An alternate approach to a dedicated R&D department; a virtual organization.

1. An Alternate Approach to New Product Development A Virtual R&D Organization

2. The Challenge Create a new product line to obsolete legacy products before the competition does The new technology has not yet been identified There is no budget to support a dedicated development team There is no product roadmap

3. Background Brooks Instrument – Division of Emerson Products – Mass Flow Controllers (<2”Dia Piping) Diversified markets/customers Global organization Reputation – “solid”

4. Previous Product Development All Digital Mass Flow Controller – DOA New Project – Hybrid interface MFC Well received Slow sales ramp Slow time-to-market Followed with new calibration technology

5. The Case VP of Engineering challenged by CEO 30 year old technology Risk of displacement by improved technology “What are you going to do about it?”

6. The Approach

7. Research New Technologies Conduct a survey of potential technologies Find out who, what, when, and how Develop selection criteria (samples) Intellectual Property Risk Time to market Expert consensus Costs

8. Organize a Technology Seminar Recruit internal and external experts to present and evaluate technologies Set time and agenda for seminar Use Nominal Group Technique Down-select the most promising technology Establish final consensus Close the seminar

9. The Plan Engage key customers for product input Conduct market survey Roadmap product and technology Develop the team and partners (Need for flexibility) Establish the facility and tools Multiple technology surveys and trade studies (a sample) Displacement technology DSP Capillary tubing MEMS

10. Customer Input Engaged Key Customers Disclosed intent Explored product concepts Solicited feedback Market Survey Engaged The Wharton School to use as a classroom project Analyzed data Developed product specification and price point

11. Form a Core Feasibility Team Determine skills required Survey in-house personnel skills Recruit most competent members Plan strategy to fill gaps (examples) Hire additional members Hire consultants Develop in-house personnel Establish the core team

12. The Team

13. Conduct a Feasibility Study Plan the project Set up a location for the work Purchase the necessary tools Establish success criteria Design initial key components Collect data Demonstrate compliance to success criteria

14. The initial Tools

15. Form a Virtual R&D Team Plan product development Develop product roadmap Recruit technology partners Recruit contractors and temps Develop a virtual team environment

16. Some of The Partners c2v - Enscede, NL

17. The Roadmap Leverage Coriolis mass flow sensing technology Capillary tube sensor – then MEMS Liquid applications – then gas applications Move from flow to multivariable sensor Incorporate increased functional integration

18. Develop Technologies & Processes Develop system design Segment into subsystems Identify required technologies Prioritize by risk Establish strategies for risk management Coordinate technology development

19. Document, Document, Document Identify risks Identify risk management strategies Document design intent Establish design strategies (Dfx) Incorporate document control early Build Bills of Materials (BOMs) as parts are identified Perform trade studies on manufacturing processes

20. Communicate, Communicate, Communicate Develop communications plan Core team Extended team Stakeholders Key customers Communicate consistently Plan regular design reviews Document, evaluate, and incorporate feedback

21. Build and test prototypes Evaluate performance to goals Evaluate assembly process Evaluate costs Evaluate the design Document assembly process Collect data Critical design review

22. Begin Marketing “Sizzle” Communicate with sales force Communicate with key customers Publish “teaser” ads in industry magazines Introduced the fictional Dr. Direct to promote the product in a comic format

23. Develop Manufacturing Infrastructure Plan manufacturing facility Recruit manufacturing engineer Case: Identified candidate while contractor on project Build facility Procure and install equipment Transfer process documentation and BOMs from R&D

24. Recruit field test partners (validation) Identify key customer POCs who are early adopters Incentivize POCs to evaluate pilot product Formalize an agreement for data sharing and schedule

25. Run pilot production Set the number of production units Statistically significant number is best If possible, automate data collection Analyze the data Wring out the variations using Six Sigma methodology Deliver pilot product to key customers for validation

26. Collect and analyze field data Follow up regularly to assure that data is captured Collect data for validation Make adjustments to manufacturing

27. Production Readiness Review Design Review Design Verification Review Design Validation Review Regulatory Requirements Review Safety Review

28. Product Launch Press conference @ Benjamin Franklin Institute Industry magazine editors invited Luncheon with entertainment Conference speakers Emerson CTO VP New Product Development Local Ben Franklin actor Dr. Direct actor Demo with Q&A by the development team

29. An award-winning Mass Flow Controller New disruptive technologies to establish and extend a new product line The Result