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This short paper will show one special topic of modular methodology in product development based upon the article “Make Platform Innovation Drive Enterprise Growth” by Marc H. ... As the title indicates it will deal with platform innovation as one case of modularity. Therefore it is not only necessary to explain what platform innovation in product development means, but also what its impacts on companies are. ... The paper cannot make allowance for the profundity of the topic. ...
2 PLATFORM INNOVATION
Modularity as a methodology appeared in its original meaning in the environment of research and development of real goods. ... In consequence a platform is not so different to a module as expected. ...
Platform iInnovation in the sense of the definitions from above is only possible when there is a variety of products. Otherwise a platform implementation would make no sense. Of course there is one case imaginable in which it is possible to introduce platform architecture for only one product: When there is the intention to introduce later spin-offs of the first product into new or into the existing market. ...
There are two different kinds of platform innovation: the platform implementation and the further platform development. Platform implementation circumscribes the whole process of introducing a platform architecture into a company’ies product family.
The evolution of a platform, as platform development can be called, can result either from the innovation of the platform itself, or the innovation of the sub-systems and interfaces. ...
Of course the implementation of a platform carries much more interest than the platform innovation. ... Nevertheless, the platform innovation remains an issue by itself and will be introduced thereafter.
3 PLATFORM IMPLEMENTATION DECISION
There are many reasons why a company can choose to implement a platform into its product families. ...
Four different fields to a platform implementation decision can be identified. ... That means that products become so familiar that the introduction of a platform and modules is just a small step. ...
- faster time-to-market: The intention to a platform implementation is to achieve faster product development circles. ...
- simplify R&D by concentrating on components: This point corresponds to the organizational change that follows the platform implementation. ...
Market Reasons
- benchmarking: When competitors introduce an ambitious platform strategy a company can be forced to oppose this attempt by introducing its own. ...
- gaining higher market share: Likely, a company itself can decide to launch its platform strategy to gain a higher market share.
- entry into new markets: The idea of leveraging can be the triggering intention for a platform implementation. ...
Management based Reasons
- high flexibility to preference changes: It can be interesting to use the advantages of platform strategies to provide fast and flexible product development according to changes in customers preferences. ...
Four key financial issues of a platform implementation:
- Growth in revenues (mid and long term):
The growth in revenues will be created by pushing into new markets and gaining higher market shares in existing markets with new product varieties. ...
- Additional fFixed cost (sShort term):
In the short run the implementation of a platform strategy will increase the development costs in of new products and lead to in restructuring costs caused by the changes ining the structures of the products R&D. ...
Finally the following graph compares two different possible scenarios apparitional: One strategy in which a platform into for all developed products developed is implemented and another in which the product development will remain a single stage gate process.
Illustration 1: Cost development of platform implementation
4 PLATFORM IMPLEMENTATION
After the decision to implement a platform, the first in the course of the implementation is its In the fourth section the effects and implications of a platform implementation are explained.
The first step in the process of the innovation of a platform is its definition. ... 2 describes the process of the platform definition.
GENERAL GUIDELINES FOR A PLATFORM DEFINITION
4. ... ) shall make a definitional approach. ...
ð Management concepts should simplify complexity so that management can more effectively grasp new ideas and make better decisions. ... The process of finding a definition must be guided from above by giving clear tasks
Clear communication throughout the company:A Definitional Approach must be clearly communicated throughout the company
ð Utilization of platform segmentation mapsA Platform-Segmentation map serves as a communication device. ... In schemes it serves the demands to a platform definition and it will help to make the vision of a platform enhancement clear throughout the company.
The different platform possibilities are shown below the market possibilities. A company should use a platform strategy not only to serve current markets but also to address new markets. ...
In the final stage a consensus based platform definition should take tow different perspectives into account.
With the system perspective the participating units should define their own platform definition and architectures for themselves. ...
With the global perspective all these approaches should be broad together and the discussion of a final platform definition should be made. ...
A Platform-Segmentation map serves as a communication device. ... In schemes it serves the demands to a platform definition and it will help to make the vision of a platform enhancement clear throughout the company.
The different platform possibilities are shown below the market possibilities. A company should use a platform strategy not only to serve current markets but also to address new markets. ...
Illustration 2: Platform segmentation map
4.2 DEFINITION PROCESS
The following two perspectives are generally considered during the definition process:
· System Perspective: The units define their own platform architectures, how they are likely to change, and what markets they can serve.
Approximate Word count = 4597
Approximate Pages = 18.4
(250 words per page double spaced)
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