Product details

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Authors: Francesco Barbini (Fondazione Bologna University Business School); Niccolò Cocchi (Fondazione Bologna University Business School); Paola Giuri (Fondazione Bologna University Business School)
Originally published in: 2022
Revision date: 08-Mar-2022

Abstract

This case explores the dilemmas that SCM has to face to target its new product development (NPD) process to the new competitive arena. SCM is a manufacturer, global leader of woodworking machines and solutions; it accounts for €700 million of turnover per year, takes 4000 employees worldwide, has three main production sites, and invests 7% of its turnover in R&D. In 2021, SCM’s mission is to make its machines and technological solutions digital, connected, and integrated to accompany the digital transformation process of customer businesses and help them achieve higher performances at their factories in terms of efficiency and productivity. SCM adopted an NPD process based on the Stage-Gate in 2012, and its benefits have been assimilated throughout all the departments. The Stage-Gate has enabled close alignment across and between each organizational unit involved in the NPD process and reduced the likelihood of false market launches, facilitated estimates of time to market, and brought to bear the connection of NPD processes to the company’s economic performance. Despite those benefits, external forces are now pushing SCM to rethink at least part of the NPD process: the woodworking industry is in the middle of a digital transformation process. For manufacturers undertaking NPD like SCM, digital transformation means smart new products with embedded software. It seems that there is a strong case for changing the existing NPD system, but what are the costs and risks involved, let alone the likely impact on organizational culture and performance? Would it be better to re-structure and operationalize different Stage-Gate versions rather than bring about wholesale change? Would this be enough? Alternatively, should SCM replace the Stage-Gate with an Agile model, operate both, or develop some hybrid model? It is not an easy decision.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2021.

Geographical setting

Region:
Europe
Country:
Italy
Locations:
Rimini; Emilia Romagna

Featured company

SCM Group
Employees:
1001-5000
Turnover:
EUR More than 700 million
Type:
Privately held
Industry:
Woodworking machinery; Creation, production, and distribution of technologically advanced solutions

Featured protagonists

  • Roberto Conti (male), CEO
  • Simona Rossi (female), Sales and Marketing Manager
  • Amelia De Matteis (female), Software Product Manager
  • Filippo Bianchi (male), Industrial Director
  • Eva Campanella (female), Quality Manager

About

Abstract

This case explores the dilemmas that SCM has to face to target its new product development (NPD) process to the new competitive arena. SCM is a manufacturer, global leader of woodworking machines and solutions; it accounts for €700 million of turnover per year, takes 4000 employees worldwide, has three main production sites, and invests 7% of its turnover in R&D. In 2021, SCM’s mission is to make its machines and technological solutions digital, connected, and integrated to accompany the digital transformation process of customer businesses and help them achieve higher performances at their factories in terms of efficiency and productivity. SCM adopted an NPD process based on the Stage-Gate in 2012, and its benefits have been assimilated throughout all the departments. The Stage-Gate has enabled close alignment across and between each organizational unit involved in the NPD process and reduced the likelihood of false market launches, facilitated estimates of time to market, and brought to bear the connection of NPD processes to the company’s economic performance. Despite those benefits, external forces are now pushing SCM to rethink at least part of the NPD process: the woodworking industry is in the middle of a digital transformation process. For manufacturers undertaking NPD like SCM, digital transformation means smart new products with embedded software. It seems that there is a strong case for changing the existing NPD system, but what are the costs and risks involved, let alone the likely impact on organizational culture and performance? Would it be better to re-structure and operationalize different Stage-Gate versions rather than bring about wholesale change? Would this be enough? Alternatively, should SCM replace the Stage-Gate with an Agile model, operate both, or develop some hybrid model? It is not an easy decision.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2021.

Geographical setting

Region:
Europe
Country:
Italy
Locations:
Rimini; Emilia Romagna

Featured company

SCM Group
Employees:
1001-5000
Turnover:
EUR More than 700 million
Type:
Privately held
Industry:
Woodworking machinery; Creation, production, and distribution of technologically advanced solutions

Featured protagonists

  • Roberto Conti (male), CEO
  • Simona Rossi (female), Sales and Marketing Manager
  • Amelia De Matteis (female), Software Product Manager
  • Filippo Bianchi (male), Industrial Director
  • Eva Campanella (female), Quality Manager

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