HIBtools Herramientas
Jairo
Rodríguez
Mera
Diseño de producto
Emprendimiento y Diseño
3 Ejemplo
Emprendimiento
y Diseño
New Product Development in a Small Cap Technology Company
Indra Purkayastha
Sr. VP, New Product Development
iRobot Corporation
October 19, 2006
At Home
The Old Way
More than 2M iRobot Roomba Vacuuming robots sold
“I am unable to vacuum
without extreme pain
and wanted one or two
robots to help keep me
independent.”
“Picks up more dirt than
humanly possible.”
A Better Way
At Home
The Old Way
More than 2M iRobot Roomba Vacuuming robots sold
“I am unable to vacuum
without extreme pain
and wanted one or two
robots to help keep me
independent.”
“Picks up more dirt than
humanly possible.”
A Better Way
In the Frontline
A Better Way
More than 700 iRobot PackBot robots in theater
“You have saved
lives today!”
“When a robot dies
you don’t have to write
a letter to its mother.”
The Old Way
In the Frontline
A Better Way
More than 700 iRobot PackBot robots in theater
“You have saved
lives today!”
“When a robot dies
you don’t have to write
a letter to its mother.”
The Old Way
Practical Robots
Practical Robots
Addressing the Improvised Explosive Device (IED) threat
“The robot should go in first”
— Colonel, 82nd Airborne,
Afghanistan
Addressing the Improvised Explosive Device (IED) threat
“The robot should go in first”
— Colonel, 82nd Airborne,
Afghanistan
Enormous Market Potential
Market Potential
Autonomy
Creates Demand
Autonomous
Teleoperative
Fixed Automation
Greater Autonomy
Addressable Market
$40 billion worldwide robot market by 2010 –Future Horizons
Unmanned Military Vehicles
Residential Floor Care
• Law Enforcement
• Homeland Security
• Commercial Cleaning
• Elder Care
• Landscaping
• Oil Services
The iRobot solution = Affordable, Practical Robots that Work
Barely Scratching the Surface
Annual Domestic Vacuum Market:
$3.4 billion*
Annual Military Ground Vehicle Market:
$2.8 billion*
Conventional
vacuum
cleaners
over $150
iRobot Roomba
Sales = 3.4%
* Freedonia Group
Expected 2015
unmanned ground
vehicle market
iRobot unmanned
vehicle sales = 1.0%
*Department of the Army
Uniquely positioned to service
expanding military robotic market
Broad, untapped market
opportunity for iRobot Roomba
Geoffrey Moore’s Crossing the Chasm
New products from iRobot need to cross the chasm
Home Robots
2004
The Home Robots Evolution
2002
2003
2005
People Care Home Cleaning
Home
Maintenance
Consumer Division
Increasing Challenge and Value
Goal: Increase Penetration in the Home
Challenges Facing Home Robots … early ‘05
• Dedicated passionate people who love robots
• Lack of process
• Long Tooling Cycle
• Supply Chain delay – order to fulfillment ~6 months
• Long gap between concept and reality
• Making a repeatable producible product quite difficult
• Inability to take large bets
Two principle drawbacks
1) Long Unpredictable Product Development Cycle
2) Uncertain process for picking projects
Vicious Circle
Pitfalls of a long product development cycle
24 months development cycle … vulnerable to market whims
Project
Start
Scope, Budget
Schedule agreed
24 mo. to launch
Start
u
Product
does not test
well with
focus group
Project
Scope
Changed
Start + 13 mos
Scope Changed
New Budget
4 mo. Impact
x
•8 months late
•Miss original intent
•Budget Over-run
•Under perform
in marketplace
y
Scope Revised
New Budget
Team commits to
No schedule impact
Competitor
makes
announcement
Project
Scope
changed
Start + 3mos
v
Project
Scope
changed
Project
Scope
decreased
Key Enabling
Technology
proves difficult
Start + 8mos
Scope Reduced
New Budget
4 mo. Impact
w
How to Achieve Predictable Development Schedules
• Bring cycles down to 12-18 months
No invention/research in product development
Do not change scope
• Avoids “everything and the kitchen-sink” in requirements phenomenon
Resource people to do one project only … avoid multi-tasking
• Get to yearly release/update discipline
• Move research/advanced development off-line ... Not tied to releases
Keyed off a Product Road Map
• Integrate Manufacturing Early into Product Development Cycle
Leverage Vendors and their competencies
• Change the culture … Product Development is a total business sport
Includes Marketing, Engineering, Manufacturing, Post Sales, Finance …
Product Life Cycle
Advanced
Development
Design Manufacturing
Integration
Sustaining
• Recipe OK for tooling
• Manufacturing readiness
• Pilot complete
• Product Launch
1 2 3 4 5
• Major Risks Retired
• Market/Customer/Channel Identified
• Detailed Product Spec written
• Financials justify continuation
• Product/Market Concept OK
• Small team of Engineers & Mktg
engaged to flush details
Product
Development
Project may be stopped at any toll-gate if it can not be justified
Organization
Advanced
Development
Product
Development
Sustaining
Engineering
Support Personnel
• Organize teams to mirror product life cycle
• Define criteria for selecting projects
• Clear Mission for each group
Enabling Structure
The Three Pillars of the Organization
• Advanced Development Working on products/technologies that are 2 years away
• Product Development Working on products that are to be launched next year
Each Team is responsible for
• Project cost
• Product Cost
• Schedule
• Quality
• Product Scope
• Sustaining Group Continuous focus on product cost … celebrate a $0.10 savings
Minor Product Enhancement
401 K
Pays tomorrow’s bills
Pays today’s bills
Advanced Development
• Small integrated team with marketing and engineering
• Many small ideas
• Quick feasibility / technology assessment
• Kill the ones that do not stick early
• Build semi working prototypes and show it to customers
Assess feasibility
Do not be fooled by the “early adopter”
Learn to listen to early majority
Do not fall on the trap “ Build it and they will come”
Get alarmed if this group is not killing an idea a month
and generating two new ones while doing so
Quick Justification Analysis
4
Two Years of Sales
Contribution Margin (CM) =
Our Pocket Price - Our Cost
Payback Ratio =
Total CM in the first 24 months after launch
Total Program Expense
> 2 : Good Program
Product Development
• Scope Freeze
• Bounded by hard dates … Christmas can not be postponed
• Prototype early and often
• Extensive use of Stereo Lithography
• Classical Project Management Techniques
Critical path
Risk management
• One focus
• Strong manufacturing integration … get the factory integrated early
Point clearly … Resource appropriately …and get the hell out of the way
Risk Tracking
Created and maintained by Project Manager
Sustaining Engineering
• Small tweaks – concept to launch < 6 months
• Significant cost out focus … Without compromising quality
• Very well integrated with manufacturing
• Seamless with customer service
October ’06 Status
Positives
• Predictable Execution on Product Development
• Nimble response in Sustaining for new products
• Significant Variable Cost Productivity achievements
• Manufacturing closely integrated with Product Development
• Key next generation project moving through Advanced Development
Improvement Opportunity
• Ideation process for Advanced Development
• Reducing the tooling cycle
• Staffing the Advanced Dev activity appropriately
Improving, but long way to go
BIENVENIDOS al CLUB de los que QUIEREN
CAMBIAR el MUNDO!
Jairo
Rodríguez
Mera