It’s not uncommon for manufacturers to encounter one or more of the following scenarios as part of their new product development (NPD) journey.
To avoid these setbacks, many companies are rethinking traditional product development practices and adopting a more agile mindset. Because today’s market is marked by ongoing technological advancements, ever-changing customer demands, evolving regulations, and unforeseen events like pandemics and natural disasters, manufacturers need a systematic way to respond quickly to change and deliver innovative products that give them a competitive advantage.
In this article, we explore how agile product development helps drive improved business outcomes and provide tips for successfully implementing agile practices across your organization.
BENEFITS OF AGILE PRODUCT DEVELOPMENT
Historically, organizations have been accustomed to using a linear product development process known as Waterfall. Based on a series of sequential steps, this methodology prohibits teams from proceeding to the next phase until the previous one is completed. Different individuals are assigned to specific tasks with minimal cross-functional collaboration. Moreover, product requirements are defined at the beginning of the project. This leaves little room for changes in the event of sudden market shifts.
Unlike the Waterfall approach which limits visibility and flexibility, agile product development focuses on frequent communication, rapid design iterations, and constant refinement. The goal is to design and produce products that truly resonate with customers and reflect the current market.
Key advantages of agile product development:
Organizations are then more proactive at implementing the appropriate countermeasures to mitigate risks.
Since teams are constantly testing out new requirements or fine-tuning existing ones with each iteration, they can quickly change course in the event of a new customer finding or business initiative. Because tasks are completed in short iterative cycles, the amount of rework or replanning that needs to be done is minimized.
With a collaborative foundation in place, agile teams stay aligned and focused on working toward a common goal. They perform multiple tasks in parallel and establish a steady and efficient pace to expedite the NPD cycle.
PUTTING AGILE INTO ACTION: 7 KEYS TO SUCCESS
To establish a more agile operation and help drive greater efficiencies and visibility throughout your NPD process, follow these tips:
Having a cloud-native PLM or QMS solution in place makes it easy for individuals from engineering, quality, operations, procurement, supply chain/contract manufacturing, and other key functions to work together and continually refine the product. Regular communication empowers team members to contribute new ideas that help drive innovation.
Develop a prioritized list of engineering and design tasks (i.e., product backlog) for each iteration to ensure everyone is aligned on key objectives. By linking project deliverables directly to the product record, cloud-native PLM and QMS solutions enable your teams to efficiently execute product work and deliver the next release.
Establishing partnerships with contract manufacturers (CMs), designers, and other external resources gives you access to the specialized facilities, equipment, and expertise that are needed to accelerate time to market and further differentiate your products. With secure, user-based access to a cloud-native PLM or QMS solution, external partners can quickly and easily exchange information with your internal team members and stay actively involved in the design process.
Having multiple suppliers across different geographical regions enables you to secure substitute parts when faced with shortages. In addition, choosing suppliers that are near to your production site helps you avoid logistics issues stemming from political unrest and other regional crises. By leveraging a cloud-native PLM or QMS solution, your teams have centralized access to approved supplier/vendor lists (ASLs/AVLs) and electronic component databases to efficiently manage and track parts availability and get products built on schedule.
CONCLUSION
If you are having to regularly change course in response to volatile market conditions, then agile product development is well suited for your organization. By adopting a cloud-native PLM or QMS solution, you can quickly establish an agile framework to streamline NPD and get innovative products to market faster.
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