lmgt 2052 mod 2
TRANSCRIPT
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2052 MGTSTRATEGIC THINKING AND INNOVATION
MODULE 2
(1)DEVELOPING NEWPRODUCTS
(2) NOTES ON GLOBALIZATIONLecturer: Dr Alan Burton-JonesEmail: [email protected]
Tel: 07 3255 1772
mailto:[email protected]:[email protected] -
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LEARNING OBJECTIVES OFPART 1
To understand the evolution of the newproduct development process To be aware of leading models of
product development including the stagegate process To appreciate the relevance of differentorganizational structures for facilitating
product development To gain a basic appreciation of the roleof the project leader in new productdevelopment
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Part 1:
Developing NewProducts
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EVOLUTION OF THE NEWPRODUCT DEVELOPMENT
PROCESSPhased project planning (NASA, 1960s)B. Preliminary analysisC. DefinitionD. Design
E. OperationProduct planning and development process (Booz
Allen Hamilton 1982)7. Development of new product development strategy8. Idea generation
9. Screening and evaluation10.Business analysis11.Development12.Testing
13.Commercialization
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FIVE GENERATIONS OF NEWPRODUCT DEVELOPMENT
MODELSGeneration Model type Model characteristicsFirst Technology
pushSimple linear sequential: R & D focus
Second Needs pull Simple linear sequential: marketdemand focus
Third Coupling Sequential with feedback loops: R&Dand marketing more in balance
Fourth Integrated Parallel development with integrateddevelopment teams: strong upstream
supplier links; close coupling withleading edge customers; R&D manufacturing integration; jointventuresFifth Systems
integratedandnetworking
Fully integrated parallel development;use of expert systems; strong customerlinks; horizontal links; increased focuson quality
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CULTURAL FACTORS IN THEDEVELOPMENT PROCESS
3 micro cultures of innovation ( Zien andBuckler 1997)
The fuzzy front end : experimental and
chaotic; requires high tolerance for ambiguityand uncertainty The product development process :
disciplined and focused on quantitative goalsand measures; high commitment to goal;schedule oriented; not receptive to newideas; teamwork important
Market operations : predictability and order;strong financial orientation; relies on
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THE STAGE-GATE PROCESS
Stage 1
Stage 2
Stage 3
Stage 4
Stage 5Gate
2
Gate1
Gate3
Gate4 Gate5
1.Preliminaryinvestigation
2.Buildbusiness case
3.Development
4. Testing&validation
5. Fullproduction andmarketlaunch
2.Secondscreen
3.Decision onbusiness case
4. Postdevelopmentreview
5. Testing&validation Post
implementation review
1.Initialscreen
Ideation
The Stage -Gate New Product Process by Robert G.Cooper
2.Buildbusiness case
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THIRD GENERATION NEWPRODUCT DEVELOPMENT
PROCESSCoopers four FsDevelopment process should be:3.Fluid: fluid and adaptable with overlapping
and fluid stages4.Fuzzy gates: conditional go decisions5.Focused; build on prioritization methods
that look at entire portfolio of productsand focus resources on the best bets6.Flexible: not a rigid stage-and-gate
system; each project unique and has ownrouting
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PRODUCT DEVELOPMENT ANDORGANIZATIONAL STRUCTURE
Type How it works Appropriate forFunctionalorganization
Project plannedand executed ina functionalstructure
Improvement to existing products; new low innovationproducts; sequential processing; fosters deepspecialization
Independen
t projectorganization
Self contained
group; projectmanager totallyresponsible; co-located team
Large projects justifying full time use of expert from
different functions; suitable for new solutions orproducts; suitable for firms in dynamic markets
Matrixorganization
Decision makingrests withproject team;
project managernegotiates withheads of functions forresources; highdemands onsocial andpolitical skills of project manager
Large complex projects requiring simultaneous effortsfrom multiple experts in different disciplines
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THE DEVELOPMENT FUNNEL
MarketAssessmentandForecasting
CapabilitiesAssessmentandForecasting
Post-projectlearning andimprovement
Developmentgoals &objectives
Projectportfolioplanning
ProjectMgt.andexecution
Capabilities
strategy:Core competencies Technology base/stage
cycle Technology integration
Product/marketstrategy:
New versus existingmarkets
Derivative or newproduct/concept
Financial contribution
Businessstrategy
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Component drivenproducts
e.g. machine tools
Engineer=Integrator?
Complex products
e.g. automobiles
Manager= integrator?
Simple products
e.g. packaged goods
Marketing type
productManager = integrator
Interface drivenproducts
e.g. consumerelectronics
Industrial designer=integrator?
High
High
Low
Low
TYPES OF PRODUCTS ANDPROJECT INTEGRATORS
Coordinationdifficulty of internal productstructure
Coordination difficulty of product user interface
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Part 2: Notes on
Globalization
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LEARNING OBJECTIVES OFPART 2
To understand what globalization meansand key factors supporting andconstraining organizations globaldevelopment To appreciate the factors influencingdecisions to operate R& D on a global orlocal basis and ways to manage theprocesses involved To be aware of human and culturalfactors in international businessoperations To understand issues relating to globalbrandin
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GLOBAL OR INTERNATIONAL? Some commentators argue that world markets are
becoming increasingly similar making it unnecessary tolocalize the marketing mix
Others take the view that while the world is moving towardsglobal markets, cultural and economic differences amongregions and nations limit globalization of consumer tastesand preferences
Trade barriers and differences in product and technicalstandards in different countries and regions limit firmsability to sell a standardized product to a global market buttrade barriers are progressively falling and global standardsare increasingly prevalent across product groups
Globalization is probably best viewed on three differentlevels: economic level : gradual moves to trade liberalization
worldwide organizational level: globalization varies by industry e.g.
globally relevant resources plus financial andprofessional services and the high technology sector arealmost completely global whereas some more traditional
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GLOBAL OR LOCAL R&D? KEY FACTORS TO CONSIDER
Degree of innovation Importance of speed to market Specificity of market knowledge Product uniformity across markets Ned for economies of scale Benefits of close R&D-Marketing
collaboration Cultural issues e.g. not invented here
syndrome
Benefits of having different organizational
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Autonomousregional R&Dcenters e.g.Unilever,Citibank, GM
Network of regionalR&D centerssupported by somecentral R&D e.g.DuPont, 3M
Autonomoustechnology R&Dcenters e.g. IBM,Pfizer
Network of technology R&Dcenters with centralcoordination e.g.Microsoft , Nokia, HP,
Novartis Matsushita
Single,Central R&Dcenter
RegionalMarket
Technology
Decentralized Centralized
Primary focus
APPROACH TO MANAGING GLOBAL
R&D
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MANAGING PEOPLE IN AGLOBAL CONTEXT
Structural Forms and Modes of Internationalization Typical People issues
Whether to staff foreign operationswith Parent or Host country nationals
Establishment of foreign production
Establishment of sales subs. & foreign
branches
Simple export Limited issues
How to transfer technology and managementknowledge to Host country nationals
Global product division How to staff and people managementfunctions in foreign subsidiaries
Transnational structure Issues with mixed use of host country parentcountry and third country nationals
Issues of management progression;staff loyalty
Cooperative ventures e.g. alliances,IJVs
Adapted from De Cieri, H. and Dowling . J. (1997) Strategic international human resource management: an Asia-Pacificperspective, Management International Review, 37/1:21-42
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Social structure : structure of social relationships : degree towhich the basic unit of social organization is the individual, asopposed to the group and the degree to which a society isstratified into classes or castesNational culture: the set of values and the norms of behaviorthat are approved or sanctioned by a society e.g. Hofstedes 5
dimensions : Power distance : e.g. between subordinates and superiors Uncertainty avoidance : e.g. how comfortable managers and
staff feel in unstructured situations evidenced in extent of rules-based compliance
Individualism versus collectivism : e.g. degree to whichindividuals areintegrated into groups for workplace bargaining, contracts
and incentives Masculinity versus femininity : assertiveness versus
interpersonal focus
GLOBAL SOCIOCULTURAL FORCES
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DIFFERENCES IN WORK-RELATED VALUES BY COUNTRY
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CONSIDERATIONS FOR GLOBALPRODUCT BRANDING
Us ing brand symbols with universally acceptedmeanings and /or positive connotations Whether to emphasize or deemphasize country
associations
Be willing to modify strategy to accommodate culturaldifferences across nations and regions When developing or delivering products be sensitive to
local social and ethical concerns
Be aware of local legal requirements Balance economies of scale with benefits of local
presence
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EXERCISE: ASSOCIATIVEEFFECTS OF BRAND SYMBOLS
For each of these words write down which you associate more with the IBM PC or more with theApple Mac :
Effeminate, beautiful Virile , macho Business, science Arts , design
Masculine Feminine Imaginative, associative Rational , linear Traditional , bland Cool, trendy
Left brain Right brain Right wing , conservative Left wing, liberal Catholic Protestant
Adapted from Danesi, M. ( 2006) Brands : Abingdon , Oxford, Routledge
SMALL GROUP EXERCISE
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SMALL GROUP EXERCISE:
Case study review: Walkingwith Dinosaurs
1.Working in small groups discuss your
individual responses to the 4 questionsat the end of the case study (see page41 in the textbook).2. Review and consolidate the findingsfrom your individual responses.3. A member of each group present thefindings of the group to the class andlead a class discussion.
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PREPARATION FOR NEXT WEEK
Read Case Study (3) on Black andDecker's Quattro (starts on p131 inthe textbook).
Prepare a one page documentcontaining your responses to the 2questions on page 137
Come prepared to discuss yourresponses in class.