Innovation Management Progress Report
Varian Arditya Achmadsya
Philips is a multinational company headquartered in the Netherlands & operating in major countries worldwide. Philips operates in markets with strong competition where innovation is key to long-term survival.
A multinational consisting of a large workforce has a clear structure; so all departments can works together from the point of a new idea, all the way to selling the product to customers.
The 5 departments consisting each of 4 members and their department head, which in turn, all answer to the CEO of Philips.
Philips one of the market leaders in electronic toothbrushes will introduce its innovation in the market to further increase market share and profits.
The Department Heads came together to discuss specifics, features and additional information of the new innovation.
(this part will be fixed for the final report, the one appointed for this forgot about it, the time table will be included then as well.)
I. Product Description
The Philips Maestro, is the newest addition to the Philips Family. Growing on our vision of sense and simplicity, Philips has once again pushed the innovation frontier forward.
The Philips Maestro is the only utility u need to completely take care of your bridle bit. Eliminating the process of adding toothpaste and in turn simplifying the brushing process.
The Phillips Maestro will combine the toothbrush and toothpaste into one single “maestro “ for brushing your teeth.
Research and Development
The main responsibility of Research and Development (R&D) department is to create innovative products in order to compete with the competitors. Designing the novelty, building first prototypes and testing them are all parts of the R&D department.
To maintain its performance, the research and development department works intensively with the marketing department. First, the marketing department observes the consumer trends. This department collects all data, then makes it available for the research and development department, which finally takes action in response to this consumer trends by making a product innovation. Without proper contact with the Marketing department a key opportunity could be missed or a large amount of time could be wasted on an invention that will never take off.
II. Key Issues for Research and Development Department
In the process of developing a new product it is given that issues appear. Choices based on solid justifications will have to be made to overcome these issues. Here are some key problems faced by the research and development department, especially related to the innovation of the “Philips Maestro”.
First of all there is the dilemma of where to carry out the R&D of the innovation, close to the production of the already existing part of the product or close to the knowledge center of the company. When choosing to carry out the R&D close to the site the actual production will be carried out one must consider pro’s and con’s. In this example a bad thing would be that when choosing to be close to the production you will probably not be in an area with an open, well accessible site, but on a remote plant that is focused on production, not development. When choosing to do R&D in the knowledge center of a company, here being Holland, the best argument would be the spillover effect, this causes relevant knowledge from other institutes or departments to spillover to our R&D department. In short, you profit from other peoples wisdom around you. Considering we want to gain knowledge from the shaving department and other technical aspects of our company, this can be done easiest in Drachten or Eindhoven, both technological institutes of Philips in Holland.
After this issue that deals with location we carry on with the product itself in its totality. Do we...
Links: with Other Areas
The R&D department needs medical expertise to design the suitable toothbrush for “Philips Maestro”. This issue can be solved by cooperating with a medical expert from the healthcare department of Philips and a toothpaste manufacturer. Another problem is we need technical expertise in order to translate the medical knowledge into the real products. Therefore, we chose to enlist the help of the shaving designers to help with the development of the paste pump system, to not reinvent the wheel.
As mentioned before, the R&D department has an essential bond with the Marketing department in order to know what customers want and do not want. Also, the Marketing department will make or break the product with their advertising, this means that the information or ideas the R&D department has, should be communicated as well as possible to the public by the Marketing department.
When R&D finishes the product, they will have to hand the prototypes and the building schedules over to the Manufacturing department. Tacit knowledge will have to be transferred as well, this will have to be done by several people in the flesh. Also, the R&D people will oversee the first line of production, to ensure everything goes as planned.
The Financial department will determine how high we can fly, or how low we can go. Several critical decisions will have to be made with the financial department, mostly about the plans for the elite product, concerning how ‘elite’ it can be. The Finance department will also put a strain on the R&D department by allocating a budget, or a monetary boundary. They will have to stay within this budget, or the product could turn out to be a potential loss, or failure.
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