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The New New Product Development Game

"The New New Product Development Game" is an influential Harvard Business Review article written by Hirotaka Takeuchi and Ikujiro Nonaka. Published in 1986, the article discusses a fresh approach to product development that emerged in response to the changing demands of the business environment.

Summary:

Takeuchi and Nonaka argue that traditional product development methods are insufficient for coping with the rapidly evolving markets and technologies. They propose a new approach called "holistic" or "rugby" product development, contrasting it with the more sequential and rigid "relay race" approach.

  1. Relay Race vs. Rugby: The authors first compare the conventional "relay race" product development model to a "rugby" approach. In the relay race model, development proceeds in a linear, sequential manner, with each department passing the project on to the next. This leads to slow response times and lack of adaptability.

  2. Cross-Functional Teams: In contrast, the rugby model involves cross-functional teams working together from start to finish. These teams are empowered to make decisions and are collectively responsible for the project's success.

  3. Iterative and Incremental Development: The authors advocate for an iterative and incremental development process in the rugby model. Instead of aiming for a perfect product from the outset, the team creates a prototype quickly and improves upon it in successive iterations.

  4. Customer Feedback and Market Testing: Customer feedback and market testing are crucial in the rugby approach. By continually engaging with customers and incorporating their feedback, the team ensures the product meets market demands.

  5. Self-Organizing Teams: The rugby model encourages self-organizing teams that have a high degree of autonomy and empowerment. These teams are better equipped to adapt to changes and capitalize on emerging opportunities.

  6. Leadership and Vision: Effective leadership is essential in guiding the rugby product development process. Leaders must provide a clear vision, foster a collaborative culture, and support teams in their endeavors.

  7. Knowledge Creation: The authors emphasize the importance of knowledge creation throughout the development process. Knowledge is not just transferred but actively created and shared among team members, leading to organizational learning and improved future performance.

The article concludes that the rugby model of product development allows organizations to be more responsive, innovative, and successful in a rapidly changing business landscape. It encourages a customer-centric approach, adaptive teamwork, and continuous learning, making it a valuable concept for companies seeking to excel in product development and stay ahead of the competition.