The persistent success of technology based companies depends on their proficiency in creating next generation products and their derivatives. They found that most of the companies were unable to complete such projects on schedule. The companies also had difficulty developing the derivative products needed to fill the gaps in the market that their next-generation products would create. The root cause problem was in the product definition phase and not spontaneously; all the successful companies have learned how to handle the technical and marketplace uncertainties in their product definition processes. Paper describes the actions of companies used as best practices which ...view middle of the document...
Creating new business units for new markets versus using the existing business units is not recommended as per the experiences of firms.
The last execution during definition ensures that definition process took place effectively and on schedule. Tracking progress and sustaining urgency is important. Most of the delays observed were managerial in nature due to lack of monitoring time and management efficiency. Product priorities from customer’s view point have been defined in three categories “must have”, “should have” and nice to have”. The product priority document links to product introduction to company’s overall business strategy and keeps product developers focused on features that customer’s want in order to hold them.
Developing early prototypes has helped companies to introduce their product early customers and get their feedbacks. Companies stayed in touch even last moment of final product launch to understand their requirements and critics and used it as continuous stream of market information to shape their derivatives & revisions.
Key Learning Points:
Product Platform –stream of derivatives products can be efficiently developed and produced. Technology Map –Firm’s stream of new products, breakthrough and derivatives to be developed over some future time. Effectively ways to develop and manage high-tech products & services. Framework of steps in technology product management process and ways to manage company’s success. Effective Teamwork and coordination among Production Management, Sales and marketing. The role of product management is complicated in high-tech companies, complications due to differing perspectives, conflicting objectives between different departments. Making decisions about the platforms and derivatives by the firms and determination of how much better new version should be and time intervals between versions and positioning of versions relative to each other can be complex issues. The above case discusses the Platform & derivatives and detail steps with reasons why we should use Platform & derivative strategy. Developing partnerships with key suppliers to develop new platform products can be advantageous and helped companies to strengthen their skills, marketing needs, differences narrowed and momentum regained. The various issues incurred during the management of Product development are discussed and how successful companies have dealt those situations. Today’s effective product development organization is characterized not only by creativity and freedom, but discipline and control in scheduling, resource use, and product quality.
Follow-On Research: References
1. “An empirical study on the drivers of management control systems design in new product development” by Tony Davila, Accounting, Organizations and Society 25 (2000) 383±409
Concept of uncertainty and investigates the relationship between project uncertainty, product strategy and management control systems. It also explores...