ETM 5391

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ETM 5391 New Product Development and
CommercializationSpring, 2004

• Instructor Mr. C. Michael Carolina
• Date March 25 April 22, 2004

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• ETM 5391 Web site
• http//www.okstate.edu/ceat/msetm/courses/etm
  5391/.

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• 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)

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• Why Do It?
• 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? (contd.)
• Protect installed base
• Protect customers investment
• Create brand loyalty
• Vehicle for strategic partnership
• Meet stakeholders expectations
• customers
• employees
• investors
• Renewal and transformation of the organization

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• 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
• 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

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• Our New Product Development Journey (contd.)
• 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
• 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

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• The Language of NPD (contd.)
• 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

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• 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

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• 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
• 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
• Marketing Decisions
• Risk Analysis/Mitigation
• Projects Resource Requirement
• Financial Projections
• Production Demands
• Supply Chain/Provisioning
• Product Support/Technical Assistance
• Personnel Needs

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• Four Types of Product/Process Development
  Projects
• Research or Advanced Development Projects
• Breakthrough Development Projects
• Platform or Generational Development Projects
• Derivative Development Projects

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• Types of Development Teams
• Functionally Organized Team Structure
• Lightweight Team Structure
• Heavyweight Team Structure
• Autonomous Team Structure

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• Benchmarking
• Strengths
• Weaknesses
• Opportunities
• Threats

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• Design and Development Methodologies
• 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

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• Innovation
• Building on
• Documented and sustained successes
• Common themes
• Correlations
• Lessons learned

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• What do successful innovators do well?

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• ATT
• Boeing
• Lockheed Martin
• GE
• Intel
• GM
• Ford
• Toyota
• Yahoo
• Microsoft
• IBM
• Cisco Systems
• 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

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• 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 4/22/04

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• Summary of Assignment 3 McAlasdaire Imagings
  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

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• Video Guest Lecture
• Clayton Christensen, The Opportunity and Threat
  of Disruptive Technologies

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• 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
------ Hunter/Gatherer Nuts/Berries Game 10,000 Years
First Wave Agricultural Farming 1,000 Years
Second Wave Industrial Age Mass Production 100 Years
Third Wave Information Age Knowledge Based Decades
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• 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