Issue link: https://www.e-digitaleditions.com/i/59185
Since the simulation was developed, it has been administered to more than 2,000 individuals— top executives at major corporations in addition to MBA students in Europe and the U.S. innovation management. When participants discuss the approaches adopted by different groups during the simula- tion, they can perceive what impact such approaches have on any new product development. This period of analysis mimics the so-called "post-product reviews" that major companies hold after they have developed new products. Such reviews allow manufacturers to extrapo- late lessons they can apply when they develop new products. In fact, there is a whole body of emerging literature on how to use post-product reviews in R&D. One key factor that is often stressed is the importance of having a good moderator to lead the discussions and make sure all team members con- tribute their observations. In team discussions after the CityCar simulation, we also believe a good moderator is cru- cial for promoting student learning, so this role is discussed and assigned to one of the participants in each of the teams. Optimizing NPD The CityCar simulation is not complete without the teaching element, which follows the period of discussion and analysis. At this point, we present theories and best practices used in NPD, drawing much of our material from our recently pub- lished textbook, Innovation Management. We cover the fol- lowing topics: sHow to set clear project goals and use appropriate tools, including the Work Breakdown Structure. This process re - quires a manager to list all the tasks associated with a project, the relationship between them, the time it will take to com- plete them, and who will be responsible for doing them. sHow to foster communication and quickly achieve effec- tive teamwork. s How to manage risk in relatively simple ways. s How to focus on real customer needs by identifying the "voice of the customer." Students are introduced to the Kano model product for evaluating product features, which explores how specific features lead to customer satisfaction. s How to manage and improve the NPD process itself. The simulation has just given students a "live" chance to experience the challenges of new product development. These teaching sessions help them see clearly how to apply key tools, techniques, and best practices in their own companies. Tailored to the Audience Since the simulation was developed, it has been administered to more than 2,000 individuals—top executives at major cor- porations in addition to MBA students in Europe and the U.S. Executives find the simulation useful because it helps them focus on research and development while improving commu- nication between functional areas. In addition, the simulation encourages organizations to move away from a strict focus on product innovation—what is sometimes called product myopia—and take a broader view of innovation. It also emphasizes the need to constantly evolve product offerings. Depending on the needs of the audience, the emphasis of the simulation can be changed. In a typical simulation, the key learning points are employing cross-functional teamwork, identifying breakthrough customer needs, and managing risk. In other situations, we might introduce surprises, such as major changes in the market or the availability of resources. At times, corporations might want the simulation to contain a stronger focus on understanding the market or making cross-functional decisions. The simulation has been extremely successful in its current form. However, we must practice what we preach and not forget that product features need to adapt with time. Therefore, we are currently working on an improved and updated version of the simulation. We must keep in mind the lessons we teach our students: Any product brought to mar- ket must meet a budget, adhere to time constraints, and evolve to match customers' ever-changing needs. s z Keith Goffin is Professor of Innovation and New Product Development at Cranfield School of Management in the U.K. Rick Mitchell is a Visiting Professor at Cranfield who also teaches at Cambridge University. Their book Innovation Management: Strategy and Implementation Using the Pentathlon Framework was published by Palgrave in 2005. BizEd JANUARY/FEBRUARY 2006 45