What Are The Pros and Cons of Using Managed Product Development Services That You Should Be Aware Of?

Learning Centre > What Are The Pros and Cons of Using Managed Product Development Services That You Should Be Aware Of?

When it comes to product development, businesses have a few different options when it comes to getting their product off the ground.

When it comes to product development, businesses have a few different options when it comes to getting their product off the ground. When it comes to product development, businesses have a few different options when it comes to getting their product off the ground.
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When it comes to product development, businesses have a few different options for getting their product off the ground.

One option is to hire in-house project managers and developers, which can be expensive and time-consuming. Another option is to outsource project management and development services to a third party company; this can be an excellent option for businesses that want to save money and time. Still, there are also some pros and cons to consider before deciding.


What are managed product development services, and what do they include?

Product development services encompass various activities, from market research and product planning to industrial design and manufacturing. These services aim to bring new products to market quickly and efficiently while ensuring that they meet customers’ needs and comply with all relevant regulations.

Typically, product development projects are managed by marketing managers or teams of experts who work together to ensure that all the necessary tasks are completed on time and within budget. In many cases, product development services also include after-sales support, such as product training and customer service, to cover the complete development cycle.

Product development doesn’t always need to have the latest technologies or cutting edge technologies to bring value to your product portfolio. Many product innovation initiatives include smaller improvement opportunities to tap into new revenue streams or overcome market competition.

The product team is under constant pressure to respond to customer feedback and may have many projects at once; this can make it challenging to keep track of all the details and ensure that each project is proceeding according to plan.

By working with a product development partner, companies can focus on their core competencies and leave the product development process to the cross-functional teams of experts.


The pros of using managed product development services

There are many potential benefits to using managed product development services, including:


The cons of using managed product development services

There are a few potential drawbacks to using managed product development services, including:

When project management is outsourced, there are both benefits and risks. The key to success is to choose a project management team that is experienced, accountable, and transparent.


Examples of companies that have benefited from using a managed service

While most of Innovolo’s projects are classified under NDA, here are some examples of the type of projects we have successfully delivered:

You can view further examples on our Case Studies page.


Examples of companies that have not benefited from using a managed service

A managed product development service may not be the right option for you.

You can read our article on Why you may not be a good fit as a client of Innovolo.


How do you know if managed product development is the right choice for your business?

Suppose you have read the above article and are still unsure whether a managed product development service is right for your business. In that case, the best way to find out is to talk to us. We will be happy to discuss your project with you and advise you on the best course of action.

You can contact us here.


What should you look for when choosing a managed product development services provider?

When choosing a provider of managed product development services, you should look for an experienced, accountable, and transparent team.

Other due diligence considerations include:


Conclusion

When project management is outsourced, there are both benefits and risks. The key to success is to choose a project management team that is experienced, accountable, and transparent.

If you are looking for a managed product development service provider, we invite you to contact us. We will be happy to discuss your project with you and advise you on the best course of action.

Thank you for reading! We hope this article was helpful. Please feel free to share it with your network.

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When it comes to product development, businesses have a few different options for getting their product off the ground.

One option is to hire in-house project managers and developers, which can be expensive and time-consuming. Another option is to outsource project management and development services to a third party company; this can be an excellent option for businesses that want to save money and time. Still, there are also some pros and cons to consider before deciding.


What are managed product development services, and what do they include?

Product development services encompass various activities, from market research and product planning to industrial design and manufacturing. These services aim to bring new products to market quickly and efficiently while ensuring that they meet customers’ needs and comply with all relevant regulations.

Typically, product development projects are managed by marketing managers or teams of experts who work together to ensure that all the necessary tasks are completed on time and within budget. In many cases, product development services also include after-sales support, such as product training and customer service, to cover the complete development cycle.

Product development doesn’t always need to have the latest technologies or cutting edge technologies to bring value to your product portfolio. Many product innovation initiatives include smaller improvement opportunities to tap into new revenue streams or overcome market competition.

The product team is under constant pressure to respond to customer feedback and may have many projects at once; this can make it challenging to keep track of all the details and ensure that each project is proceeding according to plan.

By working with a product development partner, companies can focus on their core competencies and leave the product development process to the cross-functional teams of experts.


The pros of using managed product development services

There are many potential benefits to using managed product development services, including:

  • Save time and money. It can be expensive and time-consuming to hire in-house project managers and developers. The HR admin alone for full-time employees can be costly.
  • Get access to a team of experts. When you work with a product development partner, you’ll have access to a group of experienced professionals who can help get your product to market quickly and efficiently. When partnering with Innovolo project teams, you’ll work with our team of project managers, developers, and designers who have years of experience in product development.
  • Reduced project risk. When businesses outsource product development, they can avoid the risks of developing products in-house.
  • Focus on your core competencies. Businesses can focus on their core competencies by outsourcing product development and leaving the product development process to the experts. For example, suppose you’re a small business. In that case, you might not have the internal resources to manage a complex product development project. You can focus your energy on running and growing your business within your target market while we handle the project.
  • Increased efficiency and productivity. When experts handle project management and development, businesses can increase efficiency and productivity because the team will be able to identify any issues and address them quickly. Innovolo firmly believes that you can systematise creativity and innovation. Our project management process is designed with that in mind. We’ll work with you to create a project plan that outlines all the tasks that need to be completed, and we’ll track progress so that you can see how your project is progressing.
  • Better products. When businesses outsource product development, they can tap into a wealth of cross-industry knowledge and experience that they might not have access to otherwise; this can lead to the development of better products that are more likely to succeed in the marketplace.
  • Faster time to market. One of the main advantages of using managed product development services is that it can help businesses get their products to market faster. Project managers will work with you to create a project timeline and ensure that all the tasks are completed on time. In addition, they can also provide advice on how to streamline the product development process so that it is more efficient.
  • Greater flexibility. Managed product development services offer businesses greater flexibility in product development because companies can choose the level of involvement they want from their project manager. For example, some companies might only need project management support during the early stages of product development. In contrast, others might need project management support throughout the entire process.
  • Project documentation. When businesses work with project managers, they can ensure that all project documentation will be managed appropriately; this includes project plans, requirements documents, design specifications, and test plans. In addition, project managers can also help create project reports so that businesses can track the progress of their projects throughout the product development lifecycle.


The cons of using managed product development services

There are a few potential drawbacks to using managed product development services, including:

  • Outsourced project management can be expensive. Your FD will want to know why you’re spending money on project management when you could be hiring someone in-house for what may seem a fraction of the cost; this is often proven to be a myth. When you factor in the price of HR, onboarding, and training for an in-house project manager and the opportunity cost of taking someone away from their billable work to manage a project, the actual price is often higher than the managed service provider’s fee.
  • There can be a loss of control. When you outsource product development, you are handing over control of the project to someone else; this can be difficult for businesses that like to have a high level of control over their product development projects. At Innovolo, we understand that companies need to feel like they control their project, so we offer a high level of transparency and communication. We’ll provide you with regular updates on the project to see how it is progressing and make sure that it is going according to plan.
  • There can be communication difficulties. When project management is outsourced, there can be communication difficulties between the project manager and the business. This is because the project manager might not be familiar with the company’s culture and values. In addition, there can also be language barriers and time zone differences if the project manager is based in a different country. Innovolo overcomes these difficulties by working with a network of project managers in other countries. This way, we can often match you with a project manager best suited to your needs.
  • You might not get the results you want. When you outsource product development, there is always the risk that you might not get the results you want. It is worth bearing in mind that all product development carries this risk, whether outsourced or not. However, when you outsource product development, you rely on someone else to deliver the project; there is a higher chance that something could go wrong. To minimise this risk, it is vital to choose a reputable and experienced project management company like Innovolo.
  • The project might not be a priority for the project manager. When project management is outsourced, the project might not be a priority for the project manager because they might have other projects that are more important to them. As a result, the project might not receive the attention it deserves, which can impact its success. At Innovolo, while it may sound clichè, your project is our project, and we’ll treat it as such. It is in our interest to see you succeed.
  • There can be a lack of accountability. When project management is outsourced, there can be a lack of responsibility if things go wrong. As a result, it can be challenging to hold them accountable if they do not deliver the project according to plan. Innovolo overcomes this by having a clear and concise contract that outlines the project management services we will provide and the deliverables you can expect. We also have a project management team that is highly experienced and accountable.
  • Scope creep. One of the risks of outsourcing project management is scope creep; this is when the project manager adds extra work to the project that was not originally agreed upon and can happen if they underestimate the amount of work required or if they add additional features that were not initially included in the project brief. Scope creep can often lead to cost and time overruns. To avoid this, it is essential to have a clear project brief that outlines the scope of the project and a straightforward change management process.
  • Project timelines might not be followed. Deadlines are often one of the most important aspects of a project. When project management is outsourced, there is always the risk that project timelines might not be followed. Daily stand-up meetings are one way to mitigate this risk. During these meetings, project managers report on what they did the day before and what they plan to do that day; this helps ensure that deadlines are being met and that the project is on track.
  • Lack of domain knowledge. When project management is outsourced, there is always the risk that the project manager might not have enough domain knowledge. There is also an enormous benefit in having an industry-agnostic multidisciplinary team for the cross-fertilisation of ideas and best-practice. Asking for a case study of a successful product launch project in your industry is an excellent way to vet project management providers.
  • Lack of project management expertise. Having appropriately qualified project managers is critical to the success of any project. When project management is outsourced, there is always the risk that the project manager might not have enough project management expertise.
  • Lack of transparency. One of the risks of outsourcing project management is a lack of transparency. When project management is outsourced, there is always the risk that the project manager might not be transparent about what they are doing or how they are doing it. While this can be inadvertent, it can also be intentional. A transparent project management team about its process and deliverables is more likely to be successful. At Innovolo, we will kick off your project with a project initiation meeting; this is an opportunity for us to get to know you and your team and understand your project objectives. We will also provide you with a complete project management plan that outlines our approach and the deliverables you can expect throughout the project.
  • No face-to-face interaction. COVID-19 has made this a non-issue. Innovolo is a fully remote project management team. We use the latest project management tools and techniques to ensure that we can deliver world-class project management services, regardless of where you are located.

When project management is outsourced, there are both benefits and risks. The key to success is to choose a project management team that is experienced, accountable, and transparent.


Examples of companies that have benefited from using a managed service

While most of Innovolo’s projects are classified under NDA, here are some examples of the type of projects we have successfully delivered:

  • - A project for a leading global pharmaceutical company to develop a new drug delivery device
  • - A project for a major consumer goods company to develop a new packaging technology
  • - A project for a Fortune 500 company to develop a new product prototype

You can view further examples on our Case Studies page.


Examples of companies that have not benefited from using a managed service

A managed product development service may not be the right option for you.

You can read our article on Why you may not be a good fit as a client of Innovolo.


How do you know if managed product development is the right choice for your business?

Suppose you have read the above article and are still unsure whether a managed product development service is right for your business. In that case, the best way to find out is to talk to us. We will be happy to discuss your project with you and advise you on the best course of action.

You can contact us here.


What should you look for when choosing a managed product development services provider?

When choosing a provider of managed product development services, you should look for an experienced, accountable, and transparent team.

Other due diligence considerations include:

  • Make sure the team has project management expertise
  • Check that the team is transparent about their process and deliverables
  • Choose a team that is experienced in delivering similar projects
  • Review the methodologies and project management tools that the team uses
  • Review the reporting and communication protocols that the team uses
  • Review the approach demonstrated by the project manager in the project initiation meeting


Conclusion

When project management is outsourced, there are both benefits and risks. The key to success is to choose a project management team that is experienced, accountable, and transparent.

If you are looking for a managed product development service provider, we invite you to contact us. We will be happy to discuss your project with you and advise you on the best course of action.

Thank you for reading! We hope this article was helpful. Please feel free to share it with your network.

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Farm+Stable is a client of Innovolo, a product development as a service provider offering R&D teams globally extra capacity, capability, and momentum in their product development and obsolescence management projects. As a company that specializes in the development and engineering of products for the agriculture and construction industries, Farm+Stable has benefited from Innovolo's expertise in helping to bring new products to market quickly and efficiently. In particular, Farm+Stable has been able to rely on Innovolo's team of experienced engineers to help with the design and development of a new line of products that are designed to be more durable and longer-lasting than previous models. With Innovolo's help, Farm+Stable has been able to bring these new products to market in a timely manner, and they have been well-received by customers. Thanks to Innovolo's innovative product development solutions, Farm+Stable has been able to stay ahead of the competition and continue to grow their business.
Innovolo is a product development as a service provider. It offers R&D teams globally extra capacity, capability, and momentum in their product development and obsolescence management projects. Its services are used by clients in a variety of industries, including automotive, aerospace, consumer electronics, and medical devices. One of its clients is Kawneer, a leading manufacturer of aluminum products for the architectural and construction industries. Kawneer has been using Innovolo's services to help develop new products and to manage the obsolescence of its existing products. Thanks to Innovolo, Kawneer has been able to speed up its product development cycle and to reduce its costs. As a result, Kawneer has been able to bring new products to market faster and to better meet the needs of its customers.

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