Global Product Development.pptx

7/27/2019 Global Product Development.pptx

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THE PRACTICE OF

GLOBAL PRODUCTDEVELOPMENT

Product & Brand Management

Group 1

Akhil Jain

Aman Sachdev

Ankit Sood

Mayank Devlal

Rohit MahajanShikhar Gupta

Shubham Chabbra

Article Presentation


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Introduction to Article

Author Steven D. Eppinger & Anil R. Chitkara

examined state-of-the-art & emerging best

practices in Global Product Development

(GPD).

Framework for Companies to address various

strategic & tactic issues when considering

adoption of GPD. Globalization the major pressure.


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Global Product Development

Evolved in 1980 1990, widely accepted in

2000,s.

Effective P.D include Co-location of cross

functional teams.

Benefits-

Greater Efficiency, Access to Technical

expertise's, Design of products for GlobalMarket & Flexible PD resource allocation.

Global R&D


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GLOBAL PRODUCT

DEVELOPMENT

It is a single, co ordinated product development

operation that includes distributed teams in more

than one country utilizing a fully digital &

connected collaborative product developmentprocess.


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Why is this GPD happening

now??

Rapid shift to GPD.

Two factors making feasible a truly integratedyet distributed PD process.

a. Digital & completely networked processb. Experiences with Global Collaborations

Four reasons for building GPD capabilities

1. Lower Cost2. Improved Process

3. Global Growth

4. Technology Access


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Who is leading the way to

GPD?

Industries

Software Developers

Electronics Manufacturer

Traditional Manufacturing

Regions

U.S, German, Japanese, China, India, South

Korea, Western Europe


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Essential elements of GPD

Outsourcing vs. Offshoring

Modes of Product Development Operation: Centralized: Traditional, centralized

operation

Local Outsourcing: Centralized, on-site

contractors for supporting PD activities

Captive offshoring: Operating in a region

where there is no prior experienceEx: Cummins and Textron in India, ABB andDelphi in China, Boeing and Airbus in Russia Global Outsourcing


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Gradual Deployment of GPD strategy

Staged Deployment of GPD


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Process Outsourcing

Outsourcing PD process steps

Working with globally distributed service

partners

Stage 1A: Outsourcing simple tasks to

engineering service provider

Stage 2A: More complex & integrated tasks

outsourced


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Component Outsourcing

Decompose product into components &

modules & outsourcing to component suppliers

Stage 1B: Development & production of simple

components outsourced

Stage 2B: Design of integrated products

outsourced

Stage 3B: Complete product modulesoutsourced


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Captive Design Centre

Investment in Global Engineering capability

Taken up post attainment of efficient utilisation ofglobally distributed resources for large part of PDprocess

Begins in parallel with outsourcing process Stage 1C & 2C same as Stage 1B & 2B

Stage 3C: Complete subsystem executed byprovider

Stage 4: Complete responsibility passed to thecentre for derivative products & engineeringsupport

Stage 5: Centre ready for development of new

global products, platforms & innovations.


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Mature GPD structure

Combines all three approaches

Uses balance of captive & outsourced resources

Structure may evolve over time as new

competencies & geographic regions becomeimportant & older products & tech may move tomaintenance mode, supported by third parties.

Worse Before Better system dynamics are

witnessed, with falling productivity of PD initially,before it starts to rise.

Companies require at least 1 year of experiencewith each stage of process change, before theoperations smoothen up.


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Key success factors for GPD

deployment

1. Management Priority

2. Process Modularity

3. Product Modularity

4. Core Competence preservation

5. Intellectual Property protection

6. Data Quality & Integration

7. Infrastructure

8. Governance & Project Management9. Collaborative Culture

10. Organisation Change management


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GPD Mandate & Risks

Associated

Next-Gen practice of Product Development

Has attained mainstream attention & is being

rapidly adopted

Will develop over the next decade

Has caused political concerns due to loss of

engineering & related management jobs in

developed nations This trend will continue & may amount to a

new industrial revolution


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Thank You

Documents

Global Product Development.pptx