Exam L8-L9 Flashcards
STAGE GATE PROCESS
Stage-gate = breaking a large project into a series of stages with gates between them. Before going to the next phase at each gate you check whether you should continue.
- Stage 1: Scoping
- Stage 2: Build Business Case
- Stage 3: Development
- Stage 4: Testing & Validation
- Stage 5: Launch
Every stage is Cross-Functional
Stage Gate is a ‘rational planning’ approach
o More rigid + less adaptable
o Changes in requirements affect second generation products
STAGE GATE PROCESS
Strengths:
Strength of STAGE GATE PROCESS
- Quality of execution
- Focus and prioritization
- Cross-functionality
- Parallel processing & spirals
- Better front-end homework
STAGE GATE PROCESS
Weaknesses
- Overemphasis on the execution of stages
- Rigidity
- Linearity
- Same process for all types of projects
- Use as project control system
- Bureaucracy
NextGen Model
Emphasize:
- Coupling, iteration, and feedback
- Cross-functional collaboration
- Integration with external actors (ex. open innovation)
Added Service Layer
Products x Service
Added Service Layer:
Products
* are durable
* are often tangible
* their ownership can be exchanged
Service
* are co-produced by consumer
* are perishable
* are intangible
* are produced and consumed simultaneously
* are heterogeneous
Servitization =
Servitization =
Shift towards ‘service’ (value, experience) that products offer (job to be done)
Shift toward pay-for-use instead of pay for ownership
o (e.g., ‘pay per lux’, ‘power by the hour’, ‘product as a service’)
Digital product life-cycle services =
Digital product life-cycle services
= Services to facilitate the customer’s access to the supplier’s good and ensure its proper functioning during all stages of the life cycle
Examples
o Repair Services
o Remote product status update
o Remote vehicle inspection
Asset Efficiency Services =
Asset Efficiency Services
= Services to achieve productivity gains from assets invested by customers
Examples
o Remote condition monitoring to ensure specific guaranteed uptime of the product
o Program to preemptively replace parts that are likely to fail soon
o Fuel saving advice to a driver
o GO BEYOND ‘A DEED’ (ex. single inspection)
Process Delegation Service =
Process Delegation Services
= services to perform processes on behalf of the customers
Examples
o Management in behalf of the company
How to use data for Servitization?
How to use data for Servitization?
DATA DENSITY PROCESSES
1_ Pattern spotting
= Identify data-driven solutions for improving services
* Service Process Innovation
2_Real-time decisioning
= Predict likely future states where value can be generated through a fast, targeted response
* Customer Experience Innovation
3_Synergistic exploration
= Using data to identify new service innovations (input for product updates)
* Service Concept Innovation
Consequences of developing Digital Innovations
How has it changed?
Product characteristics have changed: (the ‘what’)
1. Updatability, product continues to evolve after launch
2. Product-Service combinations
3. Using data in product development
Stakeholders involved have changed: (the ‘who)
1. Cross-functional integration: New role of IT and product development processes; increasingly firms collaborate with heterogeneous actors.
Development work has changed: (the ‘how’)
1. Influence of agile work practices
2. Design thinking
3. Digital affords probing and experimentation
Changing role of IT Department:
- IT components (portals, data warehouses, data analysis, real-time data)
- From ‘business enabler’ to being involved in innovation process
- Existing NPD practices are confronted with typical IT practices
CHALLENGES FOR INCUMBENTS
Product-Centric incumbents need to balance:
- Existing versus new innovation practices
* Develop new capabilities without hampering existing practices - Product versus process focus
* Design products for continuous evolution; rather than annual “one-off” incremental innovations Internal versus external collaborations - Internal versus external collaborations
* Has been efficiency-oriented (based on well-defined interfaces, roles and and tasks) - Control versus flexibility in governance
* E.g., Freeze designs prior to production?
Digital innovations
Characterized by
Digital innovations is characterized by =
Vast uncertainty, increased solution complexity, shorter time to market, which require more flexible and adaptive ways of managing the front-end of innovation.
A front-end path is characterized by:
A front-end path is characterized by:
High uncertainty as it is not fixed and instead may change as new information becomes available