Session 11.ppt
- 1. MI 815 Management of Technology and Innovation Session #11: Managing New Product Development • Lecture/discussion on Schilling Chapter and Pixar Reading • IDEO Case discussion
- 2. How can we judge NPD success? Process Product Within budget and schedule Product attributes: Quick cycle time Innovative, meets Efficient use of resources needs, aesthetic, Adaptive to changes elegant design, user friendly, powerful, Good risk management efficient, low-cost Market performance: Sales, profitability, market share, follow-on products, positive spillovers to other products Assets • People – new knowledge and skills • Reusable project elements (e.g., design objects) • Org. Capabilities – Process knowledge/refinement • Real options (esp. on a “failed” product)
- 3. Methods (Schilling Chapter 11) Concurrent Development Project Champions Involving Customers/ Suppliers Metrics
- 4. Linkage Between Methods and Success Measures? (Schilling Chapter 11) Concurrent Development Process Within budget and schedule Quick cycle time Efficient use of resources Adaptive to changes Good risk management Product Product attributes: Innovative, meets needs, aesthetic, elegant design, user friendly, powerful, efficient, low-cost Project Champions Market performance: Sales, profitability, market share, follow-on products, positive spillovers to other products Involving Customers/ Assets suppliers • People – new knowledge and skills • Reusable project elements (e.g., design objects) • Org. Capabilities – Process Metrics knowledge/refinement • Real options (esp. on a “failed” product)
- 5. Tools (Schilling Chapter 11) Stage-Gate Process Quality Function Deployment Design for manufacturing CAD/CAM (PLM)
- 6. Linkage Between Tools and Success Measures? (Schilling Chapter 11) Stage-Gate Process Process Within budget and schedule Quick cycle time Efficient use of resources Adaptive to changes Good risk management Product Product attributes: Innovative, meets needs, aesthetic, elegant design, user Quality Function Deployment friendly, powerful, efficient, low-cost Market performance: Sales, profitability, market share, follow-on products, positive spillovers to other products Assets • People – new knowledge and skills • Reusable project elements (e.g., design objects) • Org. Capabilities – Process Design for manufacturing knowledge/refinement • Real options (esp. on a “failed” product) CAD/CAM (PLM)
- 7. Conflicts? Concurrent Development Stage-Gate Process Project Champions Quality Function Deployment
- 8. The Pixar “System”: Beliefs and Principles P1. Empower your creatives. Give your P2. Create a peer culture. Encourage creative people control over every stage of people throughout your company to help idea development. each other produce their best work. Basic Beliefs • Good people are more important than good ideas. Talent is rare. • Management’s job is not to prevent risk but to build the capability to recover when failures occur. • It must be safe to tell the truth. • We must constantly challenge all of our assumptions and search for the flaws that could destroy our culture. P3. Free up communication. The most P4. Get more out of post-mortems. efficient way to resolve the numerous Many people dislike project post- problems that arise in any complex project mortems. They’d rather talk about is to trust people to address difficulties what went right than what went directly, without having to get permission. wrong. Structure your post-mortems So, give everyone the freedom to to stimulate discussion. communicate with anyone. How feasible and/or advisable is it for “regular” NPD organizations to adopt Pixar’s principles?
- 9. How Compatible is the Pixar “System” with Schilling’s “best practices”? Concurrent Development Stage-Gate Process Project Champions Quality Function Deployment
- 10. Ideo
- 11. Handspring Decision 1. Accept project on reduced schedule 2. Ask for more time 3. Decline project
- 13. IDEO’s Innovation System Process Organization Culture Management
- 14. IDEO Wrap Up IDEO’s unmatched track record of success is due to having a system for developing breakthrough products in a consistent and predictable way System has evolved through a process of continuous innovation Each project can be regarded as an experiment. Not just revenue generators but also learning opportunities Similar to prototypes in a design project, some projects will result in failure and little improvement Key IDEO principles Organize design for rapid iterations: Experimenting quickly via prototypes provides rapid feedback needed to shape and improve new ideas Fail early and often but avoid “mistakes”: Embrace failures that occur early in process. Avoid “mistakes” (poorly conceived experiments that add little information) Leverage the value of early information: Solving problems early is inexpensive and fast. So value of information is highest when it can be generated earlier. Dennis Boyle accepted Visor project. Two main reasons: Already had great relationship with Jeff Hawkins due to Palm V project. Project viewed as an experiment that would challenge IDEO’s innovation system and provide new insights as to whether its process can be adapted to short time-to- market projects
- 15. Source: Schilling Chp 11