Product Development

Fashion

October 13, 2014

Summary

In the article “Globalization of Product Development: The Inevitable Next Stage,” the authors Anil Bhatia and Romit Dey talks about how high technology companies are changing and expanding the development of their products. According to them, high technology companies are utilizing global sourcing for the development of their products to receive all the advantages that globalization produce. This article explains the trends, drivers, and benefits of using global sourcing.

Companies are dealing with the pressure of innovation and the design of new products, at the same time with the prices and profits. This tendency is controlled by intensive competition and the consumer demand for new products. There are some key imperatives for high tech product development like the cost of the product, the improvement of time to make it, and the demand of the market. Also, high tech companies are changing to international locations to maximize the advantages in the cost, technique and manufacture of the product.

PDLC chart shows that some global sourcing drivers are: cheap development cost, increase market research, and promote better quality of products. Also, parts of the key enablers are the design of the product, the proficiency of the product, and quality. The three best areas of global sourcing adoption contain the design and improvement of the product, product administration, and the fundamental market.

The benefits of using global sourcing have had significant influence in the manufacturing area. The reduction of development cost is possible because of the process and technology that global sourcing uses. Because the lower cost of production and investment, companies can extend their budgets and have more revenues. Some companies are adopting to increase the cycle times to satisfy the market demand, overtake the competition, and offer products that give customers what they need.

Also, globalization is helping companies to come...