JOURNAL ARTICLE REVIEW 5
JOURNAL ARTICLE REVIEW 5
Keshia Henry
Liberty University- BUSI 613
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JOURNAL ARTICLE REVIEW 5
Putting It Together: How to Succeed in Distributed Product Development
Purpose
The single most important issue is how to manage the distributed product development
process and the success of it.
Application of DPD
Distributed product development lies between the median of outsourcing and offshoring.
The successful factors of distributed product development are still technically an enigmatic and
undetermined entity. Use of the distributed practices have increased due to the spread of more
organizations using outsourcing and offshoring to remain competitive within their industry and
market. Organizations especially those that operate within knowledge intensive industries have
turned to distributed work arrangements to facilitate information exchange and provide
competitive advantage in terms of cost and quicker delivery of the solutions (Lano & Singh,
2014). Information and communication technologies also contribute to the success of the
distribution process development by providing various ecommerce and face-to-face conditions.
Within the distribution progression the work load has to be spread evenly and fairly
throughout the organization. This type of effort requires the manages within the organization to
observe and evaluate which segment of the distribution process development fits each
department. Project teams can be developed and they can provide a more detailed evaluation of
the specific activities that need to be completed to ensure the success of DPD. The strategic
analysis of the boundaries that are created which, are typically delegated to the specific areas
within the organization are then segregated into activities. Depending on the variables
surrounding the activities it will dictate whether combining them or leaving them separate will be
beneficial. Activities that are highly interdependent, or coupled combining them within a single
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organization can simplify trade-offs, ease contingency planning, eliminate the overhead
associated with managing boundaries, and if the output quality is upstream is important but
difficult to measure (Amaral, Anderson & Parker, 2011). Included in the strategic planning of the
distributed process development is whether to insource or outsource of the activities that have
been identified as necessary by the organization. Weighing the benefits, advantages, and
potential opportunities that will arise from the project team analysis of the defined boundaries
and activities will determine the next steps in the DPD process.
Background of the Issue
Most of the 20th century, both the practice and theory of technological innovation
emphasized controlling innovations within an organization (Bogers & West, 2012). New product
development is a timeless process that had been countlessly reinvented. Forecasting resource
requirements for new product development projects is essential for both strategic and tactical
planning (Duffy, Hird, Mendibil & Whitfield, 2015). The internal and external factors influence
the overall product development process. Each organization depending on the product they
produce is adapted to fit the organizational environment and consumers. Organizations ultimate
goal is to remain vigilant and serve either their investors or consumers to satisfaction.
During an organizations strategic planning of the distribution process development their
two challenges that have to be addressed which are:
oWho does what should we insource or outsource?
oWhere should we do it, onshore or offshore? (Amaral et al., 2011)
Boundaries are the places where different organizations that must work together are separated by
being in different companies, industries, geographic locations, time zones or business cultures
(Amaral et al., 2011). Within these boundaries the activities that are associated with DPD that
need to be addressed and completed to continue with the process. Coordination within the
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boundaries is the typical area of focus to find common ground to make effective and important
decisions. Within the scope of these effective and important decisions are insourcing and
outsourcing. Insourcing and outsourcing usually occurs when the decision are made to reverse
past make or buy decisions (Young, 2014 p.280). When organizations factor in price, supplier
situations, switching costs, specific capabilities not available internally the tend to turn more
towards outsourcing. Delivering efficiencies to clients without sacrificing effectiveness becomes
more competitive, choosing appropriate outsourcing arrangements is key (Worley, 2012).
Onshoring or offshoring is another vital decision that has to made about the organizations
activities from a strategic position. Onshoring is the most logical decision because there are
communication and travel costs that are reduced and the employee turnover minimization.
Offshoring and outsourcing are one in the same because they both benefit organizations by using
external resources. The factors the drive offshoring is cost reduction, an increase qualified
personnel, and easier access to global markets.
Managerial Implications
Organizations disperse the responsibility to managers for them to properly assign the
tasks to each operative. Managers are compelled during the distribution process development
compels to distribute the work across the organization. Managers have to implement the strategic
and tactical plans of new product development activities. Managers along with the project teams
have to define the boundaries before activities can be outlined.
When organizations start DPD projects, we counsel them to focus on the potential
boundary areas. There are, in particular, three interrelated issues that implementation
managers must address:
1. Combining versus separating activities
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2. Insourcing versus outsourcing and
3. Onshoring versus offshoring (Amaral et al., 2011).
Organizations must develop and implement these three elements after they are addressed by the
managers. These main three elements are the key factors in successful implementation of
distributed process development. Contemplating the offshoring and outsourcing option will need
considerable deliberation because it often requires organizations to switch focus to become more
capital driven.
Organizations that choose outsourcing shall also take into account that mismatch between
the size of the offshore contract relative to the vendor may have a negative effect on a
relationship. To prevent continuous investments into contracts that are destined to fail,
companies should look for signs of escalating commitments and terminate relationships
that cannot be corrected (Barney, Hanssen, Moe & Smite, 2013).
Managers and the project team members need to evaluate and insert predictable factors of these
three issues in order to better handle the outcomes.
Summary
Managing successful implementation of disturbed process development of new
products has to be dealt with in a strategic manner. Successful management of the distributed
process development includes analysis of the ecosystem, proper planning of boundaries, and
foster an organizational environment with readiness to adapt. When organizations have a huge
role and diagram of DPD to implement the distributed innovation is extremely important.
Organizations need to gain the precise perspectives on the sources, motivation, and value
appropriation of innovation and the distributed process development and thereby provide a
framework for the strategic management of distributed innovation (Bogers & West, 2012).
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Overall managing any type of strategic process will require thoughtful analysis and decision
making that will hopefully lead to progressive and efficient results.
Reference
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