2.1 - Govern and manage product/service development program
PCF ID: 19696 | Elements: 41 | Metrics Available: Y | Benchmarkable: 5
Definition
Supervising the complete product/service program from innovation until its commercial success. Meeting the customer demand and expectations. Conduct further development and innovation pertaining to business goals.
Overview
This process group covers govern and manage product/service development program within the broader context of Develop and Manage Products and Services.
Process Hierarchy
Processes
| ID | Process | PCF ID | Sub-elements | Metrics |
|---|---|---|---|---|
| 2.1.1 | Manage product and service portfolio | 10061 | 6 | Y |
| 2.1.2 | Manage product and service life cycle | 10067 | 12 | Y |
| 2.1.3 | Manage patents, copyrights, and regulatory requirements | 19985 | 8 | N |
| 2.1.4 | Manage product and service master data | 11740 | 10 | Y |
2.1.1 - Manage product and service portfolio
PCF ID: 10061
Definition: Managing a portfolio of product/service offerings to take advantage of shifts in the market expectations, all the while coordinating with the overall business strategy. Revisit the product/service portfolio in light of market opportunities, and overhaul it to capture value created by these opportunities. Identify gaps between current offerings and the market expectations to direct the organization's R&D activity. Create new solutions, and revise or retire existing ones so that the revamped portfolio aligns with Develop a business strategy [10015].
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 2.1.1.1 | Evaluate performance of existing products/services against market opportunities | 10063 | 0 | Y |
| 2.1.1.2 | Confirm alignment of product/service concepts with business strategy | 10066 | 0 | N |
| 2.1.1.3 | Prioritize and select new product/service concepts | 10074 | 0 | N |
| 2.1.1.4 | Plan and develop cost and quality targets | 10073 | 0 | N |
| 2.1.1.5 | Specify development timing targets | 10075 | 0 | N |
| 2.1.1.6 | Plan for product/service offering modifications | 10076 | 0 | N |
2.1.1.1 - Evaluate performance of existing products/services against market opportunities
Definition: Assessing the capabilities and performance of existing products/services, in light of market opportunities. Examine performance of the existing line of products/services, including measures of profitability, penetration, and value delivered. Identify gaps between existing solutions' portfolio or their performance levels, on the one hand, and the current market demand, available technologies, and/or customer expectations, on the other. Consider opportunities in the present market environment and any relation with the performance. Consider input from professional services providers.
2.1.1.2 - Confirm alignment of product/service concepts with business strategy
Definition: Checking the alignment of product/service portfolio, and its individual offerings, with the organization's overall strategy and planning for the development of new or revised solutions. Conduct reality checks on new product/service concepts prior to committing significant investment to ensure that the revamped solutions' portfolio is in line with the overall business strategy, aligns organizational processes for their development, and creates a plan for assimilating these changes in the organization's offerings. Enlist senior management executives.
2.1.1.3 - Prioritize and select new product/service concepts
Definition: Selecting from among the potential new/revised solutions and capitalizing on market opportunities so that they meet the cost and quality prerequisites. Create an index of product/service concepts, and arrange them in order of preference. Base prioritization on adherence to Plan and develop cost and quality targets [10073], and choose options that would comprise the revised solution portfolio.
2.1.1.4 - Plan and develop cost and quality targets
Definition: Setting prerequisites for the cost of development and quality standards for the new solutions' portfolio and/or its individual offerings. Set targets for the budget and quality standards for the revamped portfolio of solution offerings. Prepare a plan for the outlay required for revising and adding new product/services. Identify intended levels of quality for these, bearing in mind the existing standards of solutions offered by the organization and its competitors. Enlist senior management executives, particularly those responsible for finance and budgeting, product/service design, manufacturing/processing, delivery, and quality control.
2.1.1.5 - Specify development timing targets
Definition: Determining the individual and collective timeframe for realizing new/revised solutions. Create a schedule that clearly demarcates the timeframes designated for the development of every new solution and/or revising each of the existing ones. Create a timetable by setting deadlines for each step in overhauling the product/service portfolio.
2.1.1.6 - Plan for product/service offering modifications
Definition: Developing a programmatic procedure for changing products/services while paying heed to all stakeholders involved and the prerequisites identified. Create a plan for changing the existing portfolio of solution offerings. Develop a systematic program for the design, processing, and delivery of the new product/service concepts. Construct project-flow diagrams. Identify the stakeholders involved and personnel responsible for each stage, as well as the necessary decisions. Earmark the budgetary outlay, and conduct any strategic planning required.
2.1.2 - Manage product and service life cycle
PCF ID: 10067
Definition: Manage the introduction and withdrawal of products/services. Administer associated changes, namely measuring the performance of new solution offerings and the revision of master files in the archives.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 2.1.2.1 | Develop plan for new product/service development and introduction/launch | 16824 | 0 | N |
| 2.1.2.2 | Introduce new products/services | 10077 | 0 | N |
| 2.1.2.3 | Retire outdated products/services | 10078 | 0 | N |
| 2.1.2.4 | Identify and refine performance indicators | 10079 | 0 | N |
| 2.1.2.5 | Conduct post launch review | 11423 | 7 | N |
2.1.2.1 - Develop plan for new product/service development and introduction/launch
Definition: Developing a program and managing a perspective for new product/service introduction and launch.
2.1.2.2 - Introduce new products/services
Definition: Launching revamped product/service portfolio in to the market. Introduction in to the marketplace is done by deploying effective channels for marketing, sales, delivery, and after-sales servicing. Introduce new/revised solution offerings in a concerted effort. Coordinate a cross-functional effort.
2.1.2.3 - Retire outdated products/services
Definition: Removing nonconforming products and services. Withdraw those products/services that do not conform to market realities and are not positioned to take advantage of prevailing opportunities. Coordinate with processing/delivery teams within the organization and key stakeholders in the supply chain. Create mechanisms for continued after-sales servicing, as well as deploy effective public relations efforts in order to preserve the image and goodwill of the organization through the process.
2.1.2.4 - Identify and refine performance indicators
Definition: Attuning the performance measures of products/services to better reflect the revamped portfolio of solution offerings. Revise the parameters used to measure performance, apropos the organization's product/service offerings. (Modify these standards in consideration of the changes made to the portfolio by Introduce new products/services [10077] and Retire outdated products/services [10078].)
2.1.2.5 - Conduct post launch review (7 tasks)
Definition: Learning from either a test or a full production run within the consumer market. Companies use this as an opportunity to both test and react to new products, ideas, or innovations based on the initial reaction of consumers on an individual level. Within this process, analytics are used to determine the relative success of a new product offering. Within this process, companies will launch key analytics to test a products acceptance. They will also review market performance and compare to similar products and against the business case or the financial plan. Companies can also measure the effectiveness of their supply chain network, and can apply what is learned from the post launch review to other new products, processes, and procedures to ensure and enhance the product quality.
| ID | Task | PCF ID | Definition |
|---|---|---|---|
| 2.1.2.5.1 | Carry out post launch analytics to test the accept... | 19646 | Measuring the performance of marketing once the product/services are launched. T... |
| 2.1.2.5.2 | Review market performance | 11424 | Conducting customer and market analysis to review progress and identify opportun... |
| 2.1.2.5.3 | Review effectiveness of supply chain and distribut... | 11425 | Determining the performance of supply chain to all departments and logistics fro... |
| 2.1.2.5.4 | Apply data and analytics to review supply chain me... | 19647 | Collecting and examining raw data with the purpose of drawing conclusions about ... |
| 2.1.2.5.5 | Review quality and performance of the product/serv... | 11426 | Identifying the quality and performance of the product/service delivered to cust... |
| 2.1.2.5.6 | Conduct financial review | 11427 | Evaluating organization's financial reports and financial reporting processes. R... |
| 2.1.2.5.7 | Conduct new product development process assessment | 11428 | Analyzing the steps involved in the development of new product, its effect on ex... |
2.1.3 - Manage patents, copyrights, and regulatory requirements
PCF ID: 19985
Definition: Determining the attributes necessary to protect and safeguard intellectual assets, maximize the value of IP assets through streamlined process, and collaboration between departments. Focus on needs to safeguard, critical assets, and assets' value.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 2.1.3.1 | Conduct mandatory and elective reviews | 19941 | 0 | N |
| 2.1.3.2 | Review infringement of patents and copyrights | 16826 | 0 | N |
| 2.1.3.3 | Determine patent and copyright needs | 16827 | 0 | N |
| 2.1.3.4 | Define product technical documentation management requirements | 19697 | 0 | N |
| 2.1.3.5 | Manage regulatory requirements | 12771 | 3 | N |
2.1.3.1 - Conduct mandatory and elective reviews
Definition: Conducting necessary performance reviews on enforcement of processes and steps to ensure protection. Determine policies and reviews for Manage patents, copyrights, and regulatory requirements [19985].
2.1.3.2 - Review infringement of patents and copyrights
Definition: Reviewing activities in regards to patentability and infringement. The usage of Open Source in commercial product development will be reviewed in regard to licensing, community development, etc.
2.1.3.3 - Determine patent and copyright needs
Definition: Determining the business need for patents and copyrights. The patents and copyrights are managed by Manage copyrights and patents [11062].
2.1.3.4 - Define product technical documentation management requirements
Definition: Defining sourcing and procurement requirements for new product technical documentation management. Make sourcing-based decisions that identify the capabilities that will be required in order to launch the new product. This documentation will be used to support the product following entry into service. It is compiled and managed in Manage product and process related data [12082], but the capability to manage and maintain this documentation must be defined and established.
2.1.3.5 - Manage regulatory requirements (3 tasks)
Definition: Aligning regulatory activities related to managing industry requirements. Train employees on regulatory requirements. Records for the appropriate regulatory agencies must be maintained and the new product process must be approved by the appropriate regulatory body before it is published to the organization. The submission lifecycle - i.e. creation, review, and approval of the submission and its components must be managed in a collaborative fashion.
| ID | Task | PCF ID | Definition |
|---|---|---|---|
| 2.1.3.5.1 | Train employees on appropriate regulatory requirem... | 12772 | Conducting training and impart learning to existing and new employees. Training ... |
| 2.1.3.5.2 | Maintain records for regulatory agencies | 12773 | Identifying steps and procedures to manage and regularly update the records for ... |
| 2.1.3.5.3 | Manage regulatory submission life cycle | 12776 | Determine and follow the timely input and update of regulatory information by as... |
2.1.4 - Manage product and service master data
PCF ID: 11740
Definition: Controlling/authorizing to enable services' and products' data and other critical data of these functions through a well secured storage and accessibility processes backed by siloed applications/IT systems.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 2.1.4.1 | Manage materials master lists | 11741 | 0 | N |
| 2.1.4.2 | Manage bills of material | 11742 | 0 | N |
| 2.1.4.3 | Manage routings | 11743 | 0 | N |
| 2.1.4.4 | Manage specifications | 11744 | 0 | N |
| 2.1.4.5 | Manage drawings | 11745 | 0 | N |
| 2.1.4.6 | Manage product/material classification | 11746 | 0 | N |
| 2.1.4.7 | Develop and maintain quality/inspection documents | 11747 | 0 | N |
| 2.1.4.8 | Maintain process specification data | 11748 | 0 | N |
| 2.1.4.9 | Manage traceability data | 11749 | 0 | N |
| 2.1.4.10 | Review and approve data access requests | 11750 | 0 | N |
2.1.4.1 - Manage materials master lists
Definition: Controlling the details of materials' storage and utilization, supplier details linked to materials, in a defined sequential manner and ensuring regular updates with permissible accessibility.
2.1.4.2 - Manage bills of material
Definition: Managing the purchase details/bills through regular and error free updates to applications. Create manual entries wherever necessary and ensure timely review of the laid processes and systems.
2.1.4.3 - Manage routings
Definition: Controlling and executing the flow of operations from raw form to finished product in a defined format using industry applications/routing sheets for the specific product/service layout.
2.1.4.4 - Manage specifications
Definition: Direct, supervise, and control the product/service details necessary to execute the process. Adhere to details and descriptions for product/service through identified or guided parameters towards final outcome in the market with due critical analysis formed on organizational objectives.
2.1.4.5 - Manage drawings
Definition: Administering the specifications of the product/service and ensure accessibility for product alteration/new product development.
2.1.4.6 - Manage product/material classification
Definition: Controlling the details of the product and the input materials. Manage classification throughout the production process, and for future accessibility to new product development or product enrichment.
2.1.4.7 - Develop and maintain quality/inspection documents
Definition: Determining procedures required to assess the sustainability of defined criterion for product/service delivery to customers. Retain results for further review as a procedural practice.
2.1.4.8 - Maintain process specification data
Definition: Directing and handling data with respect to the procedures followed across different functions and mission critical applications.
2.1.4.9 - Manage traceability data
Definition: Identifying and handling data accessed by the permitted touch points. Ensure that no data is accessible to any unnecessary recipient. Data flow should be controlled through secured access and free from unauthorized access.
2.1.4.10 - Review and approve data access requests
Definition: Determining the requests pertaining to data accessibility. Review the requester details based on internal data security policies and permit data access only if internal policies and data access parameters are met.
Change Summary (v7.2.1 vs v6.1.1)
Changes indicated by:
+XXXXX- New element added-XXXXX- Element removedcXXXXX- Element changedNEW- Newly introduced
Complete Element List with Definitions
All 41 elements
| ID | Name | Definition |
|---|---|---|
| 2.1 | Govern and manage product/service development program | Supervising the complete product/service program from innovation until its commercial success. Meeti... |
| 2.1.1 | Manage product and service portfolio | Managing a portfolio of product/service offerings to take advantage of shifts in the market expectat... |
| 2.1.1.1 | Evaluate performance of existing product... | Assessing the capabilities and performance of existing products/services, in light of market opportu... |
| 2.1.1.2 | Confirm alignment of product/service con... | Checking the alignment of product/service portfolio, and its individual offerings, with the organiza... |
| 2.1.1.3 | Prioritize and select new product/servic... | Selecting from among the potential new/revised solutions and capitalizing on market opportunities so... |
| 2.1.1.4 | Plan and develop cost and quality target... | Setting prerequisites for the cost of development and quality standards for the new solutions' portf... |
| 2.1.1.5 | Specify development timing targets | Determining the individual and collective timeframe for realizing new/revised solutions. Create a sc... |
| 2.1.1.6 | Plan for product/service offering modifi... | Developing a programmatic procedure for changing products/services while paying heed to all stakehol... |
| 2.1.2 | Manage product and service life cycle | Manage the introduction and withdrawal of products/services. Administer associated changes, namely m... |
| 2.1.2.1 | Develop plan for new product/service dev... | Developing a program and managing a perspective for new product/service introduction and launch. |
| 2.1.2.2 | Introduce new products/services | Launching revamped product/service portfolio in to the market. Introduction in to the marketplace is... |
| 2.1.2.3 | Retire outdated products/services | Removing nonconforming products and services. Withdraw those products/services that do not conform t... |
| 2.1.2.4 | Identify and refine performance indicato... | Attuning the performance measures of products/services to better reflect the revamped portfolio of s... |
| 2.1.2.5 | Conduct post launch review | Learning from either a test or a full production run within the consumer market. Companies use this ... |
| 2.1.2.5.1 | Carry out post launch analytics to test ... | Measuring the performance of marketing once the product/services are launched. This broadly covers m... |
| 2.1.2.5.2 | Review market performance | Conducting customer and market analysis to review progress and identify opportunities for increasing... |
| 2.1.2.5.3 | Review effectiveness of supply chain and... | Determining the performance of supply chain to all departments and logistics from input to shop floo... |
| 2.1.2.5.4 | Apply data and analytics to review suppl... | Collecting and examining raw data with the purpose of drawing conclusions about that information and... |
| 2.1.2.5.5 | Review quality and performance of the pr... | Identifying the quality and performance of the product/service delivered to customers. Analyze data ... |
| 2.1.2.5.6 | Conduct financial review | Evaluating organization's financial reports and financial reporting processes. Review and document t... |
| 2.1.2.5.7 | Conduct new product development process ... | Analyzing the steps involved in the development of new product, its effect on existing product, reso... |
| 2.1.3 | Manage patents, copyrights, and regulato... | Determining the attributes necessary to protect and safeguard intellectual assets, maximize the valu... |
| 2.1.3.1 | Conduct mandatory and elective reviews | Conducting necessary performance reviews on enforcement of processes and steps to ensure protection.... |
| 2.1.3.2 | Review infringement of patents and copyr... | Reviewing activities in regards to patentability and infringement. The usage of Open Source in comme... |
| 2.1.3.3 | Determine patent and copyright needs | Determining the business need for patents and copyrights. The patents and copyrights are managed by ... |
| 2.1.3.4 | Define product technical documentation m... | Defining sourcing and procurement requirements for new product technical documentation management. M... |
| 2.1.3.5 | Manage regulatory requirements | Aligning regulatory activities related to managing industry requirements. Train employees on regulat... |
| 2.1.3.5.1 | Train employees on appropriate regulator... | Conducting training and impart learning to existing and new employees. Training will relate to the m... |
| 2.1.3.5.2 | Maintain records for regulatory agencies | Identifying steps and procedures to manage and regularly update the records for regulatory agencies.... |
| 2.1.3.5.3 | Manage regulatory submission life cycle | Determine and follow the timely input and update of regulatory information by assessing reforms, reg... |
| 2.1.4 | Manage product and service master data | Controlling/authorizing to enable services' and products' data and other critical data of these func... |
| 2.1.4.1 | Manage materials master lists | Controlling the details of materials' storage and utilization, supplier details linked to materials,... |
| 2.1.4.2 | Manage bills of material | Managing the purchase details/bills through regular and error free updates to applications. Create m... |
| 2.1.4.3 | Manage routings | Controlling and executing the flow of operations from raw form to finished product in a defined form... |
| 2.1.4.4 | Manage specifications | Direct, supervise, and control the product/service details necessary to execute the process. Adhere ... |
| 2.1.4.5 | Manage drawings | Administering the specifications of the product/service and ensure accessibility for product alterat... |
| 2.1.4.6 | Manage product/material classification | Controlling the details of the product and the input materials. Manage classification throughout the... |
| 2.1.4.7 | Develop and maintain quality/inspection ... | Determining procedures required to assess the sustainability of defined criterion for product/servic... |
| 2.1.4.8 | Maintain process specification data | Directing and handling data with respect to the procedures followed across different functions and m... |
| 2.1.4.9 | Manage traceability data | Identifying and handling data accessed by the permitted touch points. Ensure that no data is accessi... |
| 2.1.4.10 | Review and approve data access requests | Determining the requests pertaining to data accessibility. Review the requester details based on int... |
Back to: Category 2.0 - Develop and Manage Products and Services | APQC PCF Overview | Full Glossary