Investments for New Product Development: A Break-Even Time Analysis

Abstract

Combining the product-process matrix and cost-volume-profit analysis, we identify a pattern of annual cash flows for new product development (NPD) and name it the New Product Investment Curve (NPIC). A sample of 411 firms provides confirming evidence for the NPIC. On average, firms needed 12 years to recover their initial and subsequent investments for NPD. The break-even time, however, exhibits significant differences across industries depending on the speed of innovation and the cost structure of each industry. Engineering managers in an industry with high R&D and high fixed costs need to prepare for longer break-even times than those in other industries. This article provides implications for the value of cooperation between engineering managers and financial managers in NPD.     

Examining the State of Risk Management Research in New Product Development Process

New products are major sources of competitive advantage and success for a manufacturing enterprise. However, not all new product development (NPD) initiatives result in a successful product and are therefore a major cause of wasted resources. Furthermore, NPD processes are becoming increasingly complex and risky due to today’s globalized market and customers’ desire for technologically advanced products. While there has been a significant interest in academia about NPD risks, the existing literature is spread across multiple outlets, making it difficult for any practitioner or researcher to synthesize the current work. This article aims to minimize that gap by providing a comprehensive overview of current research activities in the field of risk management in NPD process in one place. The research design is based on mapping and classification of the existing body of knowledge into the domains of NPD risk analysis and management. The article analyzes the contemporary NPD risk analysis methods on three fronts: risk identification, risk assessment, and risk mitigation. Based on the review, the article then identifies and discusses several key areas for future research significant to engineering management practices. Finally, an integrated framework is presented to provide a holistic approach toward risk management in the NPD process, followed by the practical implications for engineering managers and practitioners.     

Influence of the Adoption and Use of Social Media Tools on Absorptive Capacity in New Product Development

Abstract:

In this article, we discuss how the adoption and use of social media tools influences new product development (NPD). Our aim is specifically to consider how an organization's absorptive capacity is influenced by using social media tools. Based on a two-phase data collection process comparing the situation before and after adoption of social media tools in three organizations, we conclude that the amount of accessible knowledge and the number of ideas increases as an organization's ability to find and access various sources of intra-organizational expertise increases, thus, increasing knowledge acquisition and assimilation. Consequently, we infer that organizational absorptive capacity rises and is linked to improvement in new product development.     

A Multilevel Framework for Lean Product Development System Design

Abstract:

Organizations today face intense and growing pressure to reduce cost, decrease time to market, and maximize stakeholder value in product development (PD). Many organizations have adopted lean product development (LPD) methods in an attempt to improve their PD systems; however, despite two decades of research, there is still much less understanding of the characteristics of effective LPD systems than of effective lean manufacturing systems. LPD systems are complex systems involving multiple organizational levels; however, most LPD research to date has focused only on a single level. There is currently a lack of understanding of the interactions between levels and effective means for managing these interactions. In this article, we propose a multilevel framework designed to capture key LPD system principles at the functional, project, and portfolio levels; tools and practices for implementing principles at each level; and approaches for managing the interactions between levels. A longitudinal case study is used to expand and refine a conceptual framework developed through literature review. Future research should focus on further validating the framework and applying the framework to improve LPD system design.     

Critical elements for a successful enterprise resource planning implementation in small-and medium-sized enterprises

The body of research relating to the implementation of enterprise resource planning (ERP Fourth Shift ERP (available at: http://www.fs.com)  ) systems in small- and medium-sized enterprises (SMEs) has been increasing rapidly over the last few years. It is important, particularly for SMEs, to recognize the elements for a successful ERP implementation in their environments. This research aims to examine the critical elements that constitute a successful ERP implementation in SMEs. The objective is to identify the constituents within the critical elements. A comprehensive literature review and interviews with eight SMEs in the UK were carried out. The results serve as the basic input into the formation of the critical elements and their constituents. Three main critical elements are formed: critical success factors, critical people and critical uncertainties. Within each critical element, the related constituents are identified. Using the process theory approach, the constituents within each critical element are linked to their specific phase(s) of ERP implementation. Ten constituents for critical success factors were found, nine constituents for critical people and 21 constituents for critical uncertainties. The research suggests that a successful ERP implementation often requires the identification and management of the critical elements and their constituents at each phase of implementation. The results are constructed as a reference framework that aims to provide researchers and practitioners with indicators and guidelines to improve the success rate of ERP implementation in SMEs.     

Application of Traditional and Fuzzy Quality Function Deployment in the Product Development Process

It is the nature of problems in quality management to contain elements of uncertainty. The uncertainty of input data is the result of a subjective approach to the interpretation of imprecise information. The aim of this article is to present the application of an effective fuzzification instrument in dealing with different kinds of uncertainty and also the application of natural language to model decision making in quality management. The article shows how the integration of fuzzy logic can assist with the planning of a particular product. First, the traditional Quality Function Deployment (QFD) method was used for the purpose of achieving quality improvement in a boiler (house electric water heater). Second, the QFD method combined with fuzzy logic was used for the same purpose. The preferred quality characteristics were defined using both traditional and fuzzy QFD methods, and results obtained were compared and discussed. The implications of the research for practice and future research are outlined.     

Stakeholder Engagement in Early Stage Product-Service System Development for Healthcare Informatics

Abstract:

This article presents the findings from four case studies on stakeholder engagement in new healthcare information and communication technology (ICT) product-service system (PSS) development. The degree of connectivity between the new healthcare ICT PSS and its intended operating environment has emerged to be an important contextual factor that may impact decisions concerning stakeholder engagement in the early stage development process. The four propositions of stakeholder identification and engagement in the development process, put forward in this article, provide important directions for future work in exploring the implications of PSS characterization in early-stage new healthcare PSS development process.     

设计管理在新产品开发中的应用

介绍分析了设计管理的有关理论和新产品开发的流程、参与新产品开发的人员及设计师介入新产品开发的程度,重点对设计师与工程师的辩证关系进行了分析,从而对设计师和工程师的管理有了进一步的认识.希望设计管理能在新产品开发中得到更好的应用,从而提高新产品开发的效率和速度,进而提高企业的竞争力.     

快速成型技术及材料在新产品开发中的应用

本文通过对快速成型技术的原理、特点、典型工艺的介绍,阐述其在新产品开发中过程中的应用。     

新媒体时代杨柳青年画的多元产品开发

目的天津杨柳青年画是中国民间最具代表性的木版年画之一,其文雅细腻、端庄大方的艺术风格,一直深受广大人民群众喜爱。然而在互联网、新媒体发展迅猛的今天,要使这一民间艺术瑰宝得以传承和保留,只对其固态保护是远远不够的,还应对其进行合理的开发和利用,以展现传统民俗文化的当代价值。方法依托杨柳青年画独特的艺术特征与民俗文化魅力,对其进行创新设计、多感官体验融合、数字产品开发和网络营销,实现杨柳青年画的多元化产品开发。结论研究杨柳青年画在新媒体语境下的多元产品开发,有利于年画这一非物质文化遗产的传承与保护,并能起到促进区域经济增长,带动地方旅游业发展的作用。     

Performing Changes in Product Development: A Framework with Keys for Industrial Application

Industrial product development requires continuous improvements in work procedures as a result of constantly changing demands. Support tools have proven to be an oft chosen way to meet new demands; however, few research efforts have been made in how to implement new tools. This article is a contribution to knowledge on carrying out the implementation of support tools. The basis consists of four field studies performed during 1994–1999, containing 78 qualitative research interviews and focusing on the implementation and use of different support tools. A re-analysis has been performed of selected interviews from the field studies, in total 30 interviews. This resulted in recommendations for an implementation framework, consisting of an Implementation Cycle, Organizational Change Field and Managerial Consistence, and five implementation keys: Goal setting, Kowledge Development, Anchoring at All Levels, Suitable Resources and Focus on the Individual.