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