Transcript Document

ETM 5391 – New Product
Development and Commercialization
Fall, 2003
Instructor: Mr. C. Michael Carolina
Date: September 16, 2003
Engineering and Technology Management
ETM 5391 Web site:
http://www.okstate.edu/ceat/msetm/courses/etm 5391
Engineering and Technology Management
Recap of Lecture 4
• The Opportunity and Threat of Disruptive
Technologies
Professor Clayton Christensen
Harvard Business School
• Summary of Living on Internet Time: Product
Development at Netscape, Yahoo!™,
NetDynamics, and Microsoft®
• The Balanced Scorecard
Kaplan and Norton, HBR. (January, 1992)
Engineering and Technology Management
Why Do It?
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Competitive advantage/staying competitive
Short-term and long-term viability/sustainability
Fund more research
To improve the quality of life
To solve technology-based problems
New platforms and derivative products
Improve productivity and efficiency
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Why Do It? (cont’d.)
Protect installed base
Protect customer’s investment
Create brand loyalty
Vehicle for strategic partnership
Meet stakeholders’ expectations
– customers
– employees
– investors
Renewal and transformation of the organization
Engineering and Technology Management
Starting Premise
• Innovation is key to the long-term vitality of all
enterprises
• Innovation means more than just new products; it
also means new services and ways of doing business
• While the challenge to innovation is originating new
ideas, time is at the core of successful innovation.
• Timely execution is very demanding
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Environment
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Technology evolution
Globalization
Shorter product lifecycles
Increased competition
Downsizing/rightsizing
Entrepreneurial/intrapreneurial
Virtual corporation
Corporate corruption
Workforce development
Continuous improvement
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Competitive Factors
• Speed
• Efficiency
• Quality/Reliability
• Supply Chain/Distribution Channels
Translation: Creating Value for Customers
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Our New Product Development Journey
The Basics
• The elements of NPD
• NPD as the lifeblood of the corporation
• Linkage to strategic and business planning
• Baselining, benchmarking, and planning for continuous
improvement and competitive advantage
Becoming a Fast Innovator
• Planning and preparation
• Product definition
• Design development
• Manufacturing ramp-up
• Product improvement
Engineering and Technology Management
Our New Product Development Journey (cont’d.)
Some Examples of Successful Innovators
• Across industry sectors
• Core values, organizational structure, results-oriented
• Sustainable value (systems and processes)
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The Language of NPD
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Disruptive technologies
Core competence
Benchmarking
Traditional vs. emerging markets
Mergers and acquisitions (M & A)
Full stream life cycle management (ISO
15288)
• Exit strategies
• “Hurdle” rates (ROI)
• Percent revenue from new products
Engineering and Technology Management
The Language of NPD (cont’d.)
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Green technology
Value engineering
Multi-disciplinary solutions
Sustainable development
Mission
Vision
Strategic priorities
Implementation plan
Performance metrics
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New Product Introduction
• Thinking Strategically
• Thinking Commercially
• Thinking Globally
• People, Programs, and Processes
• Transforming Knowledge Into Economic
Value
Engineering and Technology Management
• Strategy, Technology, Investment, and Value
• Bringing Disruptive Technologies and
Processes to Market
• Improving Existing Products and Services
• Comparative and Competitive Advantage
• Avoiding the “Blinded by Success Syndrome”
Engineering and Technology Management
A New Paradigm for Innovation
• Invention vs. Innovation
• A Business Imperative
• Sources of Innovative Ideas
• Building Innovation Capabilities
• The Culture for Innovation
• Ringing the “Cash Register”
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Successful Innovation Companies
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Vision/mission/values
Alignment around values
People systems around values
Organize for success
Effective integration and communication
Clarity of responsibility and accountability
Focus on results thru flawless execution
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Applying Development Strategy and Resources to
Stay Ahead of the Power Curve
Preemptive
Proactive
Maximum Value
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Business Planning and Business Case
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Marketing Decisions
Risk Analysis/Mitigation
Project’s Resource Requirement
Financial Projections
Production Demands
Supply Chain/Provisioning
Product Support/Technical Assistance
Personnel Needs
Engineering and Technology Management
Four Types of Product/Process Development
Projects
1. Research or Advanced Development Projects
2. Breakthrough Development Projects
3. Platform or Generational Development Projects
4. Derivative Development Projects
Engineering and Technology Management
Types of Development Teams
• Functionally Organized Team Structure
• Lightweight Team Structure
• Heavyweight Team Structure
• Autonomous Team Structure
Engineering and Technology Management
Benchmarking
Strengths
Weaknesses
Opportunities
Threats
Engineering and Technology Management
Design and Development Methodologies
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Quality Function Deployment (QFD)
Design for Manufacturability (DFM)
Computer-aided Design (CAD)
Computer-aided Engineering (CAE)
Computer-aided Manufacturing (CAM)
Total Quality Management (TQM)
System of Systems
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Innovation
An economic, social, and environmental
responsibility.
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Innovations based on:
• Economic justification
• Technological feasibility
• Addressable market
• Customer/supplier relationship
• Multi-disciplinary, seamless solutions
• Technology forecasting/roadmapping
Engineering and Technology Management
Innovation
Building on:
• Documented and sustained successes
• Common themes
• Correlations
• Lessons learned
Engineering and Technology Management
What do successful innovators do well?
Engineering and Technology Management
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AT&T
Boeing
Lockheed Martin
GE
Intel
GM
Xerox
Ford
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DEC
Yahoo
Netscape
NetDynamics
Microsoft
HP
Sonic
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Summary of the HP Deskjet Printer Project
• Clear Product Definition and Market Segment
• Clear Focus/Objectives (Low Cost, High Quality)
• Created New Development Process Emphasizing Speed,
Design for Manufacturability, and Teamwork
• Effective Use of Early Production Tools (CAD, CAM, CAE,
PDM, SAP Software)
• Effective Use of Heavyweight Team Structure
• Effective Use of Prototypes/Customer Involvement
• Achieved Objectives for Cost, Quality, Customer
Satisfaction
• Reduced Cycle Time from 36-60 Months to 22 Months
• Became the Model for Subsequent Development at HP
Vancouver
Engineering and Technology Management
Assignment 3
Case Study 2 (HBR9690069) – McAlasdaire
Imaging, PLC: AE-1 Project
In 400 words or less, characterize the development
of the MI AE-1 Project.
- Successful Intro?
Why?
- Introduction Failure?
Why?
Due By: 9/15/03
Engineering and Technology Management
Summary of Assignment 3 – McAlasdaire Imaging’s AE-1
Project
• No clear upfront product definition or specifications
• Poor communications between marketing and engineering
• Lacked overall ingredients for success
- “Start With The End in Mind” (Steven Covey, The 7
Habits of Highly Effective People)
- Alignment
- Commitment and utilization of resources
- Project tracking to meet schedule and costs objectives
- Communication and teamwork across functional
departments
• No clear path for capturing the lessons learned
Engineering and Technology Management
Video “Guest” Lecture
Clayton Christensen, The Opportunity and
Threat of Disruptive Technologies
Engineering and Technology Management
“We are living in a period of time that will produce more
change for humanity than any previous era in history.”
John Peterson
Wave
Period
Activities
Time Span
10,000 Years
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Hunter/Gatherer
•First Wave
Agricultural
Nuts/Berries &
Game
Farming
•Second
Wave
•Third Wave
Industrial Age
Mass Production
100 Years
Information Age
Knowledge Based
Decades
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1,000 Years
Structuring for NPI and Continuous Performance Improvement
Mission/Values
Baseline/Benchmark
Metrics
Document the Lessons Learned
Adjust the Process
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Successful companies look for successful
suppliers and partners with a history of
excellence:
• new products
• enhanced products
• quality and reliability
• customer satisfaction
• price value
Engineering and Technology Management