Part III Managing and improving product development The effectiveness of product development in a company is determined people responsible for product development from the directors to the managers; by firstly their basic philosophy and understanding, secondl abilities and thirdly the clear recognition of their roles Product development combines people, their individual knowledge and skil How they collaborate to produce the company's abilities in product development is the basis for product success or failure. Product development needs knowledge and skills in all areas of the company -R&D, marketing, production and finance, and in particular top management. This is why product development management is complex and often becomes swamped in the management for today. Companies appear to have great difficulty in deciding where to place product development management in marketing, R&D, production or as a separate department; over the years product development management is apt to be reorganised several times because of problems that have been identified. This is no bad thing since product development, because of its nature, is always changing, going in different directions as technology and consumers change. But the core product development knowledge needs to be kept intact and allowed to grow through the product development projects It is important to recognise that there are different layers of product development management, layers that are interacting with the management of the functional departments and indeed are sometimes the management of the functional departments. The key issues are in two areas 1. Management needs in the vertical responsibility from directors to project 2. Interaction between these management people and the functional departments
The effectiveness of product development in a company is determined by the people responsible for product development from the directors to the project managers; by firstly their basic philosophy and understanding, secondly their abilities and thirdly the clear recognition of their roles. Product development combines people, their individual knowledge and skills. How they collaborate to produce the company’s abilities in product development is the basis for product success or failure. Product development needs knowledge and skills in all areas of the company – R&D, marketing, production and finance, and in particular top management. This is why product development management is complex and often becomes swamped in the management for today. Companies appear to have great difficulty in deciding where to place product development management – in marketing, R&D, production or as a separate department; over the years product development management is apt to be reorganised several times because of problems that have been identified. This is no bad thing since product development, because of its nature, is always changing, going in different directions as technology and consumers change. But the core product development knowledge needs to be kept intact and allowed to grow through the product development projects. It is important to recognise that there are different layers of product development management, layers that are interacting with the management of the functional departments and indeed are sometimes the management of the functional departments. The key issues are in two areas: 1. Management needs in the vertical responsibility from directors to project managers. 2. Interaction between these management people and the functional departments. Part III Managing and improving product development
258 Food product development The product development activity in a large company can be very complex. In the small company, the director, chief executive, product development manager and project leader can be one person. But in all companies it is important that the product development strategy, product development programme, PD Proces and the overall aims of the programme and the individual projects are clearly defined. Then everyone understands their place in the jigsaw, the outcomes expected from their work and the decision-making process The other key issue in management is the interrelationship between product development and the functional areas of R&D, marketing, production, distribution, and finance. In looking at the typical activities occurring throughout the product development process, it is clear that the support of these groups is essential. Both the inputs needed for product development and the outcomes from product development are related to the functional departments, which are very much involved in making and marketing todays products(Stockwell 1985). There are inputs such as product mix strategy and sales forecasting from marketing, product trials and quality assurance development from production, predicted returns on investment from finance, and outputs such as market plan from marketing, production schedule from production and net profit forecast In Chapter 6, the basic needs in product development management and the people who are responsible for making product development both effective and efficient- producing the optimum product at the right time and within budget are outlined. The Pd Process is the focus- design the pd process: establish the key decision points and the decision makers; establish outcomes, budgets and constraints, organise and manage. The chapter ends with a discussion on anaging and organising product development in the company, and collaborate ng with outside agencies Chapter 7 illustrates product development at different points in the food system in four case studies. Management of product development is different among primary production, processing of food ingredients, manufacturing and food service. because of the different scientific and technological bases the different needs of the target markets and the time for development. It is mportant to understand that there is a common product development framework but the activities can be different Chapter 8 studies the searching for best practice in product development and in particular the improvement of R&D management by benchmarking. The changes that are occurring in food product development and what may happen in the future are discussed Reference STOCKWELL, D (1985)Managing product development as a business activity, address to the AsEAn Food Conference, Manila, Philippines
The product development activity in a large company can be very complex. In the small company, the director, chief executive, product development manager and project leader can be one person. But in all companies it is important that the product development strategy, product development programme, PD Process and the overall aims of the programme and the individual projects are clearly defined. Then everyone understands their place in the jigsaw, the outcomes expected from their work and the decision-making process. The other key issue in management is the interrelationship between product development and the functional areas of R&D, marketing, production, distribution, and finance. In looking at the typical activities occurring throughout the product development process, it is clear that the support of these groups is essential. Both the inputs needed for product development and the outcomes from product development are related to the functional departments, which are very much involved in making and marketing today’s products (Stockwell, 1985). There are inputs such as product mix strategy and sales forecasting from marketing, product trials and quality assurance development from production, predicted returns on investment from finance, and outputs such as market plan from marketing, production schedule from production and net profit forecast from finance. In Chapter 6, the basic needs in product development management and the people who are responsible for making product development both effective and efficient – producing the optimum product at the right time and within budget – are outlined. The PD Process is the focus – design the PD Process; establish the key decision points and the decision makers; establish outcomes, budgets and constraints; organise and manage. The chapter ends with a discussion on managing and organising product development in the company, and collaborating with outside agencies. Chapter 7 illustrates product development at different points in the food system in four case studies. Management of product development is different among primary production, processing of food ingredients, manufacturing and food service, because of the different scientific and technological bases, the different needs of the target markets and the time for development. It is important to understand that there is a common product development framework but the activities can be different. Chapter 8 studies the searching for best practice in product development and in particular the improvement of R&D management by benchmarking. The changes that are occurring in food product development and what may happen in the future are discussed. Reference STOCKWELL, D. (1985) Managing product development as a business activity, an address to the ASEAN Food Conference, Manila, Philippines. 258 Food product development
Managing the product development process Product development management in the food system is complex, long term and capital intensive. It is total company management involving every function in the company -so it is managing either a microcosm of the company or an integration of the company functions. For a major innovation, the company may set up a new venture company or division; or a new group of people may form a new company. At this time when many new companies are being formed on the nnovations of information technology and biotechnology, it is interesting speculate on new venture companies in the food industry and the basis of ther new innovations. But at the present time, it is the large multinational food companies that dominate product development at all levels in the food industry and it is management of product development in these companies that is the main basis for innovation in the food industry. There are many small food companies that are also involved in product development on a small scale Management of product development in the food industry varies from a group in he small company sitting around a kitchen table to the multinational food company with large R&D laboratories, small-scale production development plants and product development teams in many countries. The basic principles of product development management are the same in large and small companies, but often more difficult to apply in the large company because of rigid The framework for management in the food industry is the PD Process, and he recognition of management at the different stages
Product development management in the food system is complex, long term and capital intensive. It is total company management involving every function in the company – so it is managing either a microcosm of the company or an integration of the company functions. For a major innovation, the company may set up a new venture company or division; or a new group of people may form a new company. At this time when many new companies are being formed on the innovations of information technology and biotechnology, it is interesting to speculate on new venture companies in the food industry and the basis of their new innovations. But at the present time, it is the large multinational food companies that dominate product development at all levels in the food industry, and it is management of product development in these companies that is the main basis for innovation in the food industry. There are many small food companies that are also involved in product development on a small scale. Management of product development in the food industry varies from a group in the small company sitting around a kitchen table to the multinational food company with large R&D laboratories, small-scale production development plants and product development teams in many countries. The basic principles of product development management are the same in large and small companies, but often more difficult to apply in the large company because of rigid hierarchies. The framework for management in the food industry is the PD Process, and the recognition of management at the different stages. 6 Managing the product development process
260 Food product development 6.1 Principles of product development management Several principles of development management have been identified ge principles are robust and are useful as a basis for product development management. They can be grouped under basic philosophy, understandin abilities and organisation of the company as shown in Fig. 6.1 6.1.1 Basic philosophy and understanding Belief in product development as a major business strategy Understanding emerging worldwide technologies, in-depth knowledge of technologies Understanding the transformation of technologies into want-satisfying products, intimate understanding of changing consumer needs eveloping a creative climate, creating spontaneous teamwork Patience, realising that innovations take time, going through cycles of success and failure, and that management has to aid and direct them to the end of product success. Recognising the need for skills in systematic decision making and risk takin These are still essential elements in product development that have conti demonstrate their significance over a great diversity of situations and tin to mention fashions! Unless management, especially top management, that product development needs knowledge of technology and consumer, and of their optimum relationship, then product development will stumble. Having recognised these basic knowledge needs, they have also to recognise that there needs to be a creative atmosphere and time to reach product success. Lastly they have to believe that the success of product development depends on their decision making, its quality and timeliness (lord, 2000) Management Abilities Philosophy Understanding Product development practice Fig. 6.1 Basic principles of product development management
6.1 Principles of product development management Several principles of product development management have been identified (Souder, 1987; Ganguly, 1999). Relative importance does change but the basic principles are robust and are useful as a basis for product development management. They can be grouped under basic philosophy, understanding, abilities and organisation of the company as shown in Fig. 6.1. 6.1.1 Basic philosophy and understanding • Belief in product development as a major business strategy. • Understanding emerging worldwide technologies, in-depth knowledge of technologies. • Understanding the transformation of technologies into want-satisfying products, intimate understanding of changing consumer needs. • Developing a creative climate, creating spontaneous teamwork. • Patience, realising that innovations take time, going through cycles of success and failure, and that management has to aid and direct them to the end of product success. • Recognising the need for skills in systematic decision making and risktaking. These are still essential elements in product development that have continued to demonstrate their significance over a great diversity of situations and times, not to mention fashions! Unless management, especially top management, believes that product development needs knowledge of technology and consumer, and of their optimum relationship, then product development will stumble. Having recognised these basic knowledge needs, they have also to recognise that there needs to be a creative atmosphere and time to reach product success. Lastly they have to believe that the success of product development depends on their decision making, its quality and timeliness (Lord, 2000). Fig. 6.1 Basic principles of product development management. 260 Food product development
Managing the product development process 261 6.1.2 Abilities Systematic selection of best projects, using information sharing and group decision making, creating idea generation and evaluation with all people involved in product development, setting decision processes based on the product development goals Careful analysis of the customer's level of sophistication and the product designers level of technical sophistication, creating collaborative roles between product design and consumer/market research, educating product designers on consumer needs and wants, educating marketing on technical possibilities and problems Finding and coordinating the resources and knowledge for product development, upgrading knowledge to make use of new technology, nurturing methods for new technologies, selection of technology with fit to present or planned future company technology, predicting costs of adoption of new technology in finances and company organisation Elimination of disharmony between R&D and marketing groups, making open communication an explicit responsibility of every employee, using joint &D/marketing task forces Reducing complexity and problems, breaking large projects into manageable stages,identifying and eliminating mild problems before they become major Management at all levels needs to have the abilities to recognise the path of the project and to coordinate the knowledge, resources and people to follow the path efficiently and effectively to product success. There is a great deal spoken about multidisciplinary, cross-functional, inter-functional, intra-functional, integrated product development, but basically product development needs to be recognised s a many-faceted process which can only be achieved by collaboration between people with different knowledge and skills. It cannot be enclosed in specialist or functional boxes such as marketing or production(Harris and McKay, 1996) Management needs to understand the meaning of company collaboration and to have the ability to put into action a multifaceted product development project based on collaboration 6.1.3 Organisation Design of product development organisation, ability to set the tone, posture nd prevailing attitudes towards product development, creating an organisa- ion to fit the needs of members and of customers, encouraging responsibility and creating multidirectional communication Cost-effective project management, selecting the method that relates to the problem, for example incremental innovation using commercial line management, technical innovation using technical management, major innovation using separate project management or a new product committee Flow management during the project, organising the timely transfer and flow of product prototypes and knowledge, encouraging the skills and knowledge
6.1.2 Abilities • Systematic selection of best projects, using information sharing and group decision making, creating idea generation and evaluation with all people involved in product development, setting decision processes based on the product development goals. • Careful analysis of the customer’s level of sophistication and the product designer’s level of technical sophistication, creating collaborative roles between product design and consumer/market research, educating product designers on consumer needs and wants, educating marketing on technical possibilities and problems. • Finding and coordinating the resources and knowledge for product development, upgrading knowledge to make use of new technology, nurturing methods for new technologies, selection of technology with fit to present or planned future company technology, predicting costs of adoption of new technology in finances and company organisation. • Elimination of disharmony between R&D and marketing groups, making open communication an explicit responsibility of every employee, using joint R&D/marketing task forces. • Reducing complexity and problems, breaking large projects into manageable stages, identifying and eliminating mild problems before they become major. Management at all levels needs to have the abilities to recognise the path of the project and to coordinate the knowledge, resources and people to follow the path efficiently and effectively to product success. There is a great deal spoken about multidisciplinary, cross-functional, inter-functional, intra-functional, integrated product development, but basically product development needs to be recognised as a many-faceted process which can only be achieved by collaboration between people with different knowledge and skills. It cannot be enclosed in specialist or functional boxes such as marketing or production (Harris and McKay, 1996). Management needs to understand the meaning of company collaboration and to have the ability to put into action a multifaceted product development project based on collaboration. 6.1.3 Organisation • Design of product development organisation, ability to set the tone, posture and prevailing attitudes towards product development, creating an organisation to fit the needs of members and of customers, encouraging responsibility and creating multidirectional communication. • Cost-effective project management, selecting the method that relates to the problem, for example incremental innovation using commercial line management, technical innovation using technical management, major innovation using separate project management or a new product committee. • Flow management during the project, organising the timely transfer and flow of product prototypes and knowledge, encouraging the skills and knowledge Managing the product development process 261
262 Food product development for the evolving technology and keeping team members involved to greater and lesser extent throughout the projec Product development budgeting techniques, understanding the changing cost/time ratios between projects and within projects, the financial analysis of the different stages of the PD Process to identify the costs and their possible improvements, the financial controls needed for the different cost/ time ratio Management has to design the organisation for product development in the company, both for the overall new product programme and for the individual needs to be coordination to have the use of people and resources, as well as planning and control for the individual project so that it flows towards the final product launch without stumbling too often. Radical innovations are never straightforward linear progressions through the project; there is often recycling especially during the earlier stages, but these returns to earlier stages in the project need to be Think break In your company 1. What is the basic philosophy of product development management 2. Describe the understanding of technology changes and consumer needs changes 3. How are these changes affecting product development? 4. Has your company the abilities to develop new products related to these changes? 5. If not what new abilities need to be found? how could this be done? 6. What are the organisational methods used by your company? 7. Do they ensure effective and efficient product development? 8. If not, what changes need to be made in the organisational methods? 6.2 People in product development management It is important to recognise that there are different layers of management. The different levels of management can be identified as directors chief executives product development managers and project leaders, although the actual titles of the managers may be different from this in the individual companies(see Fig 6.2). The directors are at the business strategy level, the chief executive at the product/innovation strategy level, the product development manager at the new product programme level and the project leader at the level of the individual
for the evolving technology and keeping team members involved to greater and lesser extent throughout the project. • Product development budgeting techniques, understanding the changing cost/time ratios between projects and within projects, the financial analysis of the different stages of the PD Process to identify the costs and their possible improvements, the financial controls needed for the different cost/ time ratios. Management has to design the organisation for product development in the company, both for the overall new product programme and for the individual project. There needs to be coordination among projects to have the optimum use of people and resources, as well as planning and control for the individual project so that it flows towards the final product launch without stumbling too often. Radical innovations are never straightforward linear progressions through the project; there is often recycling especially during the earlier stages, but these returns to earlier stages in the project need to be managed. 6.2 People in product development management It is important to recognise that there are different layers of management. The different levels of management can be identified as directors, chief executives, product development managers and project leaders, although the actual titles of the managers may be different from this in the individual companies (see Fig. 6.2). The directors are at the business strategy level, the chief executive at the product/innovation strategy level, the product development manager at the new product programme level and the project leader at the level of the individual Think break In your company: 1. What is the basic philosophy of product development management? 2. Describe the understanding of technology changes and consumer needs changes. 3. How are these changes affecting product development? 4. Has your company the abilities to develop new products related to these changes? 5. If not, what new abilities need to be found? How could this be done? 6. What are the organisational methods used by your company? 7. Do they ensure effective and efficient product development? 8. If not, what changes need to be made in the organisational methods? 262 Food product development
Managing the product development process 263 Directors Business (owner, entrepreneur, Go/no- Chief executives esign product development process ecision times corporate manager Product development collaboration Outcomes roduct development ment system new product/process managers,, Effective product development ce use Efficient product development Project leaders Project plan (group leaders, venture managers) Creativity Communicat Fig. 6.2 Levels of PD management. project as shown in Fig. 6.2. All of these different levels have their own basic philosophy and understanding, abilities and responsibilities, but they need to be coordinated into the whole product development management. The interwoven nature of responsibilities should be noted; people may have individual responsibilities at their level of management, and also joint responsibilities at higher levels. There is no clear demarcation of responsibility in product development because it has to be collaborative management 6.2.1 Directors Directors on the Board of the company have their vision for future growth of the enterprise, commitment to product development as a method of ensuring company growth, understanding of the knowledge and skills needed for product development, provision of resources for product development. They need to have the abilities for: incorporating innovation into the business strategy analysis and decision making, intelligent risk-taking, selecting and directing a chief executive with the knowledge and skills for the innovation strategy that they have developed. They need an understanding of the companys technological and marketing environments, the competitors innovative strategies and multi-industry evolution, the companys structural and cultural context,and the companys resources and capabilities. The Board sets the I innovation strategy and the philosophy for product development, gives priate allocation of resources and makes the major decisions in the lent. As with most business activities, product development is most successful when it starts from the top
project as shown in Fig. 6.2. All of these different levels have their own basic philosophy and understanding, abilities and responsibilities, but they need to be coordinated into the whole product development management. The interwoven nature of responsibilities should be noted; people may have individual responsibilities at their level of management, and also joint responsibilities at higher levels. There is no clear demarcation of responsibility in product development because it has to be collaborative management. 6.2.1 Directors Directors on the Board of the company have their vision for future growth of the enterprise, commitment to product development as a method of ensuring company growth, understanding of the knowledge and skills needed for product development, provision of resources for product development. They need to have the abilities for: incorporating innovation into the business strategy, analysis and decision making, intelligent risk-taking, selecting and directing a chief executive with the knowledge and skills for the innovation strategy that they have developed. They need an understanding of the company’s technological and marketing environments, the competitors’ innovative strategies and multi-industry evolution, the company’s structural and cultural context, and the company’s resources and capabilities. The Board sets the overall innovation strategy and the philosophy for product development, gives appropriate allocation of resources and makes the major decisions in the development. As with most business activities, product development is most successful when it starts from the top. Fig. 6.2 Levels of PD management. Managing the product development process 263
264 Food product development 6.2.2 Chief executives Chief executives have commitment to the organisational role of product development, understanding the needs of product development, recognising the knowledge and skills for product development, recognising the product development process as it relates to their company. They need the abilities to develop the structure in which product development operates to organise a management system for product development to integrate all the functional areas taking part in product development; to develop a clear product strategy and a product development programme to set clear goals. to indicate the decisions to be made at different parts of the product development processes, and make decisions with careful analysis They need to be able to define the long-term company development strategy and ess the strategic importance of new company initiatives and their relation to he present core capabilities( Cooper, 1998). They are responsible for effective portfolio management, making strategic choices of markets, products and technologies that the business will invest in( Cooper et al., 1999). The chief xecutive develops a positive environment, actively supporting, leading and directing product development on a continuous basis, and providing integrating communication between different groups, usually the functional departments of marketing, production, R&D and finance, with product development. Since roduct development spans many disciplines, it should not get locked into one image- marketing, production or R&D 6.2.3 Product development managers Product development managers have commitment to the companys PD Process and integration of the skills and knowledge for this process, understanding of the customer and consumer needs and wants, knowledge of present and emerging echnologies, understanding of the company and the external environment. They need the abilities to identify the outcomes necessary for each stage of the PD Process for the chief executive's and boards decision making identify the time and other constraints project; identify and find the resources for the prod encourage the creative and technical achievements of the people involved in product development analyse and make the decisions They need to be able, with top management, to obtainmaintain support for new initiatives, to define the companys strategies for the new initiatives, and to cooperate with the project leaders in defining projects. Product development managers integrate the various projects into an overall product development programme. They set with the project managers the timing of stages in the PD
6.2.2 Chief executives Chief executives have commitment to the organisational role of product development, understanding the needs of product development, recognising the knowledge and skills for product development, recognising the product development process as it relates to their company. They need the abilities: • to develop the structure in which product development operates; • to organise a management system for product development; • to integrate all the functional areas taking part in product development; • to develop a clear product strategy and a product development programme; • to set clear goals; • to indicate the decisions to be made at different parts of the product development processes, and make decisions with careful analysis. They need to be able to define the long-term company development strategy and assess the strategic importance of new company initiatives and their relation to the present core capabilities (Cooper, 1998). They are responsible for effective portfolio management, making strategic choices of markets, products and technologies that the business will invest in (Cooper et al., 1999). The chief executive develops a positive environment, actively supporting, leading and directing product development on a continuous basis, and providing integrating communication between different groups, usually the functional departments of marketing, production, R&D and finance, with product development. Since product development spans many disciplines, it should not get locked into one image – marketing, production or R&D. 6.2.3 Product development managers Product development managers have commitment to the company’s PD Process and integration of the skills and knowledge for this process, understanding of the customer and consumer needs and wants, knowledge of present and emerging technologies, understanding of the company and the external environment. They need the abilities to: • identify the outcomes necessary for each stage of the PD Process for the chief executive’s and Board’s decision making; • identify the time and other constraints on the project; • identify and find the resources for the product development; • encourage the creative and technical achievements of the people involved in product development; • analyse and make the decisions. They need to be able, with top management, to obtain/maintain support for new initiatives, to define the company’s strategies for the new initiatives, and to cooperate with the project leaders in defining projects. Product development managers integrate the various projects into an overall product development programme. They set with the project managers the timing of stages in the PD 264 Food product development
Managing the product development process 265 Process, plan and control the resources so that they are available at the correct time and are of the right quality, analyse the results of the development and make decisions for further stages. They need to be aware, guide and be available when necessary, to help the creativity and the problem solving. Every company needs a person who is responsible for new products and is recognised as this This person must have product development knowledge and skills as well as management knowledge and skills. There needs to be a balance between the innovation development and the management. Over-management can stifle innovation, but uncontrolled product development may lead to inappropriate products, inefficient product development and time/cost overruns- in other words commercial failure 6.2.4 Project leader Project leaders understand the consumer and market as well as the PD Process and the product; recognise and foster innovative, creative, problem-solving skills; and understand integration of people with different skills and philosophies. They need the abilities to drive the project to a successful conclusion identify the outcomes for each stage of the PD Process and important sections in the individual stages elate the outcomes to the activities in the project choose the techniques for the activities that relate to the knowledge and skills of the team. and the resources available They have the capacity to develop the business strategy for the new product as well as to define the technical/marketing development, and to build the organisational structure for the development. The project manager is leading a team of people who are skilled in different disciplines consumer research marketing, product design, processing development, production and finance Although the project manager may not have an in-depth knowledge in all areas, there is a need for basic knowledge in each area and the ability to see the interrelationships between them. The project leader is responsible for ensuring that the project progresses smoothly, meets all interim objectives and targets on time and within budget, and makes sure that the necessary resources are available when and where they are required. They also are the primary channel of communication between the project team, senior management and external organisations(Jones, 1997) 6.2.5 Important factors in management levels There are three important factors to recognise in these four different types of management. Firstly there is a need for championing: strategic championing at the directors/top management level, organisational championing at the product development manager level, and product championing at the project leader
Process, plan and control the resources so that they are available at the correct time and are of the right quality, analyse the results of the development and make decisions for further stages. They need to be aware, guide and be available when necessary, to help the creativity and the problem solving. Every company needs a person who is responsible for new products and is recognised as this. This person must have product development knowledge and skills as well as management knowledge and skills. There needs to be a balance between the innovation development and the management. Over-management can stifle innovation, but uncontrolled product development may lead to inappropriate products, inefficient product development and time/cost overruns – in other words commercial failure. 6.2.4 Project leader Project leaders understand the consumer and market as well as the PD Process and the product; recognise and foster innovative, creative, problem-solving skills; and understand integration of people with different skills and philosophies. They need the abilities to: • drive the project to a successful conclusion; • identify the outcomes for each stage of the PD Process and important sections in the individual stages; • relate the outcomes to the activities in the project; • choose the techniques for the activities that relate to the knowledge and skills of the team, and the resources available. They have the capacity to develop the business strategy for the new product as well as to define the technical/marketing development, and to build the organisational structure for the development. The project manager is leading a team of people who are skilled in different disciplines – consumer research, marketing, product design, processing development, production and finance. Although the project manager may not have an in-depth knowledge in all areas, there is a need for basic knowledge in each area and the ability to see the interrelationships between them. The project leader is responsible for ensuring that the project progresses smoothly, meets all interim objectives and targets on time and within budget, and makes sure that the necessary resources are available when and where they are required. They also are the primary channel of communication between the project team, senior management and external organisations (Jones, 1997). 6.2.5 Important factors in management levels There are three important factors to recognise in these four different types of management. Firstly there is a need for championing: strategic championing at the directors/top management level, organisational championing at the product development manager level, and product championing at the project leader Managing the product development process 265
266 Food product development Interdepartmental integration Multi faceted collaboration Product development project Product development project R&D Total tear team Production inance collaboration High level of product championing oordination of activities Cooperation Fig 6.3 Comparison of integration and collaboration in product development (Source: After Jassawalla and Sashittal, 1998) level. Secondly, decision making needs to be spread throughout the three groups and to be clearly defined. There is a need for decision making at all levels and not only at top management level. There is nothing more restrictive in product development than all decisions having to be made by one person; also it tends to slow development because there is endless reporting and decision making Decision making is a collaborative activity between all levels of managemen Thirdly, collaboration is an active aim of product development management Collaboration is much more than cross-functional integration, it is the active working together of people from different disciplines, different functional departments, and different levels of management in product development, all with common aims for product development as shown in Fig. 6.3 Cross-functional collaboration includes an equal stake and responsibility for the outcomes, and a willingness to understand the other people's viewpoints so that they can be blended to give higher levels of combined knowledge in the product development. Such collaboration involves synergy in thought and action, which leads to outcomes from the product development exceeding the capabilities of the individual participants in the PD Process (Jassawalla and Sashittal, 1998) Collaboration can be hard to achieve in radical innovation where uncertainty lead to tensions between people, with different functional groups blaming the others for delays, poor product qualities and increased costs. It is much easier in incremental product development where the risks of failure are much less and many activities become routine. Stage-specific collaboration is more likely to lead to new product success, rather than integrating all functions during all four stages of the PD
level. Secondly, decision making needs to be spread throughout the three groups and to be clearly defined. There is a need for decision making at all levels and not only at top management level. There is nothing more restrictive in product development than all decisions having to be made by one person; also it tends to slow development because there is endless reporting and decision making. Decision making is a collaborative activity between all levels of management. Thirdly, collaboration is an active aim of product development management. Collaboration is much more than cross-functional integration, it is the active working together of people from different disciplines, different functional departments, and different levels of management in product development, all with common aims for product development as shown in Fig. 6.3. Cross-functional collaboration includes an equal stake and responsibility for the outcomes, and a willingness to understand the other people’s viewpoints so that they can be blended to give higher levels of combined knowledge in the product development. Such collaboration involves synergy in thought and action, which leads to outcomes from the product development exceeding the capabilities of the individual participants in the PD Process (Jassawalla and Sashittal, 1998). Collaboration can be hard to achieve in radical innovation where uncertainty leads to tensions between people, with different functional groups blaming the others for delays, poor product qualities and increased costs. It is much easier in incremental product development where the risks of failure are much less and many activities become routine. Stage-specific collaboration is more likely to lead to new product success, rather than integrating all functions during all four stages of the PD Fig. 6.3 Comparison of integration and collaboration in product development (Source: After Jassawalla and Sashittal, 1998). 266 Food product development