The second step in the product development process is screening. It is a critical part of the development activity. Product ideas that do not meet the organization's objectives should be rejected. If a poor product idea is allowed to pass the screening state, it wastes effort and money in subsequent stages until it is later abandoned. Even more serious is the possibility of screening out a worthwhile idea.
There are two common techniques for screening new product ideas; both involve the comparison of a potential product idea against criteria of acceptable new products. The first technique is a simple checklist. For example, new product ideas can be rated on a scale ranging from very good to poor, in respect to criteria such as: value added, sales volume, patent protection, effect on present products, and so forth. Unfortunately, it is quite difficult for raters to define what is fair or poor. Also, it does not address the issue of the time and expense associated with each idea, nor does it instruct with regard to the scores. A second technique goes beyond the first: the criteria are assigned importance weights and then the products are rated on a point scale measuring product compatibility. These scores are then multiplied by their respective weights and added to yield a total score for the new product idea. Table 7.1 provides an example of both these techniques for screening new product ideas.
|
Rating |
||||||
|
Weight |
Very good (5)(4) |
Fair (3) |
Poor (2) (1) |
Unweighted Value |
Weighted Value |
|
|
Customer utilities |
||||||
|
-amusement |
.1 |
X |
5 |
.5 |
||
|
-comfort |
.1 |
X |
3 |
.3 |
||
|
-convenience |
.2 |
X |
4 |
.8 |
||
|
-satisfaction |
.3 |
X |
4 |
1.2 |
||
|
-easy to use |
.1 |
X |
3 |
.3 |
||
|
Ability to create effective sales appeals |
.3 |
X |
4 |
1.2 |
||
|
Price |
.1 |
X |
2 |
.2 |
||
|
Product quality |
.2 |
X |
3 |
.6 |
||
|
Product profitability |
.2 |
X |
3 |
.6 |
||
|
Attractiveness of product to customers |
.1 |
X |
4 |
.4 |
||
|
Ability to produce product in large volumes |
.3 |
X |
5 |
1.5 |
||
|
Ability of new product in helping sale of other products |
.1 |
X |
1 |
.1 |
||
|
Requires low capital investment |
.3 |
X |
4 |
1.2 |
||
|
Product can be produced through existing advertising |
.2 |
X |
3 |
.6 |
||
|
Product can be produced in existing facilities |
.3 |
X |
4 |
1.2 |
||
|
Product can be distributed through existing channels |
.3 |
X |
3 |
.9 |
||
|
Strength of competition |
.2 |
X |
3 |
.6 |
||
|
Patent situation |
.1 |
X |
2 |
.2 |
||
|
Total score |
60 |
12.4 |
||||
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