蔣吉泉?jiǎng)?chuàng)新管理英文

1、Analysis on Chinas Product Innovation Management JIANG Jiquan1. General introduction of the product innovation A. The proposal of the product innovation management The purpose of the product innovation and development is to cut down cost and to increase the speed. But the problem is that how to corr

2、ectly foresee the market demand and improve the product R&D. Since that the information of market demand is mostly not very clear, and it takes six to eight phases when it finally comes to the R&D staff. So the information are always mistaken step by step and the wrong information often comes. In tr

3、aditional R&D organization structure, the company also put emphasis on product rapid development strategy, but many other factors are not in line with the R&D strategy, like new product Decision-Making Mechanism, performance evaluation, staff motivation and so on. The right for new product decision

4、making is always for product planning department and other relevant senior leaders. However the R&D staff is not entitled to join in and devote their ideas. As for performance evaluation for the new product research and development, traditionally it put s more emphasis on evaluating technology risk

5、and effectiveness of product research and other aspects. But they do not pay much attention on product research and development cycle, development speed, overall input and output result, and other key factors. As for other relevant market indicator, like market share, market profit rate, customer sa

6、tisfaction degree, the technical staff do not responsible for this. If the new product sells well in the market, the company will always reward the sales staff but not technical staff. The problems as we mentioned above need to be worked out urgently in China. But we have to learn about the product

7、innovation background and its content, establish a perfect management system first, then we can solve these problems in a better way. B. Connotation of Product Innovation Management Product innovation management originates from new product management. The typical work is New Product Management, by t

8、wo American, Booz-Allen and Hamilton, in 1957. Then in 1976, a new product innovation management organization was founded, Product Development Management Association, PDMA. PDMA issued its magazine The Journal of Product Innovation Management in 1984, which marks the start of systemic research on ne

9、w product innovation management. (Xu QingRui 1994) So to sum up, there are five main aspects: new product strategy and evaluation research, new product result research, development performance research, innovation organization research and product design cost research. (Hu ShuHua, 2000)Product innov

10、ation management theory was introduced to China in the middle of 1980s and there are many research works about this. But the changes on macro background and product innovation management environment impose negative influence on traditional product innovation management and even make it impractical i

11、n the new condition. So we discuss about the product innovation management on the changed situation. This will attract the attention of the people theoretically and practically. They will get to know how important is this and upgrade and deepen the research on product innovation management. C. The c

12、urrent situation of Chinas product innovation management From macroscopic aspecta. Few innovation organizations and innovation activities: up to 2007, there were only 25% companies who owe their own R&D institutions in all of the 280, 000 large and medium-sized companies. 75% companies do not have a

13、ny professional technical workers in R&D. b. Has rich innovation material but the production innovation out-put is bad. The universities and research institutions share 1/3 research experts and fund nationally, but only counts for less than 1/5 in the patent application. In the National science and

14、technology conference, more and more private enterprises participate in the innovation projects and more of them are award-winning projects and counts for 17%. This also shows the inadequacy of macro management in product innovation. That really raises our awareness. From microscopic aspectThere are

15、 many problems in the different phases of the product innovation, and increase benefit and effectiveness of the innovation. Currently in China, there is almost every step has problems and difference, we will introduce six of them in the following:a. Innovation orientation is too low-end. The situati

16、on in China now is the enterprises prefer to improve the existing products but not develop new ones. In addition, the product innovation is too low-end. The national industrial enterprises innovation statistic show that the innovation leading company accounts for 8.1% in their own industry; while th

17、ose who are planning to surpass others in the same industry nationally is 9.0%, as for other who want to exceed those in the same industry globally accounts for 2.7%. b. Single innovation pattern: Nowadays, Chinese enterprises originate creative ideas from other companies and research institutions.

18、But compared with the foreign companies, our domestic companies are not willing to cooperate with those abroad. Most of them are still adapt the seal management innovation pattern. They concentrate on their internal resource but do not use the external knowledge and resources to cooperate with other

19、s. c. Expenditure structure imbalance: what china facing now is the innovation expenditure structure is not reasonable. They invest more on the fixed assets and spend half of the money on machinery equipment. As for intellectual property rights, brand building and corporate culture and other intangi

20、ble assets are really small. d. Innovation grade is very basic: Between the year 2004 to 2006, from the research of product innovation in large industry enterprises and from the creative point, the brand new products only accounts for 17.4% in world market and 60% in domestic market. But in the new

21、product sales volume, it accounts for 46.5%. The percentage it occupies in domestic market is 40.1%, while in the international market, there is only 13.4% for it. e. The innovation result is not satisfactory: from some extent, patent can be regarded as product innovation out-put. In licensed patent

22、, the structure of the three categories is not very reasonable. The high-end innovation paten is only a small proposition. f. Inefficient innovation benefit: Chinas product innovation success rate only 60% verses other multinational companies. The 20% success rate shows that we are not doing well in

23、 the product innovation, especially the state-owned enterprises. The percentage of the new product that successfully launched is only 5%, 20% of them are not quite good and has not reached the companys expectation. While most of them are just like a flash in the pan. 2. Product innovation management

24、 environment and its influence factor 2.1 Macro-environment for product innovation management With the fast development of technology, the cycle of new knowledge, new technology, new invention become shorter and shorter. As the competition is gradually fierce, the upgrading of products is developing

25、 in a unprecedented speed and scale. According to statistics, in America, the machinery products upgrade every twenty years; electronic products at ten years interval; aerospace products upgrade one cycle and a half every ten years. That is where the Moores law, Davidows Law and sashimi theory are c

26、ome from. a. Chinese products are low value added. In world market, the products that labeled Made in China are mostly with poor quality even they have got certain license. So Chinese enterprises only share a really small profit. b. The main reason for this are poor quality,low-technology and low va

27、lue added. Made in China just locates in the low end in the global market, c. Multi national companies pose threat: The multi national companies take advantage of their advanced technology. They adapt many methods: make much profit by developing new products; sell core technology at a high price; po

28、stpone the selling of core technology or drive the price down when the local companies try to research core technology. Then the local companies have to sell their technology at a too much low price which cannot even afford their research investment. 2.2 Micro-environment for product innovation mana

29、gement In recent years, with the great change of product innovation external environment and practical demand, Micro-environment for product innovation management also changes correspondingly. Transformation from a single object innovation to a innovation integrated. Product innovation management ob

30、jects expansion is displayed in three aspects: first, product concept has transformed from traditional tangible product to intangible product, from simple product to complicated product and there are also some integrated products. Second, turn the innovation focus from product quality to cost and pr

31、oduct function with the influence of pursuing high end products in this era of personality. Third, function innovation focus transformed from superficial layout innovation to core function innovation and service integrated with function innovation. Innovation methods transformation, from scattering

32、to systematization: in recent years, innovation methods have improved from scattered ones to more systemic new methods. Scattered methods include: associative thinking, combining thinking, designing and logic thinking, and super thinking. They make the product innovation really mysterious and hard t

33、o get. Innovation tools, transformed from traditional ones to digital tools: digital technology plays a supportive role in the innovation process. Since the middle of 1990s, network technique, information technology, computer aided technology CAT, database technology, and other digital technique hav

34、e developed so fast which makes it possible to adapt digital technique to product innovation. Thus we can mitigate risks of traditional methods by using digital technique in each step. 3. Factors that influence the product innovation management We generally believe that product innovation frequently

35、 occurs by a strong actor who knows the market and technology. For this reason, the market leader has a stronger position to make an innovative product because of its marketing and technological competence to know market needs and technology seeds. But what kind of product inhibits product innovatio

36、n. In this mature stage, all the companies recognize the research target for the existing innovative product since market needs and technology seeds are commonly shared among all firms. By analyzing the characteristics of the behavior of the companies for product change, it is demonstrated how stron

37、gly an existing product inhibits product change when a new product has a differentiated point and will create a new market. In conclusion, product innovation to create a new market by differentiation is inhibited by strongly existing products and the market knowledge that is acquired to gain or accu

38、mulate the expertise through marketing the existing product. We have shown the existence of a paradox between product strength in a market and product innovation by new technology. HYPERLINK app:ds:superficiallySuperficially, there are some certain macro factors that block the product innovation in

39、China. The most common ones are lack of appropriate talent, intellectual property protection is not qualified, and lack of new ideas and the transformation mechanism from research institutions to enterprise use is not efficient. However, the main reason is no standardized management and systematic t

40、hinking of product innovation. The following facts can justify this: A. Scientific programming: scientific programming is the key factor that influences the product innovation. In reality, product innovation is just a tool that the company fights with other competitors. If the company has not take a

41、 overall look at the risk, cost, cycle, resource of the innovation, the product innovation will either fail or stop half way. What even worse is no positive respond to when the product come into the market. This will lead to much valuable resources waste and put the product innovation in a more terr

42、ible situation. B. Effective management methods: during the product innovation process, standardized management is helpful for the smooth going of this process. Domestic companies have aware the importance of improving management methods and enhancing innovation benefit. But still lacks system manag

43、ement among research structure, technology, and project management. This makes many excellent projects cannot put in practice. There are also many defects in the process, take ambiguous responsibilities for example. Many enterprises lack of standardized procedure for product development. Even though

44、 some of them have set the procedure, there are no departments support them. For example, lacks of appropriate product innovation management procedure and the selection, experiment, investment have no clear goal. C. Human resource: domestic companies suffer from a shortage of talents who are experie

45、nced, creative and can contribute to the product innovation; the corporate culture is not supportive for innovation and the innovation potential of employee is restricted; cross-department communication is mostly just a kind of formality. The R&D department needs other department to cooperate. Thoug

46、h other enterprises have tried to organize a talent teamand succeeded. These guidelines include, for example, standardized Life Cycle Assessment procedures, a handbook for environmentally aware design, a health and safety check-list to identify potential risks, and a list of prohibited and restricte

47、d substances to ensure the companys sustainability objectives are also embedded into product development. Sustainable product development translates into business success. New advances in frequency conversion, multi-variable process control and ultra high voltage transmission technologies save energ

48、y and improve customers performance while lowering environmental impact.D. Suitable innovation indicator and evaluation standard: Many companies have trapped in the innovation indicator. The too much evaluation indicators and assessment standards are becoming the companiesburden for management, but

49、without any practical result. Some companies do not have appropriate assessment standard for the innovation result and efforts. In order to improve the satisfaction degree of customers individual demands for products and reduce the risk of the product innovation, the characteristics of customer dema

50、nds for product innovation are analyzed, and the type and content of customer demands are discussed. Then the framework of customer demands acquisition for product innovation is established. Finally, the prototype system of customer demands information acquisition and product customization for produ

51、ct innovation which takes mobile phone as the example is developed successfully.So, what urgently need for product innovation in domestic companies is to deepen the innovation research, pay much attention on innovation strategy, and make it more systematic. In addition, to reflect on how to standard

52、ize research procedure and to product innovation project. 4. Case study on product innovation managementP&G is the leading company that manufactures a wide range of HYPERLINK /wiki/Fast_moving_consumer_goodsconsumer goods. As of 2006, P&G is the seventh innovation company out of 100 elected by Busin

53、ess Week. So as to maintain their leading role, the company has to constantly strength itself in innovation aspect. So the outstanding innovation ability lies in its product innovation strategy. The supervisor of P&G cleaning and household products department Nabil Sakkab said: “Nowadays, the bigges

54、t rival of P&G is those who have creative ideas.” After the sales volume of P&G had surpassed 50 billion dollars, it still insists in self-build, self-research, self-makeinternal innovation model. It is not enough for the company to depend on its internal innovation. However, internal innovation can

55、not meet the ever changing market demand, and the fierce competition and global market trend. P&G believes that research and development should be changed to connect and develop: cooperate with the internal and external scientists and innovate together. Now, there are 40 technology enterprises in P&

56、G, they responsible for searching millions of webpage, global patent database and scientific document on internet via complicated tool. They look forward to find some information that may benefit the companys technology breakthrough through this way. In addition, the company has conducted an overtur

57、ning reform from traditional innovation model and bravely adapted external product innovation strategy. External product innovation strategy means to communicate with other companies and establish relationship, to share knowledge with partnership, permit external staff to join in the innovation proc

58、ess, to cooperate and learn from each other so as to make best use of external resources. Compare to the previous R&D pattern, the new one is called connect and development. Through this, the company can gain effective support model, reach more related technology. They have explored new Exclusive ne

59、twork and Open network based on the intranetInnovation network. P&Gs external product innovation strategy has gained much benefit since the year 2000 that it conducted its external strategy. Among the new products P&G had put into market which are achieved by external knowledge integration and adaptation, the percentage are as follows:15% in 2000, 20in 2001, 35% in 2003 and reached 45% in 2