TTMG 5101
Integrated Product Development
Session 1: July 3
Summer 2008
www.carleton.ca/tim
www.carleton.ca/tim/tim.pdf
Michael Weiss
weiss@sce.carleton.ca
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Objective
• Upon completion of this class, you will know about:
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Managing the new product development process
Common product development decisions
Integrating innovation portfolios
Managing development flexibility in uncertain environments
• And you will be able to:
– Start working on group and individual assignments
– Describe the activities related to the NPD process and
describe the linkages between them
weiss@sce.carleton.ca
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Agenda
1. TTMG 5101 course outline
2. Managing the NPD process
3. Product development decisions
4. Innovation portfolios
5. Integrated product development
weiss@sce.carleton.ca
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1. Course outline
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Instructor availability
Calendar description
Course objectives
Rationale
Benefits
Class sessions
Student evaluation
Assignments
Exam
Class participation
weiss@sce.carleton.ca
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Themes
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Product development
Flexibility
Product concept
Open environments
Open source development
Product architecture
Platforms and ecosystems
Product and technology evolution
Intellectual property
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Clustering of themes
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Group assignment
• Describe a product opportunity:
– Describe the job the customer needs done
– Identify the gap in current offerings by competitors
– Describe a scenario of using the product
• Refine product opportunity into a value opportunity:
– Who buys
• Who are the stakeholders?
– What do they buy
• What are the general product attributes?
– Why should they buy from you
• What are your unique capabilities?
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Individual assignment
• Document a best practice for product development
as a pattern (context, problem, solution)
• Based on the literature or your own experience
• Follow the pattern format:
– The pattern must clearly identify forces and consequences
– The pattern must include three known uses
• Patterns will be workshopped
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Course readings
• Journal articles and chapters from books which are
available as electronic resources from library
• To access the library:
– Go to: http://www.library.carleton.ca
– Then click on “Journals & Journal Articles”
– Enter the name of the journal (eg Harvard Business
Review), and click “Search”
– Click on the link (there may be several), and enter your
barcode number and PIN
– For material on the Web, the URL is provided
– For book chapters, click on “E-Books”, then on “Safari”
weiss@sce.carleton.ca
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Sessions
• Sessions will be recorded: you can replay the audio
and the slides (at some point also the video)
• I will not be here during week of July 10, but provide
prerecorded lectures on product concept design
• Breakdown of sessions:
– 8 formal lectures
– 4 workshops/presentations
– Last day: Aug 13
weiss@sce.carleton.ca
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Good books (not required)
• Smith, P., Flexible Product Development: Building
Agility for Changing Markets, Jossey-Bass, 2007
• Kerber, R. & Laseter, T., Strategic Product Creation,
McGraw Hill, 2007
• Thomke, S., Managing Product and Service
Development, McGraw Hill, 2007
• Iansiti, M., Technology Integration, McGraw Hill, 1997
• Ulrich, K., & Eppinger, S., Product Design and
Development, 4th ed., McGraw Hill, 2007
• Clark, K., & Wheelwright, S., Managing New Product
and Process Development, Free Press, 1992
weiss@sce.carleton.ca
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Readings for today
• Schilling, M., & Hill, C. (1998), Managing the new
product development process: Strategic imperatives,
Academy of Management Executive, 12(3), 67-81
• Krishnan, V., & Ulrich, K. (2001), Product
development decisions: A review of the literature,
Management Science, 47(1), 1-21
• Laseter, T., & Kerber, R. (2008), Launch and Learn,
Strategy + Business, 50, Spring, 1-6
• Gerwin, D., & Barrowman, N. (2002), An evaluation
of research on integrated product development,
Management Science, 48(7), 938-953
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2. Managing the NPD process
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Technology strategy
• Need a clear and consistent technology strategy
• Company should focus its development efforts on
projects that create long-term value
• Articulate a stretch goal, and identify the resources
and capabilities required to achieve this goal
• Company must manage its project portfolio: identify
desired project mix and allocate resources
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Project map
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Organizational context
• Possible to obtain technologies you lack through
alliances, but choose your partners carefully
• Must also weight external acquisition of technology
against the learning from internal development
• Parallel development process reduces cycle time,
and improves coordination across stages
• Support from champions improves success chances
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Teams
• Diverse teams have broader knowledge base, and
ensures access to more information sources
• Including customer and suppliers improves fit with
customer needs, and can reduce costs
• Must match team structure to coordination and
communication needs or project
• Platform and breakthrough projects require powerful
project managers (heavyweight teams)
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Team structures
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Tools
• Use of appropriate tools can greatly speed up
product development and maximize fit
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Stage-gate processes
Quality Function Design (QFD)
Design rules (DFM)
CAD, CAM, CASE, MDA
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3. PD decisions
Product development decisions
Made within a development
project (knowledge)
Setting up a development project
(infrastructure)
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Concept development
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Product strategy and
planning
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Supply chain design
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Product development
organization
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Project management
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Product design
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Performance testing and
validation
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Production ramp-up and
launch
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Clustering of decisions
Product
Portfolio
target values
of attributes
which opportunities
to pursue
core product
concept
values of key
design parameters
sharing of assets
across platforms
physical form and
industrial design
desired variants
of products
assembly precedence
relations
product
architecture
who designs
components
configuration of
supply chain
who produces/
assembles product
Architecture
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4. Innovation portfolios
• Integration among three innovation portfolios
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Three portfolios
Technology
capabilities
Purpose is to identify emerging capabilities to
consider in product portfolio; technology
capabilities may also be developed in response to
gaps in desired product portfolio
Product creation Needs to comprise a mix of breakthrough
projects
products, major upgrades, and line extensions;
diversity reduces impact of failure of any
individual product creation project
Products or
services
Requires constant upgrades (major new
products, minor improvements) to differentiate
offer from competitors and keep customers
interested; common product architecture
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Integrating innovation portfolios
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Linkages among portfolios
Technology
capabilities
Technology
capabilities
Product
creation
projects
Context of use
Products or
services
Gaps in
capabilities
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Product
creation
projects
Products or
services
Technology
demonstrators
Technology
roadmaps
Disciplined
process
Platform
architecture
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5. Integrated PD
• IPD is a managerial approach for improving new
product development performance (eg time)
– Overlap of stages
– Interaction of activities
• IPD characteristics
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Process (eg integrated tools)
Product definitions (eg incremental projects)
Organizational context (eg low task specialization)
Teaming (eg cross-functional teams)
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Meta-analysis
• Combines results from different studies
Characteristic
Time
Goal failure
Overlap and interaction
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Integrated tools
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Incremental project definition
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Broadening tasks
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Cross-functional teams
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Team leader power
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Future research on IPD
Hierarchy of teams Development of complex products require
teams for major subsystems: must coordinate
between teams; need for inter-team reward
systems
Portfolio of projects Must coordinate between projects that may
over time
partially overlap in time: multiple generations
of a product, as well as knowledge transfer
between products (component reuse)
Strategic alliances
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Development of projects jointly with other
companies: must coordinate departments in
different companies; economies of scale
(broad overlap), co-specialization (narrow)
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