Managing Innovation & New Industrial Product Development

1
Managing Innovation New Industrial Product
Development

• Chapter 10

2
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

3
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

4
Managing Technology

• Classifying Development projects
• Derivative projects
• Platform projects
• Breakthrough projects
• Research and development

5
Managing Technology

• Product-Family Focus
• Products that share a common platform but have
  different specific features and enhancements
  required for different sets of consumers.

6
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

7
What makes some companies better innovators?

• Limited structure
• 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.

8
What makes some companies better innovators?

• Experimentation
• Creating options for the future
• Time Pacing
• A strategy for competing in fast-changing
  markets by creating new products at predictable
  time intervals.

9
What Drives a Firms New Product Performance?

• Quality of a Firms 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 firms objectives
• RD budgets were adequate and aligned with
  objectives
• Necessary personnel are available
• New product strategy
• 3M

10
What Drives a Firms New Product Performance?

• Anticipating Competitive Reactions
• Developing scenarios
• When will a competitor react?
• If _____________________________ and
• ______________________

11
What Drives a Firms 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

12
(No Transcript)
13
Quality Function Deployment

• Identifies critical customer attributes and
  establishes a specific link between customer
  attributes and product design attributes.

14
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

15
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

16
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

17
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