NEW PRODUCT DESIGN

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NEW PRODUCT DESIGN DEVELOPMENT
Precise Design Solutions
From

• Niall English

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Introduction
Precise Design Solutions

• Traditional approaches to New Product Development
• Core Competence mapping and Outsourcing
• PDS business model Concept to Consumer
• Case study 1 Multinational company
• Case study 2 Corporate investors
• Case study 3 Private investor / partnership
• Case study 4 Industrial / academic partnership

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Traditional Approaches to NPD
Precise Design Solutions

• Create a fully integrated internal design and
  development function within the organisation
• Create an internal project management function to
  manage the partial outsourcing of the design
  function
• Outsource the entire design and development
  process to one or a number of design and
  development houses

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Relative Pros and Cons
Precise Design Solutions
Total process control Ownership of resources Cost
and timeline visibility
Partial process control Access to
resources Shorter timelines to market Access to
wider variety of expertise and processes
Minimal internal resource requirements Ability to
tap into new technologies Access to wide variety
of expertise and processes
PROS
Need a strong internal PM function Client bears
all cost risks
Need to develop the core competence Expensive
overhead Long leadtime to market Internal
politics Danger of production or technology led
projects Client bears all cost risks
Potential loss of control Risk of CC
outsourcing Assisting suppliers for your
competitors Finding suitable partners Mgmt of
several supplier relationships IP protection
risks Client bears all cost risks
CONS
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Core Competence
Precise Design Solutions

• Generally, a competence is the ability to perform
  a task
• A core competence is an integration of skills - a
  bundle of constituent skills and technologies
• A core competence must
• Make a disproportionate contribution to customer
  value
• Differentiate your offering in a way that is
  difficult to imitate
• Be capable of being extended into new product
  arenas so as to provide a gateway into new
  markets
• Be vested in more than one individual

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Core Competence
Precise Design Solutions

• Core Competence is a blend of some or all of the
  following

• Knowledge
• Special Skills
• Unique Operating Methods
• Proprietary Technologies
• Proprietary Information

• These are gained by combining

• Education
• Experience
• Research

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Turning Core Competence Into Value
Precise Design Solutions
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Precise Design Solutions
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Precise Design Solutions
PDS Core Competence Map
Unique Operating Methods Project management
methodology Manufacturing in Europe and the Far
East Own 3-D CAD facility Own in-house 3-D model
making facilities In-house pilot production
facility In-house tooling design capability
Knowledge Project Management qualifications Engine
ering qualifications Experience of prior
projects NPD in the many industrial
sector Plastics technology Far Eastern
manufacturing Production technology Injection
moulding Injection tooling design Sourcing
expertise
Proprietary Technologies Registered patents
Patents pending Unregistered technologies
Skills Engineering design capability Creativity
and idea management skills Analytical
ability Problem-solving skills Graphic design
capability Market research and market testing
Proprietary Knowledge 5-stage new product
development cycle Dispensing and dispenser
design Masters degree in Management Dual liquid
dispense technology Route to market capabilities
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Precise Design Solutions
PDS Business Model

• 3 Objectives
• To provide the Client with a turnkey solution to
  NPD
• To provide a fast and cost-effective method of
  evaluating the market potential of a new idea
  before committing major funds
• Share the pain gt share the profits

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How It Works
Precise Design Solutions

• Typically Client Provides-
• Consumer Insights
• Specific experience
• Industry knowledge
• Special product knowledge
• Market knowledge
• Market access
• Distribution channels

• Typically PDS Provides
• Creativity
• 3-D Design expertise
• Rapid prototyping
• Market research/testing
• Proprietary technologies
• Project mgmt skills
• Sourcing expertise
• Access to low cost production
• Graphic design / branding / packaging development
• Shipping / customs / delivery

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Case Study 1Multinational Company
Precise Design Solutions

• Diageo Baileys Optic Challenge
• 15 year old optic design
• Two hand operation
• Manufacturing quality issues
• Tired branding
• High cost
• Slow dispense and refill times
• No budget to redevelop
• Huge sales impact of not having brand on optic

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Case Study 1Multinational Company
Precise Design Solutions

• Diageo Baileys Optic Solution
• PDS design and develop at cost
• New branding
• Single hand operation / 3 second dispense and
  refill
• PDS project manage entire process
• PDS make prototype and models
• Diageo bring market insights and market access
• PDS tool, manufacture and supply
• PDS develop branding and packaging
• Lower cost than existing unit
• 18 months concept to consumer
• PDS carry out patent work
• 3 year supply contract minimum 175k units

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Case Study 2Corporate Investors
Precise Design Solutions

• Citrugene The Challenge
• Barman with idea for a new on-premise dispenser
• 10k spent / Irish patent granted / cant take
  any further
• Solution - New venture set up
• Barman 33 for idea / IP / work to date / market
  insights / Co-Director
• PDS 33 for design and development work / Co
  Directors
• Corporate investors 34 - sufficient finance to
  take to launch
• PDS Role
• Design and development / Market research
• Prototyping / market testing / manufacture
• Project management / business planning / IP /
  Branding
• Establishing market routes with European channel
  partners
• Projected revenues of 2m/annum 90 export
  markets

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Case Study 3Private Investor / Partnership
Precise Design Solutions

• Protaxion The Challenge
• Taxi driver with idea for driver safety device
• Unable to design / prototype / test idea but very
  committed
• Solution
• Taxi driver paid for initial design / prototype
• Following intitial market research new venture
  set up
• Taxi driver 50 for insight / IP / Ongoing
  research / co-Director
• PDS 50 for graphic and product design /
  prototyping / manufacture / Co-Directors
• PDS also bring business planning / PM / Routes to
  market
• Investment 50/50 Taxi Driver and PDS

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Case Study 3Private Investor / Partnership
Precise Design Solutions

• From initial sketch to market launch in 9 Months
• Total upfront investment 70k

• 6 Distributors in Ireland / UK / Holland /
  Germany
• 75 Export market

• 10,000 units initial production
• 4,500 units sales booked prior to launch

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Case Study 4Industrial / Academic Partnership
Precise Design Solutions

• Project Artic The Challenge
• Truck driver with idea for comfort device in the
  cab
• Complicated electronics development required
• Has uncle who is Engineering Professor in
  University
• Prepared to invest modest capital but very little
  time
• Unable to find company to do research, design and
  development within his budget
• Solution - New venture set up
• 20 Truck driver for insights / market access /
  idea / ongoing research
• 20 university for academic research / advice /
  expertise
• 20 Private investor for finance
• 40 PDS for design / development / prototyping /
  etc..
• Investment 25 Trucker / 25 PDS / 50 private
  investor

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Summary
Precise Design Solutions

• Objective 1 Turnkey offering
• Client need only deal with one point of contact
  for all project needs
• Objective 2 Rapid, cost-effective idea
  evaluation
• PDS eliminates need for huge upfront design fees
  in order to evaluate ideas in the marketplace
• Objective 3 Sharing risk and rewards
• PDS provides incentive for companies and
  individuals to take projects forward on a staged
  basis

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In a Nutshell
Precise Design Solutions

• Everyone has something to loose if the project
  fails
• Everyone has a lot to gain if it succeeds

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Sales and Marketing Promotion ShowRDS 5th/6th
OctoberStand C21
Precise Design Solutions