Executive Summary
Design and Development of Services and Products is a branch of business that uses principles of project management to ensure organizational processes run smoothly (Wheelen & Hunger 2002, 18). It is the operational managers who are always faced with the challenging task of ensuring that their company’s operations run smoothly.
The world’s most respected organizations have one thing in common, that is, a culture of creativity, inventiveness and continuous product development. Multinational corporations like Apple have built formal structures that are charged with the responsibility of taking care of research, design and development of world-class service processes and products.
This characteristic is what enables these companies to be able to adapt to the changing environment and stay ahead of their time (Tovstiga 2010, 56).
The main purpose that organizations get involved in the process of designing and developing services and products is to ensure that their businesses processes stay ahead of time and that they gain competitive advantage in the current competitive business field (Lancaster & Withey 2006, 78).
Introduction
Consumers are highly unpredictable and new market needs arise day-in-day-out making it necessary for business managers to work in collaboration with other functional areas to come up with appropriate programs and strategies that will enable their organizations to clearly understand and interpret the needs, wants and desires of the market and embark on a relevant design and development process (Tovstiga 2010, 68).
Apple Inc., for example has been able to lead in innovation since it developed the Mac OS back in 1984 and their current efforts have led to revolutionary products such as the iPad and iPhone. This development has given the company a lot of competitive advantage in the industry.
Design management usually involves a continuous ongoing process that requires business managers to make critical decisions that are in harmony with business strategies. The key characteristic of a good R&D department is that a company will end up having an innovative and creative culture that is healthy for the organization (Kourdi 2009, 91-100).
Operational managers whose part of their duties is to ensure that research development efforts are not focused only on products and services but also on the necessary business process that are capable of supporting smooth delivery of these services and products.
Operations management is a discipline that allows managers to accurately, design and redesign business operations whenever need arises in order to come up with the highest quality of goods and/or services in the most efficient and reliable way (Boone 2010, 17).
A good operations management structure enables organizational managers to utilize research and design systems to meet customer requirements. Operational managers often use various methods that allow them to create large and well detailed database that store data collected from consumers and the market, enabling them to effectively participate in the research and development process in their organization.
Information is the key to success, and once development managers know what exactly the market is craving for, it becomes easier to respond and integrate their needs into the product or service development more effectively.
Literature Review
The design and development process is usually done with the aim of attaining quality, speed, dependability, flexibility and cost advantages for the organization so that a degree of competitive advantage can also be attained within the organization (Tovstiga 2010, 71).
Operations management practices usually require that businesses develop products and services and at the same time develop the necessary business processes to support them. One thing that organizational managers ensure while developing products and services is the external environment factors such as the actions of competitors and customers that form the basis of the entire design and development process.
If managers are ignorant of industry trends and the needs of the consumers, then the entire business development and design process is more likely to end up being defeated and the products /services or even the necessary processes and support systems may end up not being appropriate leading to products which are failures.
While developing and designing products and services, managers are required to also put in place considerations such as the capacity of the company, the supply and distribution networks, and technology capabilities. This enables the entire process of design and development take place more efficiently and within the resource capabilities of the organization (Lancaster & Withey 2006, 43).
Operating with a market orientation is one of the most important aspects of designing new products and organizations with the aim of coming up with lean manufacturing systems and production lines that will enable the company achieve optimality while designing new products (Boone 2010, 80-82).
Thus, commercial organizations operate with product and service development network(s) that allow organizational managers, particularly operation management managers in charge of design and development, to create effective ways of coming up with mechanisms that will assist the organization decide as to whether they should develop products and services themselves or alternatively subcontract the activity to other organizations (Lancaster & Withey 2006, 43).
Subcontracting is an option particularly when the subcontracted organizations have much more capabilities to handle the design and development process more effectively. (Drath 2001, 51).
Figure 1: A diagram representing a typical research and development process in organization
The research and design process usually emanates from the process of change agents. Change agents can include competitor actions or even customer needs that an organization is faced with.
Once the needs are identified the personnel in charge of this process makes sure that they present all the appropriate facts to the authorities in charge of this process so that creative minds of the organization can enter into a creative phase where plenty of ideas are generated (Boone 2010, 80-82).
At this stage, the needs that were identified earlier are matched with the technological capabilities of the organization. Without relevant systems of ensuring appropriate innovation, a company is most likely to be susceptible to risk and may not react to the changing and highly competitive business environment and other competitors are more likely to succeed if they have good R&D departments (Tovstiga 2010, 99).
New product and service development is one of the most important aspects of business that successful companies pay attention to because it is directly linked to strategy. That is why organizations like Nike dedicate over 10% of their total revenues and invest them back into developing and designing new product on the premise of market trends and consumer needs (Lancaster & Withey 2006 p.43).
Product/Service design experts ensure that the idea generation phase is captured according to the customer needs before sending it to the engineering phase so that the finished products or service process is accurate enough to bring about utility and satisfaction to the market.
If the need recognition and the ideas generation phase captures the needs of the market or the industry wrongly, then the development process of the product will ultimately fail and the marketing department will have a very hard time trying to push the product into the market (Koontz & Weihrich 2009, 200).
It is hence important that top management make available all the necessary resources and systems that will help those who are responsible for design and development have an easier time while making and finally developing the product.
In addition, installing the necessary systems and technology to assist in the computer aided design process (CAD) and supplying all necessary technology helps in ensuring that superior designs are developed by experts (Tovstiga 2010, 146).
The use of CAD makes the process of planning the entire product development and design process much easier and more accurate by assigning more accurate time frames and mapping the entire process (Koontz & Weihrich 2009, 167-169).
The Apple Company and Innovation
Apple has grown to become one of the most respected organizations due to its ability to accurately tap into the needs of the market and develop products that are needed by customers (Müller 2011, 6).
The invention of products like iPod which revolutionized the music industry putting Sony’s walkman out of business, whereby at that time, consumers particularly desired to have a compact and small music Mp3 player that could carry music and play them without necessarily playing directly from discs.
When Apple created the iPod consumers reacted by rushing into stores and lining up for hours to purchase the first batch of the product. It is this Apple’s ability to accurately read the needs of the market and develop superior product that stunned other rivals who later decided to follow the same path and enter into the Mp3 player market (Müller 2011, 18).
But when other competitors caught up with Apple, the company decided to add more features to the iPod by enabling it to play other Audio and video formats and even Java enabled games (Kourdi 2009, 124).
Additionally, Apple’s innovation is also extended to its software wing of business since the inception of the Mac OS X together with Macintosh computers many individuals worldwide have adapted the use of the product because the organization has the ability to develop relatively stable software systems that are high performing (Müller 2011, 21).
While other software providers are struggling with issues of software stability and high performance, the company has successfully created softwares that are friendly and popular among users.
The Apple App Store for example is one of a kind because it simply enables millions of people to share applications and other products. The Apple’s store revolution transacts close to over $2 billion worth of goods and enables individuals especially software developers to get recognition and also make a living (Müller 2011, 29; Charles et al 2009, 101).
The iPhone is another popular innovative revolution that Apple came up with, prompting other mobile giants to quickly respond by entering into the Smartphone market.
Apple made iPhone is such a way that its features and software were completely different from other phones, high-tech applications and features such as a very attractive graphical user interface, business friendly and entertainment friendly feature prompted the consumer market to quickly adapt to the product and the company was able to sell millions of handsets all over the world (Gallo 2011, 45).
Apple’s success can be attributed to the fact that the organization does not only focus on building beautiful products but also developing softwares that are well compatible with their hardware.
The ability of Apple’s C.E.O., Steve Jobs, to nurture the culture of innovation and competitiveness in the organization has enabled all employees of the organization move towards the same direction with minimal resistance (Wheelen & Hunger 2002, 313).
Apple has hence proved itself over the years to be a serious participant in the computer and communication industry by developing products that touch on the needs of consumers.
The entire organization is constantly on the lookout for new market opportunities and is in constant communication with its consumers so that they can gather relevant information that is necessary for nurturing innovation within the organization (Müller 2011, 26; Gallo 2011, 45).
Recommendations
The importance of setting up sound research and development mechanisms in organizations is very important and hence organizations are expected to first of all set the relevant formal mechanisms and departments so that the organization can form a culture of taking issues of research and development/innovation more seriously.
Setting up formal product design and product development mechanisms ensures that organizations are able to effectively handle the dynamic nature of the environment and respond to customer needs more seriously. Without research and design departments it is almost impossible to keep up with the needs of consumers and market trends.
The fact that Apple Inc.has developed a fully fledged competitive intelligence unit and research, design and development department, all companies that have an ambition of becoming industry leaders and highly competitive should do the same. Managers are expected to create strategies that enable them develop a culture of creativity and innovation.
One of the many ways that Apple has been able to stay ahead of competitors is by developing products such as iPhone and iPad, as the company has been able to successfully scout and headhunt for the most talented individuals especially when it comes to programming, R&D and marketing.
Organizations that are able recruit and maintain the best human resources are able to utilize their abilities and talent to earn their organization a competitive advantage.
Investing in the future is not cheap and hence organizations should be particularly aware of market trends and ensure that they quickly adapt to changes within the industry or even be among the organizations causing the industry to change as far as technology is concerned within the industry.
Additionally, organizations should understand that innovation is not only restricted to technology but is rather all rounded. For organizations to fully succeed in this competitive business environment they are expected to be innovative in every functional area.
Innovation in business administration, operations management, marketing, finance, human resource management and all other functional areas ensures that organizations are able perform better and achieve their strategic goals even better. It is therefore the responsibility of organizational leaders and managers to create the necessary mechanisms to ensure that innovation is holistic.
Conclusion
Innovation is a very important part of successful business organization irrespective of whether the organizations are local or multinational, small scale or large-scale business operations. In order for business operations to run smoothly and for strategic goals of organizations to be achieved, it is necessary for business managers to put in place the necessary systems to encourage a culture of inventiveness within organizations.
Research and development efforts should be comprehensive and holistic so that not only goods and services are improved but organizational business processes that are responsible for delivering improved products and services are also upgraded to acceptable levels so that efficiency in delivering these services and products is realized.
Organizations are expected to dedicate funds and all necessary resources so that organizational personnel from different functional areas can be able to coordinate activities with the research and product development department and come up with the best ideas and best products that give their organization(s) a competitive edge in the industry especially among competitors.
Moreover, research and development managers should ensure all product improvement efforts are customer oriented this way, the entire facets of marketing like: place, price, the product itself and distribution will be carried out with the main intention of ensuring that products and services that are made as a result of innovation efforts please the customers forcing them to purchase products and increase the competitive position of the organization in the industry.
Organizations that take research and development of new products seriously are more likely to perform better in the industry by developing products that are considered as more superior and more in tandem with customer needs and even ahead of market trends.
If managers within organizations pay no attention to the importance of continuously improving and developing products through the process of research and design, then sales and revenues are most likely to fall and get unsatisfied customers.
References
Boone, L., 2010. Contemporary Business. NJ New Jersey: Wiley & Sons.
Charles, T. et al, 2009. Essentials of Marketing. Natorp Boulevard: South Western Learning.
Drath. W. H., 2001. The deep blue sea: Rethinking the source of leadership. San Francisco: Jossey-Bass.
Gallo. C., 2011.The Innovation Secrets of Steve Jobs: Insanely Different Principles for Breakthrough Success. New York: McGraw-Hill Professional.
Koontz, H. & Weihrich, H., 2009. Essence of Management an International Perspective. New Delhi: Tata McGraw Hill.
Kourdi, J. 2009. Business Strategy: A Guide to Effective Decision Making, 2 edn. New York: Economist books
Lancaster, G. & Withey. F., 2006. Marketing Fundamentals’: CIM Course book. London: Oxford publishers.
Müller. C., 2011. Apple’s Approach towards Innovation and Creativity: How Apple, the most innovative company in the world manages innovation and creativity. Norderstedt: Books on Demand GmbH.
Tovstiga, G., 2010.Strategy in Practice: A Practitioner’s Guide to Strategic Thinking. New Jersey: John Wiley & Sons.
Wheelen, T. L. & Hunger J. D., 2002. Strategic Management and Business Policy. New Jersey: Prentice Hall.