NPD (New Product Development ) [From My MBA Days]

You Can use this in your Interviews and discussions.

Generally, there are four types of new products/services.

✔ 1. BREAKTHROUGH : When Supplier and Customer both know that it is a Breakthrough.

e.g : APPLE I-phones before i-4 

✔ 2. INCREMENTAL : When Supplier and Customer both know that it is an incremental improvement over others.

e.g. Samsung Galaxy Smart phones can come in this category, since supplier and customer both knows that it has just an incremental technology improvement wrt competitors and existing products

[Above cases are a win situation for supplier, since they have a  SUCCESSFUL pre and post product launch plan.]

✘ 3. SHADOW :Shadow product is one in which the Supplier believes is an incremental development, but consumers see  more as a breakthrough. 

e.g. A classic example of this is 3M’s Post-it Notes. While customers quickly found an array of uses for the Post-it Note, 3M slowly began to realize this product’s potential. Shadow products are often under-priced, or under-produced.

✘ 4. Delusion : Supplier believes the product is a breakthrough development, but consumers see  more as a incremental. 

e.g. NeXT is a desktop developed by Steve Jobs. It has optical drive instead of floppy disk. This new feature [which was a breakthrough]  created a problem for the product, since costumers didnt want to work on a system which has not a floppy drive. Students feel it is expensive and others thought that work station is better.

It creates a big cash loss for the company. Generally it happens due to bad product launch planning.

Suggestion : Supplier should educate customer before a great breackthrouh. Now few of the suppliers starting this (educate customer) YOU CAN SEE THIS IN i-5 new add, they are teaching how to click PANORAMA image.]

SHADOW & DELUSION IS MISMATCH between suppliers and customers perceptions.

♛ THE MORAL OF THE STORY IS: NPD should be start with customer voice.

♛ YOU CAN USE THIS anywhere, Take example of Bollywood:

► 3 Idiots - A Breakthrough

► Special 26 : Incremental

► Gangs of Wasseypur : Shadow

► Dil Se: Delusion [That time death of leading role (sad end) was not accepted] 

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♛ NOTE : LAKHAN FUNCTION was SHADOW launch by me, I didn't thought of 2700+  shares within 2 days. (still counting). 

This is the power of EDUCATION (here I got this from MBA) which teaches you everything, now it's you. Are you using it or deleting it from your active brain.

Link of LAKHAN FUNCTION : www.facebook.com/photo.php?fbid=522414831143971