New Product Development

New Product Development - New Product Development Some...

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Unformatted text preview: New Product Development Some products What is product development all about? Product development is the set of activities beginning with the perception of a market opportunity and ending in the production, sale, and delivery of the product Ulrich & Eppinger, 2002 Market issues Rather than compete with the super jumbo (a 550-seat cruiser by Airbus), Boeing has decided to concentrate on a smaller, faster sonic cruiser. So the petty snipping of old has been replaced by a genuine battle of philosophies: on one side is size, on the other speed The Economist, July 2001 Technical issues advance fuel cell-vehicles, could have a profound effect on vehicle manufacturing - perhaps setting the stage for the reinvention of the automobile business. One of the biggest hurdles is the development of safe and effective on-board hydrogen storage. L. D. Burns Vice President of R&D, General Motors Resource issues AstraZeneca has to rein in some of its most promising drug candidates because of lack of resources to develop them simultaneously Claes Wilhelmsson Head of R&D, AstraZeneca Product quality How good is the product? Product cost What is the capital equipment cost and unit production cost? Development time How quickly did the team complete the effort? Development cost How much did the firm have to spend to develop the product? Development capability Are the team and firm better able to develop other products? Characteristics of Successful Product Development Trade-offs Lightweight vs costly Dynamics Technologies, customer tastes, competition change environment Details Screws vs snap fits on enclosure of computer Time pressure Decisions made quickly and without complete information Economics Large investment will it pay off? Organizational realities Team composition, empowerment, functional allegiance, resources Challenges of Product Development Product Development Strategy Task: Define a well-defined product development process and propose a product development organization that will allow your company to compete effectively over the next decade. Is there a standard development process that will work for every company? What milestones will be used to divide the overall product development process into phases?...
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New Product Development - New Product Development Some...

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