Advertisement

The Magazine

International Business, Management of Technology and Innovation, MIT Authors

The Practice of Global Product Development

By Steven D. Eppinger and Anil R. Chitkara

November 21, 2009

Many manufacturers have established product development activities in different countries around the world. Yet their senior managers often struggle to tie those decentralized organizations into a cohesive, unified operation that can efficiently drive growth and innovation. New empirical frameworks may help unlock practices with which managers can deploy well-coordinated global product development strategies.

This article is free to subscribers. Subscribe today.

Editor’s Note: MIT Sloan Management Review first published “The New Practice of Global Product Development” in our Summer 2006 edition. In the article, authors Steven D. Eppinger and Anil R. Chitkara examined state-of-the-art and emerging best practices in global product development (GPD). GPD continues to evolve, and in 2009, we asked Eppinger, the General Motors Leaders for Manufacturing Professor of Management Science at the MIT Sloan School of Management, to update the article with new insights about GPD. His additions are published here alongside the 2006 article, annotating the original text.

Reveal Eppinger’s commentary by clicking on the highlighted passages.

Globalization pressures have begun to have a major impact on the practice of product development across a wide range of industries. A new paradigm has emerged whereby companies are utilizing skilled engineering teams dispersed around the world to develop products in a collaborative manner. Best practice in product development (PD) is now rapidly migrating from local, cross-functional collaboration to a mode of global collaboration. Global product development (GPD) therefore represents a major transformation for business, and it applies to a broad range of industries.

The objective of this article is to present frameworks that can help companies address various strategic and tactical issues when considering adoption of GPD. The concepts have been developed mainly through detailed discussions with managers at more than 100 companies in 15 countries in North America, Europe and Asia. Some data are from a recently completed study on GPD that product development company PTC has conducted with BusinessWeek Research Services, interviewing and surveying more than 1,100 engineering managers worldwide.

In our discussions with managers, many have found the ideas, frameworks and perspectives presented in this article to be helpful in addressing the transformation to global product development and its implementation today. There is no blueprint, but senior managers can more effectively plan for global product


More from MIT Authors »

To reproduce or transmit one or more MIT Sloan Management Review articles by electronic or mechanical means (including photocopying or archiving in any information storage or retrieval system) requires written permission. To request permission, visit our online store (www.pubservice.com/msstore), call or e-mail:
Toll-free: 800-876-5764 (US and Canada)
International: 818-487-2064
E-mail: MITSMR@pubservice.com

This article was printed from MIT Sloan Management Review online: http://sloanreview.mit.edu/the-magazine/2009-summer/50437/the-practice-of-global-product-development/

Add a comment

FROM THE MAGAZINE

Spring 2012: Cover Story
Innovation

Achieving Successful Strategic Transformation

How companies successfully make major changes — without sacrificing financial performance.