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Accidental Discovery |
New
designs, ideas, and developments different from that originally hoped
for from research. |
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Alpha
Test |
In-house testing of pre-production products to find and eliminate the
most obvious design defects or deficiencies, either in a laboratory
setting or in some part of the developing firm's regular operations.
See also beta test. |
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Architecture |
See
"product architecture." |
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As-Is
Map |
A
version of a process map depicting how an existing process actually
operates. This may differ substantially from documented guidelines. |
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Assumptions |
A short
set of relevant factors that can have a negative or positive impact.
Your assumptions define the "playing field" |
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Awareness |
A
measure of the percent of target customers who are aware of the new
product's existence. Awareness is variously defined, including recall
of brand, recognition of brand, recall of key features or positioning. |
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Baton-Passing Process |
See
"Relay Race" Process. |
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Benchmarking |
A
process of studying successful competitors (or organizations in
general) and selecting the best of their actions or standards. In the
new product program it means finding the best development process
methods and the best process times to market and setting out to
achieve them. |
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Benefit |
A
product attribute expressed in terms of what the user gets from the
product rather than its physical characteristics or features. Benefits
are often paired with specific features, but they need not be. They
are perceived, not necessarily real. |
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Beta
Test |
An
external test of pre-production products. The purpose is to test the
product for all functions in a breadth of field situations to find
those system faults that are more likely to show in actual use than in
the firm's more controlled in-house tests before sale to the general
market. See also alpha test. |
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Bill of
Materials (BOM) |
A
listing of all subassemblies, intermediate parts and raw materials
that go into a parent assembly showing the quantity of each required
to make an assembly. |
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Brainstorming |
A group
method of problem-solving used in product concept generation, there
are many modifications in format of use, each variation with its own
name. |
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Brand |
A
name, term, design, symbol, or any other feature that identifies one
seller's good or service as distinct from those of other sellers. The
legal term for brand is
trademark. A brand may
identify one item ,a family of items, or all items of that seller. |
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Brand
Development Index (BDI) |
A
measure of the relative strength of a brand's sales in a geographic
area. Computationally BDI is the percent of total national brand sales
which occur in an area divided by the percent of US households which
reside in that area. |
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Breadboard |
A
proof-of-concept modeling technique that represents how a product will
work, but not how a product will look. |
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Business Analysis |
An
analysis of the business situation surrounding a proposed project.
Usually includes financial forecasts in terms of discounted cash
flows, net present values or internal rates of returns. |
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Business Case |
The
results of the business analysis, or up-front homework. Ideally
defined just prior to the "go to development" decision (gate), the
case defines the product and project, including the project
justification and the action or business plan. |
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Business Management Team |
Top
functional managers and business unit head who work together
throughout the design of the decision-flow component of a stage-gate
process. |
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Business Model |
The
ways and means selected by your company to make a profit
It is the mechanism by which a company generates revenue, profits and
serves its customers and owners |
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Business-to-Business |
Non-consumer purchasers such as manufacturers, resellers
(distributors, wholesalers, jobbers and retailers, for example)
institutional, professional and governmental organizations. Frequently
referred to as "industrial" businesses in the past. |
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Buyer |
The
purchaser of a product, whether or not they will be the ultimate user.
Especially in business-to-business markets, a purchasing agent may
contract for the actual purchase of a good or service, yet never
benefit from the function(s) purchased. |
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Buyer
Concentration |
The
degree to which purchasing power is held by a relatively small
percentage of the total number of buyers in the market. |
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Cannibalization |
When
the demand for a new product arises at least in part by eroding demand
for (sales of) a current product the firm markets. |
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Capacity Planning |
A
forward-looking activity which monitors the skill sets and effective
resource capacity of the organization. |
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Category Development Index (CDI) |
A
measure of the relative strength of a category's sales in a geographic
area. Computationally it is the percent of total national category
sales which occur in an area divided by the percent of US households
which live in that area. |
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Champion |
A
person who takes an inordinate interest in seeing that a particular
process or product is fully developed and marketed. The role varies
from situations calling for little more than stimulating awareness of
the opportunity to extreme cases where the champion tries to force a
project past the strongly entrenched internal resistance of company
policy or that of objecting parties. |
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Change
Equilibrium |
A
balance of organizational forces that either drives or impedes change. |
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Charter |
Is the
document that officially starts an initiative, a program or a
project. The document outlines the team members, the common purpose
that brings them together, the performance goals to ensure progress
and outcomes. Also the desired approach to ensure completion. And
finally the roles, responsibilities and authority. The Charter must
be fully supported by Management and serve as the unwavering source
of |
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Checklist |
A
memory-jogger list of items used to remind an analyst to think of all
relevant aspects. It finds frequent use as a tool of creativity in
concept generation, as a factor consideration list in concept
screening, and to ensure that all appropriate tasks have been
completed in any stage of the product development process. |
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Chunks |
The
building blocks of product architecture. They are made up of
inseparable physical elements. Other terms for chunks may be modules
or major subassemblies. |
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Classification |
A
systematic arrangement into groups or classes based on natural
relationships. |
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Co-location |
The
physical locating of project personnel in one area, enabling more
rapid and frequent communication among them. |
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Computer Assisted Design |
A
technology that allows designers and engineers to use computers for
their design work. |
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Computer-Enhanced Creativity |
Using
specially-designed computer software which aid in the process of
recording, recalling and reconstructing ideas to speed up the new
product development process. |
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Concept |
A clear
written and possibly visual description of the new product idea which
includes its primary features and consumer benefits |
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Concept
Generation |
The act
by which new concepts, or product ideas, are generated. Sometimes also
called idea generation or ideation. |
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Concept
Optimization |
A
research approach that evaluates how specific product benefits or
features contribute to a concept's overall appeal to consumers.
Results are used to select from the options investigated to construct
the most appealing concept from the consumer's perspective. |
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Concept
Statement |
A
verbal or pictorial statement of a concept that is prepared for
presentation to consumers to get their reaction prior to development. |
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Concept
Study Activity |
The set
of product development tasks in which a concept is given enough
examination to determine if there are substantial unknowns about the
market, technology or production process. |
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Concept
Testing |
The
process by which a concept statement is presented to consumers for
their reactions. These reactions can either be used to permit the
developer to estimate the sales value of the concept or to make
changes to the concept to enhance its potential sales value. |
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Concurrency |
Carrying out separate stages of the product development process at the
same time rather than sequentially. |
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Concurrent Engineering |
When
product design and manufacturing process development occur
concurrently or simultaneously rather than sequentially. Also called
simultaneous engineering. |
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Conjoint Analysis |
A
quantitative market research technique which determines how consumers
make trade-offs between a small number of different features or
benefits. |
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Consumer |
The
most generic and all-encompassing term for a firm's targets. The term
is used in either the business-to-business or household context and
may refer to the firm's current customers, competitors' customers, or
current non-purchasers with similar needs or demographic
characteristics. The term does not differentiate between whether the
person is a buyer or a user target. Only a fraction of consumers will
become customers. |
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Consumer Market |
The
purchasing of goods and services by individuals and for household use
(rather than for use in business settings). Consumer purchases are
generally made by individual decision-makers either for themselves or
others in the family. |
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Consumer Need |
A
problem the consumer would like to have solved. What a consumer would
like a product to do for them. |
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Consumer Panels |
Specially-recruited groups of consumers whose longitudinal category
purchases are recorded either by hand or via scanner technology.
Some times called Panel of Experts |
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Continuous Improvement |
The
review, analysis and rework directed at improving practices and
processes. |
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Continuous Learning Activity |
The set
of product development tasks involving an objective examination of how
a product development project is progressing or how it was carried out
to permit process changes to simplify its remaining steps or improve
the prod |
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Contract Developer |
An
external provider of product development services. |
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Controlled Store Testing |
A
method of test marketing where specialized companies are employed to
handle product distribution and auditing rather than a company's
normal sales force. |
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Convergent Thinking |
A
technique generally performed in the initial phase of ideas generation
to help funnel the high volume of ideas created through divergent
thinking into a small group or single idea on which more effort will
be focused. |
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Coordination Matrix |
A
summary chart that identifies the key stages of a development project,
their goals, and key activities within each stage. |
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Core
Benefit Proposition (CBP) |
The
central benefit or purpose for which a consumer buys a product. The
CBP may come either from the physical good or service performance, or
it may come from the augmented dimensions of the product. |
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Core
competencies |
The few
things that you do that:
1. Your customers find exceptionally valuable
2. You do better than your competitors
3. Your competitors find difficult to imitate
4. You would never “outsource” to anyone
5. You can transfer to other industries as part of your growth plan
The skills, processes, technology and knowledge that:
Contribute significantly to the perceived benefits of your end
products (offering)
Gives you an enduring competitive advantage
Could provide access to other markets
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Core
team |
A small group that is
chartered and empowered to guide the implementation and completion of
an initiative. Core Teams are very useful in fast-changing
environments where distractions abound. A small group can focus
attention and energy to ensure clean execution.
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Cost of
Goods Sold (COGS) |
The
direct costs associated with producing a product. |
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Criteria |
Statements of standards used by gate-keepers at each gate and related
to all organizational functions. The criteria necessary to achieve or
surpass for product development projects to continue in development.
In the aggregate, these criteria reflect a business unit's new product
strategy. |
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Critical Path Scheduling |
A
project management technique, frequently incorporated into various
software programs, which puts all important steps of a given new
product project into a sequential network based on task
interdependencies. |
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Cross
Sections |
An
explanation of a part that is referenced by slicing through the area
that needs to be explained. |
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Crossing the Chasm |
Making
the transition to a mainstream market from an early market dominated
by a few visionary customers. |
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Culture |
A mosaic of interrelated
elements, and their collective day-to-day interaction
For example:
Management behavior
Customs and norms
Ceremonies, rituals and events
Rewards and consequences
Physical environment
Rules and policies
The company culture is defined when corporate values are followed for
a number of years.
Culture Consists Of A Shared, Commonly Held Body Of General Beliefs
And Values That Define The "Shoulds" And The "Oughts" Of Life
(Kluckhohn)
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Customer |
The
person or organization that decides the “value” of your product
Any external user or buyer of your product. One who purchases or uses
your firm's products or services. |
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Customer Satisfaction |
The ability to understand
and internalize customer behavior as to anticipate their future needs.
The customers’ feeling about the value that was received as a result
of using a particular organization’s offering, in a specific use
situation (Paraphrased from: Woodruff and Gardial).
The positive or negative evaluation or feeling that results from
comparing the expectations the offering with the actual experience |
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Customer value |
The overall benefit
perceived in the solution ― at the price the customer is motivated to
pay
The customer’s perception of the net benefits she will derive from
your offering at a particular price, situation and use
The customer’s perception of what they want to have happen in a
specific use situation, in order to accomplish a desired purpose or
goal ― And with the help of a product and service offering
(Paraphrased from (Woodruff and Gardial)
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Customer Value Added Ratio |
The
ratio of WWPF (worth what paid for) for your products to WWPF for your
competitors' products. A ratio above 100% indicates superior value
compared to your competitor |
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Customer Value Drivers |
The attributes related to
the decision making process that are perceived by the customer to be
the most important to the buying process (Jean-Claude Balland Ph. D.)
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Customer-based Success |
The
extent to which a new product is accepted by customers and the trade. |
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Customer-driven |
The “urge” to grow a
business culture committed to the relentless creation of superior
value for the customer.
Organization-wide generation of market intelligence about current and
future customers
Active dissemination of intelligence across the enterprise
Consensual interpretation
Organization wide responsiveness to it
(Paraphrased from: Kohli and
Jaworski)
A set of values that put the
customers’ interest first in order to develop a long-term profitable
enterprise — while not excluding those of other stakeholders
(Paraphrased from Narver and Slater)
The development of superior
skills in understanding and satisfying current and future customers in
order to achieve one’s business objectives |
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Data |
Measurements taken at the source of a business process. |
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Database |
An
electronic gathering of information organized in some way to make it
easy to search, uncover and manipulate. |
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