How NPI Maximizes Bottom-Line
View from the C-Suite
A formal NPI process enables a company to consistently bring new products to market on budget and on time with optimal resource use.
Let's discuss each of the functions usually involved in the NPI process and it benefits from its involvement, starting with the "Scope" document:
Marketing, with inputs from other functions, can create an accurate and comprehensive "Scope" document that development
can use to optimize its efforts. Since ALL affected functions have inputs into the scope from the very inception
of the project, there is usually very little change or modification needed. (In other words - little or no scope creep.
This helps Engineering / Development maximize its effectiveness and efficiency in product design and testing.
Service uses the scope document to understand how the new product affects the customer base and what new service offerings or changes to existing services are needed. This knowledge facilitates effective and optimal planning of training, logistics, repair depot, etc. so that the field is ready and prepared to service and support the product from the very start.
At the same time, Services Marketing creates its strategies and tactics in coordination with product marketing. This enables a joint creation of sales training and collateral materials so the Sales has all the tools and training it needs to maximize sales and revenues from both product and service.
Order Admin knows exactly what the new product entails in terms of what Sales needs to record on the order sheet, and what Accounting needs to ensures revenues are captured and recorded correctly.
While all this is going on, Manufacturing has all it needs to plan the optimal means of getting the product on the shelves and into the hands of customers.
All the above ensure the product is ready and available on schedule and on budget
The Customer gets exactly what is needed when wanted at the right price
.
This is a rather complex subject and cannot be covered in detail in this space.
If you'd like to discuss concepts or ideas in this article,
or how to apply them to your particular situation
please call 971-217-7860 or
email us.
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Life Cycle Management
Since most companies focus a great deal of attention on getting products out the door, the NPI process forms a natural basis for all product-related activity. A well designed and implemented NPI process usually results in a "win-win" situation for every participating group. Understanding how each function's actions and decisions affect the others is essential to maximize achieving corporate objectives.
