Article_Group7- new product develoment_001

The New Practice Of Global Product Development: 

The New Practice Of Global Product Development M2 Group 7 M2 Group 7

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GLOBAL PRODUCT DEVELOPMENT GPD is a single coordinated product development operation that includes distributed teams in more than one country utilizing a fully digital and connected, collaborative product development process . This may include third partied or may be an entirely company owned operation. M2 Group 7

Why is the GPD transformation happening now?: 

Why is the GPD transformation happening now? Digital and networked product design processes Increased global collaboration M2 Group 7

Who is Leading the Way to GPD?: 

Who is Leading the Way to GPD? Software, Electronics and Automobile industries China and India are favorite off shoring destinations . Example: China’s Hair has established R&D plants in South carolina , New York to understand American Consumers South Korean companies have a hybrid approach to GPD- Major engineering processes in Korea, certain high- cost engineering is outsourced to the U.S. while the low-cost processes are outsourced to China Example: Hyundai M2 Group 7

Defining Modes of GPD Based on Ownership and Location of Resources: 

Defining Modes of GPD Based on Ownership and Location of Resources Modes of GPD Based on Ownership of Resources Outsourcing- Product Development resources are owned by a third party. In sourcing - Central ownership Modes of GPD based on Location of Resources Off shoring- developing products in an offshore region (Low cost) In shoring M2 Group 7

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M2 Group 7

4 Modes of GPD Operation: 

4 Modes of GPD Operation M2 Group 7

Staged Deployment of GPD: 

Staged Deployment of GPD M2 Group 7

10 Key Success Factors for GPD Deployment: 

10 Key Success Factors for GPD Deployment Management Priority : GPD may require significant changes in the organization, processes and culture. For this it requires a team which is strong & has visible commitment to the success of GPD. 2. Process Modularity : Process broken down in clear steps and steps are distributed to different locations 3. Product Modularity : Modular product architecture is helpful for GPD in which development of components is to be carried out by teams in different locations. Facilitates separate development and eventual integration. M2 Group 7

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4. Core competence : It is critical to company’s sustainable advantage thus “Don’t outsource the core business” is a fundamental principle of GPD. 5. Intellectual Property: As product data, designs and technologies are shared more widely outside the company, protection of IP becomes critical. 6. Data Quality : The availability, accessibility and audit ability of data become key challenges when many locations contribute to the PD process, often using different tools and databases. 7. Infrastructure : This is requires so as to ensure that the appropriate information can be readily accessible regardless of location or bandwidth constraints. M2 Group 7

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8. Governance and project management It is critical to co-ordinate across the operation & to ensure alignment along with proper execution. 9. Collaborative culture : This transition to GPD must incorporate new ways to collaborate amongst teams & individuals across time zones, languages, cultures etc. 10. Organization change management : Planning, training and education should go towards the individuals who play role in operating the GPD model. GPD Risks- Economic, Social, Political M2 Group 7

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- Group 7 Garima Khatri Gaurav Sharma Naman Gupta Priyanka Gupta Umang Gupta M2 Group 7 Thank you