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From chance to necessity, is IPD suitable for SMEs?

author:Branch Notes

Guide

In the era of the epidemic, small and medium-sized enterprises are looking for new ways to innovate and develop, but some enterprises have aggravated the contradiction between products and customer needs due to various stubborn diseases in the management process, how can small and medium-sized enterprises improve product development efficiency and product research and development efficiency through IPD (integrated product development)?

1 Three major bottlenecks facing the rapid growth of small and medium-sized enterprises:

Market bottlenecks

From a single customer breakthrough to a multi-market breakthrough bottleneck, the pressure of explosive products.

Resource bottlenecks

Resource conflicts between market firefighting and product development, and resource conflicts between multi-product development.

Capacity bottlenecks

The lack of system-level talent, high-level cadres and even bosses who can make up their minds must do it themselves.

The three major bottleneck problems directly reflect the lack of coordination, inconsistency, mismatch, and non-uniformity between the three organizations, and the improper connection and matching between several internal organizations.

How to make the three organizations into a coordinated, consistent, unified, and matching mode of operation is a problem we need to care about.

2 The key point to break through the bottleneck - to build an IPD product management system

As a medium connecting enterprises and consumers, products not only create greater added value for consumers, but also the foundation for enterprises to survive. The level of product strength determines the core competitiveness of enterprises, and the core competitiveness of enterprises is ultimately reflected in unique products and services. Conflicts between many resources within the enterprise can easily lead to problems such as insufficient product competitiveness and waste of resources invested in products.

How can you improve product capabilities by optimizing internal product management processes?

Process reorganization: establish ipd integrated product management system to improve operational efficiency; establish cross-departmental team operation mechanism to form team culture; strengthen process execution and improve execution.

Market restructuring: Increase research on market demand, establish a demand mining library for new businesses and new opportunities, and improve the ability to accurately grasp, guide and even create customer needs; increase investment in market research to improve market segmentation and portfolio management capabilities.

Product reorganization: Establish and improve the asynchronous development model that separates the platform from technology development, new product development, and product maintenance; increase investment in platform combing, planning and development, form a perfect shared module library, improve the degree of platform sharing, and try to avoid custom development.

The personalized customer needs, abstracted into common characteristics of the market demand, and then converted into product package requirements, so that you can enter the product development process, and then abstract the commonality of a platform, this is not a simple product development process, is including the management of market demand, the management of product package requirements and definitions, and the management of the development process.

In the process of business management, it is necessary to manage the product development process, but also to form three systems of process, market and product composition, on the one hand, through strategy, on the other hand, through end-to-end processes, and then through management support, to build a complete business management process. The core lies in the accumulation of data, insight into the market, iterative products that match customer needs, summed up in 18 words: set goals, build a team, do projects, research performance, heavy projects, grasp the closed loop.

3 How to use IPD correctly to break through bottlenecks?

Huawei is the pride of Chinese manufacturing today, and its strong technological innovation ability has become the target of national suppression by the United States. However, Huawei also took many detours at the beginning of its independent product research and development in 1996, with a long research and development cycle and a high product failure rate.

In order to seek R&D management reform and improve product strength, Huawei began to introduce the IPD R&D management system in 1999, and after five years of practice, the R&D cycle was shortened by an average of 50%, the product failure rate was reduced by 95%, and the product competitiveness was greatly improved.

Summarizing Huawei's more than 20 years of IPD reform history, IPD has helped Huawei achieve sales revenue growth from 8.9 billion to 890 billion, created a management system from accidental success to replicable, sustainable and stable high quality, and achieved commercial success of products!

Practice has proved that IPD is not only an advanced idea, but also an excellent product development model, and the most significant improvements after the implementation of IPD are reflected in:

1. The product development cycle is significantly shortened;

2. Product cost reduction;

3. The ratio of R&D expenses to total revenue decreased, and the per capita output rate increased significantly;

4. Product quality is generally improved;

5. Significant reduction in costs incurred on mid-stop scrap projects.

If you want to rationally use the model of integrated product development, you need to follow the core - "three three systems":

Three difficulties:

First, cross-departmental collaboration to solve the problem of coordination between organizations.

Second, performance management, determining the responsibilities and rights of the project manager.

Third, capacity building, platform capabilities, including IT platforms.

Three main points:

First, set up the project, fully demonstrate the rationality of the requirements, at the same time, the program plan matches and couples the nodes composed, solves the problem of the consistency of the program and requirements of this node, the specification and consistency plus the outline design, and then outputs the development plan; and then seizes the customer verification node, optimizes, improves, and enhances the three nodes to maintain the efficiency of overall product development;

Second, three teams operate, the product development team (PDT), the integrated portfolio management team (IPMT) and the expert team (Expert Team) cooperate with each other to cross-evaluate the outputs and help identify problems through peer review; build and motivate employees to encourage struggle;

Third, do a good job of process management and take the first step, in order to better promote the later delivery management.

Use a complete set of architectures and scopes at the same time:

Organizations and teams

Investment Management Methodology and Processes: A high-level team with a strong focus on portfolio product development manages strategy, investment, and portfolio, focusing on the main portfolio elements – the department or product line

Methods of project management

Competency Management System: Support the skills of the management system, the business level improvement strategy of the functional department and the team that maintains continuous development

Metrics: A good appraisal system sets goals and evaluates every step of the way

Performance management: A good incentive system to strengthen the code of conduct model for combined product development

Process Management System: Strengthen processes and support system standards through assessments and audit inspections

Combination of business restructuring and IT: will support business objectives

4 Enterprise strategy landing: sustained success = strategic direction * organizational capabilities

For businesses to continue to succeed, they need to achieve alignment of long-term strategic goals and organizational capabilities, which is necessary to become a top company.

In the face of almost cruel market competition, for any enterprise, only the courage to change in order to survive, to seek development, stick to the rules is only a dead end. The key to success is change, and the key to change is management.

The element of change is like an iceberg, and most change managers only focus on the top of the change iceberg (above the surface), that is, the cost, quality and time involved in the change (problem management). However, the following parts of the ice landscape contain two more important aspects of change management: perception and belief management, and power and political management.

The part that is exposed to the surface of the water is easy to deal with, and the part that lurks under the water and is not exposed is really terrible and not easy to deal with. Reform governance is a long-term task and challenge, and the problem governance at the top of the iceberg can only be achieved if it is consistent with the governance at the bottom of the iceberg.

Kingdee Cloud Starry Sky × Huahai Communication Project, multiple projects such as localization substitution in a short period of time, efficient coordination of R&D, supply and marketing, and zero defect guarantee for 25 years were selected as the 2020 Industrial Internet Pilot Demonstration Project of the Ministry of Industry and Information Technology.

With the help of Kingdee Cloud And Sky PLM, Huahai Communications has built nearly 20 business and data modules required for R&D management, realizing the effective control of its R&D product data and the landing of IPD management system. As the data source of enterprise products, PLM also opens up the business and data chain with ERP, MES, SRM and other related systems.

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From chance to necessity, is IPD suitable for SMEs?

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(The market is risky, and investment transactions need to be cautious.) The underlying subject is not recommended and the transaction is invested accordingly at your own risk. )