MSETM 5110

1
MSETM 5110 New Product DevelopmentRecap of
Session IV

• Building Product Development and Realization
  Capability
• Organizing and Managing Projects
• Linkage of Product Development and Introduction
  to Business Strategy and Values
• Review of Types of Development TeamsFunctional,
  Lightweight, Heavyweight and Autonomous
• Spiral Integration
• Customer-centric Product Development
• The Steps Between Product Concept and Customer
  Launch
• Management Roles and Responsibilities
• The HP DeskJet Printer ProjectAn Example of
  Planning and Execution
• Intellectual Property and Patent Portfolio
• Introduced Assignment 2McAlasdaire Imagings
  AE-1 Project

2
MSETM 5110 New Product Development

• Intellectual Property
• Presenter
• Dr. Ron Buchanan
• Sr. Research Consultant
• Education and Research Foundation
• Oklahoma State University

3
MSETM 5110 New Product Development

• New Product Introduction
• Thinking Strategically
• Thinking Commercially
• Thinking Globally
• People, Programs, and Processes
• Transforming Knowledge Into Economic Value

4
MSETM 5110 New Product Development

• Session 5, Part 2
• Summary/Common Themes of Assignments
• Living on Internet Time
• McAlasdaire Imaging the AE-1 Project

5
MSETM 5110 New Product Development

• Summary of Living on Internet Time Product
  Development at Netscape, Yahoo!, NetDynamics,
  and Microsoft
• Common
• Each Aware of/Engaged in Competitive Benchmarking
• Each Used Effective Prototyping/Beta Models
  (Microsofts Approach More Internally Focused)
• Aware of Interoperability
• (contd.)

6
MSETM 5110 New Product Development

• Summary of Living on Internet Time Product
  Development at Netscape, Yahoo!, NetDynamics,
  and Microsoft (contd.)
• Differences
• Philosophy, Culture, and Development Process
• Size of Development Staffs and Resources
• Microsofts Total-System-Solution Mindset
• Microsoft Sought to Expand Competencies/Respond
  to SIPs
• Heavyweight Team Structure (Microsoft) vs.
  Lightweight (Yahoo!)
• NetDynamics Philosophy of Open Architecture
  Based on Standards
• Netscapes Heavy Focus on Early Releases Before
  Feature Release
• Note Netscape Acquired by AOL
• NetDynamics Acquired by Sun Microsystems
• Based on (SEC) 10-k Filings 1) Microsoft, 2)
  Netscape 3) Yahool!, 4) NetDynamics

7
MSETM 5110 New Product Development

• Summary of Assignment 2 McAlasdaire Imagings
  AE-1 Project
• No Clear Upfront Product Definition or
  Specifications
• Poor Communications Between Marketing and
  Engineering
• Overall Ingredients for Success Lacking
• - 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
• Capturing the Lessons Learned

8
MSETM 5110 New Product Development

• 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

9
Teradyne Aurora Project(Automatic Test Equipment
ATE)

• Video Tape
• Cross Functional Team/Internal Board of Directors
• Market Concerns
• Microcontrollers
• ASICs
• Technology Concerns
• CMOS
• Windows NT
• Discontinuous Change (Disruptive Technology)
• Platform
• Derivative
• Core Competency
• Business Plan/Business Case
• Getting Engineers Close to Customer
• Understanding the Customers Business and
  Operating Metrics
• Asset/Resource Allocation

10
MSETM 5110 New Product Development

• Organization Vision/Mission/Strategy
• Business Model/Architecture
• Development Portfolio and Development Teams
• Functional Integration (Wheelwright and Clark,
  Exhibit 8-1, p. 191)
• - Functional Team Structure
• - Lightweight Team Structure
• - Heavyweight Team Structure
• - Autonomous Team Structure
• Tools and Methods

11
MSETM 5110 New Product Development

• Becoming a Fast Innovator
• Time is the key performance variable to be
  managed to attain improved cost and quality.
• Time benchmarks are set by the performance of
  competitors and, if faster, by what is
  technologically possible.
• The support functions necessary to advance the
  development process are actively managed to be
  invisible. Their need is to be anticipated
  they are to be invested in and kept up-to-date.
  They are never to be allowed to slow the
  development process.
• Each program is to be managed and executed by a
  small, dedicated, decision-empowered, and
  experienced team. Team members have common goals
  and are measured and evaluated as part of a team.

12
MSETM 5110 New Product Development (contd.)

• Becoming a Fast Innovator (contd.)
• The development programs are to have four steps,
  and company will organize itself around these
  steps
• Planning and preparation
• Product definition
• Design development
• Manufacturing ramp-up
• Product Improvement
• The objective of planning and preparation is to
  avoid having to invent in the middle of the
  development processmake unknowns be knowns.
• After definition, the product specification is
  frozen. The definition is committed to and not
  allowed to be changed. The improvement phase is
  to be used for costs and feature enhancements.

13
MSETM 5110 New Product Development (contd.)

• Becoming a Fast Innovator (contd.)
• Functional expertise resides in the development
  program. Manufacturing and design resources are
  full-time participants in the definition team.
  Manufacturing resources are full-time
  participants in the design team.
• Team members are collocated.
• Senior management reviews are few. The role of
  senior management is to ensure that the program
  teams have the appropriate resources, incentives
  and environment to execute their tasks quickly.
• New programs are generated continuously, at
  regular market-driven intervals, and incorporate
  more incremental advances and fewer great leaps
  forward.

14
MSETM 5110 New Product Development

• So, What Does This All Boil Down To
• Mission/Vision/Strategy
• Technology Solutions in a Knowledge-based and
  Global Economy
• Customer- and Market-Focused
• Creating Stakeholder Value
• Speed, Flexibility
• Repeatable, Sustaining NPD/NPI Process
• Effective Use of People and Capital Resources
• Being Competitive
• Maintaining/Building Core Competency
• Clock Speed

15
MSETM 5110 New Product Development

• Time and Innovation
• 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 an innovations
  success
• Timely execution is very demanding

16
MSETM 5110 New Product DevelopmentCompeting
Through Innovation

• Changing Business Climate
• Globalization
• Increased Competition
• Technology Revolution/Evolution
• Fragmented, Demanding Markets
• Shorter Product Lifecycles
• Virtual Organizations
• E-Business
• Competitive Factors
• Speed
• Efficiency
• Quality/Reliability
• Supply Chain/Distribution Channels
• Translation Creating Value for Customers

17
MSETM 5110 New Product Development

• In Review
• Competing Through Development Strategy
• The Concept of a Development Strategy
• Maps and Mapping Functional Strategies in
  Pre-Project Planning
• The Aggregate Project Plan
• Structuring the Development Funnel
• A Framework for Development
• Cross-Functional Integration
• (contd.)

18
MSETM 5110 New Product Development

• In Review (contd.)
• Organizing and Leading Project Teams
• Tools and Methods
• Prototype/Test Cycles
• Learning From Development Projects
• Building Development Capability
• Wheelwright and Clark, Revolutionizing Product
  Development Quantum Leaps in Speed, Efficiency,
  and Quality.

19
MSETM 5110 New Product Development

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

20
MSETM 5110 New Product Development

• Summary of Clockspeed by Charles H. Fine, Sloan
  School of Management, M.I.T.
• In the natural world, species evolvethat is,
  they change to meet new challengesor they die.
  The same genetic imperative operates in business.
• A Partial Listing of Contents
• The Genetics of Business
• Learning from the Fruit Flies
• Evolution or Extinction
• Competition in the Age of Temporary Advantage
• (contd.)

21
MSETM 5110 New Product Development

• A Partial Listing of Contents (contd.)
• What Fruit Flies Teach Us About Business
• The Insights of Clockspeed
• Survival of the Fittest
• The Temporary Nature of Advantage
• Supply Chain Design
• The Ultimate Core Capability
• Executing Strategy in the Age of Temporary
  Advantage
• Three-Dimensional Concurrent Engineering
• Genetic Engineering in A Fast-Clockspeed World
• Building Capabilities Through Dynamic 3-D
  Concurrent Engineering

22
MSETM 5110 New Product Development

• Structuring for NPI and Continuous Performance
  Improvement
• Mission/Values
• Baseline/Benchmark
• Metrics
• Document the Lessons Learned
• Adjust the Process

23
MSETM 5110 New Product Development

• Purpose
• Connectivity
• Relevancy
• Application
• Science what is
• Engineering creating what has never been

24
MSETM 5110 New Product Development

• The Four Disciplines of a Healthy Organization
• Build and Maintain a Cohesive Leadership Team
• Create Organizational Clarity
• Over-Communicate Organizational Strategy
• Reinforce Organizational Clarity Through Human
  Systems
• Source Patrick Lencioni, The Four Obsessions
  of an Extraordinary Executive.

25
MSETM 5110 New Product Development

• Objective(s)
• Focusing on Things That Make a Difference (Value)
• Flawless Execution
• Continuous Improvement