3M 新产品开发分析.docx
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3M 新产品开发分析.docx
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3M新产品开发分析
Explainthecriticalfactorsinthenewproductdevelopmentprocess.CriticallyanalysetheNPDeffectivenessofacompanyyouknow.
1.Introduction:
NPD(newproductdevelopment)iscriticaltothesuccessandsustainedgrowthofallcompaniestoday.Manystudieshavebeenconductedtoidentifythecriticalfactorsthatcanhelpnewproductdevelopmentsuccessful.CombinethepreviousempiricalworkandindividualresearchonNPDsuccessfactors,thisassignmentwillexplainsomecriticalsuccessfactorsinsixareas:
strategy,process,organizationalstructure,organizationalculture,seniormanagementcommitment,andinformationtechnology.Andthesefactorswillbeappliedon3M,toanalyzetheNPDeffectivenessofthecompany.
2.Criticalfactors
Thenewproducts(services)developmentisperhapsthemostsignificantactivitywithinafirm.Italsooneofthemostrisky---manyyearsandmillionsofpoundsarespentdevelopingproductsthatonaveragefailfarmoreoftenthantheysucceed.Butontheotherhand,manycompaniesmanagetobringoutsuccessfulnewproductsyearafteryear.
Therearesomecriticalfactorscanhelpmanagementtoavoidcommonpitfalls,identifyknockoutssoonerandlearnfromtheexperienceofothers.Thesefactorsthathingethesuccessofanewproductdevelopmenteffortareidentifiedinthefollowingsixareas:
ØStrategy;
ØProcess;
ØOrganisationalstructure;
ØCulture;
ØSeniormanagementcommitment;
ØInformationtechnology.
2.1Strategy
SuccessfulNPDmanagementneedsastrategicapproach;thestrategyisessentialforthewholeprocess,notjustinitiation.
Onlythecontinuousdevelopmentandintroductionofnewproductscanbeacompetitiveadvantageofacompany;occasionalinnovationonNPDisjustoperationaleffectiveness.Operationaleffectivenessisnecessarybutnotsufficient.AcompanycannotobtaincontinuousinnovationwithoutaclearNPDstrategy.Withoutastrategytheorganizationislikeashipwithoutarudder.Therefore,managersmustmanagetheinnovationprocessstrategically.Theseniormanagementoughttosetupalong-termstrategicframework,whichoffersorientationtothesumofthesingleNPDprojects.
ØTheNPDstrategyshouldlinkallthemarketingmix;astrongmarketorientationiscritical.TheintegrationofNPDstrategywithothermarketingstrategiesisessential.
ØTheNPDprogrammeshouldhaveastrategicfocusthatgivesoveralldirectiontotheindividualNPDprojects.
ØTheobjectivesoftheNPDprogrammeneedtobedefinedandmustbeclearlycommunicatedallovertheorganisation.
ØTheNPDprogrammeshouldhavealong-termthrustasexpressedbyasubstantialnumberoflong-termprojectsintheentireproductportfolio.
2.2Process:
AccordingtoKotler,eightstagesareinvolvedinthenewproductdevelopmentprocess:
ideageneration,screening,conceptdevelopmentandtesting,marketing-strategydevelopment,businessanalysis,productdevelopment,marketingtesting,andcommercialisation.Thepurposeofeachstageistodeterminewhethertheideashouldbedroppedormovedtothenextstage.Manycompaniesusethestage-gatesystemtomanagetheinnovationprocess.Thegatekeepersmakeoneofthefourdecisions:
go,kill,hold,orrecycle.
ØConsumerunderstandingis“theheartandstart”.Duringthewholeprocess,understandingtotheconsumersandmarketisalwaysessential.ItisneededtorecognisethatNPDisaprocess,notasingleactivity.
ØIntegrateNPDprocesswithothermarketingactivities;connectNPDprocesswithpositioninganddifferentiationstrategies.
Ø“Technologydriven”productsmustpassthroughmarketingtestandconsistwithconsumerneeds.MarketingorientationisalwayscriticalNPDpractice.
ØTheparticipationofmarketingdepartmentshouldbeencouragedandensuredinallthestagesoftheNPDprocess.
ØLinkNPDideastotheProductLifeCycle.
ØConsiderallthestagesofconsumeradoptionprocessandthosefactorsinfluencingtheadoptionprocess.
2.3Organisationalstructure
AnorganizationalrequirementforthesuccessofNPDisthecreationofparticularorganizationalstructure,whichoughttohavecertaingenericcharacteristics.
ØTheprojectorganizationmustensurethattheprogressoftheNPDprojectwillnotbenegativelyaffectedbydailyroutinesand/ordepartmentalinfluences.
ØPeoplewhoarespecificallyassignedtotheNPDteamshouldhaveenoughtimetoworkontheprojectandthattheprojectleaderhasaccesstoteammembersfromotherdepartments.
ØTheNPDteamshouldbecross-functional.Cross-functionalprojectteamsencourageinter-functionalcommunicationandco-operation,andasaresultcancontributetotheresolutionofpossibleinterfaceproblems.
ØTheprojectleaderhasanimportantroletoplay.Sheorhemusthavethenecessaryqualificationsandsufficientknow-how,andbeabletodevoteher/himselfsufficientlytotheproject.
ØSubstantialautonomyfortheNPDteamhasapositiveinfluenceonteamperformanceandonthesuccessoftheNPDproject.
ØTheteamoughttohaveresponsibilityforthewholeNPDprocessratherthanjustforpartsofit.Thisfostersmotivationandcommitmentoftheteammembers.
2.4Organisationalculture
InordertoensurethesuccessofNPD,aninnovativecultureshouldbesetup,inwhichinnovationisencouragedandsupportedthroughoutalllevelsoftheorganization,inwhichinnovativeindividualsareengagedinnewproductdevelopment.
ØAclearsenseofmissionandpurposearewellcommunicatedthroughouttheorganization,whereinnovationisacoherentpartofawellthoughtoutandclearlyarticulatedstrategy
ØThebusinessphilosophyisoneofcontinuousimprovementdrivenbytotalcustomersatisfactionandtotalqualitymanagement.
ØCross-functionalandmulti-levelteam-basedworkingapproachisadaptedtowardsprojectsandproblemsolving,whereemployeesareempoweredfromthelowestlevels.
ØConstantcommunicationwithcustomers,suppliers,investorsandemployeesarethenorm.
2.5Commitmentofseniormanagement
Seniormanagementcommitmentformsanessentialfoundationofsupportfornewproducts.Keyelementsofmanagementcommitmentincludevision,strategyandsponsorship.
ØTheseniormanagementshoulddevelopavisionstatementtodescribethedesiredfutureofthecorporation.Thevisionshouldprovideadrivingforceformajorinitiativesandefforts.
ØTheseniormanagementshouldalsodevelopstrategiestoanswercriticalquestionsaboutthefutureofthecompany,includingwhichmarketsitexpectstotarget,whichcorecompetencieswillbeneeded,whichmarketingdisciplineitwillfollow,andwhichproductsthecompanywilloffer.Seniormanagementmustdevotesubstantialtimeandenergytoansweringthesequestions--theyarecriticaltothesuccessofnewproductdevelopment.
ØSeniormanagementsponsorshipempowersnewproductdevelopmenttosucceed.Clandestineoperationsmaynotprovideenoughresourcestosustainthenewventurethroughthevalidationprocess.Seniormanagersmustcommunicatethosevisionsandstrategiesthroughouttheorganization.
ØItisimportantfortheseniormanagementtoknowwhereanewproductwillfitinthecorporatestructure.Iftheconceptwillbefoldedintoanexistingbusinessuniteventually,itiscriticaltohavemanagementsponsorshipduringthedevelopmentprocess
ØSeniormanagementshouldmakedemandingandcriticalassessmentsofnewideas.Itisalsocriticallyimportanttosupportandencouragetheindividualswhobringtheseideasforward
2.6Informationtechnology
Informationtechnologyischangingthelandscapeofmarketing.MostcompanieshavestartedtoutiliseITtosupportNPDpractice.Theinnovativecompaniesarethosewhotaketheadvantageofnewtechnology.
ØUsingITto‘masscustomise’products.Internetisthefacilitythatallowscustomerstodesigntheproduct.
ØAcceleratingtimetomarket.Thespeedtomarketisakeycompetitiveadvantage,andITisthedrivingforcebehindthis.
ØSimulatedtestmarketing.Computerisedsimulationreducestherisk,increasestheefficiency,maintainsthesecurity,andalsosavestimeforthecompanies.
3.3Mcompany
3Missynonymouswiththesuccessfuldevelopmentandintroductionofnewproducts.Itsobjectiveistobecomethemostinnovativecompanyintheworld.3Mcurrentlyhave60,000productsintheirrange.Theirdeclaredstrategyisthat50%oftheirbusinessshouldcomefromproductsinventedduringthelastthreeyears.
3MseesNPDmoreasaculturalandorganisationalissuethanatechnologicalone.Thecompanyhasmanysystemsinplaceandiscontinuallyaddingtothem.3Mhasanumberofprogramsgearedtosupportandgrowinnovationamongitsresearchers.3Minnovationissparkedbyrisk-taking,passionandboundlesscuriositycoupledwithconcretecustomerneeds.The3M-culturefavoursinnovationoverobeyingrules.Itencouragesvisionarythinking–andaction–inall3Memployees.
The15%option:
manyemployeescanspendupto15%oftheirworkweekonprojectsoftheirownchoicethatmightbenefitthecompany.Theyoftendon’thavetoinformthemanageroftheprojectorevenjustifyit.
Seedcapital:
ifresearcherscreateanewtechnologyoridea,theycanrequestseedcapitalfromtheirbusinessunitmanagerstodevelopitfurther.Ifthatfundingisdenied,theycantakeittoanyother3Mbusinessunit.
Rewardandrecognition:
3Msponsors12globalandfourUS-basedawardprogrammestohonourindividualswhomakesignificantcontributionstothecompany.Eachbusinessandstaffunit,department,andareaalsohaswaysofrecognizingandrewardingpeople.
Dualcareerpath:
researcherscanchoosetofollowatechnicalcareerpathoramanagementpath,withequaladvancementopportunities.Thi
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