Global Engineering

Recently, while conducting a PLM workshop for a client, I came across some of the interesting facts of the PLM implementation. For their ongoing PLM implementation, Product design team had defined KPI's much early in the life cycle to measure, track and manage the whole process. Little did anyone know that those KPIs were just defined and not revisited when phase 1 got over, thus leaving a big gap in conceptualization and realization. Phase 2 implementation started, finished and went live, as well, with over 1000 users.  And one fine day when one of the functionalities failed, came the headlines. Users have been complaining, from sometime, that the PLM system did not deliver the required functions and features. It was a shock than surprise, as these were the same users who had gin the business requirements in the first place, and had completed system trainings.  I did my level of investigation and learnt that users were not always employing functions and features, as designed and which made me realize that it was a system adoption issue.

Organizations often forget that training constitutes 40-50% of the adoption process.

However, training is only one component of the Terminal Behavior Capability Development process, which also includes pre-course knowledge transfer, post-implementation skill development, remediation, and maintenance.  Users need on-going support and guidance after the initial go-live training period.

Posted by Hardik Kansupada at 6:08 AM | Permalink | Comments (2) | TrackBacks (0)

I recently had a discussion with a client for implementing an off-the shelf PLM package solution. Implementing any off-the-shelf PLM package solutions needs be tied to a long-term business strategy. The role of PLM in enterprise strategy can be decreased product development time, decreased product cost, and increased product revenue.

There are two typical approaches for implementing a PLM package:

·         Big Bang Approach

·         Phased Approach

The Big Bang Approach requires a large budget and clear project timelines. Organizations today prefer a phased approach as they build on small successes by getting continuous commitment from stakeholders and key business users.

Guiding Principles for Successful Implementation:

Posted by Hardik Kansupada at 11:52 PM | Permalink | Comments (8) | TrackBacks (0)

Innovation seems to have replaced "leverage" as the most overused word in the business lexicon.  No article can be published without a liberal sprinking of the word as a modifier in every other paragraph.  All is not lost, though, and innovation just might make it through the frenzy of hype, for in the definition of the word itself is the promise of something better.  While innovation might be seen simply as something new, economists tend to focus on the process, from the origination of an idea to its transformation into something useful, to its implementation.  In other words, innovation is as innovation does -- no value, no innovation.

The recent list of Fast Company's 50 most innovative companies bears out this idea of practical innovation.  Apple is once more deified as #1, but not just for all the usual reasons.  The Cupertino company was showcased for the long list of innovative companies and artists it has enabled through the iPad ecosystem.  Over 100 of the major ones were listed by name (my personal favorite was #89, getting the Beatles back together again, on iTunes).

Lest anyone thinks that innovation today is only for new, social media companies need look no further than Kosaka Smelting and Mining, the Japanese firm that harvests gold and other valuable metals from old electronics.  This has literally been a gold mine for Japan, as China (largest exporter of rare-earth minerals) has recently slashed exports by over 80%.

The other thing I found cool in the list was ESPN (company #16).  Our consulting practice cares a lot about innovation delivering value for both customers and the company -- otherwise, the whole thing eventually gets out of balance and some stakeholder group suffers.  ESPN has taken this dual value concept a step further -- they have integrated new technology like a startup and provided something for fans, players, teams/leagues, television manufacturers, and of course advertisers (ESPN 8 - The Ocho cannot be far behind).

It is good to review the list of innovative companies, but it provides a rear-view (or at best a current state view) of what firms are establishing and exploiting new business models and enabling capabilities.  Looking to the rest of 2011 and beyond, can't help but wonder which companies will be on the list next, and (more importantly) why?  Will data visualization move from a neat offering from companies like Stamen Design (#48) to become a mainstream business intelligence competency?  Will product compliance and sustainability simply become part of operational excellence?  And finally, will another killer app emerge that creates a wave of productivity and demand that lifts the spirits and the coffers of an industry on a global basis?

Whatever happens, the pace of technology and social change continues at a rate that requires a few well-placed bets and loads of execution.  Going back to a statement above, a good strategy is simultaneous focus on value for customer and value for company.

For more details, check out the complete article: 

http://www.fastcompany.com/most-innovative-companies/2011/

Posted by Jeff Kavanaugh at 9:37 PM | Permalink | Comments (2) | TrackBacks (0)

A few weeks back, I had a discussion with a client about Product Compliance. It was very interesting as he saw compliance as a necessary evil, which was the complete opposite of my perspective.

Posted by Hardik Kansupada at 3:13 PM | Permalink | Comments (3) | TrackBacks (0)

As US companies emerge from what is now acknowledged as the longest economic downturn of the post-World War II era, they are beginning to prioritize innovation as a primary engine for long-term growth. 

Managing the innovation process from concept to implementation is a challenge for any large company. Understanding the core challenges and implementing appropriate measures are central to ensuring a streamlined innovation process that delivers a consistent competitive advantage in a global economy.

Below are some of the key ingredients to successful innovation in a large corporate environment:

·         Clear direction and vision by senior management - Management must clearly articulate strategic priorities and areas of innovation focus - at the corporate level, at the business unit level, and at the department level. This clarity can help channel innovation in the right direction.

·         An environment conducive to innovation - Freedom and flexibility for experimentation along with incentives for carrying products from ideation to commercialization provide a strong foundation for an innovative culture.

·         Clear definition of solution and value proposition - Innovation can take place on several fronts - product, process, or business model. Inventors must clearly articulate the problem statement, the target solution, and the potential value of the proposed solution. A systematic framework leveraging value realization methodology (e.g. Infosys's VRM) in conjunction with business case analysis and lean principles can help articulate the value of the solution and the resulting benefits to the company.

·         Prioritization of target initiatives - The proposed ideas and initiatives should generally address the direction and strategic priorities set forth by senior management. Organizations are usually resource constrained. A 'funnel' process can help prioritize initiatives so they are well-funded and well-supported for success. However, we must not resort to excessive formal structures as micromanagement will only stifle innovation.

·         Buy-in / sponsorship from senior management - Disruptive ideas can be weighed down by resistance from individuals and middle managers who are impatient for tangible benefits and who would prefer the trodden path. Sponsorship from senior management is essential to preserve the freedom and flexibility of the innovating team to explore the full potential of the innovation.

·         A matrixed, multi-disciplinary team - Disruptive innovation usually begins at the fringes of disciplines. A multi-disciplinary team can bring together ideas from disparate disciplines to 'break the mold' and work around a new paradigm. An ability to put together small, highly-qualified cross-functional teams quickly in a matrixed environment that transcends organizational boundaries is vital to bringing innovative and disruptive ideas to rapid prototyping and field test. Further, team dynamics and involvement are critical to harmonious creativity.

·         Early customer integration - Involving a lead customer in early prototyping can help refine product features and quality and accelerate its evolution to mass production. 

·         Ecosystem leverage - Collaborating closely with key strategic ecosystem partners to leverage their assets during new product development can greatly reduce overall development costs, accelerate time-to-market, mitigate risks, provide access to new markets, and simplify the out-of-the-box customer experience. Continuous re-investment by ecosystem partners can help ensure new product longevity via a common platform strategy and a shared investment-risk-success model.

·         Clear assessment metrics - Performance metrics and milestones must be put in place that clearly define success criteria at a project level and hold the team accountable. Periodic check-point reviews ensure continuous progress and improvement by various milestones. 

·         Rewards - Timely and visible recognition of inventors is integral in fueling the innovation engine. Rewards must be commensurate with impact/value to the organization. Managers are generally mired in execution challenges and pressured to deliver results over the short-term, and thus do not feel incentivized to sponsor innovation that has a long-term roadmap to fruition. It is therefore equally important to recognize the managers who 'stick their neck out' to sponsor innovative initiatives.

Innovation is an ongoing process that needs continuous refinement based on shifting market dynamics, technology progression, and ecosystem/value-chain evolution. Lean processes and a sound infrastructure that nurture the innovation process are fundamental to maintaining the growth engine in a competitive global economy.

Posted by Sunil Hattangady at 3:58 PM | Permalink | Comments (1) | TrackBacks (0)

I was at the India innovation debate held at Delhi on 19^th November. The event which was organized by Dassault Systemes and CNBC 18 brought out various facets of "innovation" in context of society, business, products and processes. The debate had panel of renowned thought leaders, policy makers, and business representatives including Mr. R Gopalakrishnan, Additional Secretary to Prime Minister and Member Secretary of National Innovation Council, Dr. Arun Maira, Member, Planning Commission, Mr. Bernard Charles, President & CEO, Dassault Systemes and turned out to be quite engaging (http://indiainnovationdebate.com/).   Viewpoints were shared on relative importance of idea,  organization, leadership, personality and technology  to bring about an innovation.

It is increasingly evident that world is becoming more conscious of the environmental concerns and quality of life while looking for the economic value add. The policy makers from India made observation that the developing countries should not imitate the developed world when seeking growth and improvement of living standards. As a case in point the availability of public transport could serve as a better measure of available mobility than for looking at the measure of cars owned per 1000 population. While chasing the profitability and volumes, innovation should be about designing products which address societal needs including the bottom of pyramid came the observation from business leaders.  

Similarly "What factors contribute to creating new innovations?"  found various theories. Are Indian better dispositioned to being innovators had equally interesting observations. Various views were aired ranging from individuality being an important trait to another that diversity creates more opportunities for innovation. However it was clear that the environment where failure were acceptable, teams were collaborative and good leadership was provided led to better success of innovative ideas.

I believe that while the "idea" would always remain the core of innovation; Today it is the impact of technology on the environment that makes it an important element to deliver innovation. Like the right leadership can draw a compelling picture of future to create buy-in for innovation, it is technology which can deliver the scale and reach.

Posted by Vikas Ohri at 8:21 AM | Permalink | Comments (0) | TrackBacks (0)

Customer Experience is a vital element of product development strategy that is often over-looked or under-appreciated. Traditionally, product strategy begins with capturing customer requirements usually in terms of product features or attributes. This is then translated into functional requirements or capabilities that the product must deliver. Customer experience is only captured as an after-thought, and when a product is put through the customer journey, it reveals many deficiencies that call for a product re-design and, consequently, a delay in time-to-market.

A product development strategy must be designed to deliver a compelling set of customer/user experiences rather than a collection of product features and attributes. Customer experience must therefore be factored in at the very outset of product design.

Customer experiences do not occur in product or functional silos. An end-to-end approach comprehending machine and human interactions is key to understanding customer experience. Delivering a "superior experience" begins with  

·         Designing the right offers and experiences for the right customers

·         Developing, measuring, and delivering a total customer experience that enhances customer satisfaction

·         Understanding the needs that drive customers to create interactions

It's the journey, not the destination! A customer journey maps the experience through the lens of the customer. It helps us identify:

·         Customer lifecycle stages

·         Customer needs within each lifecycle stage

·         Key touch points where a company brand/product 'touches' and serves its customers

·         Usecases which determine how the customer will use the product

·         Challenges and hurdles for creating a satisfying customer experience

·         Opportunities to 'engage' with the customer, and innovate & improve the customer experience

A customer journey must be addressed as a process map that examines concatenated processes. In the early stages, a product strategy must be designed to deliver a set of target customer experiences. The product design must be iterated and validated by examining how the processes that constitute the customer journey actually work at each step. We must walk through the journey and understand what's working and not working from a customer perspective.

Continuous improvement in customer experience can be enabled via

·         a disciplined & pragmatic approach that correlates user experience to customer needs, usecases, product functionality, and brand strategy

·         a systematic framework leveraging value realization methodology (e.g. Infosys's VRM) in conjunction with lean six-sigma principles to improve and optimize speed & efficiency, remove root causes of customer experience 'defects',  and minimize variability in processes

·         designing for target customer experiences and monitoring via quantifiable metrics to manage the customer journey and continuously improve the total customer experience across multiple channels and touch-points throughout the customer lifecycle.

It is thus important to weave a clear customer experience strategy into the fabric of the organization's product development strategy, especially in the B2C domain. This can be a significant enabler to improving a product's competitive positioning and lifecycle, the company brand, and customer loyalty.

Posted by Sunil Hattangady at 11:25 PM | Permalink | Comments (0) | TrackBacks (0)

Product strategy plays a critical role linking corporate strategy to product development, guiding the innovation engine for product effectiveness.  Despite this importance, there is often a disconnect between corporate strategy and product development.  We believe that product strategy needs to be based on a thorough understanding of the market and company capabilities - both current and desired.

Where to compete.  To gain proper context, start with a business value scan to determine competitive conditions. Observe potential shifts in market dynamics, including market and competitor analysis, and how to act accordingly.  If inorganic growth is a possibility, then initial acquisition targets should be identified.

Industry and competitor analysis.  Industry analysis involves an in-depth analysis of current state of the industry and the upcoming trends.  Industry analysis should include geographical regions, product segments and customer industries to determine opportunity areas for the firm. Historical performances of competing firms can provide insights into the strategy of each competitor.  Many customer interviews should be conducted to capture Voice of Customer (VOC), spanning all regions and representing each customer industry or consumer, depending on the customer type.  VOC analysis is conducted to validate and refine the industry and competitor analysis, plus to hear more specific customer concerns.

Product portfolio analysis.  The current portfolio should be reviewed and benchmarked against peer group companies and those with similar strategies to identify differences in R&D investments and find potential gaps.  The current portfolio should also be analyzed to determine degree of fit with corporate strategy.  This will show how the product and solutions portfolio matches with competitive offerings.  Often portfolios are shown to be product-centric (i.e. hardware, software, services), without regard to product maturity.  A product life cycle view emphasizes products that cater to particular customer needs based on current stage of the life cycle. With the appropriate portfolio perspective in place, field surveys can be done to ascertain relative competitive position in the market for each offering category, based on product life cycle stage.  This combined internal-external analysis can provide a more well-rounded perspective on the optimal portfolio.

Internal capability analysis. The best plans won't matter if internal capabilities cannot match the aspirations.  Current operational capabilities need to be mapped for supply chain and cost competitiveness, as well as sales and marketing, to determine the operational obstacles to move the current sales model into a product life cycle view.

Organic and inorganic strategy.  Even for companies committed to organic growth, it is useful to consider a two-pronged approach of acquisition strategy and operations improvement.  This ensures that a fresh, market-oriented view is part of the strategy, and it also allows a secondary plan if the internal growth and portfolio strategy fall short.  If the internal cost structure is noncompetitive, then operational improvements need to put in place also. Identify priority areas for R&D investments by using the analysis results.  Then determine alternatives for new offerings, products and services supporting the strategy, including potential obsolescence risks.

Product strategy is not a one-time event, only for times of crisis or major decisions.  It is helpful to embed the above steps into the annual planning process, with each step in just as much detail as needed.  That will keep the product portfolio better aligned with corporate strategy and avoid needing a major makeover at an inopportune time.

For related observations, see http://jeffkavanaugh.net.

Posted by Jeff Kavanaugh at 2:53 PM | Permalink | Comments (3) | TrackBacks (0)

In a recent discussion with a panel of clients and industry experts on Global engineering trends & growth, the conversation about Product development being at the core, and hence challenges in globalization, once again found some interesting views.   This topic has popped up in many conversations and debates that that I have had in various forums on adoption of global engineering strategies.

The answer to this debate is not so obvious, given that the Products have been at heart of revenue generation for most of the last century. But as the last two decades have shown us, global engineering has found more and more acceptance across industries in product development strategies.

Continue reading "Global Product Engineering & the “Core to Business” debate…" »

Posted by Vikas Ohri at 5:27 AM | Permalink | Comments (0) | TrackBacks (0)

Rapid introduction of reliable, compelling products is the lifeblood of product companies.  Also, successful new product launches are highly rewarding in terms of higher margins they promise.  However, the reality of product innovation is that the failure rate of new products is high.  This is not affordable or sustainable, given the pressure on scarce resources.  Imagine the impact if the new product success rate were to increase only a few percentage points – benefits would flow straight to the bottom line.

Posted by D.R. Sudarshan at 3:26 PM | Permalink | Comments (0) | TrackBacks (0)