Managing Innovation & New Industrial Product Development
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Transcript Managing Innovation & New Industrial Product Development
Managing Innovation &
New Industrial Product
Development
Chapter 10
Managing Innovation
Two approaches:
• Induced strategic behavior
Traditional
Administrative mechanisms
• Autonomous strategic behavior
Entrepreneurial
Product champion
• “An organization member who creates, defines, or
adopts an idea for an innovation and is willing to
assume risk.”
• 3M
Managing Innovation
Why is the Silicon Valley widely
recognized for innovation?
• Market for ideas
Allocation
Attraction
• Market for capital
Investors v. corporations
• Market for talent
Employee movement
Managing Technology
Classifying Development projects
• Derivative projects
• Platform projects
• Breakthrough projects
• Research and development
Managing Technology
Product-Family Focus
• “Products that share a common platform
but have different specific features and
enhancements required for different
sets of consumers.”
Disruptive Innovation
Overshooting Customer Demands
Sustaining v. Disruptive
• Sustaining
• Disruptive
Low-end strategy test
• For whom?
• Customers at low-end wanting ______________
_______________________________________
• Create model that can be profitable at discount price to
attract customers.
New-market strategy test
• For whom?
• People who lack __________________________
_________________________________________
• Present customers who need to go to an inconvenient
location
What makes some companies
better innovators?
1.
Limited structure
2.
Strict priorities for new products
Tied to resource allocation
Real-Time Communication and
Improvisation
Better communication
Improvisation
• “Design and execution of actions that approach
convergence with each other in time.”
What makes some companies
better innovators?
3.
Experimentation
4.
Creating options for the future
Time Pacing
“A strategy for competing in fast-changing
markets by creating new products at
predictable time intervals.”
What Drives a Firm’s New Product
Performance?
Quality of a Firm’s New Product Development
Process
• Process
Emphasize market and technical assessment
Complete description of product
Go/kill set-up points
Flexible
• Resource commitments
Resources committed to meet firm’s objectives
R&D budgets were adequate and aligned with objectives
Necessary personnel are available
• New product strategy
3M
What Drives a Firm’s New Product
Performance?
Anticipating Competitive Reactions
• Developing scenarios
• When will a competitor react?
If _____________________________ and
______________________
What Drives a Firm’s New Product
Performance?
Sources of New Product Ideas
• Internal/External
• Lead users
“A small number of highly influential buying
organizations that are consistent early
adopters of new technologies.”
• Lead user method
• Staying ahead of customers
Quality Function Deployment
“Identifies critical customer
attributes and establishes a specific
link between customer attributes and
product design attributes.”
Quality Function Deployment
QFD
• Voice of Customer
Identify customers needs and wants
• Interviews
Assign weights
• Voice of Engineers
Translate customer needs into product design
attributes
Examine relationship between design parameters and
customer needs
• Benefits of QFD
Determinants of New Product
Performance and Timeliness
Determinants of Success
• Strategic Factors
Product Advantage
Marketing knowledge
• “Fit between _____________________ and
____________________________.”
Technical synergy
• “Fit between _____________________ and
____________________________.”
International orientation
Determinants of New Product
Performance and Timeliness
Determinants of Success
• Development Process Factors
Predevelopment proficiency
Market knowledge and marketing proficiency
Technical knowledge and technical
proficiency
Determinants of New Product
Performance and Timeliness
Determinants of Success
• Fast-paced Product Development
Matching process to development task
Compressed strategy for predictable
projects
• Compressed strategy
Experiential strategy for unpredictable
projects