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PRoduCT And sERviCE dEvEloPmEnT As A PRoCEss 291

Figure 8.9 (a) The idealised development funnel
(b)The development funnel for one company

(a)
Many concepts enter the
development process
One ‘best’
design emerges

(b)

Customer’s One recycle
original (sometimes) Discussions
specification with customer

Development
of agreed
design
Mutually
Expansion of Narrowing of agreed
original idea development
options for
customer specification

organisation does not want to progressively reduce its new product and service ideas
using a perfectly smooth funnel, it certainly needs to understand what shape of funnel
it really does want.
Consider the following quote from the vice-president in charge of product develop-
ment in a company that makes advanced and customised electronic devices:

‘Our customers put business our way mainly because we are experts in taking their problems
and solving them. They usually give us an initial specification, to which we design, then at
some time in the future they approve the design and we start to manufacture for them. What
we have learnt to do right at the start of the development process is deliberately expand the
number and scope of ideas beyond that which the customer first gives us. This can often result
in a more creative solution than the customer had originally envisaged. After all, they are not
the experts in this technology, we are. The trick is to not let this period last too long before
we start narrowing down to two or three options which we can present to the customer. It is
important to get to this stage before the customer’s own internal deadline. That gives us time
to refine ideas after we have presented them. Some designs will be recycled at this point if the
customer wants a further development, but we have a rule that we only ever recycle once. From
experience, if the customer wants further substantial changes then they are not even sure in
their own mind what they really want. After this stage we go into the final development of
a single design tied to a very tight specification agreed between ourselves and the customer.’
Figure 8.9(b) illustrates how this particular executive saw the development funnel in
her company. It may not be the perfect funnel of the textbooks, but it is well-defined,
well-understood in the company and can be easily communicated to the customer.

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