic, social and maket changes
• Rising customer expectations regarding service and quality
• Changing economy
• Greater availability of potentially useful technologies coupled
with a need to exceed the competition in these technologies
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5. Product Innovation
• The development of new products, changes in
design of established products, or use of new
materials or components in the manufacture of
established products or,
• Introduction of a good or service that is new or
significantly improved with respect to its
characteristics or intended uses;
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Product Innovation
• Thus product innovation can be divided into two
categories of innovation:
– Development of new products
– Improvement of existing products.
• New products: different characteristics or
intended uses from previous products;
• Improvements of existing products: changes in
materials, components, and other
characteristics that enhance performance.
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Where do ideas come from?
• Preparation: Ideas come to those who are prepared to receive
them; scientists, skillful musicians.
• Attention: Paying attention to the world around us, activities of
people in our vicinity or the events reported through the media,
or anywhere in between – is one source of ideas
• Curiosity: Creativity often comes from the drive to understand
and take things apart
• Effort: Ideas need to be captured, given attention, followed up
on, and committed to a plan of action, or they disappear back to
wherever they came
• Serendipity: Serendipity is two things.
– first, it’s the luck
– Second, making connections between unrelated things or events
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Reasons For New Product Failures
• Poor marketing research
• Technical problems
• Insufficient marketing effort
• Bad timing
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Scientists, Manufacturers, Engineers, Marketers
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6. Summary
• New product development drives growth
• Market research is critical to the success of a
new product launch
• Market research is a continuous process as
customer needs, your business and the
environment changes
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Terima Kasih
Haris Wahyudi, ST. M.Sc