TIM Lecture 8

Question 1

The Rand D production interface: Problems

Answer 1

Symptoms:

• Development cycles are too long and too expensive
• Late, unplanned changes in product design

Reasons:

• Rigid sequential development process with little overlapping
• High uncertainty when defining cost and time targets
• Too little flow of information between functions
• Strategic objectives of top management not clear

Question 2

The Rand Dproduction interface: Solutions

Answer 2

• Overlapping development phases
• Matrix organization
• Cross-functional teams
• Use of suitable communication technologies

Question 3

“lack of harmony” according to Souder`s study?

Answer 3

• Differences in language and culture (technical vs. business people)
• Different objectives
• Lack of trust in information from other functions
• Lack of credibility of information source

Recommendation for organizations:
Split larger projects in sub-projects, clear definition of competencies etc.

Recommendation for people:
Open discussions about conflicts and interface problems, support contacts between individuals etc.

Question 4

Cross-functional development teams

Answer 4

By combining staff from all relevant functions in a development team, high cost and time (to market) advantages can be realized.This is why cross-functional development teams are a dominant form of organization in NPD

Question 5

Managing researchers

Answer 5

Provide autonomy (Agree/assign goals and let individual choose approach)

Intrinsic motivation (‘fun and enjoyment from task itself): Reward individual and group success primarily through ‘intrinsic’ methods (status recognition, matching people to tasks)

Sufficient resources (but not too much)

Tolerate experimentation and failure – Fail fast and often

Question 6

Facts about communication

Answer 6

Communication between groups is significantly lower than within a group

Question 7

Effect of vertical segregation I

Answer 7

Empirically, it is found that vertical separation has a more negative effect on communication and cooperation than horizontal separation

Question 8

Wrap up

Answer 8

The interfaces R&D/production and R&D/marketing are beset with problems

Communication and cooperation between different functions is key to solving these issues

Cross-functional development teams result in an intra-group structure where different functions are integrated in one group

Appropriate architecture and spatial settings for the work of a cross- functional development team further increase the quality of communication/cooperation and project success