DOI QR코드

DOI QR Code

Optimizing the product portfolio for emerging markets

신흥시장 개척을 위한 최적 제품 포트폴리오

  • 이태훈 (성균관대학교 기술경영학과) ;
  • 이용승 (성균관대학교 기술경영학과) ;
  • 신준석 (성균관대학교 기술경영전문대학원/시스템경영공학과)
  • Published : 2018.11.30

Abstract

With the growing number of emerging carmakers, automotive parts manufacturers have to penetrate into emerging markets. They can provide large existing carmakers with fully customized parts because of economies scale, but cannot do this for small emerging carmakers due to their small and highly volatile volume order. Once the order by an emerging carmaker is placed, a part manufacturer is exposed to high risks both of decrease in profit margin and high opportunity cost. The platform-based mass customization can be a solution for cost reduction, but the risks of volatility in volume hard to manage. Tackling this issue, we presents a method of optimizing the product portfolio to maximize profits while managing volatility of volume order by emerging carmakers at an affordable level. It is the first robust product portfolio method to keep the scaled deviation of profits at a fixed level under volume order uncertainty. Also, the effect of on the platform-based mass customization on cost is considered. This model can be a building block of conservative market penetration as well as product development strategy while minimizing the financial risks. We conducted an empirical study of a part manufacturer targeting on eighteen automobile manufacturers in North America, Europe and Asia with it powered lift gate.

자동차 부품기업들은 플랫폼 기반 대량맞춤형 제품개발과 생산을 통해 비용절감과 아시아 신흥시장 수주 확대를 목표로 하고 있다. 그러나 신흥시장은 수주량이 적고, 변동성이 높아 목표 달성이 어렵다. 본 연구는 부품기업 관점에서 신흥시장의 수주량 변동성 위험을 적정 수준으로 관리하면서, 영업이익을 극대화할 수 있는 제품 포트폴리오 최적화 방법을 제안한다. 기존 제품 포트폴리오 최적화 접근법과의 차별점은 세가지다. 첫째, 플랫폼 기반 대량맞춤형 생산에 의한 비용 절감효과를 반영한다. 둘째, 수주량 변동성을 고려한다. 셋째, 최소 영업이익률 유지라는 강건성 조건을 반영한다. 실무적으로는 신흥시장 개척의 재무 위험을 최소한도로 유지하면서, 점진적으로 시장점유율을 높여가는 동적 제품개발 전략 수립의 토대를 제공한다. 북미, 유럽, 아시아 18개 업체에 납품하는 다국적 부품제조기업의 파워리프트게이트 제품을 대상으로 실증연구를 수행했다.

Keywords

References

  1. 곽기호.김원준 (2016). "제품 아키텍처가 추격 성과에 미치는 영향에 대한 탐색연구: 우리나라의 공작기계 수치제어장치 개발 사례를 중심으로," 기술혁신연구, 24(2), 21-56. https://doi.org/10.14383/SIME.2016.24.2.21
  2. 심상완.이공래 (2000). "한국 자동차부품산업의 기술능력 형성과 연구개발 네트워크의 변화," 기술혁신연구, Vol. 8, No. 1, pp. 49-71.
  3. 안태호.김명관 (2008). "R&D Project Portfolio 선정 문제," 경영과학, Vol. 25, No. 1, pp. 1-9.
  4. 전찬웅.신준석 (2014). "시스템다이내믹스와 복합 리얼옵션 기반 신. 재생에너지 기술가치평가," 대한산업공학회지, Vol. 40, No. 2, pp. 195-204. https://doi.org/10.7232/JKIIE.2014.40.2.195
  5. Abbassi, M., Ashrafi, M. and Tashnizi, E.S. (2014), "Selecting balanced portfolios of R&D projects with interdependencies: A Cross-Entropy based methodology", Technovation, Vol. 34, No. 1, pp. 54-63. https://doi.org/10.1016/j.technovation.2013.09.001
  6. Aigbedo, H. (2007), "An assessment of the effect of mass customization on suppliers' inventory levels in a JIT supply chain", European journal of operational research, Vol. 181, No. 2, pp. 704-715. https://doi.org/10.1016/j.ejor.2006.06.037
  7. Ait-Alla, A., Teucke, M., Lutjen, M., Beheshti-Kashi, S. and Karimi, H.R. (2014), "Robust production planning in fashion apparel industry under demand uncertainty via conditional value at risk", Mathematical problems in engineering, Vol. 2014, pp. 1-10.
  8. Ansoff, H.I. and McDonnell, E.J. (1988), The new corporate strategy, New York: John Wiley&Sons Inc.
  9. Arnold, D. J. and Quelch, J. A. (1998), "New strategies in the emerging markets", MIT Sloan Management Review, Vol. 40, Issue. 1, pp. 7-20.
  10. Baker, N.R. (1974), "R&D project selection models: An assessment", IEEE transactions on engineering management, No. 4, pp. 165-171.
  11. Balakrishnan, R., Linsmeier, T.J. and Venkatachalam, M. (1996), "Financial benefits from JIT adoption: Effects of customer concentration and cost structure", Accounting review, pp. 183-205.
  12. Barczak, G., Griffin, A. and Kahn, K.B. (2009), "Perspective: Trends and drivers of success in NPD practices: Results of the 2003 PDMA best practices study", Journal of product innovation management, Vol. 26, No. 1, pp. 3-23. https://doi.org/10.1111/j.1540-5885.2009.00331.x
  13. Bart, C. and Pujari, A. (2007), "The performance impact of content and process in product innovation charters", Journal of product innovation management, Vol. 24, No. 1, pp. 3-19. https://doi.org/10.1111/j.1540-5885.2006.00229.x
  14. Ben Mahmoud-Jouini, S. and Lenfle, S. (2010), "Platform re-use lessons from the automotive industry", International journal of operations & production management, Vol. 30, No. 1, pp. 98-124. https://doi.org/10.1108/01443571011012398
  15. Blau, G.E., Pekny, J.F., Varma, V.A. and Bunch, P.R. (2004), "Managing a portfolio of interdependent new product candidates in the pharmaceutical industry", Journal of product innovation management, Vol. 21, No. 4, pp. 227-245. https://doi.org/10.1111/j.0737-6782.2004.00075.x
  16. Bordley, R. (2003). "Determining the appropriate depth and breadth of a firm's product portfolio", Journal of marketing research, Vol. 40, No. 1, pp. 39-53. https://doi.org/10.1509/jmkr.40.1.39.19126
  17. Brander, J.A. and Eaton, J. (1984), "Product line rivalry", The american economic review, Vol. 74, No. 3, pp. 323-334.
  18. Chao, R.O. and Kavadias, S. (2008), "A theoretical framework for managing the new product development portfolio: When and how to use strategic buckets", Management science, Vol. 54, No. 5, pp. 907-921. https://doi.org/10.1287/mnsc.1070.0828
  19. Chufu, L., Xiaorong, H.E., Bingzhen, C.H.E.N., Qiang, X.U. and Chaowei, L.I.U. (2008), "A hybrid programming model for optimal production planning under demand uncertainty in refinery", Chinese journal of chemical engineering, Vol. 16, No. 2, pp. 241-246. https://doi.org/10.1016/S1004-9541(08)60070-1
  20. Coldrick, S., Longhurst, P., Ivey, P. and Hannis, J. (2005), "An R&D options selection model for investment decisions", Technovation, Vol. 25, pp. 185-193 https://doi.org/10.1016/S0166-4972(03)00099-3
  21. Cooper, J. and Griffiths, J. (1994), "Managing variety in automotive logistics with the rule of three", The international journal of logistics management, Vol. 5, No. 2, pp. 29-40 https://doi.org/10.1108/09574099410805180
  22. Cooper, R.G., Edgett, S.J. and Kleinschmidt, E.J. (1999), "New product portfolio management: practices and performance", Journal of product innovation management, Vol. 16, No. 4, pp. 333-351. https://doi.org/10.1111/1540-5885.1640333
  23. Cooper, R.G., Edgett, S.J. and Kleinschmidt, E.J. (2004), "Benchmarking best NPD practices-I", Research technology management, Vol. 47, No. 1, pp. 31-43. https://doi.org/10.1080/08956308.2004.11671606
  24. Dahmus, J.B., Gonzalez-Zugasti, J.P. and Otto, K.N. (2001), "Modular product architecture", Design studies, Vol. 22, No. 5, pp. 409-424. https://doi.org/10.1016/S0142-694X(01)00004-7
  25. Day, G.S. (1977), "Diagnosing the product portfolio", Journal of marketing, Vol. 41, No. 2, pp. 29-38. https://doi.org/10.1177/002224297704100213
  26. De Maio, A., Verganti, R. and Corso, M. (1994). "A multi-project management framework for new product development", European journal of operational research, Vol. 78, No. 2, pp. 178-191. https://doi.org/10.1016/0377-2217(94)90381-6
  27. Ericsson, A. and Erixon, G. (1999), Controlling design variants: modular product platforms, Society of Manufacturing Engineers.
  28. Farrell, R.S. and Simpson, T.W. (2008), "A method to improve platform leveraging in a market segmentation grid for an existing product line", Journal of mechanical design, Vol. 130, No. 3, pp. 403-414.
  29. Fujimoto, T. (2014), "The long tail of the auto industry life cycle", Journal of product innovation management, Vol. 31, No. 1, pp. 8-16. https://doi.org/10.1111/jpim.12076
  30. Griffin, A. (1997), "PDMA research on new product development practices: Updating trends and benchmarking best practices", Journal of product innovation management, Vol. 14, No. 6, pp. 429-458. https://doi.org/10.1111/1540-5885.1460429
  31. Haig Stoddard (2017), Global Light-Vehicle Production Outlook (China Becoming the World Hub?), WardsAuto.
  32. Heidenberger, K. and Stummer, C. (1999), "Research and development project selection and resource allocation: a review of quantitative modelling approaches", International journal of management reviews, Vol. 1, No. 2, pp. 197-224. https://doi.org/10.1111/1468-2370.00012
  33. Heising, W. (2012) "The integration of ideation and project portfolio management-A key factor for sustainable success", International journal of project management, Vol. 30, No. 5, pp. 582-595. https://doi.org/10.1016/j.ijproman.2012.01.014
  34. Henderson, B.D. (1979), "The product portfolio: growth share matrix of the Boston Consulting Group", The strategy process: concepts, contexts, cases, pp. 678-680.
  35. Hill, C.W. and Jones, T.M. (1992), "Stakeholder-agency theory", Journal of management studies, Vol. 29, No. 2, pp. 131-154. https://doi.org/10.1111/j.1467-6486.1992.tb00657.x
  36. Hanninen, K., Kinnunen, T., Haapasalo, H. and Muhos, M. (2013), "Rapid productisation: challenges and preconditions", International journal of product lifecycle management, Vol. 6, No. 3, pp. 211-227. https://doi.org/10.1504/IJPLM.2013.055877
  37. Hoelzl, M., Collins, M. and Roehm, H. (2009), A new era-Accelerating toward 2020-An automotive industry transformed, Deloitte touche tohmatsu, Stuttgart.
  38. Hu, S.J. (2013), "Evolving paradigms of manufacturing: from mass production to mass customization and personalization", Procedia The International Academy for Production Engineering(CIRP), Vol. 7, pp. 3-8.
  39. Iamratanakul, S., Patanakul, P. and Milosevic, D. (2008), "Project portfolio selection: From past to present. In Management of Innovation and Technology", 4th Internation Conference on Mechatronics and Information Technology(ICMIT) IEEE international conference, pp. 287-292.
  40. Jiao, J., Kumar, A. and Lim, C.M. (2006), "Flexibility valuation of product family architecture: a real-option approach", The international journal of advanced manufacturing technology, Vol. 30, No. 1, pp. 1-9. https://doi.org/10.1007/s00170-005-0020-2
  41. Kavadias, S. and Chao, R.O. (2007), Resource allocation and new product development portfolio management, Handbook of New Product Development Management, Routledge, pp. 135-163.
  42. Kester, L., Griffin, A., Hultink, E.J. and Lauche, K. (2011), "Exploring Portfolio Decision-Making Processes", Journal of product innovation management, Vol. 28, No. 5, pp. 641-661. https://doi.org/10.1111/j.1540-5885.2011.00832.x
  43. Killen, C.P., Hunt, R.A. and Kleinschmidt, E.J. (2008), "Project portfolio management for product innovation", International journal of quality & reliability management, Vol. 25, No. 1, pp. 24-38. https://doi.org/10.1108/02656710810843559
  44. Koren, Y., Heisel, U., Jovane, F., Moriwaki, T., Pritschow, G., Ulsoy, G. and Van Brussel, H. (1999), "Reconfigurable manufacturing systems", The International Academy for Production Engineering(CIRP) annals manufacturing technology, Vol. 48, No. 2, pp. 527-540.
  45. Kotha, S. (1994), "Mass customization: the new frontier in business competition. Academy of Management", The academy of management review, Vol. 19, No. 3, p. 588. https://doi.org/10.5465/amr.1994.9412271820
  46. Kumar, D., Chen, W. and Simpson, T.W. (2009), "A market-driven approach to product family design", International journal of production research, Vol. 47, No. 1, pp. 71-104. https://doi.org/10.1080/00207540701393171
  47. Lancaster, K. (1990), "The economics of product variety: A survey", Marketing science, Vol. 9, No. 3, pp. 189-206. https://doi.org/10.1287/mksc.9.3.189
  48. Liberatore, M. J. and Titus, G. J. (1983). "Synthesizing R&D planning and business strategy: Some preliminary findings", R&D management, Vol. 13, No. 4, pp. 207-218. https://doi.org/10.1111/j.1467-9310.1983.tb00020.x
  49. Liesio, J., Mild, P. and Salo, A. (2008). "Robust portfolio modeling with incomplete cost information and project interdependencies", European journal of operational research, Vol. 190, No. 3, pp. 679-695. https://doi.org/10.1016/j.ejor.2007.06.049
  50. Lint, O. and Pennings, E. (2001), "An option approach to the new product development process: a case study at Philips Electronics", R&D management, Vol. 31, No. 2, pp. 163-172. https://doi.org/10.1111/1467-9310.00206
  51. MacMillan, I.C., Hambrick, D.C. and Day, D.L. (1982), "The product portfolio and profitability-a PIMS-based analysis of industrial-product businesses", Academy of management journal, Vol. 25, No. 4, pp. 733-755. https://doi.org/10.2307/256096
  52. Meifort, A. (2016), "Innovation portfolio management: A synthesis and research agenda", Creativity and innovation management, Vol. 25, No. 2, pp. 251-269. https://doi.org/10.1111/caim.12109
  53. Menke, M.M. (2013), "Making R&D portfolio management more effective", Research technology management, Vol. 56, No. 5, pp. 34-44. https://doi.org/10.5437/08956308X5605128
  54. Meyer, M.H. and Lehnerd, A.P. (1997), The power of product platforms, New York, Simon and Schuster.
  55. Meyer, M.H. and Utterback, J.M. (1993), "The product family and the dynamics of core capability", Sloan management review, Vol. 34, No. 3, p. 29.
  56. Michalek, J.J., Ebbes, P., Adiguzel, F., Feinberg, F.M. and Papalambros, P.Y. (2011), "Enhancing marketing with engineering: Optimal product line design for heterogeneous markets", International journal of research in marketing, Vol. 28, No. 1, pp. 1-12. https://doi.org/10.1016/j.ijresmar.2010.08.001
  57. Mikkola, J.H. (2001), "Portfolio management of R&D projects: implications for innovation management", Technovation, Vol. 21 No. 4, pp. 23-35
  58. Mohr, D., Muller, N., Krieg, A., Gao, P., Kaas, H.W., Krieger, A. and Hensley, R. (2013), The road to 2020 and beyond: What's driving the global automotive industry, McKinsey, Vol. 28, No. 3.
  59. O'Reilly 3rd, C.A. and Tushman, M.L. (2004), "The ambidextrous organization", Harvard business review, Vol. 82, No. 4, pp. 74-81.
  60. Pasche, M., Persson, M. and Lofsten, H. (2011), "Effects of platforms on new product development projects", International journal of operations & production management, Vol. 31, No. 11, pp. 1144-1163. https://doi.org/10.1108/01443571111178475
  61. Pine, B.J. (1993), Mass customization: the new frontier in business competition, Harvard Business Press.
  62. Prieto, V.C. and de Carvalho, M.M. (2011), "Strategic alignment and performance: Brazilian companies in the medical diagnostics sector", The service industries journal, Vol. 31, No. 9, pp. 1405-1427. https://doi.org/10.1080/02642060903576050
  63. Randall, T. and Ulrich, K. (2001), "Product variety, supply chain structure, and firm performance: Analysis of the US bicycle industry", Management science, Vol. 47, No. 12, pp. 1588-1604. https://doi.org/10.1287/mnsc.47.12.1588.10237
  64. Robertson, D. and Ulrich, K. (1998), "Planning for product platforms", Sloan management review, Vol. 39, No. 4, p. 19.
  65. Rothaermel, F.T., Hitt, M.A. and Jobe, L.A. (2006), "Balancing vertical integration and strategic outsourcing: effects on product portfolio, product success, and firm performance", Strategic management journal, Vol. 27, No. 11, pp. 1033-1056. https://doi.org/10.1002/smj.559
  66. Rubera, G., Chandrasekaran, D. and Ordanini, A. (2016), "Open innovation, product portfolio innovativeness and firm performance: the dual role of new product development capabilities", Journal of the academy of marketing science, Vol. 44, No. 2, pp. 166-184. https://doi.org/10.1007/s11747-014-0423-4
  67. Sawhney, M.S. (1998), "Leveraged high-variety strategies: from portfolio thinking to platform thinking", Journal of the academy of marketing science, Vol. 26, No. 1, pp. 54-61. https://doi.org/10.1177/0092070398261006
  68. Shimokawa, K., Jurgens, U. and Fujimoto, T. Eds. (2012), Transforming automobile assembly: experience in automation and work organization, Springer Science & Business Media.
  69. Simpson, T.W., Jiao, J., Siddique, Z. and Holtta-Otto, K. (2014), Advances in product family and product platform design, Springer.
  70. Souder, W. E. (1973). "Utility and perceived acceptability of R&D project selection models", Management science, Vol. 19, No. 12, pp. 1384-1394. https://doi.org/10.1287/mnsc.19.12.1384
  71. Sturgeon, T.J., Memedovic, O., Van Biesebroeck, J. and Gereffi, G. (2008), "Globalisation of the automotive industry: main features and trends", International journal of technological learning, innovation and development, Vol. 2, No. 1-2, pp. 7-24.
  72. Sundgren, N. (1999), "Introducing interface management in new product family development", Journal of Product Innovation Management, Vol. 16, No. 1, pp. 40-51. https://doi.org/10.1111/1540-5885.1610040
  73. Tseng, M.M., Jiao, J. and Merchant, M.E. (1996), "Design for mass customization", The International Academy for Production Engineering(CIRP) annals manufacturing technology, Vol. 45, No. 1, pp. 153-156.
  74. Van Bekkum, S., Pennings, E. and Smit, H. (2009), "A real options perspective on R&D portfolio diversification", Research policy, Vol. 38, No. 7, pp. 1150-1158. https://doi.org/10.1016/j.respol.2009.03.009
  75. Wan, X., Evers, P.T. and Dresner, M.E. (2012), "Too much of a good thing: The impact of product variety on operations and sales performance", Journal of operations management, Vol. 30, No. 4, pp. 316-324. https://doi.org/10.1016/j.jom.2011.12.002
  76. Womack, J.P., Jones, D.T. and Roos, D. (1990), Machine that changed the world, Simon and Schuster.