In the scope of this paper, it is essential to refer to the fact that there are core eight processes within the supply chain management, which have been identified by the Global Supply Chain Forum (Cooper 1998). They are the following: customer service management, order fulfillment, customer relationship management, demand management, procurement, manufacturing flow management, product development and commercialization and returns.
Current paper focuses on the product development and commercialization. This process would be discussed in terms of the following two aspects: strategic process and operational process.
It is essential to refer to the fact that the process of product development and commercialization within the supply chain management develops the structure for development and bringing the new products to the market jointly with suppliers and customers. Effective practical implementation of these processes provides the management of the business entity with the set of options – such as coordination of the new products’ efficient flow within the supply chain and assisting the members of the supply chain in terms of manufacturing’ ramp-up, marketing, logistics and with the set of marketing and other related activities, which are integrated by general target- supporting the product’ commercialization.
Current paper outlines the core aspects of the product development and commercialization and shows the entire set of the aspects, which may be furthermore used for the practical implementation of this process. For reaching this purpose, the product would be discussed in terms of its sub-processes and activities, which are associated with it. Additional attention would be paid to the way the product development and commercialization interacts with the set of other business functions, which take their place in the entire life cycle of the product and in the other processes within the supply chain in particular.
It is essential to refer to the fact that scholars consider the process of the product development and commercialization as the critical aspect for the continuing success of the business entity (Cooper 1998). It is obvious that the quick product development and its prompt and effective getting to the marketplace is the core component of corporate success. Consequently, it is possible to state a fact that the critical purpose of this process is time to market (Schilling and Charles 1998).
The following processes are included into supply chain management: customers’ and suppliers’ integration into the process of product development for further time to market reducing (Karkkainen, Piippo, & Tuominen 2001). While taking into account the fact that with the rapid technological development has caused the trend of shortening the life cycles for majority of products, it is essential to develop new products and to launch them successfully to the market in order to win the competition and to remain competitive for the durable timeframe (Hutt & Graham 2000).
Strategic Process of the Product Development and Commercialization
The first strategic portion, which takes its place in the product development and commercialization is the sourcing, marketing and manufacturing strategies’ reviewing for further determining of the ways, these plans may contribute to the development of the product. The customers’ needs assessment is also included into the marketing strategy.
The next step is the idea generation and the screening processes’ development by the process team. The following processes are generally included to this stage: sources for ideas’ determining; taking into consideration the set of the incentives for further development of new products for the particular business entity and carrying out the analysis of the suppliers and customers of this organization. In addition, the core processes for the formalized customer feedback programs’ development take their place at this stage of the product development and commercialization. As a result, the guidelines for strategic fit are established at this stage.
It is essential to put an emphasis on the fact that at this stage of the product development and commercialization, the management of the business entity faces with the set of the processes of the customer relationship management for further providing of the framework, which would be applied for determining the way in which the new product would impact customers, and for assessing the way and the level in which this product would be accepted by the market.
Afterwards, the set of the guidelines is established by the process team for the members of the cross-functional team of the product development. At this stage, it is essential to involve people, who are employed in different departments of the organization for effective evaluation of the way in which the product may be accepted by the customers. In addition, the suppliers’ involvement into the process of product development would enable the particular business entity to conduct the commercialization process successfully.
At this process, it is essential to determine the acceptable extent of involvement from both key suppliers and customers. In accordance with the empirical studies, which have been conducted by different scholars, it is possible to state a fact that there is an option for the firms from the alliances for complementing their existing internal knowledge and for assisting them in terms of learning about the new technologies and markets as well as for reducing the overall risk, which is implied by the process of product development (McDermott 1999).
At this level of the process development, the team evaluates the relative strong and weak points of the product development and also determines the roles of personnel, which should be furthermore involved into the development and commercialization process of a particular product. The constraints are examined by the team for determining the set of resources, which may be utilized by the firm on the specific projects, related to the new product.
The fourth step of the product development and commercialization process is expanding the product rollout issues and constraints. The pinch points are identified by the team, which may be furthermore hamper both the process of product development and its commercialization. The set of the activities, which take their place within this sub-process include the promotion and market planning, inventory deployment planning, sales force training and, finally, the transportation planning. At this stage of the product development, it is essential to involve the representatives of different departments of a particular business entity, in order to avoid the poor rollouts of the product. More than that, the input is obtained by the team from the order fulfillment team for evaluation of the way the network flow.
Afterwards, the new product project guidelines are established by the team. These guidelines include the following information: profitability and time-to-market expectations’ determining; drain on human resources’ estimating, which are resulted from the new product projects. The next stage implies the guidelines for examination of the potential new products strategic fit and for making the purchasing decision development (Stock & Lambert 2001).
The last step of the product development and commercialization is development of the framework of metrics. The following aspects may be included into the typical process metrics: time to profitability, time to market and first year sales. In order to assure the fact that these metrics do not conflict with the firm’s objectives of with other metrics, they should be communicated to the customer relationship management team (Lambert, Cooper, & Pagh 1998).
Operational Process of Product Development and Commercialization
It is essential to refer to the fact that the first stage of the operational process, in this case, implies defining the new products and assessing the fit (Monczka & Morgan 1997).
In the process of applying the set of the means, defined at the strategic level, the process of generating the ideas of the new product and their screening take their places. In the process of initial seeing, the market assessment is completed by the team while conducting the set of consultations with the key suppliers and customers. Afterwards, the fit with existing channels, logistics and manufacturing environments is determined. In this process, the interfaces with the supplier relationship management and customer relationship management take their places. Functional silos of the particular organization are also involved into this process.
It is essential to put an emphasis on the fact that in order to compress time to market, the core suppliers and customers should be involved into the team as early as it is possible. Therefore, the interface with customer relationship management and supplier relationship management are included into the sub-process.
There is an option for the focal company to participate in the process of a key customer product development. For instance, the salad dressings supplier may participate in the restaurant chain’ product development process. In addition, there is a possibility of active involvement of the process team of the customer relationship management in such cases. The core responsibility for the product development project’ formalizing is put on the team.
The time-to-market expectations are included into this step alongside with the identification of the profitability scenarios for the likely product and with further examination of the product’ strategic fit within the organization and its key markets. The team, responsible for the product development, manages the designing and building prototypes of the product ideas’ processes (Hammer 2001).
The next sub-process implies determining of the marketing and distribution channels for the newly-developed product. It is possible to define such channels with customer relationship management input and by the order fulfillment. Afterwards, the market plan is developed by the team or the product and the initial inventory planning is conducted.
Furthermore, actual product rollout is conducted. It is possible to state a fact that there is a significant number of products, which do not succeed as a result of the product rollout’ poor management. Accordingly, at this stage, the team should source the materials, set the inventory positions and afterwards, manufacture the product. More than that, there is a need of the market plan practical implementation, sales force’ training in terms of effective approach towards the new product offering, and executing the promotion plan.
The process of inventory deployment applies the methodologies, which have been initially developed in demand management. It is essential to involve the other process teams into the process of product rollout planning and executing.
The final step implies the process performance measuring by the team through the metrics, which have been developed at the strategic level. Afterwards, the results of this measuring are communicated to the supplier relationship management and customer relationship management teams.
This article is written by Eric Walker who is an editor at marketing plan writing service https://essayelites.com/marketing-plan-assistance/
