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ENT 1000 – Organization and processes

This article discusses product development processes, organizational structure, and value generation in the context of a value chain. It covers challenges in product development leadership, design considerations, and the coordination of product, process, and supply chain. The article also explores organizational design and form, including decision-making, planning, measurement, evaluation, rewards, selection criteria, and training. Examples of typical organizational charts for startups are provided.

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ENT 1000 – Organization and processes

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  1. ENT 1000 – Organization and processes Tomas Hellström

  2. Product Development, organizational structure and value generation Topics: • Product development processes • Organizational structure • The value web • Business alignment

  3. Overview: Think of it in terms of a value chain…

  4. Product development processes • Challenges: • Provide leadership in all phases of PD • Integrate competences and capabilities for the product • Forecast product requirements • Retain flexibility (cost of change=low) of product characteristics as development process proceeds

  5. Design • Concrete arrangement of the various aspects of the concept • Form and function • Design connects the novel concept with potential institutional needs • familiarity+novelty • impact+acceptance • Attractive to see and easy to use • Product robustness

  6. Development process 1. Research and development A. Establish the product goals and attributes B1. Which components/ parameters available for selection? Develop or buy? 2. Product design B2. Identify/record the physical contraints 3. Build prototype C. Write performance specification for the product 4. Test D. Establish product configuration No 5. Satisfactory performance? E. Select the components of the product Yes F. Optimize the parameters of the product 6. Finalize design

  7. Product development leadership • Commitment to the design process among founders/senior management • Clear product vision/goals. Everybody in startup must understand the idea/vision of the product clearly • Improvisation/iteration to develop prototype • Open sharing of information • Cross-functional collaboration in the team

  8. Understanding the customer • Preferences • Purchase criteria • Decision making processes • Buyer behavior • Functional needs

  9. Coordinated design system – Product, process and supply chain

  10. Organizational design and form • Decisions to be made: • Organization structure: Define members’ jobs and communication relationships. Depicted in an organizational chart. • Planning, measurement and evaluation schemes: How will plans be achieved and updated? How measured and how evaluated? • Goals (e.g. tied to people, processes, outcomes etc) • Project flow-descriptions (e.g. Gantt-charts) • Rewards: Criteria and strategy for bonuses, raises etc • Selection critieria: Guidelines for selecting individuals to positions • Training: Competence development on and off the job must be specified. Educational criteria for tasks and learning skills defined.

  11. Typical organizational charts for startups Stage 1 CEO Production/ Product development Marketing/ sales Administration Stage 2 CEO Production/ Product development Marketing/ sales Administration Promotion/ advertising Shipping receiving Product development Assembly/ quality control Sales Finance Purchasing

  12. The organization and the value chain

  13. The Value Web

  14. The Value Web (Cisco example)

  15. Goal: Self-reinforcing growth

  16. Goal: Business Alignment

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