Bosch's Process of Creating New Products and Services

This article discusses Bosch's process of creating new products and services. It covers the steps involved in the process, including idea generation, screening, technology development, financial estimation, new business line, software innovations, and product development and launch. The article also highlights the company's focus on sustainability and eco-friendly products.

Running Head: SUPPLY CHAIN MANAGEMENT 0
Supply Chain Management
(student name)
11-20-2018

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Bosch's process of creating new products and services
1. Idea generation or research and development
The company major aim is innovation, for which the company collaborates for
various organizations, and bodies to generate a new idea for new product development.
For the research and development, the company has invested in top research institutions
within the Intercampus program of Bosh that is supporting scientific research. The
company has collaborated with Peer-to-peer with universities for new developments. This
stage also includes the agreement of research and development with governments. The
company has come up with various agreements with agents of the government, along
with the “European union’s framework programme. In order to exploit most of its
research and development, the company collaborated with various business for new
development that is B2B collaboration, like with Volkswagen, Ford, and Tata Motors
(Munson, 2013).
2. Screening idea generated
At this stage of the process, the idea that was generated in the previous step is
now to check for the feasibility. At this stage the idea as per the employees and R&D
collaborations, the company is looking for the products, which fulfill the corporate social
responsibility of the company through eco-friendly products. While agreeing with the
government, the company with other institutions and enterprises, work for the advanced
development of electronic technologies, which will be done for improving the
competitiveness of this industry of Europe.

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3. Technology development
For decreasing environmental footprints and sustainable growth, the company is
involved in creating new technologies for more innovative product development. At this
stage, the company also created the automatic fire detectors, which will help in
identifying the difference in dust particles and smoke. Moreover, a technology for
washing machines, that will be consuming minimum water according to clothes weight
and reducing the consumption inputs like detergents, which will eventually, saving the
environment (Tukker & Charter, 2017).
4. Financial estimation
At this, stage the company, usually set the estimated budget for the innovation
every financial year. For example, the approximate amount for new product development
was $500 million, where the returns are to be observed in long-term.
5. New business line
At this stage, the company is creating new ways to conduct business and attract
more and more customers. For example, for innovative service, the company had
launched a business line that is, “Internet Business.” With this, the physical world and the
digital world can be connected directly.
6. Software innovations
The company then brings the innovation with software, where it acquires their
system, and software unit. The company also joined with various companies for the
availability of best software innovations. For example, an inventory control system has
been developed for commercial firms. Moreover, the company at this stage provides

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solutions for software for health insurance review application, and IT consulting services
(Patel, 2017).
7. Product development and launch
This is the final stage of the process, where the product is developed while
considering sustainability in mind and reduces the energy consumption of the firm and
water consumption. In the end, launching the product to the market, it could be through a
joint venture, for example, the company had launched their hybrid solutions in 2010 with
Samsung SDI. Another example of new product development is “e-equipment”
production in the automobile sector. In this product, the innovations were power
electronics, traction batteries and much more (Biemans, 2018).

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References
Biemans, W. (2018). Managing innovation within networks. London: Routledge.
Munson, C. (2013). Sustainability in Supply Chain Management Casebook: Applications in
SCM. FT Press.
Patel, P. (2017). Self-Leadership and Overcoming the Time Resource Constraint: Accelerating
Innovation for New Products. IEEE Transactions on Engineering Management, 1-12.
Tukker, A., & Charter, M. (2017). System innovation for sustainability 1: Perspectives on
radical changes to sustainable consumption and production. London: Routledge.