Page 297 - Operations Strategy

CHAPTER 8 • PRoduCT And sERviCE dEvEloPmEnT And oRgAnisATion
Chapter
8 Product and service development and

organisation

introduction
The products and services produced by an operation are its ‘public face’ in so much as
they are what markets judge a company on: good products and services equals good
company. Because of this, it has always made sense to devote time and effort to how
new products and services are developed. Moreover, it has long been accepted that there
is a connection between how companies go about developing products and services
and how successful those products and services are in the marketplace. Now two things
have changed: first, both the speed and scale of market and technology changes have
increased; second, there is a greater understanding of how closely connected are the
processes by which products and services are developed and the outcomes from those
processes. Given that product and service development is a core issue for operations
strategy, it is appropriate that it is treated here (see Figure 8.1). And, even though it is a
subject in its own right, it can still benefit from an operations strategy analysis.

Figure 8.1 issues covered in this chapter

Resource usage

Issues include:
Relating product and process
Quality Managing product/service
development
Performance objectives Dependability Meeting market requirements for Market competitiveness
Speed
development as a process
new products and services
Flexibility
development resources
Cost Managing product/service
Development and organisation
Capacity Supply Process (product and service development
network technology
and organisation)
Decision areas

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