In this white paper sponsored by CA, IDC turned to three very different global corporations for their approaches to innovation: a manufacturer of fast-moving consumer goods, a manufacturer in the oil and gas industry, and a medical devices manufacturer.
W H I T E P AP E R I n n o v a t i o n , P e o p l e , a n d P r o c e s s e s : H o w T h r e e G l o b a l I n n o v a t o r s Ar e B r i n g i n g W i n n i n g P r o d u c t s t o M a r k e t Sponsored by: CA Michael Fauscette September 2008
E X E C U T I V E S U M M A R Y mo This IDC White Paper addresses a key challenge for most organizations — the need c.cd to improve innovation. IDC turned to three very different global corporations for their i.w approaches: a manufacturer of fast-moving consumer goods, a manufacturer in the ww oil and gas industry, and a medical devices manufacturer. IDC wanted to explore in 51 depth how each of these companies improves innovation — in particular, how they 04. manage new ideas, marketing innovation, projects, and resources for product 539 development and introduction. .805.F All three companies are relying on the same platform for their success — project and 0 portfolio management (PPM) for new product development and introduction (NPDI) 028. via CA Clarity for NPD. 278.8 With their implementations, our respondents focused on business activities that are 05.P key to their companies' success. Success in these areas could then serve as A incentive to expand PPM usage into other groups and divisions. SU 1 The experiences of our interviewees highlighted several benefits: 0710 ! The ability to manage and control the selection of new products, product AM , extensions, and product modifications with the highest revenue potential mahg ! The development and execution of the most efficient production and marketing nim processes arF t ! The visibility and control of high-level corporatewide efforts for product planning eert and management S ne ! e Process documentation and data storage in one comprehensive and pS standardized repository, whereby users can leverage knowledge gained from 5 :s previous endeavors to reduce project risk and failures retrauqda S I T U AT I O N O V E R V I E W eH la Innovation is the lifeblood of the global economy. Companies considered market bol leaders in Europe and North America are gaining 43% of their profits from products G launched within the past five years. Therefore, managing innovation to achieve the highest possible level of product availability and customer acceptance is of fundamental importance. Outdated product portfolios, delayed product launches, and mismanagement of costs and resources all result in missed market opportunities and, ultimately, business collapse.
During the past 10 years, consulting companies and business leaders have invested a great deal of effort in exploring the requirements for effective product innovation. Simply put, the research shows that businesses must manage product ideas like corporate assets. They should model their market potential based on earlier experience; calculate execution requirements; and keep planning and execution processes visible throughout the corporation for control and standardization.
To develop a framework for this type of product innovation management, manufacturing companies must be able to answer two fundamental questions:
1. What makes up the product?
2. How do I choose, develop, and launch the right products?
The details of what a company manufactures are managed primarily by engineering groups who rely on product life-cycle management (PLM) tools. How a company develops and launches a product, however, involves a much larger user community: people who evaluate the potential success of a product idea and shepherd it through the acceptance process; those who plan for, prepare, and control the requirements to execute the manufacturing process and then the market launch; and managers and executives who evaluate the success of individual products and plan for future portfolios of new products.
Almost all companies that focus on NPDI use tools to manage these projects. In the past, product groups developed these tools ad hoc and did not share them with other divisions of the company. These tools ranged from spreadsheets, to in-house-developed applications based on Lotus Notes, to simple pen-and-paper notes. NPDI projects remained largely undocumented, and a great deal of valuable knowledge left the company when experienced emplo... [download for more]
