Order and Disorder in Product Innovation Models

This article argues that the conceptual development of product innovation models goes hand in hand with paradigmatic changes in the field of organization science. Remarkable similarities in the change of organizational perspectives and product innovation models are noticeable. To illustrate how changes in the organizational paradigm are being translated into changes in new product development (NPD) practices, five NPD models are presented: the sequential, compression, flexible, integrative and improvisational models. The evolution of product innovation management shows a move from planned and mechanistic, towards emergent and organic models. Such a process of re‐orientation poses several challenges that are presented in the form of six propositions: from universal to contingent models, from invariant to flexible practices, from avoiding risks to taking advantage of opportunities, from planning to learning, from exclusive teams to inclusive networks, from structure to structured chaos.     

Performance impact of new product development processes for distinct scenarios under different supplier–manufacturer relationships

Although supplier involvement in new product development (NPD) projects has become increasingly important for strengthening a firm's competitive position, few studies have investigated the impact of changing research and development (R&D) workloads in NPD. According to the level of design-related characteristics including design-related communication and design-related nature, we identify four types of supplier–manufacturer relationships: sequential mode, passive supplier involvement, active supplier involvement, and strategic development. Differing from qualitative and survey-oriented research, this study proposes a system dynamics model for the quantitative exploration of workload impacts on R&D-system equilibrium under different supplier–manufacturer relationships. We justify experimentally the NPD performances of these supplier–manufacturer relationship configurations under workload impacts and provide managerial insights.     

Integrating Customers in Product Innovation: Lessons from Industrial Development Contractors and In‐House Contractors in Rapidly Changing Customer Markets

Successful product innovation has increasingly been recognized as an outcome of integrating customers into the new product development (NPD) process. In this paper, we explore customer integration by investigating the continual consideration of customer contributions throughout the product innovation process. Through a comparison of the customer integration practices by development contractors with those of in‐house developers, we find that the iterative and adaptive innovation process structures of the development contractors facilitate the realization of the full customer contribution potential throughout the product innovation process. We also find additional support for the incorporation of open innovation into an organization's NPD activities. Our findings are based on in‐depth case studies of the NPD activities of in‐house developers and product development contractors.     

Artificial intelligence and expert systems applications in new product development—a survey

The authors review and categorize the research in applications of artificial intelligence (AI) and expert systems (ES) in new product development (NPD) activities. A brief overview of NPD process and AI is presented. This is followed by a literature survey in regard to AI and ES applications in NPD, which revealed twenty four articles (twenty two applications) in the 1990–1997 period. The applications are categorized into five areas: expert decision support systems for NPD project evaluation, knowledge-based systems (KBS) for product and process design, KBS for QFD, AI support for conceptual design and AI support for group decision making in concurrent engineering. Brief review of each application is provided. The articles are also grouped by NPD stages and seven NPD core elements (competencies and abilities). Further research areas are pointed out.     

Project Factors Influencing Conflict Intensity and Handling Styles in Collaborative NPD

Conflict and conflict management are critical research issues in client‐supplier collaborative new product development (NPD). A recent study found that conflict intensity and conflict‐handling styles affect collaborative NPD performance. In this paper, we explore the relationships of four NPD project factors, namely product technical complexity, product certainty, task interdependence and the relative power of supplier, to conflict intensity and suppliers’ adoption of integrating and dominating conflict‐handling styles. Research findings based on survey data collected from 193 suppliers provide a clear insight into the conflict intensity and suppliers’ adoption of conflict‐handling styles for NPD projects of various characteristics, which enables better planning for conflict management and helps improve NPD performance.     

Reusability and multi-product development policies: a comparison of approaches in the automotive, motorcycle and earthmoving machinery industries

In many industries, the compelling pressure on the replacement of existing products and the expansion of the breadth of product lines, are forcing firms to undertake a growing number of new product development (NPD) projects. The effectiveness of those efforts depends on how well the firm can exploit synergy in innovation. This entails to managing the sharing and transfer of knowledge to projects over time to maximise reusability of technological solutions. The paper investigates how firms have reshaped their NPD process to deal with the challenge of reusability and knowledge transfer in three related industries. Starting from a resource-based view of the innovation process it compares the multi-product development project practices diffused in these industries and identifies the factors which affect the choice of a given approach to reusability and knowledge transfer.     

Using a hybrid MCDM methodology to identify critical factors in new product development

With increased global competition, businesses now face a more complex and dynamic competitive environment and need to develop more innovative products with higher quality and shorter product life cycles. New product development (NPD) is the keys to the success of a business, where both critical success factors (CSF) and key performance indicators (KPI) will affect the outcome of a NPD project. This study utilizes both CSF and KPI to examine the critical factors of NPD with the methodology of multiple criteria decision making and investigates the correlations of critical factors with fuzzy decision-making trial and evaluation laboratory and establishes the weights affecting NPD in the criteria with the fuzzy analytic hierarchy process (FAHP) approach. The results assist managers in selecting suitable competitive strategies, making the optimal allocation of limited resources, achieving the greatest increase in benefits, and promoting the overall success of NPD. The findings show that there are various correlations between the critical factors, where ‘products and customers’ have the most influence on other dimensions. Moreover, the top five critical factor criteria weights, constructed by FAHP, are ‘quality standard of new products’, ‘complete quality management system’, ‘consumer satisfaction’, ‘excellent planning and control’, and ‘support of top managers’.     

Fuzzy analytical hierarchy process and multi-segment goal programming applied to new product segmented under price strategy

New product development (NPD) is becoming an important competitive advantage in the marketing strategies of current businesses. Developing a new product will incur fixed and variable costs, which then determine the product prices. Although this is a fundamental issue of marketing theory and practice, only a few papers on marketing models deal with price levels. The objective of this paper is proposing a model based on fuzzy analytical hierarchy process (AHP) and multi-segment goal programming (MSGP) to help decision makers to select the best pricing strategy for NPD. A case study of NPD under market selection strategy in multiple segment pricing levels for a Taiwan-based Watch Company is presented to illustrate the proposed methodology. The proposed method will guide the product development team to select the best market strategy by taking into account the price level and product/market segmentation.     

Action Planning for New Product Development Projects

Two empirical studies are presented to show how experienced project leaders execute New Product Development (NPD) projects. In the first study we interviewed project leaders from four different design firms. We discovered that inside realistic NPD projects the NPD activities seldom occur in the same order as they are described in the NPD literature. Some activities are omitted, some activities are run in parallel and some even have a seemingly illogical timing. The reasons for these ‘strange’ patterns are usually project‐specific. The NPD project leaders distinguish four types of NPD projects. On the one hand, familiar (client well known and/or standard technology and/or re‐design) or non‐familiar projects (new client and/or new technology and/or innovative design), and on the other hand, the complexity of the product (simple versus complex), and they plan their NPD projects differently according to those four types. For instance, within simple and familiar projects they omit more NPD activities than in projects with a more complex and new nature. In the second empirical study we did a matched pairing study (finding NPD projects which would match each of the four types). This time we interviewed experienced project leaders from different companies, because they are probably more familiar with only one type of NPD project. We found a minimal and a ‘regular’ NPD process. Projects on new products (the non‐familiar type) contain the most activities in the total project. Complex projects execute more activities in the first stages, and also different activities than in non‐complex projects. We also found that NPD project leaders adapt an opportunistic attitude towards carrying out activities in parallel in order to gain time.     

Lessons from Ideation: Where Does User Involvement Lead Us?

Firms are increasingly involving users in new product development (NPD). Their product users frequently provide solution information, such as new product ideas. However, these users are often considered a homogeneous group of ordinary users; their individual abilities and the specific input they provide for NPD are not yet well understood. The goal of this paper is to determine whether different types of users are differently predisposed to produce ideas. We derive hypotheses regarding the possible outcome of involving different user types in idea generation tasks from the current literature on customer integration into NPD. In a quasi‐experimental setting, we test our assumptions on 93 users, who generate ideas in a smart home context. The results indicate that users’ contribution depends on their specific domain knowledge, which is broadly understood as knowledge of a specific area that influences ideation towards solutions in this domain. We distinguish between four types of users: those with high trend awareness, high technical skills, high technical innovativeness, and high ethical reflectiveness. We find that users with high technical skills are more likely to produce ideas that are technically feasible. Trend‐aware and technically innovative users produce ideas of greater originality. Ethically reflective users tend to come up with ideas that will have a positive impact on society.     

Comparing ANFIS and SEM in linear and nonlinear forecasting of new product development performance

Though the hi-tech industry has focused on value innovation and improving the quality of the new product development (NPD) process to drive new product performance, new product success has not changed dramatically over the years. This study presents a novel approach based on structural equation modeling (SEM) and adaptive neuro-fuzzy inference system (ANFIS) to forecast value innovation and the effects of the quality of the NPD process on NPD performance. Results demonstrate that value innovation directly affects NPD performance as well as the nonlinear relationships between the quality of NPD processes and NPD performance, and that ANFIS achieves better forecasting performance than the SEM technique. The ANFIS model effectively explains the nonlinear relationships that SEM cannot. This paper thus offers a new perspective on forecasting and modeling useful to both researchers and practitioners.     

Teaching New Product Development Using the ‘CityCar’ Simulation

Innovation management is an important subject which needs to be taught effectively in business schools and on engineering degrees. One of the key topics – new product development (NPD) – is complex and is challenging to teach. Management simulations are thought to provide a good mechanism for teaching intricate and practical topics and so an NPD simulation was developed – the CityCar. This paper describes empirical research on how students' perceptions of NPD change as they complete the CityCar exercise. Overall, the research shows that simulations have significant potential in teaching NPD. The changes in students' perceptions provide evidence that the CityCar exercise achieves its intended learning outcomes in demonstrating the importance of technical and commercial knowledge and the need for a disciplined management process in NPD.     

Strategic decision-making in NPD projects according to risk: Application to satellites design projects

In this paper we present a method for making strategic decisions in New Product Development (NPD) projects based on risks. In NPD the complexity of the process depends both on the nature of the design problem and the difficulties associated with managing the project (activities, risks). To design a complex product several different teams, having different competencies, work on the project. Not one among them controls the entire process. The interactions between product subsystems in NPD often lead to technological arbitration between alternative solutions.     

Exploring Differences between Inventors,Champions, Implementers and Innovators in Creating and Developing New Products in Large,Mature Firms

This exploratory research investigates nine individuals participating as specialists in different phases of the invention and new product development (NPD) process in one organization. In‐depth interviews were conducted with these individuals, as well as with 17 of their managers and co‐workers, adding an external perspective about them. These nine individuals participated in four different divisions of labour in the innovation process: inventors who focus on scientific and technical invention prior to concept development, champions who are most adept at selling acceptance of projects into the organization, implementers who focus on facilitating the project through the firm's formal development process, and innovators who operate across all three phases of invention, acceptance and implementation. The research finds differences in personality, perspective, knowledge base, motivation, and attitude toward politics that seem to be associated with these different specialist types. These differences lead to implications for the types of projects for which they might best be suited, as well as for how they might best be managed.     

Development of a framework for customer co-creation in NPD through multi-issue negotiation with issue trade-offs

In complex product design environments, new product development (NPD) becomes all about trade-offs and therefore trade-off management gets an important responsibility for designers. Correspondingly, in these environments, customer co-creation in NPD requires multi-issue negotiation with issue trade-offs. However, there is no study researching customer co-creation in NPD through multi-issue negotiation with issue trade-offs according to our best knowledge. This study presents a framework for customer co-creation in NPD through a multi-issue negotiation mechanism, namely; Modified Even-Swaps, to fill this gap. This mechanism uses a modified version of Even-Swaps method, that finds differences among alternatives and utilizes the differences for assessing the value of multi-issue offers, and that includes a fuzzy-inference-system for bargaining on several issues simultaneously. In the proposed framework, customers are represented by “lead-user”. Thus, negotiation is performed between lead-user and designer. In order to show how the framework works, an illustrative example is also presented.     

Rule Breaking in New Product Development – Crime or Necessity?

The purpose of this study is to investigate the effect of applying general rules in organizations to govern multiple new product development projects. Data were collected in structured interviews with project managers and project members from seven successful projects within Swedish companies. Results show that projects either broke rules or that organizations had developed strategies to cope with the risk of rules preventing the progress of the projects. The project managers of the rule following projects reported lack of rule breaking to be the result of the rule design at each company, intending to minimize the risk of rules preventing the progress of projects. With the exception of the manager of the rule changing/removing project, project managers show a relaxed attitude to breaking general rules that hinder project progress. The study indicates that frameworks of common project management rules increase the risk of delay in new product development projects, unless strategies of rule breaking or dynamic rule modification are applied. Applications of emergent standard management philosophies and practices to innovation are discussed.     

网络环境下新产品开发知识团队研究综述*

在综述国内外学者有关新产品开发知识团队研究成果的基础上,试图梳理出现阶段该领域的研究热点与难点问题,为后续研究奠定一定的理论基础。分别从团队的定义和类型,团队学习与团队管理,新产品开发知识团队的概念、类型、运作与管理等方面对已有的研究文献进行了系统的综述,在此基础上提出了已有研究的局限性及对未来研究的展望。     

Enhancing the efficacy of supplier selection decision-making on the initial stage of new product development: A hybrid fuzzy approach considering the strategic and operational factors simultaneously

The majority of the existing supplier selection approaches obtained their optimal solutions based on the operational metrics. This study considers the strategic and operational factors simultaneously to secure the efficacy of supplier selection (VS) on initial stage of new product development (NPD). We suggest strategic factors come from the supplier’s management system itself (i.e., customer-, long-term-, and process-oriented criteria) while the related performances indices of supplier constitute operational factors (i.e., producer-, short-term- and outcome-oriented criteria). The work adopts supplier’s process capability indices (PCIs) and process yields as operational factors to estimate their quality capabilities. The business process-oriented criteria related with the performance of business process improvement (BPI) are employed as the strategic criteria for supplier assessment visit. A fuzzy approach with supply risk consideration is employed then to aggregate the total scores of individual suppliers objectively. An empirical case study is performed to demonstrate the efficacy of the proposed system and to identify the best potential supplier(s) for further development. The results and processes of the case study also provide interesting managerial implications. The derived application of Herzberg’s two-factor theory to the realm of supplier selection is discussed as well.     

网络环境下新产品开发知识团队研究综述*

在综述国内外学者有关新产品开发知识团队研究成果的基础上,试图梳理出现阶段该领域的研究热点与难点问题,为后续研究奠定一定的理论基础。分别从团队的定义和类型,团队学习与团队管理,新产品开发知识团队的概念、类型、运作与管理等方面对已有的研究文献进行了系统的综述,在此基础上提出了已有研究的局限性及对未来研究的展望。     

The Learning Organization as Facilitator of Complex NPD Projects

With rapid technological and market changes, new product development (NPD) complexity is a significant issue that organizations continually face in their development projects. The inability to recognize and/or manage complexity can cause the best‐intentioned projects to fail. By creating a learning organization attuned to complexity and its management, however, companies are more likely to have the knowledge and skills essential to respond competently to the complexity frequently encountered in NPD projects. In this paper, we first define complexity in NPD and then examine organizational learning as it can assist in dealing with development complexity. Next, we report findings from an exploratory research study on organizational learning and its relationship to product development complexity. The study is based on 32 field interviews with NPD participants regarding their learning experiences in dealing with complexity; the transfer of project learning to other projects; and the factors that minimize/block the transfer of learning among projects. Based on our research, we advance several suggestions for implementing a learning organization designed specifically to capitalize on the experiences of development firms' efforts in dealing with complexity and its consequences.