Our research is based on a three-year study between 2001 and 2004 at Intel Corp. on the risks and drivers affecting product transitions. We conducted about 40 semi-structured interviews with managers in supply chain management, demand forecasting, sales, marketing and product development. After studying multiple historical and current product transitions at Intel, we learned that smooth transitions are difficult to achieve. The complexity of demand and supply dynamics causes tremendous uncertainty before a product launch that is not fully resolved until several quarters after it. We observed that functional teams across the organization had access to specific information (for example, about macroeconomic conditions in Asia or the availability of a particular part) that had significant bearing on the relative demand and supply of old and new products. However, the lack of a formal mechanism to aggregate and utilize such diverse information frequently caused misalignment. We saw the need for a new process to overcome this obstacle. The process we designed begins with defining a specific market objective. Subsequent steps involve identifying and measuring a set of factors across departments for each product (old and new) to assess product drivers and risks; exploring possible risks arising from interactions between products using the transition grid; and developing a transition playbook, including prevention and contingency strategies with which to manage and mitigate transition... To read the complete article, login or sign-up using the form below.
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