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  • 1. MSETM 5110 – New Product Development Recap of Session IV
    • Building Product Development and Realization Capability
    • Organizing and Managing Projects
    • Linkage of Product Development and Introduction to Business Strategy and Values
    • Review of Types of Development Teams—Functional, Lightweight, Heavyweight and Autonomous
    • Spiral Integration
    • Customer-centric Product Development
    • The Steps Between Product Concept and Customer Launch
    • Management Roles and Responsibilities
    • The HP DeskJet Printer Project—An Example of Planning and Execution
    • Intellectual Property and Patent Portfolio
    • Introduced Assignment 2—McAlasdaire Imaging’s AE-1 Project
  • 2. MSETM 5110 – New Product Development
    • Intellectual Property
    • Presenter
    • Dr. Ron Buchanan
    • Sr. Research Consultant
    • Education and Research Foundation
    • Oklahoma State University
  • 3. MSETM 5110 – New Product Development
    • New Product Introduction
    • Thinking Strategically
    • Thinking Commercially
    • Thinking Globally
    • People, Programs, and Processes
    • Transforming Knowledge Into Economic Value
  • 4. MSETM 5110 – New Product Development
    • Session 5, Part 2
    • Summary/Common Themes of Assignments
    • Living on Internet Time
    • McAlasdaire Imaging – the AE-1 Project
  • 5. MSETM 5110 – New Product Development
    • Summary of Living on Internet Time: Product Development at Netscape, Yahoo! ™, NetDynamics, and Microsoft™
    • Common
    • Each Aware of/Engaged in Competitive Benchmarking
    • Each Used Effective Prototyping/Beta Models (Microsoft’s Approach More Internally Focused)
    • Aware of Interoperability
    • (cont’d.)
  • 6. MSETM 5110 – New Product Development
    • Summary of Living on Internet Time: Product Development at Netscape, Yahoo! ™, NetDynamics, and Microsoft™ (cont’d.)
    • Differences
    • Philosophy, Culture, and Development Process
    • Size of Development Staffs and Resources
    • Microsoft’s Total-System-Solution Mindset
    • Microsoft Sought to Expand Competencies/Respond to SIPs
    • Heavyweight Team Structure (Microsoft) vs. Lightweight (Yahoo!)
    • NetDynamics’ Philosophy of Open Architecture Based on Standards
    • Netscape’s Heavy Focus on Early Releases Before Feature Release
    • Note: Netscape Acquired by AOL
    • NetDynamics Acquired by Sun Microsystems
    • Based on (SEC) 10-k Filings: 1) Microsoft, 2) Netscape; 3) Yahool!, 4) NetDynamics
  • 7. MSETM 5110 – New Product Development
    • Summary of Assignment 2 – McAlasdaire Imaging’s AE-1 Project
    • No Clear Upfront Product Definition or Specifications
    • Poor Communications Between Marketing and Engineering
    • Overall Ingredients for Success Lacking
    • - “Start With The End in Mind” (Steven Covey, The 7 Habits of Highly Effective People)
    • - Alignment
    • - Commitment and Utilization of Resources
    • - Project Tracking to Meet Schedule and Costs Objectives
    • - Communication and Teamwork Across Functional Departments
    • Capturing the Lessons Learned
  • 8. MSETM 5110 – New Product Development
    • Summary of the HP Deskjet Printer Project
    • Clear Product Definition and Market Segment
    • Clear Focus/Objectives (Low Cost, High Quality)
    • Created New Development Process Emphasizing Speed, Design for Manufacturability, and Teamwork
    • Effective Use of Early Production Tools (CAD, CAM, CAE, PDM, SAP Software)
    • Effective Use of Heavyweight Team Structure
    • Effective Use of Prototypes/Customer Involvement
    • Achieved Objectives for Cost, Quality, Customer Satisfaction
    • Reduced Cycle Time from 36-60 Months to 22 Months
    • Became the Model for Subsequent Development at HP Vancouver
  • 9. Teradyne Aurora Project (Automatic Test Equipment – ATE)
    • Video Tape
    • Cross Functional Team/Internal Board of Directors
    • Market Concerns
      • Microcontrollers
      • ASICs
    • Technology Concerns
      • CMOS
      • Windows NT
    • Discontinuous Change (Disruptive Technology)
      • Platform
      • Derivative
    • Core Competency
    • Business Plan/Business Case
    • Getting Engineers Close to Customer
    • Understanding the Customer’s Business and Operating Metrics
    • Asset/Resource Allocation
  • 10. MSETM 5110 – New Product Development
    • Organization Vision/Mission/Strategy
    • Business Model/Architecture
    • Development Portfolio and Development Teams
    • Functional Integration (Wheelwright and Clark, Exhibit 8-1, p. 191)
    • - Functional Team Structure
    • - Lightweight Team Structure
    • - Heavyweight Team Structure
    • - Autonomous Team Structure
    • Tools and Methods
  • 11. MSETM 5110 – New Product Development
    • Becoming a Fast Innovator
    • Time is the key performance variable to be managed to attain improved cost and quality.
    • Time benchmarks are set by the performance of competitors and, if faster, by what is technologically possible.
    • The support functions necessary to advance the development process are actively managed to be “invisible.” Their need is to be anticipated; they are to be invested in and kept up-to-date. They are never to be allowed to slow the development process.
    • Each program is to be managed and executed by a small, dedicated, decision-empowered, and experienced team. Team members have common goals and are measured and evaluated as part of a team.
  • 12. MSETM 5110 – New Product Development (cont’d.)
    • Becoming a Fast Innovator (cont’d.)
    • The development programs are to have four steps, and company will organize itself around these steps:
        • Planning and preparation
        • Product definition
        • Design development
        • Manufacturing ramp-up
        • Product Improvement
    • The objective of planning and preparation is to avoid having to invent in the middle of the development process—make unknowns be knowns.
    • After definition, the product specification is frozen. The definition is committed to and not allowed to be changed. The improvement phase is to be used for costs and feature enhancements.
  • 13. MSETM 5110 – New Product Development (cont’d.)
    • Becoming a Fast Innovator (cont’d.)
    • Functional expertise resides in the development program. Manufacturing and design resources are full-time participants in the definition team. Manufacturing resources are full-time participants in the design team.
    • Team members are collocated.
    • Senior management reviews are few. The role of senior management is to ensure that the program teams have the appropriate resources, incentives and environment to execute their tasks quickly.
    • New programs are generated continuously, at regular market-driven intervals, and incorporate more incremental advances and fewer “great leaps forward.”
  • 14. MSETM 5110 – New Product Development
    • So, What Does This All Boil Down To:
    • Mission/Vision/Strategy
    • Technology Solutions in a Knowledge-based and Global Economy
    • Customer- and Market-Focused
    • Creating Stakeholder Value
    • Speed, Flexibility
    • Repeatable, Sustaining NPD/NPI Process
    • Effective Use of People and Capital Resources
    • Being Competitive
    • Maintaining/Building Core Competency
    • Clock Speed
  • 15. MSETM 5110 – New Product Development
    • Time and Innovation
    • Innovation is key to the long-term vitality of all enterprises
    • Innovation means more than just new products ; it also means new services and ways of doing business
    • While the challenge to innovation is originating new ideas, time is at the core of an innovation’s success
    • Timely execution is very demanding
  • 16. MSETM 5110 – New Product Development Competing Through Innovation
    • Changing Business Climate
    • Globalization
    • Increased Competition
    • Technology Revolution/Evolution
    • Fragmented, Demanding Markets
    • Shorter Product Lifecycles
    • Virtual Organizations
    • E-Business
    • Competitive Factors
    • Speed
    • Efficiency
    • Quality/Reliability
    • Supply Chain/Distribution Channels
    • Translation: Creating Value for Customers
  • 17. MSETM 5110 – New Product Development
    • In Review
    • Competing Through Development Strategy
    • The Concept of a Development Strategy
    • Maps and Mapping: Functional Strategies in Pre-Project Planning
    • The Aggregate Project Plan
    • Structuring the Development Funnel
    • A Framework for Development
    • Cross-Functional Integration
    • (cont’d.)
  • 18. MSETM 5110 – New Product Development
    • In Review (cont’d.)
    • Organizing and Leading Project Teams
    • Tools and Methods
    • Prototype/Test Cycles
    • Learning From Development Projects
    • Building Development Capability
    • Wheelwright and Clark, Revolutionizing Product Development: Quantum Leaps in Speed, Efficiency, and Quality.
  • 19. MSETM 5110 – New Product Development
    • Four Types of Product/Process Development Projects
    • Research or Advanced Development Projects
    • Breakthrough Development Projects
    • Platform or Generational Development Projects
    • Derivative Development Projects
  • 20. MSETM 5110 – New Product Development
    • Summary of Clockspeed by Charles H. Fine, Sloan School of Management, M.I.T.
      • In the natural world, species evolve—that is, they change to meet new challenges—or they die. The same genetic imperative operates in business.
    • A Partial Listing of Contents:
    • The Genetics of Business
    • Learning from the Fruit Flies
    • Evolution or Extinction
    • Competition in the Age of Temporary Advantage
    • (cont’d.)
  • 21. MSETM 5110 – New Product Development
    • A Partial Listing of Contents: (cont’d.)
    • What Fruit Flies Teach Us About Business
    • The Insights of Clockspeed
    • Survival of the Fittest
    • The Temporary Nature of Advantage
    • Supply Chain Design
    • The Ultimate Core Capability
    • Executing Strategy in the Age of Temporary Advantage
    • Three-Dimensional Concurrent Engineering
    • Genetic Engineering in A Fast-Clockspeed World
    • Building Capabilities Through Dynamic 3-D Concurrent Engineering
  • 22. MSETM 5110 – New Product Development
    • Structuring for NPI and Continuous Performance Improvement
    • Mission/Values
    • Baseline/Benchmark
    • Metrics
    • Document the Lessons Learned
    • Adjust the Process
  • 23. MSETM 5110 – New Product Development
    • Purpose
    • Connectivity
    • Relevancy
    • Application
    • Science: “what is”
    • Engineering: “creating what has never been”
  • 24. MSETM 5110 – New Product Development
    • The Four Disciplines of a Healthy Organization
    • Build and Maintain a Cohesive Leadership Team
    • Create Organizational Clarity
    • Over-Communicate Organizational Strategy
    • Reinforce Organizational Clarity Through Human Systems
    • Source: Patrick Lencioni, “The Four Obsessions of an Extraordinary Executive.”
  • 25. MSETM 5110 – New Product Development
    • Objective(s)
    • Focusing on Things That Make a Difference (Value)
    • Flawless Execution
    • Continuous Improvement

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