new product development, management of technological innovation, kv patri 1 new product development
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New Product Development, Management of Technological Innovation, KV Patri
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Issues in Product Design
• User Centered design• Group technology, part modularization,
standardization, simplification, and specialization.• Design for manufacture and automatic assembly.• Value Analysis.
• Product evaluation and configuration management.
• Marketing and ongoing development.
New Product Development, Management of Technological Innovation, KV Patri
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Policy
Strategy
Tactics
Design Actualization
Business Task HierarchyDesign Profession Work Task
Design Producer
Design Director
Design Manager
Designer
Generalist
Specialist
Corporate Planning
Business Development
Concept Creation
ModelingResearching
Soft
Hard
Field of DesignArchitectural, Interior, Product, Visual
New Product Development, Management of Technological Innovation, KV Patri
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CI: Corporate Identity
BI: Brand Identity
HI:Human Identity
VI:
Visual Identity
PI:Product Identity
Corporate Design Policy
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Designer Involvement in Various Corporate Tasks (No. out of 109)
(Japan) [M. Takahashi, 1999]
0102030405060708090
100
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General Manager
R&DSales &
MarketingProduction & Logistics
Dept # 01
Dept # 11
Dept # 110
Dept # 01
Dept # 11
Dept # 110
Dept # 01
Dept # 11
Dept # 110
Shared Product Development Responsibility
Project ManagerPool
Project Team 01
Project Team 03
Project Team 02
Steering Committee
New Product Development, Management of Technological Innovation, KV Patri
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User centered design: Establishing contacts with customers
• Many large, high-tech companies consciously or unconsciously isolate their creative people and their R&D departments from direct contact with customers. This is wrong since the voice of the customer can actually be used as a strategic edge for breakthroughs in innovation.
• Usually customer contact is relegated exclusively to the marketing department. A little later after-sales-service is attached to the marketing department. A small personal conflict between the R&D manager and marketing manager could lead to the total isolation of R&D personnel from the customer.
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Use of beta-sitesMicrosoft has devised a very attractive method to maintain
close contact with its worldwide customers. Every new, innovative software package it develops is first distributed, free of charge, to a network of enthusiastic customers willing to serve as Beta-sites for Microsoft realizing that the best way of creating a “bug-free” product is to subject it to a statistically significant quantity of real-life testing. Microsoft collects fixes the bugs based on the feedback received from these real-life users. The feedback also usually contains a bonanza of comments, suggestion, and proposals for improvements. These drive future innovations.
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Red Competitor Representative
• Red competitor is the strongest real (external) competitor. An internal expert is selected to gather intelligence about the competitor, anticipate their moves and periodically challenge the internal Blue Team.
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Market
Existing New
Improve value and cost
Adaptknowhowto markets
Achievemajor gains invalue and cost;
Introduce new products
Radicallydiversify
product(s)and markets
Product-Market Matrix: Four Positions
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Product Life Cycle
AdultInfant Aged
Time
Rev
enue
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Time
TechnologicalCapability
The “S” Shaped Curve
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• The growth in a new technological capability typically follows an “S”shaped logistic curve,
• The curve can be divided into three stages:
(i) slow initial growth till the technology has
demonstrated superiority over existing technologies,
(ii) rapid explosive growth after superiority is
demonstrated, and
(iii) leveling off due to technological or socioeconomic
factors.
• Commercially successful exploitation of technology often depends upon the astute perception and exploitation of the “S”shaped growth trend. Hence much research has been done on how the curve may be modeled.
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Time
Cash flow
Sequence of innovations
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organisms) biological
of patternsgrowth studyingin y extensivel
usedbeen hasfunction sPearl' (Raymond
constants
growth limit toupper the
Where1
:Function Pearl
a, b
L
ae
L y
bt
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Envelope Curves and Trend Exploitation
Technological evolutions typically progress through successive substitutions of new approaches. Whereas individual technological capabilities (A, B, C, etc.) follow the S-shaped curves, each current technology is superceded by the next significantly superior technology so that the ‘envelope curve” can be used for trend exploitation.
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Some technology trends that have been modeled
• Efficiency of light bulbs since 1850:
log(lumens/watt) = -128.71511+0.0685t
(t is in years since 1850)• Top speed of US combat aircraft since 1909:
log(speed mph) = -118.30568 + 0.0640t• Capacity of Random Access Storage/Random
Access Time since 1951:
log(bits/microsec) = -1080.81958 + 0.55125t
Exercise: Test each forecast against current value.
New Product Development, Management of Technological Innovation, KV Patri
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Time
Cost-effectivemeasure Envelope
Curve
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Basic Research and Invention
Concept Design
Prototype Developmentand Testing
Final Productor Design Engg
Tooling and Industrial Engg
Test Mktg
ManufacturingStart-up
MarketingStart-up
Prodn, Mrktg, Sales
After-Sales Service and Trouble-shooting
Market Res.and Testing
The Design andDevelopment Activity
The Process of Technological
Innovation
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Managing Design: 11 Phases1. Identify need or want
2. Specification
3. Relevance of Product
4. Conceptual design
5. Preliminary cost estimate
6. Evaluation
7. Detail design
8. Prototype
9. Manufacture
10. Product launch
11. Product review
Mrktg with Engg assistance
Mrktg and Engg
Mrktg, Prdn, Fin. and Legal
Engg
Prdn
Fin. and Mrktg
Engg
Engg
Prdn
Mrktg
Mrktg, Engg and Fin.
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Design is Interdisciplinary
Design fo
r
function
Design for Market
Design for
Manufacture
Desig
n for
Appea
ranc
e
Mech/Elec
Eng.
Manufacturing Eng..
Business Mgmt
Industrial
Art
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Objectives of Design
• Aim: To make profits for the manufacturer while satisfying the customer within the constraints imposed by society (e.g. environmental effects, patents, intellectual property.
• Some objectives: Simplicity, Lightness, Use of standard parts.
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Where should ‘Design’ be located?
• Part of ‘Production’ department: Conflicts may arise because design changes disrupt production.
• Parallel with ‘Production’ department.
• Temporary project team for each design project. Team drawn from various departments. Lying outside the normal line structure. Reporting to someone higher up. (Matrix Organization)
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Product/Service Decision Making
Product/Service Specification
Design
Communication (final stage only)
Operations
Process Decision Making
Process Specification
Traditional SequentialApproach to
Designing and Manufacturing/Operating
Time
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Design
Weak, One-Way Communications
Operations
False SimultaneousApproach to
Designing and Manufacturing/Operating
Time
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Design
Strong, Two-Way Communications
Operations
True Modern SimultaneousApproach to
Designing and Manufacturing/Operating
Time
Visit the case study on Sun Microsystems here.