Now assume that, you know, after doing this cost of benefit analysis, we decide that it's better to use cross-function team approach rather than more traditional sequential approach. So we decided that the potential benefit outweighs the potential cost, probably because the market uncertainty and technological uncertainty. And then there is implementation issue. We decided it's important to use cross-function team approach, is better to use that approach. The first thing, the first change that must occur here is at a cognitive level. In other words, you know, employees and managers must accept that fact the cross-function team approach works better and it's very important for them to use it. So maybe we can do some, you know, management commitment. We can make some commitment and we tell the managers and we tell the employees that you gotta use this approach because this is better for the company as a whole. The benefit of using cross-function team approach outweighs the cost and so on and so forth. And maybe simple communication. Communication is always important, right? You emphasize it, some spiritual things, and so on and so forth. Now, let's suppose that at the cognitive level, at the cognative level, the necessary change occurs. Everybody believes that cross-function team approach is very important so you gotta do it, okay? But the thing is that even if people, even if, you know, employees and managers believe it is important to cross-function team approach, there is no guarantee that they actually behave in that way. Behave in, in a consistent way, in a way consistent with their beliefs. So there is sometimes some gap between cognitive level, and behavior level. How we can shift, how we can make a transition or how we can make sure that employees and managers actually behaves at that level, in other words, there is actual behavior change as well. [BLANK_AUDIO] Incentive alignment is very important thing that makes sure that there is a effective transition from cognitive level to behavioral level. For example, let's say the current compensation scheme or current incentive scheme, looks like this. In other words, your compensation is determined by 80%, 80% is determined by individual performance, whereas, 20% of your compensation is determined by team. If that is the case, if that is the case, even if people believe that cross-function team approach is good for the company as a whole, they don't behave in that way because their current compensation or incentive mechanism is not consistent with their belief. Now let's say that how we can, you know, transform or transit the cognition, cognitive level, cognitive, you know, understanding, to behavioral thing. We gotta change this incentive mechanism. In other words, let's say we want to, we want to change it like this. Now your compensation is determined by your individual performance at, you know, 20%. Your individual performance counts for 20%, and 80% of your compensation will be determined by the team, cross-function team. If this is the new incentive mechanism, then it's, it would be possible to move from this cognitive level to behavioral level. So that's the called incentive alignment. But I'm not, I don't want to say, I don't want to, I don't want to give an impression that I'm only interested in the monetary values. Incentives, there are two different types, right? Implicit, implicit incentives and explicit incentives. The money, promotion and all those, you know, carrots or those inducements, that's explicit. And implicit motivation, that's kind of a, you know, self-motivation, self-motivation, and sense of accomplishment when it's over. So the manager, the time management issue to join this new incentive mechanism by take into account these two different types of incentives at the same time. Not just, you know, monetary incentives, I do not mean that. And now let's say that the managers and employees not only think that the cross-functional team approach is important but also they decide to behave. They actually behave in that way. Behave in the way consistent with their belief. But then even if they believe and behave that way, the performance is not improving. What's wrong with that? Okay. Now let's say that, you know, managers, also, behave, managers, not only think, but also behave in that way. Behave in that way. But their performance is still not improving. Then there is a possibility that the infrastructure support is not enough or is it? I mean that if we want to use this cross-function team approach, then the coordination, coordination is very important, right? And, therefore, that implies that you gotta have, communication. Communication or, you know, coordination or co-working mechanisms. You gotta have these kind of mechanisms. Or you, you gotta have these kind of tools. Or you gotta have some organization or relationship that supports all this increased need for coordination, increased need for communication. That's, called infrastructure support. So you needed to have incentive alignment to move from cognitive level to behavioral level. And you also needed to have infrastructure support to move from behavioral level to actual improvement in the performance. Right. In this lecture, we look at this new product innovation process. We compare the two process, two extreme processes. And as I already mentioned, company rarely choose only one type of process. Sometimes they use both, and sometimes they have their own, you know, mixed version of approaches and so on and so forth. So, what is important is to, to, I want to, what I emphasized in this lecture is we first need to understand the advantages as well as the disadvantages for the pure form, pure traditional and pure sequential approach. And also I want to compare with that, compare the system with the pure form cross-function team approach. So I make a, you know, sharp contrast between these two in order to understand what are their characteristics, what are their advantages, what are their disadvantages? And we said that it's not right to say that one approach is always better than the other under all the circumstance. Under every circumstance. It's not true. It depends on the technological uncertainty, market uncertainty. Is it a high uncertainty, low uncertainty? And we already said that, if there is a huge market as well as technological uncertainty, then the benefit using cross-function team approach outweighs the cost to use cross-function team approach. Therefore, it's better to use cross-function team approach. And that's, you know, shown by looking at this cost benefit analysis. And the next question is once we decide cross-function team approach benefit outweighs cost, okay, let's now, we decided cross-function team approach is the one we need to use then, what is the implementation strategy. How can you move from cognitive level to behavioral level to performance improvement? Now we talked about incentive alignment and infrastructure support. You know why we, you know, spend this whole lecture on new product innovation, right? I don't want to look at this supply chain management from purely operational perspective, opera, operational, you know, viewpoint. I want to look at the, the, you know, big extended continuum, from the concept of new product, to the end of the current product life cycle, and the new of product life cycle. So I wanted to get the entire, entire link, entire continuum, because I believe that's the best way for us to appreciate the, you know, value we supply to management. In fact, you know, all these lectures I have done so far are big elements in supply chain management. So although I start the lecture titled supply chain management more specifically from next time, right? Next time, lecture six, seven, eight, I will devote on supply chain management issues very specifically. But all what we have done so far, from lecture one to lecture five, are the essential building blocks, essential, you know, ingredients for the supply chain management. So what I have done so far are big part of supply chain management. Okay? We look at this, supply chain management, SCM structure in our first lecture. And then we done individual ingredients of a supply chain management so far. And then the next time, I will focus on the more specifics, more details of a supply chain management. How to design supply chain. How to incorporate what we have done in our, you know, first part of this whole, you know, cause, into understanding supply chain management. I hope that you, you know, you still have very clear idea about the goals and objectives of this course. And I hope that you, you, please to decide to take this course, okay? All right, so I will see you next time and we will get into the core of supply chain management next time. [BLANK_AUDIO]
