This text offers a new option for instructors interested in emphasizing a balance between products and services. Managing Product and Service Development is about the managerial aspects critical to conceiving, designing, and developing innovative products and services. The course exposes students to some of the best management practices, tools, and frameworks known today, and introduces new approaches that hold promise for the future. Many texts are either aimed at engineering or marketing specialists and do not adequately address the often difficult general management issues that arise in complex development project. This book does not require training or experience in a technical field but addresses the role of new technologies in product development. In this text students learn about innovation through exploration. All the material has been developed and tested in the MBA and executive education classroom at Harvard Business School. The Instructor's Manual (IM), as only part of this text's proven teaching materials, describes an optional student project that complements in-class sessions.

Stefan Thomke is Professor of Business Administration at Harvard Business School, and is currently faculty co-chairman of the doctoral program in Information, Technology and Management (I,T&M), a collaboration between HBS and Harvard's Faculty of Arts and Sciences.

Introduction

Module One: Building Capabilities for Experimentation, Learning and Prototyping

Module Overview

Case 1-1: The Final Voyage of the Challenger

Case 1-2: Apple Powerbook: Design Quality and Time to Market

Case 1-3: IDEO Product Development

Case 1-4: Bank of America

Article: R&D Comes to Services: Bank of America's Pathbreaking Experiments

Case 1-5: Team New Zealand

Article: Enlightened Experimentation: The New Imperative for Innovation

Case 1-6: Eli Lilly & Company: Drug Development Strategy

Module Two: Development Process Design and Improvement

Module Overview

Case 2-1: Innovation at 3M

Article: Creating Breakthroughs at 3M Note: Understanding User Needs

Case 2-2: Product Development at Dell Computer Corporation

Article: Agile Product Development: Managing Flexibility in Uncertain Environments

Case 2-3: Developing Products on Internet Time: A Process Design Exercise

Article: Developing Products on Internet Time

Case 2-4: BMW AG: The Digital Car Project

Article: The Effect of 'Front-Loading' Problem-Solving on Product Development Performance

Case 2-5: Bush Boake Allen

Article: Customers as Innovators: A New Way to Create Value

Module Three: Managing Development Networks

Module Overview

Case 3-1: Microsoft Office: Finding the Suite Spot

Note: Learning from Projects: Note on Conducting a Postmortem Analysis

Case 3-2: Weve Got Rhythm! Medtronic Corporations Cardiac Pacemaker Business

Article: Creating Project Plans to Focus Product Development

Case 3-3: Siemens AG: Global Development Strategy

Article: Building Effective R&D Capabilities Abroad

Case 3-4: Project Dreamcast: Serious Play at Sega Enterprises Ltd.

Article: Increasing Returns and the New World of Business

Case 3-5: Millennium Pharmaceuticals, Inc.

Article: Mastering the Value Chain: An Interview with Mark Levin of Millennium Pharmaceuticals