OPMAN LESSON 3

Product Development

Critical Process for:
- Bringing new products to market.
-Improving existing products

Product Development System

• Aligns product decisions with business goals, ensuring resources like funding, market insights, and talents are available.

Product Development Stages

• Product concepts are developed from a variety of sources, both external and internal to the firm.

1. Concept

Ideas are gathered from various sources to initiate product development process.

2. Feasibility

Assess whether the firm has the capability to execute the idea.

Scope of Product Development Team

Define the responsibilities and scope of the team involved in the development process.

3. Customer Requirements

Identify what is needed to win customer orders and meet market demands.

Scope for Design and Engineering Teams:

• Design Team Scope: Responsible for creating the product’s design, ensuring it meets functional and aesthetic requirements.

• Engineering Team Scope: Focuses on the technical aspects, ensuring the product is feasible to manufacture, meets safety standards. and functions as intended.
  -They handle material selection, manufacturing processes, and quality assurance.

4. Functional Specifications

Define how the product will function to meet customer needs.

5. Product Specifications and Manufacturability

Determine how the product will be manufactured, ensuring it can be produced efficiently.

6. Design Review

Evaluate whether the product specifications are the best way to meet customer requirements.

7. Test Market

Test the product in the market to see if it meets customer expectations.

8. Introduction to Market

Plan and execute training, promotion, and channel decisions for the product launch.

9. Evaluation

Assess the success of the product in the market.

Value Analysis

• A review process used during the production of successful products

• Its goal is to identify improvements that result in a better product, more cost-effective production, or reduced environmental impact.

• The techniques and benefits are similar to Value Engineering, but adjustments may be needed since Value Analysis happens while the product is already being produced.

Value Analysis

1. Objective:

1.Improve the staycation experience for guests.

2.Reduce operational costs without compromising quality.

3.Make the property more sustainable and eco-friendly.

Key Areas for Review:

1. Guest Experience:

1.Are the amenities (e.g., Wi-Fi, kitchen, outdoor space) meeting guest expectations?

2.Can local touches (e.g., guidebooks, snacks, or partnerships) be enhanced?

2. Cost Efficiency:

1.Are there ways to reduce maintenance or cleaning costs (e.g., durable materials, efficient cleaning processes)?

2.Can energy or water usage be optimized to lower utility bills?

3. Sustainability:

1.Can eco-friendly practices be introduced (e.g., solar panels, recycling programs, or energy-efficient appliances)?

2.Are there opportunities to source local or sustainable materials for decor and amenities?

3. Implementation:

1.Gather feedback from guests to identify pain points or areas for improvement.

2.Analyze operational processes to find cost-saving opportunities.

3.Explore sustainable alternatives for materials, energy, and waste management.

4. Outcome:

1.A more appealing and competitive staycation place.

2.Lower operational costs, improving profitability.

3.A smaller environmental footprint, attracting eco-conscious travelers.

By applying Value Analysis, the staycation place can continuously improve, ensuring it remains attractive to guests, cost-effective to operate, and environmentally responsible.

Service Design

• Focuses on creating and enhancing services.

• Holistic Approach to creating, improving, and delivering services that meet customer needs while ensuring a seamless and satisfying experience.

• Unlike physical products, services are intangible and often involve direct interaction between the service provider and the customer.

• This interaction adds a layer of complexity, as the quality of the experience depends heavily on how well the service is designed and delivered.

Process-Chain-Network Analysis

• Focuses on optimizing the interaction between firms and their customers.

• Involves analyzing the ways in which processes can be designed to enhance this interaction.

• Sequence of steps that accomplishes and an identifiable purpose, providing value to process participants.

Direct Interaction Region

• There is direct, real-time interaction between the service provider and the customer.

Surrogate(Substitute) Interaction Region

• One party acts on the other’s resources with limited direct interactions.

Independent Processing Region

The customer or service provider acts independently on resources, with maximum control and no direct interaction.