Demystifying outsourced product development
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The document discusses the importance of outsourcing in product development, highlighting its benefits such as access to technology, speed, minimized risk, and resource alignment. It outlines a structured approach to outsourcing that includes defining objectives, measuring performance, and selecting appropriate partners. Emphasis is placed on proactive planning and communication to mitigate risks and ensure successful outcomes in product development initiatives.
Demystifying outsourced product development
- 1. Demystifying Outsourced Product Development Mrinal Singh mrinalasingh@gmail.com Skype: mrinalasingh
- 2. Outsourced Innovation One single individual can not be an expert of many fields so collaboration is important and outsourcing should be considered a subset of collaboration
- 3. Introductions One of the World’s Largest pharmaceutical corporation Leading drug development services The world's #1 software company A fast growing IT Solutions Company
- 4. Eli Lilly has partnered with Covance for new Molecule discovery Mindtree has undertaken development work for Microsoft Azure Services Platform
- 5. Independent Software Vendors spend 18-20% of their revenues on R&D Some corporations have undertaken 100% of the development through other providers but up to 25% of the development process can be easily outsourced.
- 6. : Agenda 1) Share thoughts on potential roadmap for outsourced product development services 2) Recommend an Approach to outsourcing innovation efforts based on what has been learned from experience 3) Offer Contact with someone who loves to theorize, experiment, discuss, debate, pontificate and mutually grow through exchanging knowledge
- 7. Share Approach plans Experience Opportunity to connect with thought leaders in this field
- 8. Demystifying Outsourced Product Development Outsourcing Product Development: Why? “The best companies outsource to win, not to shrink.” ~Thomas Friedman, The World Is Flat
- 9. Demystifying Outsourced Product Development Four potential reasons to consider outsourcing: 1) Access to Technology and other Capabilities 2) Speed New Product Development cycle times 3) Minimize Business Risk 4) Internal Resource Alignment
- 10. Demystifying Outsourced Product Development It's not the “why” but “how” that is important
- 11. Demystifying Outsourced Product Development Data is of no use until it informs. Information is of no use until it makes you decisive. Decisions are of no use if they don't give results
- 12. Demystifying Outsourced Product Development Key Questions What Are the desired objectives from outsourcing? Core competencies are needed? Is the scope of the service that is being outsourced? Is the expected outcome, has it been defined? Are the risks How is performance to be measured? How will the risk be mitigated?
- 13. Demystifying Outsourced Product Development Brasstacks Executive Sponsorship Partner Selection Process Partner Management Process Project Initiation Defining Development Teams Development Metrics
- 14. Demystifying Outsourced Product Development Selecting an outsource partner What outsourcing model will be followed? Turnkey Resource Augmentation Based Built Own Transfer Joint Development Other
- 15. Selecting an outsource partner (Contd) Acumen Technical Customer/consumer Business People Reputation (Ethical considerations, working style/culture)
- 16. Selecting an outsource partner (Contd) Sources to Consider: ∞ Outsourcing experience & proven customer satisfaction ∞ Formalized best practice processes ∞ Adequate numbers of appropriately skilled resources ∞ Relevant Domain / Technology Experience ∞ Financial viability ∞ Flexibility to adopt to your culture, processes ∞ The appropriate motivation to enhance your business
- 17. The U.S. Federal Aviation Administration spent $2.6 billion trying to upgrade its air-traffic-control system, only to cancel the project in 1994. Gridlocked skies are still with us today.
- 18. Demystifying Outsourced Product Development Outsourcing Product Development: When to involve external resources in the process?
- 19. Factors Affecting When to Involve External Resources Resource Requirements of the project Degree of Willingness to Share Confidential Information Cost NDA’s and other contractual arrangements can mitigate both information-sharing risk and cost risk.
- 20. New Product Development (NPD) Cycle
- 21. Practice How to manage the Outsourcing in the NPD process?
- 22. How to manage the NPD process Define: Goals Objectives Deliverables Communication process Identify project stakeholders from both the sides Undertake Knowledge transfer Resource planning, organizing and tracking
- 23. Important! •Don’t underestimate the internal resource requirements Project management Knowledge transfer
- 24. Demystifying Outsourced Product Development Summary and Takeaway
- 25. Demystifying Outsourced Product Development Undertaking outsource product development if not planned and executed in the right manner is fraught with uncertainties at the minimum and risk of failure, the steps outlined earlier are not an option but a necessity. To summarize Be Proactive: Do not wait for disaster to happen, plan thoroughly. It is important to not only understand your providers culture and processes but also to align both the corporations processes. Identify the Goal: What is the objective of the outsourcing exercise, are you undertaking it to reduce cost, increase technology bandwidth, address resourcing constraints etc. Define communication process: Frequent communication is important especially at the initiating point of an engagement , conventional software development process like Waterfall are not well suited for product development, newer methodologies like Agile have higher success rates, work with a provider that has executed projects leveraging this methodology
- 26. Please fill this form by clicking on the link below if you need any further information. To fill it out, visit: https://spreadsheets.google.com/viewform?formkey=dGVFV2Z1 aGtfejJNelc5WjVYYUViQ1E6MQ
- 27. “It is not the answer that enlightens, but the question.” ~Eugene Ionesco