ProductDevelopmentBasicBeliefsPDNet#14835INNOVATIONANDTECHNOLOGYMANAGEMENTTechnologyStrategyandR&DManagementConferenceBradBerkson–TX/HOJanuary23-24,1997SantaMonica,CaliforniaProductDevelopmentBasicBeliefsBradBerkson–TX/HOINNOVATIONANDTECHNOLOGYMANAGEMENTTechnologyStrategyandR&DManagementConferenceJanuary23-24,1997SantaMonica,CaliforniaAbstractThisdocumentisanoverviewofnewlyformedbasicbeliefsforproductdevelopmentandwhyeachisimportantandwhatdistinguishesmediocrepracticefromexcellence.2txho/ZXE129/70121tr.pptMULTIPLEPRACTICESDRIVINGFORMATIONOFPRODUCTDEVELOPMENTCOREOperationseffectivenessI&TMElectronicsAutomotive/assemblyAerospacePharmaceuticalsConsumergoodsProductdevelopmentcoregroup•BradBerkson•FelixBrueck•SanjoyChatterjee•BrianFabes•JohnGriffin•GlennMercer•KevinMulloy•PantelisGeorgiadis•ChandranSankaran•JeffSinclair•DaveSumma•BrianTantzenCurrentroster3txho/ZXE129/70121tr.ppt•GlobalProductDevelopmentConference(October1996,Boston)•Basicbeliefssummarization(currentstatereviewtoday)•Knowledgebuildingagenda–Bestpracticecasestudiestotestbeliefs–Targetedclient/clientelebuildinginitiatives(HP,Compaq,TRW,IBM,BMS)–Productdevelopmentsimulationenvironment(businessdynamics)•“Oncall”resourcebase(Microsoft,Kodak,HP,Compaq,andmanyothers)COREGROUPEFFORTSTODATE4txho/ZXE129/70121tr.pptTrendinhigh-techsector•Pricesperfunctiondecliningby10-20%peryear•Productlifecyclesshrinking10-20%pergeneration,andthenumberofmid-life“kickers”areconstantorgrowing•Increasingfragmentationandsegmentationofthemarket•Increasingdemandfordistinctlybrandedproductstofacilitatepriceandbrandmanagementthroughmultiplechannels•Increasingknowledgewarecontentinnewproducts(diminishingelectromechanicalcontent)•Diminishingcapitalrequirements(exceptinsemiconductors)andthereforediminishingbarrierstoentrybynewknowledgeware-basedentrants•AcceleratingacquisitionofventurefundedinnovationintomorematurecompaniesChallengeforproductdevelopment•Maintaininggrossmargins–continuouslyreducingproductcostsinlinewithpricedecline•ReducingR&Dexpensespergeneration,givenmorefrequentgenerationsforthesamerevenuebase•Controllingproductcostandcomplexitywhileprovidinggreaterproductvarietytothesamerevenuebase•Controllingproductcostandcomplexitywhileprovidinggreaterproductvarietytothesamerevenuebase•Ensuringeffectivesoftware/firmwareproductdevelopmentcapabilitiesandintegrationwithmanufacturing-intensiveproductdevelopment•Higherdegreeofinnovationexpectedtorefreshproductlines,withoutincreasingR&Dspending•InvestmentofR&DandmanagerialresourcesintointegrationofacquisitionsatalllevelsoftechnologyandprocessCHALLENGESFORPRODUCTDEVELOPMENTFROMHIGH-TECHSECTORTRENDS5txho/ZXE129/70121tr.pptPRODUCTDEVELOPMENTBASICBELIEFSProblemsolvingandperformancecultureLearningandknowledgetransferProductlinestrategyandplatformingPhysicalenvironmentStaffingandresourcemanagementOrganizationalstructureandprocess•Specificbenchmarksusedtosettargetsandmeasuresuccess•DisciplinetofollowprocessinstitutionalizedbysharedvaluesAreaBestpracticebeliefs•Continualimprovementandteamlearningmechanismsinplace(e.g.,postprojectaudits,processmanuals,staffrotations)•Strongprogrammanagementexercisedviastrongprogramteamandphasegateprocessestoensureprojectsonbudget,ontime,andatquality•Organizationdrivenbyproductdevelopmentteamsnotfunctionalbounds•Technologyreadin...
