A new product concept formulation [framework] for the Hong Kong/Pearl River Delta consumable electronics and electrical products industry
香港/珠三角消費類電子及電器產品行業的新產品概念制訂架構
Student thesis: Doctoral Thesis
Author(s)
Detail(s)
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Award date | 3 Oct 2012 |
Link(s)
Permanent Link | https://scholars.cityu.edu.hk/en/theses/theses(70f5f63e-1acb-4ef3-8d26-7cc3c9997e08).html |
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Other link(s) | Links |
Abstract
The current business environment in mainland China presents difficult challenges,
particularly for the electronic and electrical (EE) consumable product enterprises
located in the Hong Kong and Pearl River Delta (HK/PRD) region. Many EE
consumable product enterprises located in the HK/PRD region are facing difficulties
due to the increase on product complexity, ever-changing safety standards and
environment regulations. Furthermore, the enforcement of labour contract law, the
appreciation of the Renminbi, adjustments in processing trade policy etc., are all factors
that create further business difficulties. In such a critical environment, the EE
consumable product enterprises located in the HK/PRD region need to find ways to
maintain business.
The HK government and many industrial organisations suggested, the enterprises
should transform their business operations from Original Equipment Manufacturing
(OEM) to Original Design Manufacturing (ODM). It is because ODM is associated
with the development of higher value-added products. The suggestion arises from the
effects of keen local competition, especially the impact of product imitation and rapid
changes to product safety standards and environmental regulations for EE consumable
products. Switching business operations to ODM products can benefit enterprises by
helping them to remain internationally competitive and ensure their survival.
Although changing business operations is suggested as a means of survival, few
HK/PRD EE enterprises switched to ODM production. The top management of most
HK/PRD EE enterprises state that changing their style of operation is difficult. Some
of them argue that they have no experience in developing new products, and some point
out the lack of operational guidelines for execution and the high failure rate in NPD.
To reduce the failure rate and enhance the efficiency of NPD, most of the top
management on EE industry enterprises indicate the needs of a systematic NPD process.
Many NPD process models have been developed. These models begin with idea
generation and end with production and market launch. Most of them are designed
with a stage-gate structure, in which the gates represent the decision-making points.
Thus, the NPD process models provide a generic structure for enterprises only. As
stated by the industry's top management, the models do not include operational
guidelines for implementing the NPD process. Based on the necessity for a systematic
NPD process, especially the early development process (from idea generation to
preliminary assessment), this report develops a new product concept formulation framework and an NPD implementation roadmap, based on a two-phase NPD model.
The proposed two-phase NPD model simply divides the NPD process model into
two phases: the concept formulation phase and the product development phase. There
are gates throughout the proposed model; however, a consolidation gate is specifically
indicated between the two phases due to its importance on NPD decision-making.
Based on the above concept, a new product concept formulation framework is
developed. The new product concept formulation framework outlines a systematic
process for the first phase (concept formulation phase) of the proposed two-phase NPD
model. The framework specifies the steps in the NPD process and proposes a set of
NPD tools required for generating new ideas. The framework and the proposed NPD
tools enhance the efficiency of the NPD process by specifying a set of implementation
guidelines.
A roadmap for implementing the NPD process is required for enterprises that have
no experience of NPD. The roadmap outlines the steps for implementing the NPD
process, which starts with enhancing the awareness of NPD in the company. This is
followed by the preparation and planning stage. In this stage, responsible parties -
such as the top management, the NPD steering committee and the functional
department - prepare the task for implementation and plan its execution. After the
preparation and planning work, operational staffs undertake the tasks in the new product
concept formulation framework. When the new product concept formulation
framework operation is completed, the NPD steering committee reviews and, if
necessary, modifies the NPD process and the team structure.
The new product concept formulation framework, NPD implementation roadmap,
and the proposed NPD tools were developed and verified in a HK/PRD EE enterprise,
Techworld Industries Limited. The company was selected for implementation because
it wished to enhance its NPD process. A tailor-made, 21-step implementation roadmap
was developed for Techworld Industries Limited.
The NPD implementation roadmap has been executed in Techworld for 2 years.
Following the implementation, a questionnaire was distributed and the results are
summarised below. The interviewees agreed that the roadmap enhanced their
efficiency and effectiveness while working on the NPD process, because the
implementation roadmap and proposed NPD tools provided guidelines for execution.
An action plan was determined to guide the operational staff and enhance efficiency.
The proposed NPD tools are simple, thus allowing the NPD team to complete the
process of new product concept development. It allows top management to make decisions easily, as all of the necessary information is included. Finally, the success
rate in transforming new product ideas to the product development phase was enhanced.
The number of ideas that were selected for further development increased from one to
three, and one of these product ideas has been successfully launched on the market.
The results suggested the new product concept formulation framework facilitated the
execution of NPD in Techworld and enhanced the success rate of transforming new
product ideas into production or market launch. With the implementation of this new
product concept formulation framework, the company has benefited from the success of
a new product and enhanced the company's competence.
In this research, several significant are made: (1) early decision making enhance
the NPD efficiency and successful rate, (2) new product formulation framework and
implementation roadmap for HK/PRD EE industry is developed, and (3) four dominant
factors for HK/PRD EE industry are determined.
To conclude, a systematic NPD framework and implementation roadmap are established
for the HK/PRD EE industry. Such establishment helps the HK/PRD EE enterprises in
executing their business strategy to ODM production. A set of NPD tools are
established. The NPD tools are comparatively simple and user-friendly. The NPD
tools consist of sufficient information for top management's decision making.
- Management, Household electronics industry, Hong Kong, Electric household appliances industry, Pearl River Delta, China, New products