1 15-1 McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.

1 15-1

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.

2 15-2

CHAPTER FIFTEEN

SPECIAL ISSUES IN DEVELOPMENT

3 15-3 Techniques for Attaining Speed in a New Product Project

Accelerating Product Development through Managing the Organization:

• Use projectization: project matrix and venture teams.

• Use small groups to thwart bureaucracy.

• Empower, motivate, and protect the team.

• Destroy turf and territory.

• Make sure supporting departments are ready.

• Clear the tracks in shared departments.

Figure 15.2

4 15-4 Techniques for Attaining Speed (continued)

Other Techniques for Accelerating Product Development:

• Intensify resource commitments (integrate channel members; parallel or concurrent engineering)

• Design for speed (CAD design, common components, design for easy testing, design in qualities that lead to fast trial)

• Prepare for rapid manufacturing.

• Prepare for rapid marketing.

Figure 15.2(cont’d.)

5 15-5 Key Characteristics of Short-Cycle-Time Firms

• Extensive user involvement early in the new products process.

• Cross-functional teams are dedicated to the new product.

• Suppliers are extensively involved.

• The firms adopt effective design philosophies and practices.

• The most adept firms are effective at organizational learning.

Figure 15.3

6 15-6 The Role of Marketing During Development

• Marketing is involved from the beginning of the new products process.

• Advises the new product team on how the product development fits in with firm’s marketing capabilities and market needs.

• Early involvement of marketing increases product’s chances for success.

• Think of marketing’s task as more information coordination than information gathering.

7 15-7

Marketing Ramp-Up

• The “I think we’ve got it” phase.

• Once this point is reached, the team’s attitude toward the project changes.

• Marketing’s role increases as marketing people “rev up” their operations.– Plan field sales and service availability.– Begin work on packaging and branding.– Begin work with advertising agency reps.– etc.

• Marketing “ramps up” for the product launch.

8 15-8

The Incidence and Consequences of Interface Problems

Condition of Marketing-R&D Percent of Project Outcome: Interface Projects Success Failure

Harmony 40.8% 52% 13%

Mild Disharmony 20.5% 32% 23%

Severe Disharmony 38.7% 11% 68%

Figure 15.4

9 15-9

Why the Friction?

• Stereotypes of marketing, technical, manufacturing personnel

• Physical separation– Co-location

– Digital co-location

• Inept top management

10 15-10

Managing the Interfaces

• Top managers eliminate the interface problems.• Interface management takes time, not skills.• Get rid of participants who are a continual problem.

11 15-11 Clues to Good Policy in Interface Management Figure 15.6

12 15-12

Five Conflict Management Styles

Conflict Management Style Definition ExampleConfrontation Collaboratively solve the problem

to reach a solution the parties arecommitted to.

Debate the issue, conductcustomer interviews, generatepossible solutions, find the onemost supported by customers.

Give and Take Reach a compromise solution thatthe parties find acceptable.

Negotiate a set of features tobuild into the product, to keep theproject moving ahead.

Withdrawal Avoid the issue, or thedisagreeable party.

Team members with unpopularpositions don't think it's worth thetrouble, and back out of thedecision.

Smoothing Minimize the differences and finda superficial solution.

Accommodate to the teammembers that are stronglycommitted to certain productfeatures, for the sake of groupharmony.

Forcing Impose a solution. Project manager steps in andmakes the decisions.

Source: Adapted from David H. Gobeli, Harold F. Koenig, and Iris Bechinger, "Managing Conflict inSoftware Development Teams: A Multi-Level Analysis," Journal of Product Innovation Management, Vol.15, No. 5, September 1998, pp. 423-435.

Figure 15.7

13 15-13

Global Product Innovation

• Export: make one product; no special arrangements made.

• Global Strategy: make one product; same market conditions worldwide.

• International Strategy: develop versions of the product to meet the needs of foreign markets.

• Multinational Strategy: Projects directed by managers in each viable foreign market; apply technology available from home market (Nestle).

• "Local Drive:" Assign basic responsibility to foreign market; some local R&D and manufacturing; mostly local marketing.

• Mix of the above: firm develops and applies strategies appropriate to each foreign market.

14 15-14 Some Insights on Global Innovation From Senior Executives

• Idea Generation:– Leverage global knowledge.

– Source ideas from customers, employees, distributors, etc.

• Product Development:– Focus on incremental vs. home run breakthroughs.

– Share development costs.

– Use standardization to better manage global operations.

• Commercialization:– Early vs. late entrant decision.

– Consider local support/local partner.

Figure 15.8