final version dissertation

Executive Summary
There are variety of perspectives and approaches that used in organization planning
to keep the sustainability in the market. One of those perspectives is by developing
new product that has enormous significance as international competitiveness.
Product development is a set of several activities or processes begin with the
strategy for market opportunity until the production and sale of the new product. The
intent of this paper is to unveil the analysis of growth strategies by new product
development as well as provide the significance factors that pertain with the main
topic. However, in the 21st
century, information technology advanced has caused
numerous enterprises that raise the competitiveness. This brings us on the concept
in innovativeness and creativity value to gain competitive advantage. Maintaining
innovation will lead into a focus on customer roles in the aim to meet and satisfy the
needs and wants. Developing new product might be risky for organization, but
consequently it will go through complex processes. There are some area of
consideration in each stage of the all processes, such as technology, team,
information, speed, and others. By this paper, it will give better understanding about
the importance of maintaining new product development process also the issues and
factors to reach the successful performances.
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Chapter 1
Introduction
1.1. Background
In this 21st
century, as the impact of globalization customer demands or preferences
change rapidly, therefore, number of competition in organization world also rises.
One of the factors for organization could survive in the market is involving upon
managing the evolution. New product development (NPD) is necessary for every
organization to gain their competitive advantage and maintain their sustainability.
Cooper (2003) stated that new product development is riskiest yet important for
organization. Developing new product gives opportunity for certain company to be a
pioneer or trendsetter in market or even global market, but it also might become a
threat as if the product could not be acceptable in market. Thus, maintaining
effective new product development is important although it goes through several
stages and processes.
Before launching new product, it involves many stages such as planning strategy,
analysis, developing, and testing. As it is all about creating new things so
maintaining innovation and creativity is essential part in NPD process, however, it
could be from internal or external part. New product development also corresponding
with customer roles and involvement because organization has to determine what
customer wants and needs. In this research, it will discuss the basic understanding
about new product development, including the process, issues, and more
concentrate on customer influence.
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1.2. The Research Question
As I have discussed what basically the background of this research, to be more
clearly for the reader towards the research, this section will explain about research
questions of the studies. Main research topic is obviously about “If implementing new
product development applicable for strategy growth in organization ”, but there are
some research questions that conducted to support this particular research, those
are:
• How importance NPD in product life cycle?
• In the changes world, do company need to make changes as well?
• How customer roles impact the NPD process and how to maintain NPD
itself for organization in today’s changes world?
• How to utilized knowledge management for the NPD process?
This study aimed to analyze and discuss six articles, which represent the view of
how to implement NPD for organization strategy, and what factors that help the
process in order to reach the objectives. This research also provides analysis about
evaluating Multinational Corporation like Apple and Samsung as the real examples in
real business world.
1.3. Justification of the Study
Through all the readings, this research will be useful for new company who want to
learn how to endure the competition by new product development. Beside that, the
research also provides outline of the critical factors and issues about NPD. The
author wants to analyze some relevant theories that can support her believe about
NPD to become organization strategy for growth in future. By addressing the findings
of this research, it might give better explanation as it based on reliable references.
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1.4. Limitation of the Study
The main limitation of this study is because it is using secondary data that might not
as trustworthy as primary data. The studies rely on both some primary and
secondary research from some journals to support author’s believes. Since those
selected journals have quite high in validity and reliability, it is not become a big deal
or issue.
1.5. The Structure of the Paper
This paper consists of five chapters that have different objectives in each chapter.
In each chapter, there is introduction section for explaining the aims of that certain
chapter and will always ended up with conclusion part.
• Chapter 1 contains about introduction of the paper, which discuss the background
of paper, research question, justification of study, structure of paper, and
conclusion.
• Chapter 2 is the literature review that describes the related topic of research
based on theoretical references. It also consists a conceptual framework as a
paradigm outline of the research.
• Chapter 3 explains about the methodology of the research where there is review
of articles about some organizations and a further analysis of the conceptual
framework by using comparative analysis of selected journals.
• Chapter 4 is the discussion of overall findings of the research paper and relation
of the selected journals.
• Chapter 5 concludes and summarizes the studies along with the limitation of the
research and recommendation for future research.
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1.6. Conclusion
The chapter has been an introduction for this paper or research that provides its
background and objectives. Limitation and justification also have been identified in
this chapter one. The mentioned research questions will be the basic foundation for
next chapter discussion. The next chapter will evaluate more about the literature
regarding the research questions.
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Chapter 2
Literature Review
2.1. Introduction
In today’s world, the market conditions are rapidly changes which makes firm has to
maintain their management to gain sustainable competitive advantage. As the
number of competition rises, company required being more innovative and creative.
Most companies find that one of the ways to preserve the growth is by implementing
new product development (Eppinger, Steven, and Chitkara, 2007). It is one of the
riskiest yet important for company to be able survive in the market (Cooper, 2003).
Company’s capability of how they develop new product gives a highly contribution for
measuring company’s success performance in the market itself. Therefore, it
becomes a challenge for company to manage the NPD process as it might require
many elements and factors. This chapter will argue around the research question
which supported by journal references:
The purpose of this chapter is to provide an analysis about new product
development in the aim to identify whether NPD is applicable for strategy growth or
not in today’s market share by evaluating some issues involving the process and the
critical factors.
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2.2. Why New Product Development is Important?
As the impact of the globalization, innovation management is one of the essential
approaches of business fundamental. Organization must compete in term to develop
innovative product or services faster and more efficient because the higher level of
competition in marketplace. Consumers have given choice of the products and
services whether with lower prices or better quality hence it becomes a challenge for
companies to stay ahead of the race. Driven by the impact of globalization in term of
the markets, technology advances, and various needs of customers, product
innovation becomes the main tactical in many companies (Cooper, 2000). As new
product has to introduce not only to increase the profits and sales but also to
strengthen the competitive for companies, so it concerns to implement new product
development. New Product Development defines as a chain of activities or stages of
an organization to develop and commercialize product. Product development also
not only refers into product specifications but also extended product offering in
product life cycle services. Therefore, NPD performance measurement becomes an
important issue on the body of product life cycle activities. Salter and Narver (2000)
determine that the goal in NPD is for creating product with high value or quality that
can reach users’ satisfaction. A successful development means developing right
product or services offering that would contribute continues growth and long-term
success for company.
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2.3. Issues in New Product Development
New Product Development has been debated as the riskiest yet important strategic
for business growth. Launching new product on market gives highly contribution for
profit performance (Ulrich & Eppinger, 2011). New product development has been
increased introduce dramatically in the market which shows that many industries has
became more aware with the importance of NPD. During 1970s, new product has
started as the key of company’s profit and in 1990s it has accounted 50 % of
company’s profits. However, this situation or figure can’t be last long as it continue
failing at the declining stages of product life cycle (Cengiz et al, 2010). Furthermore,
the rate of technology and market changes has become turbulent for company’s
capability in developing new products (Gonzalez and Palacios, 2002: 261). The
relationship between company and customer also concerns as the most crucial
issue, it creates an assumption whether company has to look into customer’s wants
or presume what customer needs. Managing customer preferences is needed, as
they are the contribution for its product innovation that leads into sales and profit
performances. Further discussion, those aspects will be more emphasized and
analyzed below here.
2.3.1. NPD in Product Life Cycle
New Product Development becomes a critical issue in product life cycle as because
every product has certain period time in life cycle. Companies will try to optimize the
product life cycle processes by maximizing the process in development and
manufacturing sectors as early as possible (Pol et al., 2008). The goal is to minimize
the cost of production, improve the product quality, providing good services of the
products, and facilitate a sustainable environment from the offered product. Product
Lifecycle basically consists of five major phases: Product development, product
introduction, product growth, product maturity and finally product decline ( Lightfoot,
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2000)
1. Product development: it begins when company decided to develop a new
product, which has been undergoing to several process and test.
2. Product introduction: product launch in marketplace through the promotion
and advertising. Pricing strategy also takes place in this phase as it will give
impact to the sales and revenue. The role of marketing is important to build
customer value.
3. Growth Phase: the phase when products has been increasing in the market
share but companies still have to manage the growth stage by improving the
product availability and services.
4. Maturity Phase: this period is when the company gets highest returns from the
product and achieved its goal. It is when the product reached the most
profitable period.
5. Decline Phase: time to withdraw variations of the products as the products
has been weak in the market position. In simply word, it is a phase when
consumers start to switch over into other product. Thus, manager should have
a conceptualized strategy for overcome the situation to build customer loyalty.
Figure 2.1. Product Life Cycle Stages
However, it becomes a never-ending cycle, as there will be a new product or
redesign existing products when it has reached the decline phase. Product
development phase is the primary and important stage because it involved the
process when all the product requirements have been formulated. It should have a
strong value in term of making core competences. The development stage will
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naturally affected the entirely product life cycle stages as well.
2.3.2. New Product Development Process
New product development refers to the activities that carried out by a certain
company from developing until launching its products or services. Hence, the
process of NPD involves many concepts such as developing, testing, branding, and
launching the products to the market (Bhuiyan, 2011). NPD not only determined as
to develop new products in order to cover old products but it also considered for
improving and modifying its products through R&D (Ulrike, 2000: 170). By doing
NPD, it could be established a cost reduction due to the improvements in the existing
products either by repositioned the products lines and even develop new products
that give an opportunity to enter new global markets (Ilorri et al, 2000: 334).
Regardless the size, profit, concept, or experiences, there will be time for every
company to face such a pressure either to modify, expand, or even renew its
products or services (Leenders et al, 2003: 69). It is required an information
management for making accurate decision to undertake the development until
launching process. Even though the result of NPD might be effected by outside
environmental which beyond company’s control, but company successfulness is
depends on how the company itself forming an accurate improvement and
evaluation decisions (Ozer, 2003: 1; Debruyne et al, 2002: 159).
Many researchers have been tried to establish the applicable model for NPD stages
or process (Ulrich & Eppinger, 2011). The best-known model is the one which
developed by Booz, Allen and Hamilton (1992) because it encompass all basic
stages and system of NPD. It consists of seven stages that summarize the model:
1. New Product Strategy: provide company objectives to be linked for perceive idea
and the guidelines.
2. Idea Generation: gathering the information for product’s ideas to meet company’s
objectives.
3. Screening and Evaluation: initial analysis to determine the idea more detailed.
4. Business Analysis: further evaluation about the quantitative factors such as
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profits, return on investment (ROI) and sales volume.
5. Design and Development: make that idea into the real product which can be
demonstrated.
6. Testing: conducting experiment to verify the final judgments.
7. Commercialization: launching products.
Figure 2.2. New Product Development Stages
The successfulness of the performance also required integration between
communication, information, and coordinating within the organization. According
Ernst et al. (2010), cooperation among Sales, Marketing, and R&D are crucial
concept not only in the development stage but also implementation stage. In
consequence, it clearly shows the team management has been a part of critical
success factor for NPD process.
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2.3.2.1. New Product Development Top Management and Teams
There are many success factors in new product development process and one of the
most common traits that found in organization is a cross-functional teams and
management support (Schimmoeler, 2010). NPD consists of the collaboration of the
team members itself either within or outside the organization to accomplish the goals
(McDonough, Kahn, & Barczak, 2001; Ozer, 2000). By having cross-functional teams
might allow them to combine their difference skills to solve challenges or problems of
new product development (Sethi et al., 2001). The key issue for maintaining the
relationship is communication between the team members and even outside
organization as it could be affected their performance (Connell et al., 2001).
Furthermore, senior management support has also identified can improve project
team performances or outcomes which lead into the new product success (Chorda et
al., 2002:305; Varela and Benito, 2004:2). They can mediate the team operation with
clear vision of the product concept or planning and ensure the sufficient of resources
allocated. Management commitment should also provide emotional support and
generates enthusiasm among the employees.
As an impact from globalization, some companies might use virtual teams in their
NPD process. Virtual teams refers to a group of people who has an certain task in
order to accomplish the organization’s objectives and work coordinative through the
information, communication, and transport technologies despite the geographically
dispersed (Gassmann and Von Sedwitz, 2003:Hertel et al., 2005). Therefore, it
brings various advantages such as reducing time and costs, attract employees with
the best skills regardless the location, which might lead into better team outcomes
(Rice et al., 2007; Piccoli et al., 2004). However, there still a manager that needed to
control the virtual team’s works but it is might require different methods of
supervisions. This situation will decrease an effective monitoring activity that caused
conflicts, mistrust, and other problems (Baskerville & Nandhakumar, 2007).
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2.3.2.2. Speed in New Product Development
Regarding the NPD process, speed plays a critical factor as company has to be able
to develop new products quickly and in the right time. The relationship between new
product development teams and the speed of the development process has been
indicated link each other (Lynn, G. and Akgun. A, 2003). The project team should
work simultaneously with minimum amount of errors and avoid rework (Ulrich &
Eppinger, 2000). Therefore, the role of manager is important because the
management support and resources can reduce the product development time.
Manager should also give a clearly defined vision and monitor the team’s progress
so it keep teams work on proper schedule. Additionally, the good flow of
communication and teamwork among the departments in organization might help
reducing the time. Fast NPD indicates a possibility for greater opportunities to get
more experiences from the run production while improving the technology industry
as well (Lucas et al., 2002; 34). In fact, speed of NPD process depends on the
performance of internal organization itself, starting from the planning in pre-
development stages and until the launching activity.
2.3.3. Managing innovation in New Product Development
In order to remain competitive in new global world, it is a need to meet and always
anticipate with this changing market’s needs and develops those demand products
or services. Each organization needs to put as much effort in term of innovation
function. Product innovation refers to the combination regarding the existing
products, creativity, and idea into a new different goods which been successfully
implemented through research, design, manufacture, and marketing (Parthasarathy,
Huang, and Ariss, 2011). To achieve product innovation, firm should have capability
to understand customer preferences and could obtain those knowledge for
transforming or modify new products. Pursuing innovativeness also might attract
potential consumers and build customers loyalty (Aaker, 2007).
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2.3.3.1. Customer Participation
Customers play an important role either for creating the value of the product or
competing in the marketplace (Prahalad and Ramaswamy, 2000). Customer
participation in the production process has been increased especially in innovation
and NPD (Bendapudi and Leone, 2003). This literature about customer roles in NPD
divided into two points. First, it focuses on the company’s perspective of customer
participation. Second one is about the real management of how to motivate
customers to participate in the production. There has been many researchers
recognized the usefulness of customer roles or participation in the NPD process
(Nambisan, 2002;Lin et al.,2009). By understanding customers’ wants, it’s not only
lead into the NPD performance itself but also overall market performance of the
company. Consequently, managers should consider the customer’s needs along with
the technology factor and meet the budget or financial restriction so that it would
increase company’s competitive advantage (Tzokas et al., 2003).
As product development required innovation, customer involvement might gain more
innovativeness of the products or goods (Sethi et al, 2001). In addition, there are
some types of the innovativeness, incremental innovation which is related to
improving the existing product or services, while radical innovation more focus on
creating new type of products or services in the market (Story et al., 2009).
However, it doesn’t make much different of what type of innovation is used but how
to deal with an entirely innovation is the concept of NPD process. Ramaswami et al.
(2009) also add that company which implement in Customer Driven Development
(CDD) tend to have better outcomes than who do not. Companies like Cisco,
Microsoft, Dell, Apple, Samsung, BMW and other manufacturers also has been
integrated with customers due to the innovation managements in NPD process.
Dahan and Hauser (2002) have identified type of customer involvement roles in
product development process. He stated that in NPD customers could view as
resource, co-creator and user. The figure above determines the different roles fit into
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different stages of NPD. As the resources, customer is best for ideation which
required customer knowledge, while as co-creator customer is suitable in design and
development stages that involve NPD teams and for being the user, customer might
provide the product support and loyalty. It could be seen clearly in figure below:
Figure 2.3. Customer Roles (Dahan and Hauser, 2002)
Consumers would be willing to provide the ideas for new products or services which
might satisfy their needs that have not been available in the market (Ernest et al,
2010). By having much more engagement with the communities members it will
bring loyalty toward the company (Algesheimer et al., 2010). For instance, the
positive word of mouth from customers in mentioned other people about the products
and the advantages. Hence, the stronger relationship between the customer and
company would bring beneficial for a way to sponsoring the company itself (Nabisan
and Baron, 2007). Furthermore, involving customer in the idea generation stages by
sharing the idea or concept and seeking into their inputs might reduce the risk of
failure of its new product also can save more time and expenses (Grewal, Lilien, and
Mallapragada, 2006). Beside that, consumer also give an impact to the brand image
of the company, the good impression would strengthen company’s brand as well
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(McWilliam, 2000). Nevertheless, these traits lead into issue of how to gathering
information for market research through the right customers in order to help new
product development process. Therefore, managers should have customer
knowledge management. So, that knowledge can be added as resources in the
company and bring out product advantages.
2.3.3.2. Competitors in term of NPD Process
In addition of customer participation in NPD process, companies need to perceive
competitors in developing new products. Companies needed to pay attention equally
to both customers and competitor in market orientation (West and Ford, 2006). The
number of competitions has been grown up rapidly and precisely gives impact to the
market sector. Gonzales and Palacious (2002) stated that situation of competition in
the market will influence product outcomes. Company in which enters market with
low number of competitor, might have better chance in providing value towards the
customers and become a first mover in developing the product. Whereas, in large
market it might bring a successfully outcomes but required innovativeness to be able
survive in the competitiveness industry. Belderbos et al. (2006) stated that rival
companies could be cooperatively involved in R&D because of some reasons. It
includes the ability to share the R&D costs, gain a synergy of supplying companies’
resources and possibility to change the industry regulations together. The
cooperation can happened whether in the process of R&D, the product or even both,
e.g develop some component of the product jointly and some individually or
separately (Burreau and Dogan, 2010).
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2.3.3.3. Technology advanced
In today’s market, technology has been provided much access for consumer to know
unlimited information an ability to communicate with others consumer or company
around the world (Wayne et al, 2010). Innovation in the product development
concerns with the improvement technology offering for the production processes.
Technology involves entirely process in NPD, not only in manufactured but also in
generating information or knowledge management (Internet). Communication within
the company has also including technology such as phone, email, etc. The role of
marketing in NPD embraces technology for promoting the products offered. The
utilization of new technology becomes a helpful tool for the one who needs (Ilori et
al, 2000: 337). Technology advanced brings effectiveness for the business process
in the company, it makes project done faster and reduce labors’ costs as well. In
addition, company has to utilize the proper security system to minimize the risk of its
system or database.
2.3.4. Knowledge Management
Firstly, what is Knowledge Management (KM)? According to Martensson (2000), it is
described as an operational or strategically tool focused for information handling.
Knowledge used for emerging analysis into a productive data and information. Start
from collecting the information and input those acquired data to the storage system.
KM included the storage of the employees’ knowledge in term of putting information
for the organization, which achieved by various technologies such as Internet,
database, and other explicit knowledge. Then it leads into making the certain
information can be accessible which involving the employees within the organization.
It is all about to demonstrate the information into the right users in right time as well.
Final stage is about utilizing the information through socializing, exchanging, sharing
information in verbal or non-verbal.
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Figure 2.4. Knowledge Management process
NPD process technically has been united with knowledge management since
knowledge is the based foundation for innovativeness. The role of KM in NPD
process makes a high contribution in company outcomes. KM can reduce risk in
NPD process either internal or external problem, for instance non-acceptance
product in the market, cost requirement, and others (Cooper, 2003).
General knowledge management can be divided into several types. According to
Yuan et al (2006) there are four types of knowledge in product management:
1. Market knowledge: refers to the knowledge from external factors such as
customers, suppliers, and other stakeholders. It consists the way of marketing
channels and maintains customer relationships to build customer loyalty.
2. Human knowledge: indicates the knowledge based on the internalized in a
person involving skills, experience, creativity, etc. It is important, as it will be
the resources of innovation and idea generation.
3. Technology knowledge: included inventions, publications, patents,
trademarks, etc. So, it is a core competence for design stages.
4. Procedural knowledge: represents the knowledge about the way to
accomplish the project.
However in New Product Development, although all knowledge managements are
needed but in this literature, it will be more critical around the customer knowledge
management, as it is an essential approach for develop innovativeness. The concept
of Customer knowledge Management will be discussed in next section.
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2.3.4.1. Customer Knowledge Management
Customer knowledge is the main factor for all organizations to gain customer value
(Rowly, 2002). Customer Knowledge Management (CKM) is basically a
conceptualized of using the knowledge from and about customers, for instance the
ideas of product improvement based on customer expectations (Salomon et al.,
2005). Nowadays, most companies have used the application of technology
advanced to develop the customer knowledge management via email and web
survey. To address the issue, there is a conceptual framework which is called E-
CKM model. This framework is an incorporation concept of IT and CKM including
four stages in application of information technology (Su et al,. 2006).
Figure 2.5 Categories of Customer Knowledge
Those implication plans based on the figure above are:
1. Product features, benefit and identification:
After a new product idea has been established, then company deliver the
product knowledge which is the features, functions, and others factors to
customers by channels like interview, questionnaire, email, web survey, etc
(Cooper and Schneider, 2001). Those customer’s responses have to be
collected in company’s database.
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2. Customers’ needs categorization:
Those responses that provided the customers’ preferences for the products
offered have to be categorized. It means segmenting the customers based on
their needs pattern. It leads into knowledge about the customer by
understanding their preferences toward the products.
3. Market segmenting to convert the tacit customer knowledge
Form the market segmentation by data mining techniques, which consists of
different characteristic regarding the customers’ needs. At this stage, the tacit
customer knowledge is gathered and analyzed by the company to convert into
an explicit knowledge.
4. Customers’ needs pattern extraction
After analyzing the segmentation of customers’ needs, it enables the firm to
decide the right target market. Furthermore, it allows the company to make a
strategic management of the products offered whether to improve or develop
new product (Rezvani, 2009).
Basically CKM refers to a process of obtaining, sharing, and increasing
knowledge from and for customer to both customer and company advantages
(Gilbert et al., 2002). In simply words, company has to manage the CKM in
the need of knowledge about customer, knowledge for customer and
knowledge from customer to improve the performances (Campbell, 2003).
However, customer knowledge should be used in an organization in term of
making decision (Davenport et al. 2001).
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2.4. Gaps in Literature
As I have mentioned above, there are some critical issues in implementing the NPD.
Launching new kind of product is such an important aspect for the organization’s
growth and survival in the market (Axarloglou, 2003). The overall process of product
development is running through three major points, which are Product Concept,
Product Design and Production Design. Those points are basically work as
inseparable workflow not as strict sequences of stages. The supportive components
such as team management, speed, technology, and customer could be called as the
key success factors to the NPD management.
In order to successfully gain competitive advantage and satisfy customer,
information management is required for organization to develop future product.
Therefore maintaining technology and software system is essential in generating
product including the forms of plan, model, and function (Sharafi et al, 2010).
Information management also integrated with the customers, but it depends on how
the organization put the customer for their perspective whether as the backbone of
the process or not. Thus, it shows there is a gap in addressing the following issue of
how organizations have different perspective in customer roles.
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2.5. Conceptual Framework
Conceptual framework is a way to help company elaborate problems and concepts
for organization output. Furthermore, it helps to visualization the research paper to
be more structure so it could help to answer the research questions easily (Hunt and
MAdhavaram, 2012). Below here is the framework regarding the topic, which is
“Implementing New Product Development for strategic growth”, there are important
traits that might help organization to achieve their goals through NPD.
Figure 2.6. The conceptual
framework of implementing NPD
In order to gain competitive advantage, organization should consider those four
major factors in developing new product. This is also a way for organization to
survive in today’s market share especially with the customer demand that change
rapidly.
2.6. Conclusion
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In summary, this literature review has shown how important to understand the proper
way for implementing new product development in today’s business life. Although it
is risky and costly, it might bring a great potential to gain competitive advantage and
survive in market. It has been clearly shown that successful of NPD performance
depends on how the company understand consumer needs and utilize the product
development to achieve those needs (Hauser, Tellis, and Griffin, 2006). However,
company should have a clear and well-communicated new product process involving
the technology advances and team management based on the literature evidence.
Further, this paper has examined that NPD required knowledge management in the
process, it becomes an information or data for its processes especially customer
knowledge management as it linked to the main research question,
In next chapter, it will explain and answer those research questions critically along
with the investigation about the customer involvement in NPD process by the dept
analysis of the comparison NPD in different big companies, such as Samsung and
Apple. Furthermore, there will be a rough discussion of selected journal from this
literature review in order to answer the conceptual framework.
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Chapter 3
Methodology
3.1. Introduction
In the previous chapter, it contains the literature review about the new product
development regarding the issues of its process and how importance NPD for the
organization life especially in today’s changing world. This chapter will discuss
further about how customer role could be a highly contribution for NPD in
organization by discussion of how organization put customer in the philosophy of “we
presume customer’s needs” or “we look into customer wants” based on the
methodology from some well-known corporations, such as Apple and Samsung.
Further more, as in the previous chapter consists of the conceptual framework, this
chapter will briefly discuss about some selected academic journals that can support
the conceptual framework along with the data collection methods.
3.2. Review and comparative analysis of articles
New product development is critical aspect for organization to be able to keep on the
market track. By launching new product or services, it gives an opportunity as a
source for being more profitable and expands the business. Success in introducing
new product in the market is based on the marketing process. Obviously, the
progress of customer’s wants have been changed rapidly in this changing world and
affected the business sector as well. Consequently, indicators of customer have
been analyzed as a conceptualized concept for NPD process in term of innovation.
Organization might have different assumption of how customer influences their new
product process. There are two types of customer from organization point of view,
which are customer centric and customer focused. Customer centric means an
operating business model by putting customer at the center. Presume that you know
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what is right or best for the customers (Mark P., 2013). This strategy approach could
increase company’s value because it will offer a unique or different experience from
other competitors. It is important for customer centric business for always anticipate
a long-term future needs as they promised to meet customer wants (Ken Ramoutar,
2013). Not only more delightful experience, customer centric strategy also gives an
opportunity for incremental sales or profit as the result of customer satisfactions and
loyalty. While customer focused is a strategy where the organization look into what
customer’s needs and expectation then address it into real product or services so
they can maximize their return or sales. They ask for customer feedback both
positive and negative, it becomes invaluable factor for the organization. By obtaining
feedback, this kind of organization could solve those customers’ complaint or
problem in the market (Oneil Williams, 2013). In this 21st
century, it is not difficult for
customer-focused company to use customer information system software such as an
online customer surveys, analyzing feedback, online marketing campaigns or
advertisement, and others. Customer focused often used for company to deliver a
better level of service or products than it’s competitor or even offer lower price (Peter
Finkelstein, 2013).
Apple is one of a big multinational corporation that has been successfully developed
new innovation such as iPod, iTunes, iPad, iPhone, and others. Apple is one
example of companies which assume what customer needs themselves. Historically,
Steve Jobs who used to be a visionary leader and also the chief innovator had
effective insights of how people want to interact with technology. Since it is a long-
term centric vision, Steve believe that he couldn’t ask customer of what they want,
his perspective is started with the user experience and impression (Sandeep, 2011).
Apple has an aim to provide human needs by creating a desire for customer to
interact with their computers or mobile device (James, 2012). This company has
used a unique strategy in term of their product development, illustrating problem or
issues from customer experiences and build product of what they presume customer
wants. Job always use a quote from Henry Ford as for their philosophy which is “If I
had asked people what they wanted, they would have said faster horses”. This
illustrates how Apple doesn’t conduct customer research. Schiller, Apple’s senior
25

vice president of worldwide marketing said that the company doesn’t rely on market
research in the NPD process. It plays no role in the creation of their product, means
they give opportunity for the team to elaborate the innovation of product (Mary M.,
2012). In the idea and design sourcing stages, Apple often starts with developing
new idea which enable to attract customer interaction rather than look into certain
customer needs. Apple focus on empower their customer through the high quality
experience that user got from its product. Innovation by having customer centric
strategy would go through complex or difficult processes. It is because the
organization should ensure to make meaningful changes for its product that
differentiate it from the others. The product has to be able to reach customers’
satisfaction and give a pleasurable experience. Apple also has an underperformed
when iPhone was launched in 2007, it was because the product didn’t meet the
standard smart phone industry. However, Steve Job’s creation was not only a
standard mobile phone but it became the world’s first handled computer. After the
revolutionary in some aspects, you can see now iPhone has become a multi function
and effective device. Apple has shown continuously improvement and become one
the world’s most innovative company.
How about the organization that used customer-focused strategy? Samsung is the
biggest rival of Apple in the mobile technology industry as it could be shown from the
rapid improvement of Samsung Galaxy that has been a direct assault against
iPhone. Samsung development strategy is different with Apple, they focused on
customer needs to drive new innovation. The first stage of Samsung product
development strategy is to understand the world and customers. They will conduct
market research, gathering idea and information from the customers to generate
concept of the new product. Few years ago Samsung has been struggled in smart
phone market, but this company is such a fast learner towards its competitors. They
observed the responses in the market and deliver it into a new innovation of product.
Not only provide cheaper product than iPhone, they differentiated its product with the
features of customer’s wants based on the market research (Max Nisen, 2013).
Samsung try to build up it’s image to be a brand that “cares for anybody” that
contrast of its competitor, Apple, that more likely a “self-centered brand”. This
26

company attempts to pull away the customer from its competitor both by the different
feature of its product and the marketing strategy. Samsung try to listen to Apple
consumer of what their complaint and use the information it help Samsung to build
new idea. However, this makes Samsung and Apple engaged with patent issues
towards each other. Apple accused Samsung for stealing the design of Apple’s
handset and tablets product, meanwhile Samsung also accused Apple of trying to
use US patent laws for dominating the smart phone market. In the end, Samsung
has lost its court case against Apple and should pay $1.05 billion in damages (David,
2012).
Based from the data, it determined that Apple has an aim to create brand loyalty
through the excitement and experience that given from the product to the user, while
Samsung focus to satisfy what customer wants and needs. However, either by using
customer centric or customer-focused strategy, both are applicable depends on its
organization’s mission.
3.3. Outline of the six academic journals to complete The Conceptual
Framework
Besides providing some methodology from reality examples about customer
involvement in those well-known organizations, here are some theoretical
discussions based on academic journals to complete the certain conceptual
framework. This table will briefly explain about the six selected journals that have
been mentioned in literature review.
Author and Year Title of Journal Explanation
Bhuiyan, N. (2011) A framework of Successful New
Product Development
The studies analyze the
framework of criteria that
needed in each stage of NPD
process. It proposes the tools
and techniques of the new
27

product strategy, idea
generation, screening and
business analysis,
development, and testing stage
which are the part of NPD
processes. This paper helps to
explain the requirement for
verifying the product
performance along with the
customer’s acceptance before
launching the product into
market.
Ekrem C., Hasan
A., and Fazıl K.
(2010)
Critical Success Factors in New
Product Development
The second article is the
research the critical success
factors for NPD. In order to
reduce the risk, they’ve
selected some critical
determinants for NPD success,
those are Top Management
Support, NPD Strategies, NPD
Teams, NPD Process, Market
Orientation, NPD Speed,
Knowledge Management, and
Technology. It shows that NPD
success rely on many
components which need to be
function simultaneously.
Rezvani, Zeinab.
(2009).
New Product Development
based on Customer Knowledge
Management (CKM)
Rezvani (2009) analyzed that
NPD deal with knowledge
management which contribute
external and internal sources, it
describes the knowledge for,
28

about, and from customer. This
article determines the effective
concept of NPD by having
CKM.
Sethi, R., Smith,D.
& Park,C. (2001).
Cross-Functional Product
Development Teams, Creativity
and the Innovativeness of New
Consumer Products
The authors has researched of
how functional team brings
creativity and innovative in
NPD. The article help us to
understand that cross-
functional team has been one
of success factor to NPD
performance.
Wayne D. Hoyer,
Rajesh C., Matilda
D., Manfred Krafft,
and Siddharth S.
Singh. (2010).
Consumer Co-creation in New
Product Development
The article discuss about how
consumers take a contribution
as a central role in new product
development. It analyzes how
consumers can actively involve
in NPD stages that include
ideation, development,
commercialization and
postlaunch. They believe it will
lead to bring positive outcomes
such as increase the product
quality, reduce risk, inrease
market acceptance, and ideas
for future research.
Yuan, Q. F., Yoon,
P. C., & Helander,
M. G.(2006).
Knowledge identification and
management in product design
The fourth article analyzed
knowledge management as an
essential factor for developing
product. It is important for team
to utilize information about
human factor perspectives.
29

In order to be able to answer the components of the topic of “Implementing NPD For
Strategic growth”, below here there is a diagram of the selected journal along with
the conceptual model.
3.4. Data Collection Methods
Data collection divided into two types, which is primary and secondary. Primary
refers to an originated data for the first time such as survey or interview while
30

secondary data is collected by other sources like journal or newspaper. Then, those
will lead into the validity and reliability of the journals. Validity defined as a tool to
measure of its purports to measure or how accurate the results of the research are
(Joppe, 2000). It could be measure by the result in concept of: universal law,
mathematical data, evidence, reason and fact (Winter, 2000). While reliability
concerns about the test that used to measure repeatable behavior performance
under some occasions. In other words, it is a consistency or stability measurement
over variety conditions (Ellen, 2011).
Author and
Year
Title of Journal Primary or
Secondary
Validity and
Reliability
Explanation
Bhuiyan, N.
(2011)
A framework of
Successful New
Product
Development
Secondary Medium validity
and high
reliability
The author collected
data from other
journals and applied
her knowledge and
analysis, that is why
it hasn’t much validity
but high reliability
based on the reliable
journals collected.
Ekrem C., Hasan
A., and Fazıl K.
(2010)
Critical Success
Factors in New
Product
Development
Secondary High validity
and high
reliability
Although it is
secondary research
but the data collected
is consistent and
valid.
Rezvani, Zeinab.
(2009).
New Product
Development
based on
Customer
Knowledge
Management
(CKM)
Primary and
Secondary
High validity
and high
reliability
The theories and
survey explained well
by analyzing the data
from other journals
and conducted in-
depth interview and
questionnaire with
customers.
31

Sethi, R.,
Smith,D. &
Park,C. (2001).
Cross-
Functional
Product
Development
Teams,
Creativity and
the
Innovativeness
of New
Consumer
Products
Primary and
Secondary
High validity
and high
reliability
The authors explain
theories from reliable
sources from journals
and also have tested
hypotheses by
consistent survey
and questionnaire.
They also did some
interview with some
firm’s managers in
NPD area.
Wayne D. Hoyer,
Rajesh C.,
Matilda D.,
Manfred Krafft,
and Siddharth S.
Singh. (2010).
Consumer Co-
creation in New
Product
Development
Secondary High validity
and high
reliability
The theories data are
from previous
research with
credible sources and
clear concept.
Yuan, Q. F.,
Yoon, P. C., &
Helander, M. G.
(2006).
Knowledge
identification
and
management in
product design
Primary and
Secondary
High validity
and high
reliability
Research provided
by the survey data
and consistent
theories from reliable
sources.
32

3.5. Conclusion
This chapter has an aim to give a better understanding through methodology of
some articles. First, it discussed by comparing the difference strategies through the
case of Apple and Samsung help we to realize that customer involvement is such a
requirement for organization to develop product. The importance point is how
organization could maintain its strategy effectively and considers the situation in this
contemporary world whether external or internal. The purpose of new product
development is to gain more competitive advantage, don’t let it becomes a threat for
the organization’s growth. Beside that, this chapter also has concluded some
academic journals that basically related with one another for answering the
conceptual framework of “Implementing NPD for Strategic Growth” and provides
each data collection method of the journals. Next chapter will be discussing the
finding analysis of overall studies.
33

Chapter 4
Discussion and Analysis of overall findings
4.1 Introduction
Through the previous chapter we have discussed the difference perspective of
customer involvement in two well-know organizations and followed by the
methodology of the conceptual framework with the details of six chosen articles. In
this chapter, we will do dept analysis more about the findings of those articles to link
them with by the relation for answering the following research questions:
In the other words, the purpose of this chapter is to give a discussion of the key
findings in the role of implementing an approachable NPD process for organization
growth in the 21st
century.
4.2 Comparisons and Discussion of Key Findings
This section will carry out the relevant concepts to be more clearly in answering the
research questions in term of implementing NPD. There will be a comparison and in
dept discussion of the article journals to find out the key findings. Key findings here
are basically the main points of what this studies has been examined, those key
findings will support to determine the approaches of the research questions.
34

4.2.1. Key finding one: The role of successful New Product Development
Product failure rates mostly represented because of the fail in new developed
product at the market place. Developing and deploying products are not an easy
thing to handled, it is not only about coming up with beyond the simply idea.
Although a great new invention can’t guarantee the success of its products in the
market share. Therefore some critical factors are needed to support the new product
development process. According to Bhuiyan (2011) new product development will
influence the company’s growth and profit so it is essential for each of the NPD
process stages required critical factors. The paper identified that NPD required a
well-communicated new product strategy followed by team supportive of how they
can brainstorm to create an originated idea or do market research analysis, financial
evaluation to analysis the business before develops the product and also integration
between technology and speed in development stages. The author also added
customer involvement as for utiliziKeyng the feedback that influences the product
performances.
In other journal, Ekrem, Hazan and Fazil (2010) stated that concept of new product
considered various essential determinants because it should be innovative, different
from the existing product, and functional. Those determinants which are classified as
NPD process, strategies, top management support, teams, market orientation,
speed, knowledge management, and technology, should taken into managers’
consideration so the NPD performance will be in success.
Therefore, it can be concluded that the role of successful or effective new product
development required some critical factors to support the performance. Although the
journal by Bhuiyan (2011) has mentioned the factors are inside each stages of the
processes, while the other journal determined the whole factors as one packaged to
NPD success, the main reason and concept are basically same. The authors believe
that new product development is such a risky yet important to its organization so
35

those critical factors might help the process to be more efficient.
4.2.2. Key finding two: Managing information in 21st
century
Based on Yuan (2006) knowledge management (KM) is necessary for organization
in developing product especially in today’s world. Most organizations don’t really
understand what and how knowledge could be managed. The paper has been
identified and classified knowledge management for designing new product by
utilizing human perspectives and technical aspects. Thus, this information would
guide the organization lead into operation system and flow to decision-making
processes, which also have been identified with the consequences. In simply words,
knowledge management reveals the criteria for the product and evaluates functional
system along with the alternative suggestion so that the product could be accepted
in market share.
In further discussion, Rezvani (2009) has also agreed that knowledge management
is essential tool to reduce the failure of being not acceptance in the market.
However, to be more specific and systematic, the author believes that combining KM
and customer relationship management (CKM) would be more helpful to give clearly
information for, about, and from customers to prevent product failure. By obtaining
CKM, organization might use those information for product improvements as
nowadays customers demand has changed rapidly.
Both authors agree with the concept of implementing knowledge management in
organization as an opportunity to improve the product performances. Rezvani (2009)
has added customer knowledge management might bring product beneficial as well.
36

4.2.3. Key finding three: Innovativeness in New Product Development
Wayne, Rajesh C., Matilda D., Manfred, and Siddharth (2010) believes that in
today’s market consumer co-creation is vital impact in new product development. It
stated that by involving consumers actively in the NPD process, organization could
achieve sustainable competitive advantages as it could improve the innovativeness.
The collaborative between firm and consumer will help to give positive outcomes
such as ideation, commercialization, and future research. Despite all the benefits,
there also some risk and challenges in managing or controlling those customers over
the management.
Whereas, Sethi, Smith, and Park (2001) defined innovativeness of product not only
need customer involvement but also from the internal factor itself, which is the use of
team management. Although the authors agreed that innovativeness could be built
by customer integration, but the team management has also been a primary
determinant for NPD process because functional teams are the one who discover
ideas and creativity for the product. Functional teams concern three contexts that are
senior or manager supportive because they provides a big influence for team as in
motivation and monitoring project, team encouragement for taking risk of being
different from other in the meaning of uniqueness, and third is about how team could
use diversity idea from customers.
Therefore, it concluded that innovations for new product development consist of
customer involvement and cross-functional teams. All authors agreed that customer
gives high contribution in innovation yet it wouldn’t effectively works without team
contribution as Sethi, Smith, and Park (2001) has stated in their journal.
37

4.3. Summary of Key Findings
Comparison and discussion of all academic journal articles are necessary to address
the main research topic of implementing new product development as strategic
growth for organization in 21st
century. In order to make it easier to understand,
below here is the summary of the key findings.
Key finding one: The role of successful new product development
• Bhuiyan, 2011 studies show complete framework of NPD process which consist
of critical factors and techniques in each stages that can bring opportunities to
reach success in NPD performances.
• Ekrem, Hazan and Fazil, 2010 analyzed the critical factors for NPD success
based on theoretical studies that can be concluded as one integration system
for achieving product successfulness in the market share.
Key finding two: Managing information in 21st
century
• Yuan, 2006 studies that managing knowledge or information is needed in the
organization to survive in today’s business world. By having knowledge
management it creates benefit to know more about contemporary information
that used to create new product.
• Rezvani, 2009 studies that aside from discussing knowledge management, it
also stated importance of customer knowledge management in consequence of
developing new product to be acceptance in market and avoid product failure.
Key finding three: Innovativeness in New Product Development
• All the following authors agreed that innovation contributed by consumer co-
creation, Wayne, Rajesh C., Matilda D., Manfred, and Siddharth, 2010 stated
that through consumers, there will bring opportunity to improve innovation and
ideas and a role for future research.
• Sethi, Smith, and Park, 2001 studies established innovation gained not only by
38

customer contribution but also teams management because teams play
essential part in developing new innovative product.
4.4. Relation of six articles
Previous sections have discussed about the key findings which shows that new
product development success required several determinants. This section will
discuss the relation of those six articles as an inseparable aspect of one each other.
Nowadays, competition in market is increasing rapidly as many multinational
organizations arise in the impact of globalization. In order to survive in the market,
organization should have unique selling point. Therefore, new product development
is needed even though it is a risky process. It has been discussed earlier by
Bhuiyan (2011), Ekrem, Hazan and Fazil (2010) that NPD works through complex
process indeed. In details, NPD has several critical factors to be concerned for
attaining an effective NPD, those are: strategy, process, team and top management,
speed, knowledge management, customer, and technology.
From those analyses, it shows a relation to what Yuan (2006) and Rezvani (2009)
talked in their journal of how information or knowledge definitely help to operation
system and prevent risk and product failure in the NPD process. More specifically,
Rezvani (2009) discussed how importance knowledge for, from, and about
customers to provide good strategy. Discussing about customer, Wayne, Rajesh C.,
Matilda D., Manfred, and Siddharth (2010) have further studies of customer gives
impact to innovation on creating its product or services. In addition yet important,
Sethi, Smith, and Park (2001) explained of cross-functional teams play key roles in
innovativeness of new consumer products.
39

4.5. Conclusion
This chapter has analyzed the key finding of new product development process from
six articles that are related with one another. As I have mentioned that the chapter
focused on trying to answer the main topic of how new product development could
be a strategic growth for organization in order to survive in the market share
especially in today’s business world. The following three major key findings are
actually link to each other as one applicable strategy system for operating the NPD
process that not only to be able keep on market share but also might indeed
increase the profitability. Moreover, next chapter will be about the summary and
conclusion of entire research as well as the limitation and future idea of the research
40

Chapter 5
Summary and Conclusion
5.1. Introduction
Previous chapter has introduce and explain the key finding of the journals and try to
discuss the answer of the research question, therefore, this last chapter will
summarize and conclude the overall studies in this research in order to provide
better understanding towards the main topic of the research, which is “Implementing
New Product Development as Strategic Growth”. The chapter will also discuss the
limitation that found during the process of the studies along with the improvement for
future research idea.
5.2. Summary of the Study
All of the studies have basically been more focus on the six main journal articles
(Bhuiyan, 2011; Ekrem C., Hasan A., and Fazıl K, 2010; Rezvani Zeinab, 2009;
Sethi, R., Smith,D. and Park,C., 2001; Wayne D. Hoyer, Rajesh C., Matilda D.,
Manfred Krafft, and Siddharth S. Singh, 2010; Yuan, Q. F., Yoon, P. C., & Helander,
M., 2006). Despite the finding on the articles, the studies also explained the key
finding throughout the example of two well-known organizations, such as Apple and
Samsung. However, as the main topic of this research is all about new product
development in becoming strategic growth for organization, this lead into several
issues regarding the topic and generate some of sub research questions, such as,:
41

Through these studies, the research has shown how importance, complex, and risky
of new product development in the organization. The studies have established a
conceptual model for this research that intends to answer the research questions.
This research also has found out a conceptual model and three major key findings,
which will be explained in detail on the next section.
5.3. Addressing the Research Question/ Conceptual Model
As I have mentioned the main objectives of this research is related to implement new
product development for organization growth, thus, to find the answer, this studies
focus on the process of the NPD that surrounding by some critical determinants
which include the technology, team, innovation, and others. The literature review has
helped to discuss sharply regarding the research questions based on theoretical
views.
More specifically the research has provided a conceptual framework that could
conclude as the outline for the research questions. There is an in dept analysis of the
selected six articles from academic journal that come out with the paradigm of the
methodology. In order to be easier for contouring the studies, there is data collection
method that determine whether it is primary or secondary research also measure the
validity and reliability of the journals.
5.4. Key Finding Discussion
Throughout all the articles, there are similarity and also arguments in those journal
articles, which have been discussed in previous chapter. The studies found out
Bhuiyan (2011) and Ekrem, Hazan and Fazil (2010) agreed that new product
development process required several critical factors to sustain the successful of the
NPD process in organization. Those critical factors include the team, technology,
42

speed, customer, and knowledge management. Second, Yuan (2006) and Rezvani
(2009) believes that managing information or knowledge is important in today’s
business world. Rezvani (2009) added or completed the theories that customer
knowledge management is essential for new product development performance.
Last, Wayne, Rajesh C., Matilda D., Manfred, and Siddharth (2010) stated that
customer co-creation needed for innovativeness whereby Sethi, Smith, and Park
(2001) found that not only customer that plays role in managing innovation but the
team functional as internal factor also important.
Therefore, it can be concluded that new product development is such a complex
process. Many impacts need to be considered for maintain the organization
sustainability. Nowadays, customer demands change rapidly so organizations in this
21st century need to maintain their knowledge and innovativeness regarding the new
product development as a strategy for gain competitive advantages.
5.5. Limitation of Research
Obviously there are few limitations of this studies, first, as because the studies are
relying mostly to the secondary data so it might be not too accurate. As this study
are basically my self analysis throughout some research from academic journals, so
there is no primary data, for instance survey directly to the organization of how their
NPD process works. Lastly, the study also has been discussed generally about
implementing effective new product development without any specific products or
services.
5.6. Future Research
The previous section has discussed about the limitation of the research, so for the
future research, the studies should be conducting with primary data that can be
obtained from survey, questionnaire, and interview. Therefore, the research could be
more accurate and the measurement in validity and reliability of the data might be
more precisely correct. For future idea of research, there should be more specific,
43

means the research could be more sharply into what products or services that want
to be discussed.
5.7. Conclusion
As many researchers agreed that new product development is such an important
factor for organization to survive in market but yet it is one of the riskiest and
complex process in business. To conclude, the studies have an objective to answer
the research topic of whether new product development can be a strategy growth for
organization and how to implement an effective NPD process. That is why the study
has provided a conceptual framework regarding that objective.
After selecting six related journal articles to fit in the conceptual framework, it brings
out the three key findings. However, this research has identified those key findings in
the studies to give a better understanding for reader. The paper also mentioned the
limitation that found in this research along with how to improve it in the future
research. In summary, by maintaining new product development process along with
the consideration of customer involvement and other critical factors, it might brings
NPD to a successfully performance so it could gain competitive advantage and
sustainability of organization in market share.
44

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