MUMBAI, August 28, 2014 /PRNewswire/ --
Product Cost is gaining increasing importance and is a point of differentiation in the market, with customers demanding 'More for Less'. With large external factors beyond the control of organisations, they now need to focus on controlling internal costs that include manufacturing costs, quality costs etc. Typically 80% of the manufacturing cost of a product is determined once the design is finalised. Needless to say, marginal reduction in product cost has a direct and huge impact on the organisation's profitability.
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The traditional approach to reduce product cost has been dominated by the functional cost assessment and value engineering approach that often provides quick results but with certain limitations. Thus, in order to maintain product value and cost equilibrium, it is increasingly becoming important to shift focus towards innovation. It is the need of the hour to have a radical change in the prevalent techniques for rationalising product cost and move towards leveraging the models and tools of innovation. Innovation is fast becoming the key lever, which can drive organisations towards growth and sustainability in the long run.
Effective and systematic use of various models of innovations like - Job To Be Done (JTBD) and outcome expectations that redefine the product design methodology, TRIZ- Theory of Inventive Problem Solving that suggests mapping of abstracted problems and their related solutions irrespective of their subject matter, and Bio-mimicry that seeks to map solutions offered by nature into the product design, are fast gaining popularity and have reaped huge benefits for organisations that have implemented them.
Andre Gide, Nobel Laureate in Literature (1947) once said, "You cannot discover new oceans unless you have the courage to lose the sight of the shore." To make this happen, fundamental changes are needed, accompanied by change in perspectives of organisations. In a nutshell, it is time to innovate or die.
For additional information, please visit http://www.bmgindia.com/bmgi-presents-its-innovation-perspective-on-product-cost-at-cii-manufacturing-innovation-conclave
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About BMGI
Breakthrough Management Group International (BMGI) is a global consulting firm with a strong focus on delivering results, partners with organisations in various stages of their business life cycle, to transform their business performance. BMGI is recognised as the world leader in harnessing the power of cutting-edge techniques in the area of innovation, strategy, problem solving and business transformation for achieving tangible business results. BMGI enables businesses drive growth and improve profitability. Headquartered in the US, BMGI has offices in 13 countries around the globe. BMGI has delivered cumulative benefits to its clients worth several billion dollars with an ROI of 5:1 to 20:1.
For more information, please visit www.bmgindia.com
Media Contact: Deepak Panda, [email protected], +91-9987303383, +91-22-40020045, Head Business Development, BMGI India
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