Integrated Product Development Management

 

The Challenge: Am I Developing The Right Products?

The New Product Development (NPD) arm of any organization is the key to its sustained competitive advantage through continued product innovation and expansion into new markets. Some of the issues these organizations are facing include:

  • Unacceptably low rate of successfully launched products;
  • Unknown or poorly estimated stage-to-stage risk-adjusted portfolio value;
  • Unclear timeline and poor predictability for future product launches;
  • Products not aligned to strategic objectives;
  • Ad-hoc, manual and inconsistent project valuation.

Given these challenges it is no surprise that in today’s economic environment of increasingly global markets and commoditized manufacturing NPD is at the forefront of concern for many Fortune 500 executives. Prominent research groups report that only one-quarter of companies are hitting their product development targets with any regularity. The dismal track record of NPD realization suggests that companies which excel in rolling out comprehensive NPD management solutions stand to capture and maintain leader positions in their product domains.

The Solution: a Structured Portfolio Approach for New Product Development

UMT’s NPD solution provides strategic alignment capabilities where time to commercialize, resource constraints, and risk-adjusted value are evaluated in concert to create a portfolio of new products that is shaped by your strategic vision. UMT also has the expertise to help you standardize and automate NPD project valuation – whether you use NPV, ROI, CV, or risk-adjusted metrics, we can help you homogenize and improve your current value estimation activities. Doing so will help reduce risk and uncertainty when combined with other NPD decision factors at the stage gates.

At UMT, we understand the common and uncommon causes of low yield in New Product Development. By structuring the process, governance, and tools to control your stage to stage technical and commercial risks and clearly representing value, your organization will be empowered to make well-informed decisions for selecting the most promising candidates for exploration as well as make timely decisions on retiring unproductive efforts at later stages of development

In doing so, UMT leverages a global perspective with a local presence at some of the largest manufacturers, financial institutions, pharmaceutical companies, technology firms, and retailers in the world. Our NPD solution has been successfully implemented in complex multi-regional environments, accommodating highly diversified product groups with lifecycles varying from one to eight years in duration, or even longer. Our approach to NPD Portfolio & Project Management ensures that at the completion of our efforts our clients’ organizations are empowered with a repeatable, long-lasting set of NPD project and portfolio management capabilities.

The Evidence

Research shows that best-in-class companies:

  • Are more likely to have adopted portfolio management and are two times more likely than other manufacturers to have done so for two or more years;
  • Command higher profit margin premiums from newer products than other companies;
  • Have a higher percentage of revenue from products less than two years old (29% versus 18% for other companies).
Challenge and Solution

Best in-class companies continuously strive to improve their R&D PPM processes to make better project selections, enhance decision speed and accuracy, reduce R&D portfolio risks, and accelerate product development cycles while minimizing costs with effective resource management.

Challenge: How can we improve our cross-functional integration to realize benefits that can be gained?

Solution: Effective cross-functional integration requires improvement in the following capability areas:  Change Management, Status Reporting & Performance, Risk Identification and Mitigation, Issue Resolution & Escalation, Insights and Decisions.

UMT is a recognized leader in delivering project and portfolio management solutions that promote tight cross-functional integration; providing leaders, decision-makers and stakeholders the information they need to make the right decisions quickly. With effective information sharing and streamlined collaboration, UMT is a strong partner in developing solutions that can reduce NPD cycle times, increase execution velocity and improve resource utilization.

Change Management Capability Area

R&D organizations, NPD teams must be nimble and proactive to adapt to ever-changing product/project requirements resulting from number changing customer expectations, competitive pressures, new regulatory requirements and variation inavailability of scarce resources. Strong change management capability enables Project Managers to balance scope changes against costs/benefits and allow individual contributors to stay focused on high priority value add activities.

UMT's vast experience across many industries demonstrates proven ability to create change management solutions and cross-functional integration incorporating the tools, processes, and governance to effectively maintain large project portfolios.

Status and Performance Reporting Capability Area

Timely, accurate and targeted status and performance reporting is important to minimize execution waste and portfolio risk by being proactive. Companies spend large amounts of resources to rescue failing projects. With limited resources to go around, problem projects can have effects that ripple across the entire portfolio as budgets, resource allocations, and schedules are modified to address issues.

UMT works with clients to create solutions that transparently expose the most critical elements of project status and performance to key stakeholders, enabling advance identification of potential problem areas, and minimizing the cost of bringing projects back on plan.

Risk Identification and Mitigation Capability Area

Every project portfolio has risks that can be identified and mitigation plans can be put in place to manage the unfavorable impact. Today’s projects are complex and require involvement from multiple functions. Cross-functional Integration promotes working together to assess project risks, identify indicators and metrics to monitor and develop plans to prevent risks turning into costly problems.

UMT understands the importance of effective cross-functional risk management. UMT has developed and implemented tools and solutions that include risk management component.

Issue Esscalation and Resolution Capability Area

Even with the best project portfolio change management and risk management, unforeseen risks or unexpected changes will create significant, complex issues that require cross-functional involvement for resolution. Issues create cost overruns, delays in development and launch of products, and diminished project and portfolio values. A functional issue escalation and resolution capability is a key part of a well-managed project portfolio.

UMT understands PPM implementations often provide opportunities to improve cross-functional business processes. Improving the issue management process and implementing enabling tools is an important component of a PPM implementation.

Insights and Decision Support

In a business environment  big data is increasingly playing a larger role. For important decisions just having data available is no longer the end goal of analytics. Being able to distill data down quickly to just what is needed for the task at hand is a key part of maximizing the time of decision-makers, freeing them to spend less time sifting through spreadsheets and more time being thought leaders.

UMT has a long history of helping companies across all industries use their project and portfolio data effectively, creating reporting and analytic solutions that show the right information at the right time.

 

The Challenge: Am I Developing The Right Products?

The New Product Development (NPD) arm of any organization is the key to its sustained competitive advantage through continued product innovation and expansion into new markets. Some of the issues these organizations are facing include:

  • Unacceptably low rate of successfully launched products;
  • Unknown or poorly estimated stage-to-stage risk-adjusted portfolio value;
  • Unclear timeline and poor predictability for future product launches;
  • Products not aligned to strategic objectives;
  • Ad-hoc, manual and inconsistent project valuation.

Given these challenges it is no surprise that in today’s economic environment of increasingly global markets and commoditized manufacturing NPD is at the forefront of concern for many Fortune 500 executives. Prominent research groups report that only one-quarter of companies are hitting their product development targets with any regularity. The dismal track record of NPD realization suggests that companies which excel in rolling out comprehensive NPD management solutions stand to capture and maintain leader positions in their product domains.

The Solution: a Structured Portfolio Approach for New Product Development

UMT’s NPD solution provides strategic alignment capabilities where time to commercialize, resource constraints, and risk-adjusted value are evaluated in concert to create a portfolio of new products that is shaped by your strategic vision. UMT also has the expertise to help you standardize and automate NPD project valuation – whether you use NPV, ROI, CV, or risk-adjusted metrics, we can help you homogenize and improve your current value estimation activities. Doing so will help reduce risk and uncertainty when combined with other NPD decision factors at the stage gates.

At UMT, we understand the common and uncommon causes of low yield in New Product Development. By structuring the process, governance, and tools to control your stage to stage technical and commercial risks and clearly representing value, your organization will be empowered to make well-informed decisions for selecting the most promising candidates for exploration as well as make timely decisions on retiring unproductive efforts at later stages of development

In doing so, UMT leverages a global perspective with a local presence at some of the largest manufacturers, financial institutions, pharmaceutical companies, technology firms, and retailers in the world. Our NPD solution has been successfully implemented in complex multi-regional environments, accommodating highly diversified product groups with lifecycles varying from one to eight years in duration, or even longer. Our approach to NPD Portfolio & Project Management ensures that at the completion of our efforts our clients’ organizations are empowered with a repeatable, long-lasting set of NPD project and portfolio management capabilities.

The Evidence

Research shows that best-in-class companies:

  • Are more likely to have adopted portfolio management and are two times more likely than other manufacturers to have done so for two or more years;
  • Command higher profit margin premiums from newer products than other companies;
  • Have a higher percentage of revenue from products less than two years old (29% versus 18% for other companies).