Driving Efficiency in Product Development

By February 2, 2018Strategy

Client

Leading $4.5 Billion consumer good producer.

Business case

CEO and Executive team needed to reevaluate extended product development cycle in order to stay ahead of competition in introducing new products.

Scope

  • Analyze client’s product development organization from people, process, technology and governing policy point of view.
  • Review path to market process to determine organizational roadblocks and inefficiencies.
  • Determine required technology to support drive efficiencies in product development organization to improve time to market new products.
  • Propose new operating model to cut down product development time by minimum 40%.

Background

The client was losing market share due to their inability to introduce new products in the market faster than their competition. Typically, product introduction was 2.5 to 3 years while the competition was 12 to 18 months.

Solution

We were able to:

  • Analyze product development cycle.
  • Suggest changes that will optimize the process and reduce time to market new products.
  • Recommend technological investments that would drive overall efficiencies in the product development organization.

Approach

  • End-customer centric value chain analysis – analyzed current state of product development organization. This was done by identifying inefficiencies and path to market using Strataid’s proprietary customer-driven value chain analysis tool.
  • New operating model – Suggested key people, process and policy changes to cut product development and launch time by 50%.
  • Modular product strategy – Developed plan to transition client’s product line from end-to-end customization-centric to modular product strategy.
  • Technology transformation – Developed plan to transition to new product development technology tools that would drive communication efficiencies, single-source of truth, and would eliminate redundancies in the process.

Results

Our work:

  • Cut down time to market by 50%.
  • Total 10% FTE elimination which funded new technology investments.
  • 25% reduction in product components through product line platform strategies.

Leave a Reply