This week we’re going to revisit posts from ten years ago and demonstrate that, to date, the more things change in Procurement, the more they have, unfortunately, stayed essentially the same.
We’re starting with a piece we published a decade ago on the benefits and risks of global product development. In this piece we noted that while the risks of global product development are many, so are the benefits as outsourcing can often open the organization to talent pools it wouldn’t have otherwise.
However, as we pointed out, the benefits won’t materialize if the risks aren’t mitigated, as any risk can destroy an entire sourcing and new product development plan. And the strategies for mitigating risk, as identified in the original article, are as relevant today as they were then.
NPD (New Product Development) still requires product road-mapping and portfolio management, iterative design and validation, product architecture and system design across the value chain, knowledge management so nothing gets lost, IP management, talent management, and, most importantly the right Product Lifecycle Management platform.
Without an integrated platform to track what is coming from where in the supply chain, who is doing what, what events are occurring, which of those impacts could cause a disruption, and what the potential (cost) impact could be, the organization is literally flying blind.
However, we still don’t have one platform for NPD that also manages end-to-end supply chain risk. And this is risky business. We have great platforms for NPD and product costing (including, but not limited to, Apriori, I-Cubed, and Supply Dynamics) and great platforms for risk identification and management (Achilles, Resilinc, and Risk Methods) — but not an integrated risk-centric new product design platform.
The missing strategy is still missing. Will it finally materialize ten years from now?