We helped our client overhaul their NPI process that will reduce the number of failed product launches and save millions of dollars annually.
An established Fortune 1000 technology company wanted to transforms its new product introduction (NPI) process to operate more like a venture capital firm. They had a successful track record of developing products within existing and adjacent markets, but were struggling to develop innovative products in new markets. This was partly due to the rigidity of their standard product development process.
A transformation was required to incorporate elements of leading customer-focused, iterative, and rigorous NPI processes. This would help the client better identify and cull failed products earlier in the cycle, freeing them to focus on cultivating successful products through launch.
We collaborated with the executive and product management teams to establish the goals of the project. There were also 10 new products in various stages of the NPI process, and our client wanted to apply some of the new processes to these products immediately to reap some of the benefits in the current year.
We bifurcated the project into parallel streams: a gap analysis (with recommended changes) against leading practices, and a lean process improvement project within the existing NPI process for the new products already in flight. A number of gaps and recommendations that could be implemented both immediately and over a longer horizon were identified. These changes would hone the NPI process to focus on promoting products with the highest probability of driving customer value and more likely a successful launch.
The client is implementing many of the immediate changes that we recommended. This has already resulted in savings of several million dollars based on identifying and deprioritizing projects early in the NPI process that were likely to fail if allowed to proceed to launch.
For the remaining products, the client employed measures to help ensure better customer validation and launch success. Longer-term, they started to focus on some broader structural changes to achieve their goal of operating the NPI process more like a venture capital portfolio.