Outsourced New Product Development

7/27/2019 Outsourced New Product Development

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DEFIANCE

OUTSOURCED NEW

PRODUCT

DEVELOPMENT

Authors: Faiz Ahmad

August 25, 2011


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Defiance Technologies limited

Defiance Outsourced New Product Development

Defiance Technologies Limited Proprietary and Confidential Page1of 5

Outsourced New Product Development

An Emerging Trend

The growing economy and consumerisation of emerging markets like India and others has meant an

increased demand for new products in Automotive and other sectors. Global OEMs used to bring their global

products directly into emerging markets. However the emerging market consumers are maturing, are more

informed and more demanding. Consumers are looking not just for superior products but products customized

to personal and local preferences. Besides consumers are looking for products benchmarked to global

standards while at the same time being price conscious. With the hyper competitive environment, the time to

bring new products to market is also shrinking.

Traditionally, global OEMs would either partner with emerging market OEMs or set up their own captive units

to bring out new products for emerging markets like India. However, today emerging market OEMs arethemselves focused on bringing new products to the emerging and global markets. Setting up their own units

would mean heavy capital investment for global OEMs and longer time to market on account of challenges in

assimilating local knowledge and expertise. Besides this, to address the price conscious emerging market

consumer, frugal engineering capabilities have become an imperative. In addition, with new product

development becoming much more collaborative & globally distributed and IT becoming pervasive, there is a

need for globally distributed product development capabilities and also the need to employ the latest IT

technologies in the product development process.

Given these challenges, global OEMs are looking for specialist new product development service providers

with new product engineering skills and local expertise, who also bring in the frugal engineering capabilities

and the expertise in the latest IT technologies in the new product development process.

Besides this, the emerging market OEMs also are looking at outsourced new product development to tide

over capacity constraints.

These market needs have created a huge opportunity for specialist service providers who offer new product

development services. This is a scalable opportunity across Automotive and other sectors like Industrial

goods and Consumer products.

Defiance - Pioneering Outsourced New Product Development

Defiance has been a leading provider of testing and engineering services to global automotive companies.

Defiance Technologies has a mature engineering practice with unique end-to-end capability of addressing the

entire product development life cycle from concept design to detailed engineering, analysis, physical testing

and validation through to sourcing and manufacturing support on a global delivery model.

Outsourced Product Development (OPD) involves deep domain expertise in multiple diverse areas.

With its mature engineering practice, strong domain expertise in manufacturing especially in the automotive

sector, intimate knowledge of Indian conditions, exposure to manufacturing process design and experience of

offering niche engineering design services, Defiance is pioneering Outsourced New Product Development in

India.


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Defiance also leverages its parent groups manufacturing heritage and the extensive knowledge of the local

ecosystem of suppliers and tool manufacturers.

Defiance Design to Build Framework to Target Design, Time and Cost

The success of any new product development program depends on the managing the product development

process with a focus on three key dimensions:

Develop a product that meets the target design and performance specifications as identified for the focus

market(s)

Manage the Development time plan so that the product hits the market at or within the identified window

of opportunity

Manage the costs, both product cost and development cost so that the product is viable in the business

context

Defiance has developed a unique process with its Design to Build Framework for New Product Development

that brings together the different groups within Defiance and outside to help customers achieve their goals of

target design, time and cost in new product development.

Through this process, Defiance brings together its various groups, which include Product Planning, Design &

Engineering, Manufacturing Plant Engineering, Sourcing and Supplier Development, Prototyping, Testing &

Validation, Tooling Design and Regulatory compliance in a seamless integrated way for new product

development.

A key element of the framework is Defiances strong program management competency that enables it to

effectively connect customers, suppliers and other stakeholders with relevant communication and data

management capabilities.

Through this process, Defiance works closely on some of the tasks with suppliers who contribute to the

development of product aggregates or tools, fixtures, test equipment and shop floor equipment.


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Defiance New Product Development Process

The uniqueness of Defiances outsourced new product development process comes through its:

Knowledge base of competitor product benchmarks (especially in the price entry segment) that

enables faster target definition

Market Research team with deep insight into the Indian (and global) automotive market and products

that helps in quickly identifying the market needs and changing customer choices

Compression of testing cycles through an effective combination of digital validation, lab tests and field

trials, thereby compressing time to test

Correlation of simulation, test bed and field trial data refined over many years which helps to

compress test cycles while still validating product attributes

Defiances Unique Value Proposition for Outsourced New Product Development

While there are players who can provide niche engineering design or strategic outsourcing services there are

very few service providers who can handle the entire spectrum of new product development. Global OEMs

are looking for service providers who have the expertise to provide integrated new product development

services.

Defiance understands such challenges faced by global OEMs and has invested in relevant areas to effectively

address their new product development requirements. This includes:


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A New Product Development group with deep domain experience (from Indian and Global industries)

in relevant areas Market research to Design to Sourcing to Testing to Manufacturing process

State-of-the-art digital infrastructure high end workstations, simulation capability and latest softwarelike CATIA V6

Full-fledged state-of-the-art facilities for product benchmarking

Independent product testing facilities to support both product and parts validation

Team of experts to optimize the manufacturing process and the capability for pre-validation using

Digital Manufacturing simulation

Highly capable team of consultants which includes industry veterans and senior domain Consultants.

Product Integration and Program Management capability to orchestrate the New Product

Development program

With these dedicated investments and its unique Design to Build framework Defiance is ideally positioned to

be the new product development partner of choice for global and Indian OEMs.

Documents

Outsourced New Product Development