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McGraw-Hill/Irwin
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
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CHAPTER FIFTEEN
SPECIAL ISSUES IN
DEVELOPMENT
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Techniques for Attaining Speed in a New
Product Project
Figure 15.2
Accelerating Product Development through Managing
the Organization:
•
•
•
•
•
•
Use projectization: project matrix and venture teams.
Use small groups to thwart bureaucracy.
Empower, motivate, and protect the team.
Destroy turf and territory.
Make sure supporting departments are ready.
Clear the tracks in shared departments.
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Techniques for Attaining Speed
(continued)
Figure 15.2
(cont’d.)
Other Techniques for Accelerating Product
Development:
• Intensify resource commitments (integrate channel members;
parallel or concurrent engineering)
• Design for speed (CAD design, common components, design
for easy testing, design in qualities that lead to fast trial)
• Prepare for rapid manufacturing.
• Prepare for rapid marketing.
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Key Characteristics of Short-Cycle-Time
Firms
Figure 15.3
• Extensive user involvement early in the new
products process.
• Cross-functional teams are dedicated to the
new product.
• Suppliers are extensively involved.
• The firms adopt effective design
philosophies and practices.
• The most adept firms are effective at
organizational learning.
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The Role of Marketing During
Development
• Marketing is involved from the beginning of
the new products process.
• Advises the new product team on how the
product development fits in with firm’s
marketing capabilities and market needs.
• Early involvement of marketing increases
product’s chances for success.
• Think of marketing’s task as more information
coordination than information gathering.
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Marketing Ramp-Up
• The “I think we’ve got it” phase.
• Once this point is reached, the team’s attitude
toward the project changes.
• Marketing’s role increases as marketing people
“rev up” their operations.
–
–
–
–
Plan field sales and service availability.
Begin work on packaging and branding.
Begin work with advertising agency reps.
etc.
• Marketing “ramps up” for the product launch.
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Figure 15.4
The Incidence and Consequences of
Interface Problems
Condition of
Marketing-R&D
Interface
Percent of
Project Outcome:
Projects Success
Failure
Harmony
40.8%
52%
13%
Mild Disharmony
20.5%
32%
23%
Severe Disharmony
38.7%
11%
68%
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Why the Friction?
• Stereotypes of marketing, technical, manufacturing
personnel
• Physical separation
– Co-location
– Digital co-location
• Inept top management
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Managing the Interfaces
• Top managers eliminate the interface problems.
• Interface management takes time, not skills.
• Get rid of participants who are a continual problem.
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Clues to Good Policy in Interface
Management
Figure 15.6
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12
Five Conflict Management Styles
Figure 15.7
Conflict Management Style
Confrontation
Definition
Collaboratively solve the problem
to reach a solution the parties are
committed to.
Give and Take
Reach a compromise solution that
the parties find acceptable.
Withdrawal
Avoid the issue, or the
disagreeable party.
Smoothing
Minimize the differences and find
a superficial solution.
Forcing
Impose a solution.
Example
Debate the issue, conduct
customer interviews, generate
possible solutions, find the one
most supported by customers.
Negotiate a set of features to
build into the product, to keep the
project moving ahead.
Team members with unpopular
positions don't think it's worth the
trouble, and back out of the
decision.
Accommodate to the team
members that are strongly
committed to certain product
features, for the sake of group
harmony.
Project manager steps in and
makes the decisions.
Source: Adapted from David H. Gobeli, Harold F. Koenig, and Iris Bechinger, "Managing Conflict in
Software Development Teams: A Multi-Level Analysis," Journal of Product Innovation Management, Vol.
15, No. 5, September 1998, pp. 423-435.
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Global Product Innovation
• Export: make one product; no special arrangements made.
• Global Strategy: make one product; same market conditions worldwide.
• International Strategy: develop versions of the product to meet the needs of
foreign markets.
• Multinational Strategy: Projects directed by managers in each viable foreign
market; apply technology available from home market (Nestle).
• "Local Drive:" Assign basic responsibility to foreign market; some local
R&D and manufacturing; mostly local marketing.
• Mix of the above: firm develops and applies strategies appropriate to each
foreign market.
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Some Insights on Global Innovation From
Senior Executives
Figure 15.8
• Idea Generation:
– Leverage global knowledge.
– Source ideas from customers, employees, distributors, etc.
• Product Development:
– Focus on incremental vs. home run breakthroughs.
– Share development costs.
– Use standardization to better manage global operations.
• Commercialization:
– Early vs. late entrant decision.
– Consider local support/local partner.