Impact of Simulation in New Product Development - MIT

More documents

Recommendations

Info

Estimated increase in design efficiency• At field site, simulation increased design efficiency by more than 40%• Product line coverage increases by more than 75%– Number of models up 20%– Feature richness up by more than 45%• With only 24% increase in design costs• Product line coverage = # models * Feature richness(New metric to describe design output)1.00+42%1.42Before AfterNumber of models 1.00 1.20Average feature richness 1.00 1.46Product line coverage 1.00 1.76Design costs 1.00 1.24Design efficiency 1.00 1.42• But what does this mean in terms of value creation?BeforeDesign efficiencyAfter12© 2007 Robert Laubacher 12
Typical claims about IT-enabled efficiency• How many of you have seen charts like this?Salary of BlackBerry UserAnnual Recovered Downtime 2$40,000 $3,920$50,000 $4,900$60,000 $5,880$75,000 $7,350$100,000 $9,800$110,000 $10,780$125,000 $12,250$150,000 $14,700…..followed by analysis like this?Source ofValueDollarAmountCumulativeReturnsBlackBerryNet TCOBlackBerryROI 9PaybackPeriod 10Productivity $2,450 $2,450 $1228 199% 183 daysAssumes $50K average salary and 50% of recovered downtime converted into enhanced productivity• But how many firms actually “adjust” their staffing—that is, downsize—inorder to recognize this sort of IT-enabled time-saving?13© 2007 Robert Laubacher 13
Page 1 and 2: Activity Based Performance Measurem
Page 3 and 4: Research objectives and methodology
Page 5 and 6: ABPM work to date• RFID in retail
Page 7 and 8: Study findings7© 2007 Robert Lauba
Page 9 and 10: Core benefits of simulationDirect b
Page 11: Measuring design efficiency• Desi
Page 15 and 16: Options for using increased design
Page 17 and 18: Modeling simulation-enabled sales i
Page 19 and 20: Measuring impact of speeding up des
Page 21 and 22: Measuring higher quality design•
Page 23 and 24: Modeling impact of simulation0.300.
Page 25 and 26: Applicability to other firms• Can

Impact of Simulation in New Product Development - MIT

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?