Outsourced Product Development Refreshes Current Cash Cow
Global Innovation > Outsourced Product Development Refreshes Current Cash Cow
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A management consultancy firm advising American companies how to increase revenues and reduce costs by leveraging the economies of China and India.
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Client Challenge
A combination of frozen R&D budgets and large new initiatives to support green and sustainable product lines made it impossible for a 550 person R&D team to make minor feature improvements to current products in a timely manner.
Amritt-Client Process
While the client’s field did not lend itself for traditional outsourced product development, the Amritt team identified two Asian product companies in the same business as the client whose R&D leaders were eager for a western collaboration. Amritt guided the client and the Asiancompanies into coming to terms over Intellectual property, competition and schedule issues to produce mutual wins.
Impact
One product family was able to benefit from a rapid product refresh cycle over a period of six months. The client’s team involvement was limited to 10 percent of one project managers’ time. A second product family where product upgrades were not even on the R&D calendar was added to the initiatives and a team of 14 scientists and engineers were allocated by the India partner. The client hired a fulltime junior project manager to track this initiative. Critical R&D talent on the client side was not diverted to any of these initiatives.
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