Customer Reviews

Next Generation Product Development : How to Increase Productivity, Cut Costs, and Reduce Cycle Times

5 star:		(2)
4 star:		(2)
3 star:		(0)
2 star:		(2)
1 star:		(0)

 

 

Review of:
"Next Generation Product Development" by Michael E. McGrath

The last paragraph of Michael E. McGrath's newest book "Next Generation Product Development" boldly states that "product development has never been for the faint of heart." And I suspect that most everyone who has ever been involved in such activities will quickly shake their head "yes" to this "truth" statement, and quietly wish there was a better way. Fortunately in his new book McGrath guides us to this better way--a way that offers "more opportunity and promise for getting better new products to market faster, WHILE DOING MORE WITH LESS." The claim is nothing short of a renaissance of product development capability.

I like this book a lot. I like the multi-faceted emphasis on integration. I like the productivity theme and the need for new management processes. And I like the idea that we are only beginning the renaissance of product development capability, especially given the growth of collaborative development.

I confess that I do not like the continued use of the DCM abbreviation (it stands for "development chain management.)" But I suppose I can learn to live with another "alphabet name" because it does get to the heart of the matter--how to manage a lot of INTERDEPENDENT projects, all of which are going on at the same time. Of particular importance are McGrath's thoughts involving a "networked team," new concepts which I think will be fundamental to tomorrow's successful product development.

To join this renaissance, exactly where does one begin? McGrath offers three entry points: changes in resource management, changes in project management, or changes in strategy management. I suppose someone will try all three at once, but frankly just one is probably a lot for an organization to swallow. For different entry points McGrath offers us guidance, with levels of maturity assessments and/or stages of implementation. But even still, there is a lot of material to assimilate and multiple readings of many book sections will be needed to fully comprehend his recommendations.

However I suggest that you don't spend an excessive amount of time studying. Organizations mainly learn by doing, and this book lays out the "learn by doing" path toward success. Past generations of development have emphasized invention, project management, or time-to-market. This next generation is a path toward productivity within the entire development enterprise. It is a path toward "better decision making, better investment in R&D, better return on that investment, more collaboration with external partners, and true empowerment of development activity."

I suggest that you buy the book and begin.

Nils L. Dailey
N.L. Dailey Associates

As an IM professional in R&D system solution, I'm amazed how this book is so close to real life R&D management situation. I liked MacGrath's summary of the history and the comprehensive finacial management part. Most of the suggestions in the book have been already put into practices for years. Upfront? Yes. Next Generation? No. This is more of a project management book for R&D, no real coverage of product life cycle management(PLM) and its integration with project/program and resource management. Well, this disconnection reflects the current industrial situation anyway. However, I expect him to elaborate it more since this is a "next-generation" book.

It brought to my attention that MacGrath is actually running a software business in this area. Maybe it is the reason why he does not disclose any real business cases but using a hypothetical company - a major pit fall of this book. Inevitably he is hiding some of the real details which is preventing himself to convince the readers. Yet he want to sell his concept and you will have to find out the nitty-gritties maybe only by evaluating or purchasing his nice to have software products.

Michael McGrath has done it again. He has articulated a clear and compelling description of the next major generation in product development - the R&D Productivity Generation. The new generation builds on the major accomplishments of the last generation, which McGrath calls the Time-to-Market Generation. Whereas the TTM Generation primarily focused on getting individual products to market as quickly as possible, the R&D Productivity Generation will focus on the most effective and productive use of a company's total R&D capability (both internal and extended enterprise) to drive overall corporate revenue, profit and market share.

During the TTM Generation from 1992 to 2000, benchmarking studies determined that the R&D Effectiveness Index (the ratio of new product profit to R&D investment needed to create new products) doubled from 0.5 to about 1.0 across all industries. Over the next ten years, McGrath forecasts that the R&D EI will double again to 2.0 driven by the processes and systems of the R&D Productivity Generation. The message is clear. Companies that lead the way in implementing the R&D Productivity Generation will gain significant competitive advantage in the market place.

Through out the book, McGrath illustrates the new processes and systems using an example company, Commercial Robotics, Inc. CRI is a hypothetical company, but represents the kind of advances that are now being made at many different corporations. The example gives compelling evidence for the benefits that accrue to a company that systematically implements the new R&D Productivity Generation.

For all committed to product development excellence, from senior management to individual contributors, the Next Generation Product Development is a clear view into the future and what it will take to be world class in the decade ahead.

The author, Mr. McGrath, has served as a member of the board of directors of i2 Technologies, since August 2004 and as its chief executive officer and president from February 2005 through July 2007. Before, he was active as a consultant to technology-based companies, and had co-founded IDe, a software development company.

The book is basically focussed on the description of what McGrath calls a "DCM" (development chain management) system, which would be the next-generation of product development management tools. While the content is very close to real problems in R&D, and the problems and solutions described feel very actual and real, the book as a whole leaves me very unsatisfied.

Why?

When McGrath proposes ways of addressing problems, he remains quite high-level on how this will look in practice or exactly how the "DCM" system would work in detail.

There is not a single real life example in the book. To show the possible application, a fictive company is used as an example. It got to the point of being embarassing when it is described how this fictive company made great improvements (in percentage with numbers) using this fictive DCM system.

The book really focusses on how some analytical numbers can be shared across stages of development and different teams. This is a necessary but incomplete base for "next generation" product development. Data and numbers can provide insight and guidance (and are undeniably a needed step), but the human dynamics should be as important. If you have some experience, you know e.g. that some resource allocations cannot be decided upon through spreadsheet analysis. People are not interchangeable Lego blocks.

While reading through this book, I continuously had the strong impression that I was reading a whitepaper or requirement document from a software company. As I often do, I run a quick background check on the author, and found that in before starting at i2, Mr. McGrath had co-founded IDe. IDe's business was to develop integrated solutions for Development Chain Management. (I couldn't find traces of this company's existence any more so I guess it doesn't exist any more). Was this book the blueprint for that company? Maybe, possibly.

Any case, I have spent 39,95 USD and have read through 360 pages and feel both of these are too high compared to the value I got out of the book in terms of practical use, innovative ideas and fun.

After reading the first 150 pages of this book, I feel this book and this "kind of thinking" is really the reason for trouble in companies. The books is completely ignoring the human or team sides or product development and that way tries to sub-optimize organizations. The most interesting is that is uses an example of sofware development, a area where the difference between individual (resources) have been recorded as huge and close teamwork on a teak which works together is recommended. (e.g. Read: "Dynamics of software development, Jim McCarty). Having a resource manager decide which resources area added to which product, and then ensure that all the time people work on the most important project, sounds all like a good idea but is also the descruction of the thing so important in product development.

Some other things interesting, in the beginning the author uses the success of MRP systems as an example of the success of automated planning systems. Did the author read anything about lean production in companies and the effect on MRP systems? It seems not.

The author also all the time uses very strong language and does as if much statement he makes are obvious. The calculation made in the book are based on speculation.

The book also does not mention any case study of where such a system is actually implemented. The book seems to be more fiction about some good ideas of the author.

Recommend: Buy this book, read it and remember it! But please not try to implement it in any company.

A must read for anyone involved in product development.
A clear proponent of modern solutions like Arena Solutions OnDemand Product Lifecycle Management.