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Summary: A Clear and Compelling View of the Next Generation in PD
Review: Michael McGrath has done it again. He has articulated a clear and compelling description of the next major generation in product development - the R&D Productivity Generation. The new generation builds on the major accomplishments of the last generation, which McGrath calls the Time-to-Market Generation. Whereas the TTM Generation primarily focused on getting individual products to market as quickly as possible, the R&D Productivity Generation will focus on the most effective and productive use of a company's total R&D capability (both internal and extended enterprise) to drive overall corporate revenue, profit and market share. During the TTM Generation from 1992 to 2000, benchmarking studies determined that the R&D Effectiveness Index (the ratio of new product profit to R&D investment needed to create new products) doubled from 0.5 to about 1.0 across all industries. Over the next ten years, McGrath forecasts that the R&D EI will double again to 2.0 driven by the processes and systems of the R&D Productivity Generation. The message is clear. Companies that lead the way in implementing the R&D Productivity Generation will gain significant competitive advantage in the market place. Through out the book, McGrath illustrates the new processes and systems using an example company, Commercial Robotics, Inc. CRI is a hypothetical company, but represents the kind of advances that are now being made at many different corporations. The example gives compelling evidence for the benefits that accrue to a company that systematically implements the new R&D Productivity Generation. For all committed to product development excellence, from senior management to individual contributors, the Next Generation Product Development is a clear view into the future and what it will take to be world class in the decade ahead.
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Summary: Buy the book and begin...
Review: Review of:
"Next Generation Product Development" by Michael E. McGrath The last paragraph of Michael E. McGrath's newest book "Next Generation Product Development" boldly states that "product development has never been for the faint of heart." And I suspect that most everyone who has ever been involved in such activities will quickly shake their head "yes" to this "truth" statement, and quietly wish there was a better way. Fortunately in his new book McGrath guides us to this better way--a way that offers "more opportunity and promise for getting better new products to market faster, WHILE DOING MORE WITH LESS." The claim is nothing short of a renaissance of product development capability. I like this book a lot. I like the multi-faceted emphasis on integration. I like the productivity theme and the need for new management processes. And I like the idea that we are only beginning the renaissance of product development capability, especially given the growth of collaborative development. I confess that I do not like the continued use of the DCM abbreviation (it stands for "development chain management.)" But I suppose I can learn to live with another "alphabet name" because it does get to the heart of the matter--how to manage a lot of INTERDEPENDENT projects, all of which are going on at the same time. Of particular importance are McGrath's thoughts involving a "networked team," new concepts which I think will be fundamental to tomorrow's successful product development. To join this renaissance, exactly where does one begin? McGrath offers three entry points: changes in resource management, changes in project management, or changes in strategy management. I suppose someone will try all three at once, but frankly just one is probably a lot for an organization to swallow. For different entry points McGrath offers us guidance, with levels of maturity assessments and/or stages of implementation. But even still, there is a lot of material to assimilate and multiple readings of many book sections will be needed to fully comprehend his recommendations. However I suggest that you don't spend an excessive amount of time studying. Organizations mainly learn by doing, and this book lays out the "learn by doing" path toward success. Past generations of development have emphasized invention, project management, or time-to-market. This next generation is a path toward productivity within the entire development enterprise. It is a path toward "better decision making, better investment in R&D, better return on that investment, more collaboration with external partners, and true empowerment of development activity." I suggest that you buy the book and begin. Nils L. Dailey
N.L. Dailey Associates
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