Innovations of new products that change the world are what are going to help the U.S. maintain an edge in the hard sciences such as engineering, mathematics and technology. With daily life becoming more complex, new “normal” needs to be created to allow people to still earn a living, but have more flexibility in how they do that. The cost of living in various metropolises are not decreasing, instead, they’re increasing. It’s amazing how traditional methods compare with newly virtualized companies and how small changes impact the environment. This will specifically concentrate on two product development firms and their current business and engineering practices.
This case study is the comparison between two product development companies with similar goals but very different processes. This will focus on the new product development process based on virtual teams developing a product. Less energy, wasted paper, gas, time, and global resources combined with virtual collaboration tools like voice over IP / web conferencing, project wikis etc. PBWiki and Skype allow for consultants to be worldwide and not be restricted by geography – as a result, available personnel includes the most qualified professors, researchers, scientists and manufacturers.
The global product development process includes individuals from around the world, the teams are globally distributed and engineering is performed at multiple geographic locations, both low and high cost regions and their product development process is distributed through a network of qualified individuals not restricted by their geographic location. Through globalization of the NPD process, it allows for global collaboration of different ideas, different views to provide the best possible outcome for the new product. Every culture and country has it is own way of designing and developing new products. Their outlook can also provide a different perspective on why and how things could be developed. For example, the United States (compared with Europe) is not as environmentally conscious when it comes to creating innovation. Europeans are historically more aware how their actions impact the environment.
The traditional design consultancy firm was created to design products for businesses. Their core disciplines include industrial design, human factors, sustainable design and engineering (mechanical and electrical). This traditional firm employs approximately 200 people spanning 5 offices in Boston, LA, Seoul, Milan and Shanghai creating a global presence for the necessity of their products.
By simply reducing the two major components of travel, it would significantly reduce the carbon footprint. According to their own report, the majority of their Greenhouse Gas Emissions are “Optional Emissions” rather than necessary overhead.
The virtual design firm is a much smaller design consultancy firm that operates primarily virtually, although sometimes utilizing a small office to hold meetings and logistical operations. They operate in a more down and dirty fashion utilizing an agile, low-phase process that maximizes the cost and time utilizing only the necessary individuals to bring the product to fruition. Because they operate from personal locations, the product development costs are 50-60% less than the more traditional firms. Since it is a virtual company, they understand and utilize telecommunications to their maximum capabilities to create an efficient and more importantly, effective product development cycle. The global virtual team allows for real time productivity – i.e. when it is nighttime in the U.S., the individuals on the other side of the world are working.
The virtual network is as extensive as any design firm however, the individuals are not restricted by location nor does a specific team restrict them because we consult globally. Depending on the project, the criteria of necessary skill sets are always changing. One week, three mechanical engineers will be collaborating, the next week, it will be one mechanical, an electrical and a designer working on a project. In real time, information can be shared, not being constrained by “(s)he’s not at his desk”.
Through the progress of virtual collaboration, it is changing the way new products are brought to market. Globalization and virtualization has leveraged product collaboration by expanding the value chain, partners, employees and suppliers. Expanded collaboration on product design allows for faster turnaround, reduced development cost, increased product innovation and faster time to market.
Traditional product development has generally not included much interaction with the client nor their input. However, with new online tools becoming available, virtualization of the product development cycle has gained more economic value that involves joint collaboration between client and company. Moran and Ghoshal say “it is not resources per se, but the ability to access, deploy, exchange and combine them that lies at the heart of value creation”. Virtualization and virtual companies have added new avenues for companies to expand their value creation and customer relationships.
Virtualization can improve the energy efficiency of a company if implemented correctly. This research can provide a starting point for future studies to expand upon. While the proportions of carbon dioxide emissions are more “favorable” in a virtual company, this study cannot exactly pinpoint the total difference in emissions. The travel emissions are seen as less favorable because the travel is not always directly related to the value added that employees bring to the development process. Based on these assumptions the conclusion can be reached that the proportion of carbon emissions are better spent at Flashpoint because they are more directly correlated with value adding activities.
By Jessica Chin, Flashpoint Development Project Manger / Mechanical Engineer
