Huawei IPD Process System: Integrated Product Development Framework

IPD, that is, integrated product development, originated from the PACE theory of PRTM company in the United States, and has now become a set of systems engineering that includes the ideas, modes and tools of enterprise product development. The author of this article takes Huawei as an example to analyze the IPD integrated product development system. Let’s take a look.

Several important business processes involved in the operation of an enterprise are:

(1) IPD (Integrated Product Development): The IPD process is to make products;

(2) MTL (Market to Lead): The MTL process does not ultimately produce entities, but it teaches us about market segmentation, key customer selection, key market selection, marketing methods, marketing models, marketing materials, and lead management. The question of HOW, that is, the question of how to do it;

(3) LTC (lead to cash, lead to payment): The LTC process carries capital flow and logistics. The LTC process and the MTL process are directly close to the market, and they are the most important processes to make more and better “grain”;

(4) ITR (problem to solution);

(5) ISC supply chain process, etc.

The management system based on process construction is an operating system and a business operating system. The most important thing is to implement it into the organization, that is, the process-based organization construction and operation.

This article mainly introduces the IPD integrated product development system.

01 The value of the IPD system

The idea of ​​Integrated Product Development (IPD) comes from the PACE theory of PRTM Company in the United States. In this theory, all aspects of the industry’s best product development model are described in detail.

After IBM’s practice, Integrated Product Development (IPD) has become a system engineering that includes the ideas, patterns and tools of enterprise product development.

According to PRTM Consulting, the value brought by the successful implementation of IPD:

Time-to-market shortened by 40%-60%

Product development waste reduced by 50%-80%

Product development productivity increased by 25%-30%

100% increase in new product revenue (% of total revenue)

Take Huawei as an example: Huawei started the IPD project in cooperation with IBM in early 1999. IBM first conducted a comprehensive scan of Huawei’s R&D status. In-depth analysis of low-complexity projects showed that Huawei’s average development cycle was 74 weeks.

After 4 years of hard work, by 2003, the average R&D cycle of Huawei’s projects of this type had dropped to 48 weeks, a decrease of 35%.

What caused the dramatic shortening of the development cycle? An in-depth analysis of each stage of the product development process shows that it is the high investment in various fields in the early stage of the development process that shortens the overall development cycle.

The most important reason why the product development cycle before 1999 was long and the products could not meet customer needs in time was the lack or lack of attention to the concept and planning stage, the lack of full participation in various fields, and the insufficient investment in the concept and planning stage:

Insufficient investment in the concept phase resulted in design proposals being started before customer needs were clearly identified, and system design and outline design work started soon after.

Insufficient investment in the planning phase resulted in specific development work being initiated without a clear system design and specification, with the end result being that the development process was constantly interrupted by requirements and design changes.

At the verification and release stage, product and technical problems were exposed one after another, and revisions were made continuously, and even resulted in the product being sent to customers without rigorous testing and verification, and the customer site became a laboratory.

Other roles other than R&D, such as marketing, sales, procurement, manufacturing, etc., are basically not involved in the concept and planning stages, and their needs are not considered as a whole in the overall plan.

In the early stage, there was no in-depth analysis of requirements, technical difficulties and module reuse, which led to solving technical problems in the product development process, which also lengthened the research and development cycle.

After adopting the IPD process, the biggest change to product development is to form a cross-departmental team in various fields in the early stage. After the project is launched, it will be fully involved in synchronization, and each will carry out work in this field, and various problems will be identified at an early stage and strangled in the cradle. , and jointly responsible for the successful launch of the product.

While increasing upfront time and investment, “think before you do it” shortens the development, validation, and release phases, thereby reducing the overall product development cycle.

02 IPD overall process structure

Customer demand and business strategy are both driven.

Product strategy management: clarify the positioning and relationship of each product line/product, target customer group, product positioning and development direction.

Product Management: Manage product planning, development, production, marketing, sales, and support in the product life cycle.

Technology Management: Identify, plan, develop, apply and optimize the key technologies and shared technologies that are relied upon.

Demand management: analyze, identify, synthesize, sort, decompose, allocate, realize, and realize value management of internal and external requirements.

Performance and incentives: performance and incentive systems, salary structure, performance orientation and empowerment, non-material incentives.

Organization and Human Resource Management: Organizational setting, professional and compound talent echelon construction under the IPD system.

Support system: basic support system for project management, quality management, system engineering, configuration management, knowledge management, etc.

Process IT and change: IT carries the management system, and the management system continues to change and optimize.

03 Evolution Route of IPD Management System

04 The core idea of ​​the IPD system

From chance to necessity.

1) R&D is an investment behavior

There are two main lines of business operation: achieving the company’s business goals and meeting customer needs, both of which are indispensable. Therefore, put all R&D projects.

Managed as investments, including product development, platform and technology development, and research-based projects, considering the ROI of products, services, solutions and technologies from the start.

2) Demand-based R&D

Meeting customer needs is the foundation of an enterprise’s survival. No matter corporate strategy, market planning, product and technology planning, planning of various functional departments, or product and technology research and development, as well as other operating activities of the company, all must be carried out around customer needs.

3) Platform development

In order to improve the development efficiency of products, services and solutions, it is necessary to identify common technologies and key technologies in advance through requirements management, product and technology planning, and develop them independently, so that these resources can be called up during the product development process, so as to quickly respond to customers. Demand, improve quality, and reduce costs at the same time to achieve a leading edge.

4) Cross-departmental collaboration

Innovation and R&D are the behaviors of the whole company, and the baton-style product development process is difficult to ensure product quality. In the IPD system, whether it is demand management, product and technology planning, project task book development, product and technology research and development, product launch, or post-market life cycle management, cross-departmental teams are widely used to bring together professional wisdom in various fields. Form a joint force to jointly meet customer needs and be responsible for the commercial success of the product.

5) Structured process

The various processes in the IPD system are divided into several stages, and review points are set up in each stage, and the activities in the process are grouped by role to match the organizational structure.

6) Business and capability balance

It is important to respond quickly to market demands without ignoring internal capacity building. No matter how competitive a product is, there will be an end of life, but a business’s ability to build in a variety of ways enables it to continuously introduce new products. At different stages of enterprise development, strategic and selective focus can be placed on business development or the building of internal capabilities.

7) Flexible development, keep pace with the times

IPD is agile and must evolve with the times as it continually learns from industry best practices and solves business problems. Continuous change and optimization in order to adapt to the IPD system in the VUCA era.

In terms of management improvement and learning Western advanced management, Huawei’s policy is to “cut the feet and fit the shoes”, and the system is rigid first, then optimized, and then solidified! Learning business process transformation is not just learning a few concepts and imitating them. The key lies in learning the logic behind the business. Learn the laws of business management.

Eight steps to change:

05 Balance long-term and short-term profits

Businesses must continuously carry out various activities for business growth;

Must care about the future development direction of the enterprise with the same focus on the existing business;

A balanced approach is required between current business, new business and future optional business.

06 Choose the right market and provide the best solution

07 Enable efficient and parallel collaboration across departments and teams

08 Enable the project team to provide efficient service to customers

Businesses and projects drive process operations and operations, and functional departments provide capability support, breaking the boundaries of departments, subordinates, internal and external, and geographic and cultural boundaries to become a process organization.

09 Improve the investment-output ratio of enterprises

10 Business and Capability Balance

The resource department manager shall provide the resources needed to establish, implement, maintain, and improve the IPD, including human input for product realization and management system improvement.

Managers should follow pipeline management for resource allocation and cross-departmental resource coordination to ensure the combined application of resources.

At the same time, it is also necessary to provide corresponding capacity improvement plans for these human resources, providing IT and tools, knowledge management, occupational health and safety work environment.

11 Common tools and methods

In order to build an efficient R&D system, a series of tools and methods are introduced in the Integrated Product Development IPD.

These methods mainly include:

Optimizing the investment portfolio: Product development is an investment behavior, and by optimizing the investment portfolio, it supports the strategic goals of the enterprise;

Demand analysis: Based on market demand analysis, develop the demand that brings maximum value to customers and ensure product competitiveness;

Platform-based parallelism and reuse model: develop product platforms to help companies roll out product lines quickly and continuously;

Project and pipeline management: rationally plan project development plans through pipeline capacity analysis and project prioritization;

Metric-based evaluation and improvement: obtain baseline data through metrics for effective evaluation and improvement;

Structured process: By decomposing the process and expanding it layer by layer, ensure that each task can be reasonably executed;

Cross-departmental team: Through the ability to be involved in different functional departments, problems in the work can be detected as early as possible and rework can be avoided later;

Vibrant professional talent echelon: An enterprise is composed of talents, and dynamic professional talents are the greatest wealth of the enterprise. To build a professional talent echelon, ensure that the enterprise continues to maintain vitality and competitiveness.

Refer: Huawei can, you can too – Liu Jinsong, Hu Bigang; IPD public information, etc.

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This article was originally published by everyone is a product manager, and reprinting is prohibited without the author’s permission.

The title image is from Unsplash and is based on the CC0 protocol.