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The 6 pieces fit together like a jigsaw puzzle, forming a quick flexible procedure for new product advancement. Simply as essential, the brand-new approach can serve as a change representative: it is an automobile for presenting innovative, market-driven ideas and processes into an old, stiff company. The guidelines of the game in brand-new product advancement are changing.
It likewise takes speed and flexibility. This modification is shown in the emphasis companies are placing on brand-new items as a source of brand-new sales and profits. At 3M, for instance, items less than 5 years of ages represent 25% of sales. A 1981 survey of 700 U.S. business indicated that brand-new items would represent one-third of all profits in the 1980s, a boost from one-fifth in the 1970s.
The traditional sequential or "relay race" method to item developmentexemplified by the National Aeronautics and Area Administration's phased program preparation (PPP) systemmay dispute with the objectives of maximum speed and flexibility. Rather, a holistic or "rugby" approachwhere a group tries to go the range as a system, passing the ball back and forthmay much better serve today's competitive requirements.
The task went sequentially from stage to stage: idea advancement, expediency screening, product design, development process, pilot production, and final production. Under this technique, functions were specialized and segmented: the marketing people taken a look at client needs and perceptions in establishing item concepts; the R&D engineers chose the proper style; the production engineers put it into shape; and other functional specialists brought the baton at various phases of the race.
Rather than moving in specified, highly structured phases, the procedure is born out of the team members' interplay (see Display 1). A group of engineers, for instance, may begin to create the product (stage three) before all the outcomes of the feasibility tests (stage two) are in. Or the team may be required to reevaluate a choice as a result of later details.
This goes on in even the most recent stages of the advancement process. Display 1 Sequential (A) vs. overlapping (B and C) phases of advancement Exhibit 1 illustrates the distinction between the conventional, linear method to item advancement and the rugby technique. The sequential method, labeled type A, is typified by the NASA-type PPP system.