Accessories market for consumer electronics is very fast paced due to continuous release of new gadgets and devices, especially smart phones and tablets. With each new release of a smart phone, one has to release matching accessories like chargers, protective cases, cables. In following section, we will list down key dynamics of this industry and then see what benefits you can get by implementing Agile PPM to manage NPI projects.
Short Product Lifecycle:
Since new models are released every year or so, life cycle of related accessories is very short. New models have to be designed, manufactured, marketed and sold in very short period of time.
Time to Market
If you look at the revenue model of these products, over 90% of the products revenue is typically earned in first couple of months after device is released. E.g. if you are designing a case for a IPhone, 90% of the revenue for case will be earned in first 1-3 months. After that, demand for such accessories rapidly declines due to short product life cycle of the specific iPhone model. If you are unable to release your product in market in first few months, basically you lose whole opportunity for that specific model.
Lack of Information
Another big challenge is lack of information about new devices. Big manufacturers are very sensitive to releasing details about new models.
Companies , working in this environment, want to optimize new product introduction process as much as possible to seize every possible improvement opportunity. This includes redesigning and optimizing processes, collaborating with partners, leverage existing assets (designs, materials, technology) as much as possible.
Lets talk about how Agile PPM, product portfolio management module in Agile PLM, can help to manage these challenges.
Use Project Templates
Building new models of the accessories for newer devices is typically very predictable process. This is because you have to go through similar product development process to build a case for it. Using project management templates helps to optimize the project management process. You can build project templates with all necessary tasks, document templates (quality reports, financial models, marketing collateral) and project team roles. With templates, initiating a new project becomes very efficient, without thinking about such details again.
Integrate Project Data across product value chain
You need very strong integration with product data management tools in order to successfully execute a project. You can use an integrated platform like Agile PLM to integrate NPI projects with your product records across whole product value chain, including your suppliers and vendors. You can assign project tasks directly to the vendor to build prototypes for new device. Once you receive prototypes, you can review and submit first article inspection reports using the same platform.
Secure Product Data
Security is another big concern for device as well as accessories manufacturers. You have to comply with certain standards in order to qualify for early release of device information. Since you are building accessories for multiple devices from different vendors, your IT solution should have very tight controls to protect that device information before it is actually released. Agile PLM provides a very robust security model to control access at a very detailed level (parts, field, attachment etc).
In this hyper competitive market, you need to identify every possible improvement across product development process. BI tools, like OPLA ,provide analytical insight into NPI process. You can measure various KPIs and find correlation between various activities to better plan NPI projects.