Omega Ltd A Case of Change of Strategy in Product Design and Development Process
Omega Ltd: A Case of Change of Strategy in Product Design and Development Process
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TOC o “1-3” h z u 1. Introduction PAGEREF _Toc98428015 h 32. Ability to Design and Develop New Products as a Core Competence PAGEREF _Toc98428016 h 33. Design and Innovation PAGEREF _Toc98428017 h 54. Stage-Gate® Model for Design and Product Development PAGEREF _Toc98428018 h 65. Achieving Effectiveness of New Strategy PAGEREF _Toc98428019 h 106. Conclusion and Recommendation PAGEREF _Toc98428020 h 12References PAGEREF _Toc98428021 h 13
1. IntroductionThis paper focuses on the case study of Omega Ltd. In terms of its need t change the design and development of its product to capture a neglected market. The company is switching to provide more environmentally friendly products. Therefore, the report looks at the ability to design and develop these new products as core competence, highlights the link between design and innovation, and sheds light on the company’s use of the Stage-Gate® model for design and product development. These activities are all geared towards providing suggestions on the achieving of effectiveness in the new strategy.
2. Ability to Design and Develop New Products as a Core CompetenceWhen it comes to a firm, core competencies are the essential features or advantages that separate it from its rivals (such as the talents, knowledge, skills, and resources that combine to produce the organization’s distinguishing strength). The traits or advantages that separate a corporation from its rivals are referred to as its core competencies (Bonjour & Micaelli, 2009). The first step in increasing a company’s competitive edge is to improve the core competencies of the organization. As noted by Yang (2015), core competence is responsible for a variety of things, including brand reputation, business growth strategies, and marketing strategy, to mention a few examples. It is possible to develop core competencies that are unique and difficult to imitate, which provide customers a competitive advantage and can be used to a wide range of goods and markets over time. In addition to customer satisfaction and value, marketing, customer-centric omnichannel support, design or innovation skills, sales and marketing ecosystem, automated procedures, and purchasing power are also factors to consider (Prahalad & Hamel, 2003). In addition, the size of the organization and its purchasing capacity should be taken into consideration. A key benefit of having core capabilities for a company’s long-term competitiveness is the fact that it increases the company’s long-term competitiveness (Chen, 2008). This is one of the most fundamental benefits of having core capabilities for a company’s long-term competitiveness. The ability to provide a superior product or service is one thing; but, if rivals can easily replicate it, a firm will find itself competing for market share and seeking for fresh methods to differentiate itself from the competition is another.
All of the abilities within a firm are a distinguishing trait that contributes to the company’s distinctive positioning. In order to prevent competitors from precisely replicating the services or achievements of a company’s competitors, it is necessary to develop and use intellectual property protection strategies. As a result, identifying and developing important skills is a critical component of strategic planning (Chen, 2008). The importance of core competences varies from industry to industry and from sector to sector. Capacity to identify oneself in such qualities, as well as the ability to combine them with other talents in a distinctive manner, can create a competitive advantage over competitors in the business for a firm.
In the manufacturing industry, two of the most important core competencies are the capacity to design and manufacture goods of high technical quality while also providing a varied assortment of products and models that are visually pleasing (Cooper, 2019). Obtaining competitive advantage in the white goods industry is generally accomplished via the application of a variety of design features. By addressing climate change concerns and providing its clients with things that have a zero-carbon footprint, the firm Omega Ltd, for example, tries to improve the quality of its goods. Therefore, Omega Ltd will develop a core competency in new product design and development because it will add value and benefits to consumers, will be leveraged to develop a broad range of products in the future, and will be distinctive enough to make it difficult to replicate even by larger competing firms.
Firms could and should establish a few core areas of competence over time that separate them from their rivals and are deemed vital to the company’s long-term growth and profitability that serves as the foundation for the concept of core competencies (Zheng et al., 2019). Despite the fact that they may be found in any industry or section of business, they are most likely to be discovered when the greatest amount of value is added to a company’s offerings, whether they be products or services. This is the reason why Omega Ltd must understand that product development and design is a core competence. Through development of new products, adding value to existing offerings, building unique marketing around these products, and creating new technologies based on product design and development are the key to Omega Ltd’s future. It is easier to create a strategy surrounding product design and development. For example, the proposed change to greener products will be taken very well by consumers, especially the millennial age that Albort-Morant et al. (2018) define as very environmental conscious in their product purchasing and brand engagement decision. Therefore, Omega Ltd.’s ability to design and develop new products remains to be a crucial part of its core competence.
3. Design and InnovationDesign helps to incorporate success in a variety of ways. Business organizations generally rely on design for support and leverage when it comes to developing new products, services, processes and models as well as new strategies as part of their innovation activities (Aslam et al., 2020). It is possible that design tools and techniques will aid in developing new ideas, increasing the performance of a firm, and expanding the organization. It is not required for a company to be innovative in its approach in order for it to achieve success. A designer, in the meantime, may experiment with new and varied approaches to transform ideas into tangible items or services while the firm continues to operate as usual (Niewöhner et al., 2019). Design encompasses more than just the appearance and feel of a final product; it also encompasses how that product is utilized. A broader variety of perspectives supplied by designers may aid a company in being more inventive by presenting a more diverse range of viewpoints. Research focuses on the wants and wishes of customers; brainstorming generates a large number of ideas fast; and prototyping, which allows a company to examine the viability of ideas created early in the innovation process (Niewöhner et al., 2020). These design strategies may be used to increase the efficiency and efficacy of any company’s current research and development procedures, regardless of the industry.
Over the last several years, the concept of innovation has gained popularity as a determinant in long-term organizational performance. Innovation may be characterized as both a process and an outcome (Solaimani et al., 2019). When it comes to designing these types of forms, it is important to consider the tools, strategies, and processes that designers utilize in their work, which is typically done in conjunction with consumers. In design, the practice of collaborating with consumers and other stakeholders to develop something new is referred to as collaboration. It relates to the process of addressing issues and solutions from the viewpoint of people instead of from the viewpoint of technology or engineering (Prange & Schlegelmilch, 2018). For the most part, technical disciplines-driven innovation initiatives are defined by the continuous development and execution of a specific concept, with a focus on overcoming technical difficulties in order for it to work.
Design will help Omega Ltd to identify gaps in its product offering and provide better value to the consumers. Design helps to advance innovation by identifying said gaps and areas that need improvement. The type of innovation that Omega Ltd must consider based on its change of strategy is disruptive and sustaining innovation. In business, disruptive innovation, sometimes known as stealth innovation, refers to the introduction of novel technologies and business processes into a company’s existing market (Feder, 2018). It is referred to as disruptive innovation when an invention makes it easier and less expensive to provide products and services to previously untapped or neglected markets (Prange & Schlegelmilch, 2018). Large corporations with well-established customer bases frequently concentrate their efforts on developing their goods and services on their most profitable clients, while overlooking the needs and aspirations of unknown market segments. Offering simpler, more cost-effective alternatives to the established companies may allow Omega Ltd to take advantage of the environmental-friendly neglected market.
In order to keep up with the pace of innovation, however, it is necessary to improve existing goods and services in order to better suit the demands of present clients. When it comes to innovation, there are no untapped or underserved market opportunities. Instead, it is innovating in order to remain relevant and competitive (Solaimani et al., 2019). A sustaining innovation is a product improvement that improves on an existing product (Prange & Schlegelmilch, 2018). People willing to pay more for greater performance are the most valuable customers to attract and retain. In order to maintain their competitive advantage, Omega Ltd must prioritize innovation and develop improved versions of their best-selling products in line with their proposed change to more environmental-conscious goods. Omega Ltd will either maintain or increase its profit margins by utilizing current methods and cost structures, which is a significant benefit.
4. Stage-Gate® Model for Design and Product DevelopmentThe stage-by-stage process through which a company develops an idea and follows it through to commercialization is referred to as new product development. Because the new product introduction procedure (NPI) looks at the product from the aspect of manufacturing, it is referred to as the new product introduction procedure rather than the new product development method (Cocchi, Dosi, & Vignoli, 2021). In contrast to traditional manufacturing processes, which are concerned with continuing to manufacture current things, NPI is concerned with “introducing” new products into the process. The transition to production parts of new product development is stressed by NPI, ensuring that the innovation can be ramped up into production as soon and easily as possible after conception (Smolnik & Bergmann, 2020). However, while practically every company develops new products or services, the process of presenting new products or services differs greatly from one organization to another. There are several variables, including the industry, product identification, whether the products are incremental improvements or breakthrough breakthroughs, and how much a firm focuses on product asset management (Bianchi, Marzi, & Guerini, 2020). The project management team assists in making an up-or-down decision by providing a written report at the conclusion of each phase. During each phase’s conclusion, the team offers management with precise, pre-defined deliverables, as well as evidence of the effect necessary to advance to the next step of the product development process (Edwards et al., 2022). Each of these evaluations comes to a conclusion with a yes/no decision. That is, before committing to the project’s launch, the management has five opportunities to kill it.
For Omega Ltd, being in the business of developing new products makes the situation more serious when it comes to fulfilling goals and bringing a product to market that will satisfy both customers and investors. A high degree of repetition and verification between production stages is required for the creation of new goods, which implies that a middle gate must be implemented before leaping from stage to stage to ensure that manufacturing is progressing in the desired direction before proceeding to the next stage (Salvato & Laplume, 2020). When it comes to new product development, the Stage-Gate technique, sometimes referred to as the phase-gate system, is a five-stage strategy that follows a defined process. A gate is used between stages to determine whether or not the developer may go to the next one or whether or not they can make improvements to the current one before moving on to the next.
The Stage-Gate strategy is a theoretical and practical road map that provides guidance through the process of bringing a new product from concept to launch and beyond. The Stage-Gate approach may be thought of as a strategy for increasing the effectiveness and efficiency of the product innovation process in general (Sørensen et al., 2019). There are best practices and critical success elements incorporated into the road map, guaranteeing that success is practically guaranteed if the steps are followed correctly. The Stage-Gate technique splits the innovation activities into a number of stages that are followed by a series of gates. In each stage, the project team is required to execute a series of pre-specified, cross-functional, and parallel activities that have been determined in advance. Best practices and critical success criteria are included into different levels of organization. The five stages are as follows:
Discovery and Ideation: pre-work aimed at identifying possibilities and generating new product concepts.
Scoping: a fast examination and scope definition of the concept or suggested project — mostly desk research.
Develop the Business Case: a more in-depth analysis involving primary market and technical research that leads to a business case that includes product and project description, project rationale, and a project or “go forward” strategy.
Development: the conceptual description and development of innovative product, as well as the operations or manufacturing process design.
Validation and Testing: testing or experiments in the market, laboratory, and operational facility to validate and verify the newly proposed product, as well as its promotion and production operations.
Launch and Commercialization: the start of full activities, such as production, marketing, and sales.
Figure 1: the Stage-Gate summarization (Adapted from Eljayar & Busch, 2021)
Omega Ltd may choose to employ the Stage-Gate product development framework and guidance to reduce risk when producing new items, hence increasing the company’s ability to remain competitive in the industry. The Stage-Gate strategy, as shown in figure 1 above, incorporates gates throughout the new product development phases, takes into consideration the progressive nature of the innovation process (Eljayar & Busch, 2021). Stage-Gate technique makes the process more flexible, adaptable, and interactive with consumers through the use of a spiral, which allows for consumer feedback to be received and assessed at each level. The Stage-Gate technique can also be shortened in some cases, depending on the product being used. Because of its robust character, the Stage-Gate technique has proven to be a reliable tool for Omega Ltd in the pursuit of innovation.
The Stage gate approach is suitable for the new strategic direction and the disruptive and sustaining innovations that Omega Ltd is pursuing. A complete, coordinated, and transparent process is delivered by Stage-Gate, allowing every essential stakeholder to witness the entire process (Bianchi, Marzi, & Guerini, 2020). Stage-Gate makes projects and their current status publicly visible to anybody who wishes to view them. Because of openness, Omega Ltd. will be able to give a clear route for managers, partners, and even consumers. In addition, the system is extremely well-organized. It is more appropriate for Omega Ltd. to use the Stage-Gate technique for this purpose since it clarifies the roles of project managers while also providing them with a roadmap of what they might achieve and the results they should reach. Stage-Gate was founded as a result of extensive research into the most successful companies in the world in terms of project implementation and creativity (Cocchi, Dosi, & Vignoli, 2021). It combines the experiences and industry standards that have been learned from these firms, guaranteeing that no parts of the project implementation framework are skipped and that no critical errors are made along the process. Apart from that, Stage-Gate does not demand the use of complicated vocabulary or conceptions that are counterintuitive, as is the case with other techniques. In fact, it integrates seamlessly with all of Omega Ltd’s processes, assisting in the development of the new product without introducing any additional problems to the process.
However, Stage-Gate has the ability to cause a snag in the flow of a group of people. Phase gating, rather than giving beneficial review opportunities, may instead create bureaucratic hurdles. More review stages are a reasonable reaction to failures and difficulties that have occurred in the past. These difficulties stifle the ability to innovate. The true commercial potential of an innovation may not be appreciated until after it has been developed and placed on the market, and even then, it may require more refining and optimization in order to have an impact (Smolnik & Bergmann, 2020). If a product is not fully functional, Stage-Gate will not allow it to be released onto the market. Omega Ltd., on the other hand, would benefit greatly from Stage-Gate technology.
5. Achieving Effectiveness of New StrategyThroughout the majority of modern business history, organizations have sought to unlock value by aligning their organizational structures with their business strategy, with varying degrees of success (Prasetyo & Rahman, 2018). As part of the process of altering a company’s strategy, it is typical to begin by analyzing current business processes and identifying where and when changes are necessary. Nowadays, the great majority of successful firms recognize the need of creating an NPI process in their operations. In today’s highly competitive industry, organizations must create the appropriate product at the appropriate time and at a reasonable cost in order to be competitive and successful (Srivastava, Sahaym, & Allison, 2021). The creation and execution of a good NPI methodology may make the difference between success and failure in a project or organization.
Launching a new product may be divided into many phases, or gates, which can then be followed one after another. Using a phase gate system, management is always informed about the present condition of the project and can be certain that all tasks will be finished on time and on budget. It is necessary for Omega Ltd. to establish a new strategy, perform a feasibility study, build a product, validate and put it into production before evaluating the findings of the research. The NPI process is divided into phases, each of which is interrelated with the preceding step in order to be successful (Colledani, Tolio, & Yemane, 2018). For Omega Ltd., the NPI process does not proceed in a linear fashion. Instead, it is a never-ending loop or circle. There are inputs and outputs to take into consideration at every stage of an NPI project. There are separate criteria, tools, documentation, and processes for each step, each of which is unique in comparison to the previous phases.
During the Define Phase of the product development process, functional and performance requirements are created. The branding and marketing management divisions of companies are typically the primary suppliers of this information for the firm (Rutkowski, 2021). The Quality Function Deployment technique is widely used to translate product requirements into design specifications, and it is quite successful. This means that the design specifications may be included into one or more of the concepts generated by the project team (Primus & Stavrulaki, 2018). The management team must develop a Project Charter that will act as a guide for the project.
The goal of the Feasibility Phase is to provide management the opportunity to assess the likelihood of the project’s successful completion. During the Feasibility Phase, a product design proposal is picked after being assessed by the project team and judged to be the best suited for the specifications previously submitted by the client. As the circumstances necessitates, the business case is re-evaluated and updated as needed (Haque & James-Moore, 2004). Furthermore, on the first day of the project’s gate review, the project team delivers all relevant information on the chosen design concept, intended location and mode of manufacturing, project strengths and risks, an updated business case, and the project’s current strengths and dangers. The second day of the gate review is dedicated to a discussion of the project’s present strengths and weaknesses. When the project and proposed product design reach the conclusion stage, a decision is taken as to whether the project and proposed product design should be continued to the next stage, redesigned, or abandoned in its current form.
Efforts are concentrated throughout the development phase on enhancing the product’s appearance and functioning while also detecting possible dangers. It is at this stage that an extra technique of verification is being created. The design’s resilience and capabilities to accomplish customer and performance goals are evaluated in depth throughout the design process (Knight & Jenkins, 2009). This review also involves an examination of the manufacturing process, which covers the location, necessary space requirements, equipment, and a preliminary process map. A greater number of business units are being integrated into the project in order to assist with operational issues such as material forecasting and supplier selection, as well as development. During the gate review, the project team makes changes to the design, schedule, risk assessments, and business plan or financial status report, among other things. In order to go ahead, the management team must determine whether to take the project forward to the next phase or whether to improve the design or test plan in order to move forward successfully.
When it comes to the Validate Phase, the product must be assessed and tested. Some testing may have to be postponed until the prototype components are completed, which will take many weeks. Findings from validation testing, on the other hand, may result in design modifications, which are quite expensive. Manufacturing is changing as well, and the dangers that come with it are being explored and dealt with appropriately (Prasetyo & Rahman, 2018). The fundamental steps of manufacturing are now being developed and analyzed by our team of experts. As part of a product analysis and testing strategy, components for prototypes are being constructed. Once the actions associated with the Validate Phase have been completed, the team should meet with the project’s owner and other stakeholders. An opportunity to obtain management approval while still preserving open channels of communication is provided by a gate review in this context.
6. Conclusion and RecommendationManufacturers’ production processes are improved during the implementation phase of the NPI process, thanks to the use of pilot builds and capability evaluations. Quality controls and process documentation will also be important for Omega Ltd in the development and putting into effect at the same time. In the course of the product launch process, the evaluate phase is responsible for a variety of tasks. Customers may then provide feedback on the new product, and the team can evaluate how effectively the process is functioning (Rutkowski, 2021). The team can also use this opportunity to reflect on any lessons learned and document them in preparation for future projects.
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