Question

How can companies adopt a holistic approach to managing new product development? Provide an example. Also needs to be one page long and have two references.

Answer 1

Solution –

Product development strategy over the years has evolved from being that of something planned on just one or two parameters to be now concentrated on all aspects. All companies are now looking at product development on the following parameters –

1. Product performance, features and costs
2. Product sustainability – carbon footprint
3. Product Life - cycle
4. Product Brand Value

The companies can inculcate the holistic development strategy for their products in the following way –

1. Developing the products in cross – functional teams with all departments. All departments have a say in the product development.
2. Having a visibility on the design and life - cycle of the product. Ensuring that design is such that it delivers a value throughout the life - cycle of the product.
3. Aligning the research and development department with the finance and marketing department for producing cost effective and brand aligned products. This ensures that products are not developed in silos.
4. The other aspect that product development strategy does is with concentration on sustainable design which reduces carbon footprints of the product. The designing of the product ensures that products are sustainable for the society and the environment.

The example of holistic development of the product is Tesla which comes with solar products in line with its brand and cost structures. This allows for customers to see more value in the product and many parameters are taken care of while producing a product at Tesla which truly gives its product development a holistic approach. Tesla’s integration strategy and the promotion strategy highlights the way the products development is not just a function of one department alone but all the departments have their control on the product development

The website of Tesla and their department integration strategy mentioned on their site highlight their holistic strategy of product development.