SlideShare a Scribd company logo
1 of 32
Download to read offline
Seconda Università degli studi di Napoli
           Facoltà di Economia
     Tesi di Dottorato di Ricerca in
    Imprenditorialità ed Innovazione


“Transforming innovation concepts into
 an outcome”: Analysis of New Product
 Development process case studies in
                 ICT Industry


Student: Vincenzo Basile

Tutor Prof. F. Izzo




     XXV Ciclo - Settore scientifico disciplinare SECS-P/08 – 2010/2012
Contents




 1         Introduction - Research Objectives

 2         Literature Review

 3         Methodology

 4         Case Studies

 5         Cross Case Synthesis & Findings

 6         Conclusions




     Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                          2
1   Introduction – Innovation importance

    Many companies struggle to obtain the desired outcomes in the innovation process


                       2010 Top Innovators                                                        Key Findings


                Innovation                    R&D Spending                   A. There is no statistically significant relationship
                 Ranking                        Ranking                          between financial performance and innovation
                                                                                 spending, in terms of either total R&D dollars or R&D
                                                                                 as a percentage of revenues*.
         1                                             70th
                                                                             B. The BCG Innovation survey (2005) states that over

         2                                             34th                      half the respondents reported their company as being
                                                                                 weak or very weak in bringing innovations to
                                                                                 fruition, or realizing the value contained within
         3                                             86th                      innovation


         4                                             32th

      To maintain consistent and effective competitive advantages a firm should know how to adopt
                               and use a structured innovation processes
       Source: The Global Innovation 1000 - Why Culture Is Key, Booz&co
       Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                         3
1   Research Objectives – Goals of the study

    Focus of this study is to gain insight into the activities leading to successful new
    products, developing an understanding of the success factors characterizing the process
    and recognizing how the practical stages enable the transformation of a product
    innovation into a concrete outcome - Chapter 1
                                                                                            Introduction - Chapter 1

                                   Modeling the path of innovation, in particular the NPD process, through the
                                   event sequence from inception to completion or abandonment, identifying
             NPD
           process                 any patterns or common practices that typify and identify the management of
                                   transforming innovation.



                                   Determining any patterns and practices associated with successful, value-
                                   creating outcomes in the NPD process in the ICT industry, with special
         Successful                focus on:
          patterns
             and                      – the idea generation process
          practices                   – the NPD business process, conceived as a high level overview of the
                                          NPD process involving the whole company to get the product to the
                                          market



       Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                       4
1   Research Objectives – Question addressed

    The following questions will be addressed in the next sections

                Literature Review - Chapter 2                                                Methodology - Chapter 3

       What is meant by innovation?                                                         Which type of research analysis has been
                                                                                            utilized?
       Which forms of innovation have been identified?
                                                                                            How the research analysis has been
       How is NPD process developed?                                                        performed?

       Which supports and barriers to implement
       NPD innovations literature pinpoints?                      Addressed
                                                                  Questions




                                      Which NPD business processes have been identified?

                                      Which supports and barriers have been identified in the companies?

                                      Which commonalities and differences have been identified in the case studies?


                                     Case Studies and significant findings - Chapter 4/5

                                                         Conclusions - Chapter 6

       Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                       5
Contents




 1         Introduction - Research Objectives

 2         Literature Review

 3         Methodology

 4         Case Studies

 5         Cross Case Synthesis & Findings

 6         Conclusions




     Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                          6
2   Literature Review – Areas of investigation

    Three main areas of study have been objective of investigation through literature

                                               Reference Framework – Main Authors

                                        Scope of Research
                                                                                                         Methodology of research
                    Innovation                          New Product Development (NPD)

        Christensen, C. introduced the idea of            Cooper, R.G. & Edgett, S. as the world’s        Yin, R. K. for its comprehensive knowledge of
        disruptive technologies and disruptive            foremost experts in the field of product        all aspects of the case study method -- from
        innovation to a generation of managers (The       innovation (Stage-gate systems: a new tool      problem definition and design to data analysis
        Innovator's Dilemma, 1997)                        for managing new products, 1990; Portfolio      and reporting (Case Study Research - Design
                                                          management for new products, 2002)              And Methods, 1984; Applications of case
        Hansen, M. & Birkinshaw J. introduced the                                                         study research: Applied social research
        innovation value chain concept (The               Takeuchi, H., & Nonaka, I. for their work on    methods series, 1993)
        Innovation Value Chain, 2007. Harvard             different approaches on the management of       Stake, R. E. for its studies on case study
        Business Review)                                  new product development (The new new            research and qualitative data analysis
                                                          product development game, 1986)                 (Qualitative case studies, 2005)
        Drucker, P., Tidd J. and Bessant J. for their                                                     George, A. L., & Bennett, A. for their
        work on innovation and entrepreneurship           Trott, P. as author of a book on innovation     research programmes on the use of case
        (Innovation and Entrepreneurship, 1987 &          management and new product development          studies to build and test theories in social
        2007)                                             (Innovation management and new product          sciences (Case studies and theory
                                                          development, 2008)                              development in the social sciences, 2007)
        Porter M. famed for its core competency on                                                        Benbasat, I., Goldstein, D. K., & Mead, M.
        competitiveness and company strategy (The         Schilling, M. A., & Hill, C. W. for their       for their articles on case research strategy
        Competitive Advantage of Nations, 1990)           contribution on the new product development     and qualitative methods (The case research
                                                          process (Managing the new product               strategy in studies of information systems,
        Hamel, G., & Prahalad, C. K. for their work       development process: strategic imperatives,     1987)
        on organizational core competencies               1998)                                           Baxter, P., & Jack, S. for their article on
        (Competing for the future, 1994)                                                                  study design and implementation of
                                                                                                          qualitative case studies (Qualitative case
                                                                                                          study methodology: Study design and
                                                                                                          implementation for novice researchers, 2008)

       Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                                           7
2   Literature Review – Definition of Innovation

    Innovation meaning and forms have been extensively explored

                                                          Innovation Definition

             “Innovation can be defined as a process that provides added value and a degree of novelty to the
           organization and its suppliers and customers through the development of new procedures, solutions,
                           products and services as well as new methods of commercialization”

                                               (McFadzean, O’Loughlin & Shaw; 2005).



                                                             Innovation Forms

       According to degree of tangibility and the degree
                                                                                         According to innovation impact
                     of customer contact
       Degree of
       Tangibility         Product

                                   Processes                                Incremental                                    Radical
                                                                             Innovation                                  Innovation
                                              Services
                                            Degree of
                                         Customer Contact

       Source: Schilling, M. A., & Hill, C. W. (1998). Managing the new product development process: strategic imperatives
       Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                      8
2   Literature Review – NPD process in literature

    Formal new product processes involving new ways to manage, control and measure
    new product programs have been extensively discussed in literature

          New Product Process: a formal blueprint, roadmap, template or thought process for
         driving a new product project from the idea stage through to market launch and beyond.

     1                                                                        2
                The first generation NPD Process                                                Stage-Gate Systems

         Developed by NASA in the 1960s, the PPP (phased                          Stage-gate systems recognized that product
         project planning), today often called Phased Review                      innovation is a process
         Process, is an elaborate and detailed scheme for
         working with contractors and suppliers on various                        Applied process-management methodologies to the
         space projects                                                           innovation process

         PPP broke development into discrete phases:                              The process is sub divided into a number of
         funding for the next phase was conditional to the fact                   stages or work stations. Between each work station or
         that certain prerequisites had been met                                  stage, there is a quality control checkpoint or gate

         Methodology designed to ensure that the project was                      A set of deliverables is specified for each gate, as
         proceeding as it should                                                  is a set of quality criteria that the product must pass
                                                                                  before moving to the next work station
         Designed to deal solely with technical risks and not
         on the entire process from idea to launch                                Information about the new product becomes better
                                                                                  and better, so risk is managed.


         Source: Cooper, R. (1994) Third-generation new product processes
         Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                            9
2   Literature Review – Stage Gate model

    Standard stage gate system may be used as point of departure for custom processes

                                                                   Stage-Gate Systems Model
                                               Preliminary      Detailed Investigation
                                                                                         Development
                                                                                                           Testing &            Full Production &        Post
                                               Assessment         (Business Case)                          Validation            Market Launch      Implementation
                        Stages                     1                     2                   3                   4                     5                Review




                                        1                      2                    3                  4                    5                             Gates
                        Idea         Initial                 Second           Decision on
                                                                                                     Post-                 Pre-
                                                                                                  Development        Commercialization
                                    Screen                   Screen          Business Case
                                                                                                    Review           Business Analysis




      1                             2                                        3                             4                                        5
           Initial Screen &               Second Screen &                        Business Case &                 Post dev. Review &                     Business Analysis &
      Preliminary Assessment            Detailed Investigation                    Development                   Testing and Validation                    Market Launch
           First decision to                The stage prior to                   The results of the               Check on continued                     This final gate opens
           commit resources                 heavy spending                       financial analysis are           attractiveness of the                  the door to full
           to the project                   Includes market                      an important part of             product and project                    commercialization:
           Strategic assessment             research, competitive                this screen                      Tests the entire                       financial projections
           of the opportunity               analysis and concept                 A number of key items            viability of the project:              play a key decisional
           (market value,                   testing                              must be agreed such              the product itself; the                role
           technical feasibility            A detailed technical                 as target market,                production process;                    Passed the gate it
           etc.)                            appraisal must focus                 product concept and              customer acceptance;                   involves
           Financial criteria are           on the "do-ability" of               positioning                      and the economics of                   implementation of
           not part of this first           the project                          Outcome is the                   the project                            both the mktg and the
           screen                                                                product development                                                     operations plan
      Source: Cooper, R. (1994) Third-generation new product processes
          Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                                                                 10
2   Literature Review – NPD Strategic issues

    The effectiveness and efficiency of the new product development depends on five
    strategic issues to be addressed
                                                                      Focusing on the right process solutions
                                                                      through:                                            Create teams to increase the
                                                                      • Appropriate project valuation                     likelihood of project success:
                               Develop a context aimed                   mechanisms                                       • Match structure to project type
                               at reducing innovation                 • Development of process schemes                    • Include a diverse range of
                               production cycle time and              • The involvement of customers and                      functions
                               achieving a fit between                   suppliers in the development process             • Match team leader attributes to
                               customer requirements                                                                          type of team
                               and new product
Identify, develop, and
nurture those
technologies that will be                                               Process                                                      Use the available tools
crucial for the long run                                                                                                             to expedite the NPD
competitive position of                                                                                                              process and maximize
the company                                                                                                                          the product's fit with
                                    Organizational                                                                                   customer
                                                                                                          Teams
                                       Context                                                                                       requirements




                   Technology                                       Innovation
                                                                   Management                                                 Tools
                    Strategy




                                                        Successful NPD Outcome

        Source: 1) Schilling, M. A., & Hill, C. W. (1998). Managing the new product development process: strategic imperatives 2) Internal elaborations
         Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                                          11
Contents




 1         Introduction - Research Objectives

 2         Literature Review

 3         Methodology

 4         Case Studies

 5         Cross Case Synthesis & Findings

 6         Conclusions




     Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                          12
3    Methodology – Research models

    Multiple case studies and qualitative research methods are considered appropriate models
    to approach specific issues and develop deep understanding of a certain phenomena


                  Qualitative Research                                                          Case Studies

        Qualitative research methods utilizes experience                         Social science research uses case studies for
        and interpretation of events by actors with widely                       organizational studies (Kohlbacher, 2005) as they
        differing stakes and roles                                               facilitate a better understanding of (company) culture
                                                                                 and values: the influence of less tangible
        Qualitative research methods are valuable in
                                                                                 aspects.
        providing rich descriptions of complex
        phenomena                                                                A group of cases is studied and enables the
                                                                                 researcher to explore differences within and
        The literature indicates that is worth using qualitative                 between cases. The goal is to replicate findings
        methods when the phenomenon is not well known
                                                                                 across cases
        or understood with the aim of generating new
        theories                                                                 Through case studies data from multiple sources are
                                                                                 collected, analyzed, compared and summarized,
        The use of a quantitative approach was                                   allowing an holistic view of a certain phenomenon
        considered a limitation as collection of statistical
        and numerical data would not provide the critical
        descriptive detail required for this study




       Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                          13
3   Methodology – Overview

    Multiple case study strategy and protocol development are typically based on a three
    stage process

                                                           Methodology Overview

                                                  B.                                                      1   Develop theory: build a
                  A.                                                            C.                            consistent framework from an
                                             Fieldwork &
                Design                                                      Conclusions                       extensive literature and
                                               Analysis
                                                                                                              documents
                                                                                                          2   Select cases and design data
                                     3.1             4.1                                                      collection protocol: select
                                                                                                              companies and the procedures
                                                          Write                                               for executing investigations
                                       Conduct
                                      Case Study
                                                       individual                                         3   Conduct case studies: use
                                                          case                                                semi-structured questions
                                          1
                                                         reports                                              carefully designed to provide
      1             2                                                   5                  6
                                                                                                              adequate coverage for the
                       Select                                                                Modify           purpose of the research.
                       cases                                                                  theory      4
                                                                            Draw                              Write individual case reports,
          Develop       and                                                                     &
                                                                         cross-case                           reviewing all relevant documents
           theory   design data                                                              Develop
                                                                        conclusions                           and all interview/survey data
                     collection                                                               policy
                      protocol       3.2             4.2                                   implications   5   Draw cross-case conclusions,
                                                                                                              analyzing similarities and
                                                                                                              differences between cases and
                                                          Write
                                       Conduct                                                                listing similarities and differences.
                                                       individual
                                      Case Study                                                          6   Modify theory and develop
                                                          case
                                          2                                                                   policy implications utilizing
                                                         reports
                                                                                                              provided information to verify
                                                                                                              hypothesis and refining theory.

      Source: Yin, R. K., “Case Study Research”, 2003b, p. 50
      Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                                      14
3   Methodology – Interviews

    The case study has been constructed through the use a semi-structured interviews
    with key personnel of the firm

                                                                  Interviews

       Explicit data were gathered using semi-structured interviews conducted with key personnel involved with innovation
       activity in each company

       This approach has been chosen rather than a structured because it offers adequate flexibility to approach diverse
       respondents differently while still covering the same areas of data collection

       Literature (Tellis, 1997; Umit, 2005; Yin, 2004) advocates open-ended questions in the interviews facilitating free
       discussion and suggests its use when it is desirable to know what is being thought by people and if the ideas are
       intricate or problematic to express

       Literature emphases the significance of interviews needing to be reliable, consistent and have validity, with questions
       structured and responses collected in order to provide effective information for the purpose of the study

       Known as “elite interviewing” (Marshall & Rossman, 1999), starting with each company’s most senior person gave
       access to the overall knowledge of the company’s innovational activities

       The suggested employees were considered suitable by the senior person as having extensive involvement with
       each company’s innovation realization processes



      To reinforce the use qualitative methods, standardization techniques and consistency checks
                                 have been performed during the research

       Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                 15
3   Methodology – Criteria for company selection

    Two company of the ICT industry have been selected as case study reference

                                    A sector recognized as both innovation-aware and innovation-driven was requested for
                                    this research
                                    ICT was chosen because innovation is regarded as a critical requirement for operating in the
          Industry                  industry’s rapidly changing environment
          Selection                 Competitive forces are felt more keenly than in some other industries with innovative activity
                                    at the forefront of management actions in ICT firms.


                                    The companies were selected through information available in the public domain (media
                                    releases, industry resources) as demonstrating successful innovation activities
        Criteria for                The companies chosen for this study exhibit NPD innovation practices, indicating that
        Companies                   innovation systems of some form exist in the organizations
         Selection                  The selection of two companies as an appropriate number allowed for some variation
                                    (similarities and differences) within the scope of the study and within the time constraints


                                    The two companies are all technology-based, yet provide similar services and do not
                                    compete with each other, operating in different countries
                                    The two companies who agreed to be case study subjects are all privately owned
        Companies
                                    The two companies are perceived as successful members of the technology industry
         Overview
                                    The companies demonstrate relevance to the general industry rather than being unique or
                                    extraordinary, supporting replicability and generalization


       Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                     16
3   Methodology – Limitations of Research

    The methodology and its application have some shortcomings to be considered


                                               Limitations of Methodology Research

       The scope of this study was delimited to two companies that have established innovation-to-outcome systems in the
       ICT industry. Although multi-case studies are considered more robust than single cases, the selection of two has to be
       considered as a minor sample potentially reducing general applicability

       This industry was expressly selected as providing indicators to innovatively successful companies as innovation
       agility is a pre-requisite for continuing growth in this highly competitive environment

       The employment of the ICT industry and its distinct nuances may limit generalization to companies outside of the
       industry

       Qualitative data are subjective to researcher bias, as are interviews. The assumed limitation of qualitative
       methods is that they presumably allow more room for the researcher’s subjective and arbitrary judgment. They are
       often seen as less rigorous than quantitative approaches are.




       Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                17
Contents




 1         Introduction - Research Objectives

 2         Literature Review

 3         Methodology

 4         Case Studies

 5         Cross Case Synthesis & Findings

 6         Conclusions




     Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                          18
4   Case Studies – Selected Companies

    An italian and a british company were choosed for the case studies


                                                   Company A                                            Company B


                                    One of the top mobile telecommunications               A UK company operating in the mobile
                                    companies in Italy, offering the full range of         telecommunication industry
     Company                        telecommunications services                            Developed the first commercial UK video
     Overview                       A leading actor in introducing multimedia              mobile network
                                    services in the Italian market                         Voted as Best Network for Mobile
                                                                                           Broadband in a survey more than once

                                    Established in 2002                                    Established in 2003
                                    Firm’s turnover in excess of $2 billion                Firm’s turnover in excess of $2 billion
     Company
                                    More than 2.000 employees                              More than 1.500 employees
     Key Numbers



                                    The General director                                   The Senior Marketing manager
                                    The CTO (Chief Technology Officer)                     The ICT development manager
     Interviewed
                                    The Marketing director.                                A project manager
     People



      Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                     19
4   Case Studies – Company A NPD Process Selection

    The NPD selection process addresses different processes according to the deeper
    analysis needed for different kind of innovations and consequences on the company

                                                                     NPD Process Selection

                                                          Fast Track Requiring
                                                                                                  Non
                                                                                          Fast Track Requiring
                                                                                                                         From the idea generation the NPD
                  Idea Generation                                                                                        process selection follows a
                                            Incremental                                   Rapid Adjustment               sequence of steps to identify:
                   Idea Sharing
                                                               Fast Track
                                                                                                                           If the project is worth of concept
                                                Radical                                        Full NPD
          No        Manager                                                                                                refining and if the high level
                    Approval
                                                                                                                           business case holds
                           Yes
                     Concept
                                                                      Detailed Business Case                               which process typology utilize
                     Refining
                                                              No                                 Yes
                                                                                                                           (Fast Track, Rapid Adjustment of
                                                                             > 200 k€
                                                                            investment                                     Full NPD) before detailing the
          No       High Level         Yes
                                                   No     Manager     Yes                No        Board         Yes       business case
                  Business Case                                                                   Approval
                                                          Approval
                                                                                                                           different approval responsibilities
                                                                                                                           according to the required
                                                                     Implement                               Implement     investments


                                               Full NPD                                       Rapid Adjustment                       Fast Track
     NPD
                                  The complete process used                        A simplification of the NPD
     Process                                                                                                                The process for urgent new
                                   for the introduction of new                      Full process, used for new
     Typologies                                                                                                              products requiring shorter
                                   products and radical NPD                        products utilizing yet existing
                                                                                                                                 time development
                                           innovations                                       platforms


      Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                                                20
4   Case Studies – Company B NPD Process Selection

    Company B NPD selection process addresses different processes according to the
    required investments and impacts on the company

                                                                      NPD Process Selection

                                                                     Resource                                          From the idea generation the NPD
                                 Basic NPD                                                   Radical Impact
                                                                     Requiring                                         process selection follows a
                 Idea Generation
                                                                                                                       sequence of steps to identify:
                                                    > 30 k€            Detailed
                                                  investment         Business Case
                                                                                                                         If the project is worth of a
                  Idea Sharing                            No
                                                                                                                         concept refining and if the high
                                                                                     Yes
            No
                   Manager
                                                                        > 300 k€
                                                                       investment
                                                                                                                         level business case holds
                   Approval

                          Yes
                                                                              No                                         which process typology utilize
                    Concept                       Manager              Executive                 Shareholders            (Basic NPD, Resource Requiring
                                                  Approval              Board                     Approval
                    Refining
                                             No           Yes   No             Yes          No            Yes
                                                                                                                         and Radical Impact) according
            No                      Yes
                                                                                                                         to the required investments
                  High Level
                 Business Case                                                                                           different approval responsibilities
                                                   Implement            Implement                  Implement
                                                                                                                         according to the required
                                                                                                                         investments


                                             Radical Impact                                Resource Requiring                      Basic NPD
     NPD
                                      For the introduction of                          A slightly simplified process
     Process                                                                                                              A simplified process involving
                                    completely new products or                            involving mostly NPD
     Typologies                                                                                                           NPD incremental activities
                                   radical innovations requiring                         incremental activities
                                                                                                                         requiring limited investments
                                     more than Euro 300,000                           requiring up to Euro 300,000


      Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                                            21
Contents




 1         Introduction - Research Objectives

 2         Literature Review

 3         Methodology

 4         Case Studies

 5         Cross Case Synthesis & Findings

 6         Conclusions




     Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                          22
5   Case Studies & Findings – NPD Process Selection Comparison

    Differences in NPD Process Selection of the two companies exist in all the four
    categories highlighted

                                                  NPD Process Selection Comparison


                                            Company A                                      Company B

        Process Selection                     •     NPD typology                           • NPD typology vs.
             Ratio                            •     Top Management                           investment required
                                                    Prioritization


             Investment                       •     < € 200,000                            •   < € 30,000
              Threshold                       •     > € 200,000                            •   > € 30,000 and < 300.000€
                                                                                           •   > € 300,000


        Detailed Business                     •     After the process                      •   Before the
          Case Timing                               selection                                  process selection
                                                                                               (except Basic NPD)


        Process Selection                     •     Functional Manager                     •   Functional Manager
          Responsibility                      •     Board of Directors                     •   Executive Board
                                                                                           •   Shareholders

      Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                           23
5   Case Studies & Findings – NPD Business Process Comparison

    Both companies have three NPD process typologies despite organized differently
    according to NPD typology

                                                        NPD Business Process Comparison

                                                                                                                       The figure illustrates
                                               Company A                             Company B                         the different
                                              process typology                       process typology                  typologies of
                                                                                                                       innovation each
                                                                                                                       process addresses
                                                                                                                       Different kind of




                                                                                                             Radical
                      Radical                                                                                          process may be
                                                                                                                       used as a risk
                       NPD
     NPD typology




                                                             Fast Track                                                management tool to



                                                                          Full NPD
                                                                                                                       face different
                                                                                                                       expected impacts on
                                                                                                                       the company
                                               Adjustment




                                                                                                Resource
                                                                                                Requiring
                                                                                                                       Both companies
                                                 Rapid




                                                                                       Basic
                    Incremental                                                                                        consider also the
                                                                                                                       possibility to
                        NPD                                                                                            introduce 3rd Parties
                                                                                                                       products or their
                                                                                                                       involvement in the
                                                                                     Economical thresholds do not      process,
                                                    Fast Track is used for
                        Clarifications:                                               strictly determine selection
                                                   prioritized new products
                                                                                     between RR and Radical NPD



             Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                                24
5    Case Studies & Findings – NPD Business Process Comparison (1/3)

    The number and division of the activities of the NPD business process sub phases is a
    possible but not relevant source of differentiation between the two companies

                                                      NPD Business Process Comparison
    +



                                     Ideation, concept and
                                                                                         Product Development
             Company




                                     requirements creation
                                                                                                                                 6
                A




                                             Product req Tech analysis         System
                         Concept                              and                               Integration       Commercial Sub phases
                                                 and                           Analysis
                         Definition                        planning                               testing           Roll out
                                              feasibility                      and dev
                                                                                                                                 vs.

                                Idea & Concept Development                               Product Development
             Company
                B




                            Concept/
                  Opportunity/Macro             Req, Feasibility and            Development &
                                                                                                          Marketing Trial        5
                     Idea Planning
                                                                                                                 &           Sub phases
                                                planning definition                 Test
                                                                                                         Full Scale Launch

In house
activities             2 sub phases in            2 sub phases in the
                                                                                       2 sub phases in the Product
                       the initial part of       concept development
                                                                                     Development for the company B:
                        the process for             and requirement
                                                                                     different division of the activities
                          company B             definition for company A


         Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                       25
5   Case Studies & Findings – NPD Business Process Comparison (2/3)

    Also governance and operational responsibilities present mismatches between the two
    companies
                                                                                                                                                                                                                                                              Distinctive Characteristics of the
                                                                                                                                                                                                                                                                    Business processes
                                                                                                                           Tech
                                                                                     Product req                                                Sys. analysis, dev &                  Integration                  Commercial roll-
                                          Concept definition                                                           analysis and

                                               ∼2 weeks
                                                                                    and feasibility

                                                                                   ∼4 weeks
                                                                                                                         planning
                                                                                                                        ∼4 weeks
                                                                                                                                                  internal testing

                                                                                                                                                    ∼10 weeks
                                                                                                                                                                                        Testing

                                                                                                                                                                                   ∼2 weeks
                                                                                                                                                                                                                       out

                                                                                                                                                                                                                      ∼3 weeks
                                                                                                                                                                                                                                                  The full range of governance and operational responsibilities
    Detailed Process




                                                                                                                         Detailed Process
                                                                              (cumulative: 6 weeks)                 (cumul: 10 weeks)            (cumul: 20 weeks)             (cumul: 22 weeks)                  (cumul: 25 weeks)


                                                                                                                                                                                                                                                  described in the previous section present some differences
                       Content                                                                                                                          Draft                        Final
                       provider                                                                                                                        Content                      Content
                                                                                                                                                                                                             Media plan;
                                                                                                               Mock-up                                                                                        brochure
      Company A




                                                                                                                           Company A
                                                                                                               & focus

                                                                                                                                                                                                                                                  between the companies:
                                       Concept                               Business                                            Approve                                                                           Product
                       Marketing/                        Demo                                     Approve      groups             storyb                                                                            plan
                                        (PDB)                                  case                 doc
                       web studio
                                                                                                       Storyboard

                                                            Proj              Product                                                                                                 User
                                                         Initiation             req                                                                                                Acceptance        Approve


                                                                                                                                                                                                                                                    Project review board: company A has two different board
                       Product &       Concept                                                    Approve                             Approve
                                       feasible?                                                                                                                                      Test
                       Services                             Doc                (PRD)                doc                                 doc



                                                           Go/


                                                                                                                                                                                                                                                    arrangements depending on which gate of the NPD
                       Project Sponsor                                                                                                Approve                                                                                           Launch?
                                                          No go                                                                         doc

                                                                                                                    Det.Tech.                   SRS         Product
                                                                                                                    Analysis                    SDS           SW          Ready?
                                                                                                                                                                                       Integration
                       CTO:
                       Services, IT,
                       Network,
                       Terminals
                                                                              Analysis            Approve
                                                                                                    doc                    Proj def
                                                                                                                             doc
                                                                                                                           (PDD)+
                                                                                                                          Bus case
                                                                                                                                                            Internal
                                                                                                                                                              test
                                                                                                                                                                                           test
                                                                                                                                                                                                                                                    process is; differently company B has the same board for
                                                                                                                                                                                                                           Commercial
                       Other ITA Functions
                       (Legal, Regulatory,
                       Admin, CRM, Sales…)
                                                                              Analysis            Approve
                                                                                                    doc
                                                                                                                                                                                                                              plan

                                                                                                                                                                                                                           Contact
                                                                                                                                                                                                                           center
                                                                                                                                                                                                                                                    all gates. Additionally Company B board meets regularly
                       Review board
                                                                                                             Go/
                                                                                                            No go
                                                                                                                                         Go/
                                                                                                                                        No go
                                                                                                                                                                                                       Go/
                                                                                                                                                                                                      No go
                                                                                                                                                                                                                            doc
                                                                                                                                                                                                                                                    (weekly appointment) for projects updates.
                                                 Gate 1: strategic and                      Gate 2: requirements                  Gate 3: strategic and financial                      Gate 4: readiness for  Gate 5: readiness
                                                 tech fit; gross margin;                  stability, product feasibility            attractiveness; resources                          commercial roll-out;      for launch
                                                resources for analysis.
                                                    Decide process
                                                                                          and High Level Bus Case
                                                                                                  attractiveness
                                                                                                                                   availability according to the
                                                                                                                                     planning; project score
                                                                                                                                                                                     consistency with concept
                                                                                                                                                                                    and focus groups feedback                                       Project Sponsor: In the company A this role is held by the
                                                                                                                                                                                                                                                    Marketing department while for company B it is performed
                                                                                                                                                                                                                                                    by the Product & Services function. In the first and in the
                                 Opp./ Idea
                                                          Concept/
                                                       Macro planning
                                                                                             Requirements, Feasibility and Planning
                                                                                                          Definition
                                                                                                                                                                       Development&Test
                                                                                                                                                                                                                Market trial & Full
                                                                                                                                                                                                                 Scale Launch
                                                                                                                                                                                                                                                    last Gate in the company A the sponsor has the
                                                                                                                                                                                                                                                    responsibility for the Go/ No Go of the new product
    Detailed Process




                                                                                                                         Detailed Process




                       Product dev
                                   Product
                       manager

                                                                                                                                                                                                                                                    development/ launch on the market.
                                    brief
                       (Mktg)
                                                                                                                           Company A
      Company B




                                                     Macro            Proj init                        Product                                                    Sys
                       Dev                          planning            doc            Req.           Req. Doc
                                                                                                                                                               analysis
                                                                                                                                                                            SRS       Dev and         Integr
                       Team                                                          definition                                                                 & high                 testing
                                                   up to DB3           (PID)                           (PRD)                                                     level      SDS                      testing
                       (BA IT)

                                                                                                                                                                                                                                                    Project Manager: In the company A it is a person of the
                                                                                                                                                                design

                                                                                                                                     Det.        Proj def
                       Project delivery                                                                                Approve      Project        doc
                                                                                                                         doc       planning
                       manager                                                                                                                   (PDD)

                                                                                                                                                                                                                                                    Product & Services with the responsibility for the end to
                       Project       Approve                          Approve                                          Approve                   Approve                                                       Internal      Customer

                                                                                                                                                                                                                                                    end project management of the initiative; in the company B
                                       doc                              doc                                              doc                       doc
                       manager                                                                                                                                                                                   trial         trial



                       Other                                                                            Req.


                                                                                                                                                                                                                                                    the project manager is the head of the project team, and
                                                                                                                       Approve
                                                                                                       analysis          doc
                       functions




                                                                                                                                                                                                                                                    belongs to the function mainly responsible for the
                                     Approve                          Approve                                          Approve                   Approve
                       Project         doc                              doc                                              doc                       doc
                       sponsor



                       Project review
                       board*
                                                Go/
                                               No go


                                               D&B1
                                                                                   Go/
                                                                                  No go


                                                                                  D&B2
                                                                                                                                                             Go/
                                                                                                                                                            No go


                                                                                                                                                            D&B3
                                                                                                                                                                                                      Go/
                                                                                                                                                                                                     No go


                                                                                                                                                                                                     D&B4
                                                                                                                                                                                                                                         Go/
                                                                                                                                                                                                                                        No go


                                                                                                                                                                                                                                        D&B5
                                                                                                                                                                                                                                                    execution of the product innovation (Tech./P&S)
                       *In the D&B1 NPD Process Selection rules apply




             Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                                                                                                                                                                                                  26
5   Case Studies & Findings – NPD Business Process Comparison (3/3)

    According to interviews the overall commonalities about success factors and
    obstacles overcame differences between the two companies

                                            Differences                                                Commonalities

                          Company A prioritizes the Innovation process                   Presence of a structured technology strategy
      Success Factors




                                                                                         Perceived flexibility to different NPD needs
                          Company A has the capability of allowing the
                          parallelizing of development activities                        Company values, necessary to stimulate
                                                                                         openness of communication
                          Company B is focused on financial
                                                                                         Capacity to prepare and plan the upfront activities
                          measurement
                                                                                         The importance of quality in the development,
                          Company B is more focused on Portfolio                         aiming at differentiated and superior products
                          management                                                     The need for a champion in resource demanding
                                                                                         or complex innovations


                        Similar issues with barriers overall, despite isolated           Existence of too many projects and not enough
                        cases regarding:                                                 resources. This could outline a generalized lack in
                                                                                         the capacity of the two companies in fixing priorities
      Obstacles




                          Company A too confident attitude towards
                          complex problems which could lead to wrong                     Too Hurry. This, like the former, could be caused
                          estimations or extra work                                      by strategy management issues, as well as from
                                                                                         management practices
                          Possible bottleneck or delay to define the
                          Project Manager (functional organization) for
                          Company B


            Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                                  27
5   Case Studies & Findings – Key Findings

    Important findings may be highlighted following the case studies on the two
    companies


                                                                Key Findings

        Results reveal that the case study companies have similar types of NPD innovation systems and patterns

        Monetary threshold are used as guidelines to address the innovation approval responsibilities

        Well defined governance roles (for the NPD project selection and approval responsibilities) provide greater control on
        projects and structured decision points

        The importance of access to decision makers and culture open to innovation are recurring features to unlock new
        value

        High level business case may permit quick decisions in case of minor product innovations

        The use of dedicated cross-functional task forces is a good workaround solution when timeliness is critical, as well
        as fast prototyping methodologies

        Both companies have arranged their process to enable the introduction of 3rd parties in the new product development




       Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                              28
Contents




 1         Introduction - Research Objectives

 2         Literature Review

 3         Methodology

 4         Case Studies

 5         Cross Case Synthesis & Findings

 6         Conclusions




     Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                          29
6   Conclusions – Emerging NPD Process

    A framework for successful patterns and practices managing NPD innovation is
    drafted subsequently to literature and case studies analysis


                                Emerging successful patterns and practices in NPD Process

                           Technology           Organizational
                                                                               Process                 Teams                    Tools
                            Strategy               Context

                         Strategy in           A defined a                Different typologies    Implement cross-        Implement:
                         accordance to point   Governance board           of NPD business         functional team           Rapid prototyping
    to be incorporated




                         of strength and       should govern and          process for different   working
     Success Factors




                                                                                                                            Decision making
                         marketing needs       control the long term      innovational impacts    Involve Decision          tools and to
                         Seek differentiated   new product                and specific needs      Makers in the teams       transform user
                         and superior          innovation                 Use parallel stages     Allow the use of task     demands into better
                         products              Simplify the               Implement Fuzzy         forces to fast track      processes and
                         Plan and resource     governance for             gates                   the development           products
                         market launch         “easy” products            Invest your time in     activities                Software for the
                                               Keep the                   preparation             A New Product             NPD process
                                               innovation instinct                                Committee should          facilitation
                                               Involve customers                                  produce an
                                               and suppliers                                      operational plan
                                               Appropriate project                                Involvement of
                                               management                                         executive champions
                                               structure




             Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                              30
6         Conclusions

       Purpose of this study was to gain empirical evidence on how the NPD process
       transforms innovational concepts from origin to outcome

                                                                Investigated various literature on the innovation subject
                        Literature Review                       Dedicated a major focus to the NPD processes literature
                        Chapter 2
    Approach Adopted




                                                                Introduced success factors and existing obstacles to a successful NPD


                                                                Explored the qualitative methodologies utilized for the case studies
                        Methodology
                        Chapter 3                               Provided a theoretical framework for the analysis, describing the rationale used for
                                                                interviews, company selection, data gathering

                                                                Presented results of interviews and analysis, described the NPD systems used by
                        Case Studies and                        companies, the detailed processes and the key influences
                        significant findings                    Outlined the key findings resulting from the case studies
                        Chapter 4/5
                                                                Provided successful patterns and practices managing NPD innovation

                                Future areas of Improvement                                       Suggestions for Further Research
                           From structured process to NPD smart System,                          Similar analysis on firms of different industries
                           allowing conditional, situational, and focused                        Including the laggards in the NPD process analysis
                           decisions
                                                                                                 Evaluation of innovational performance over time
                           Major recurrence to NPD Process Outsourcing and                       after the introduction of structured NPD process
                           Externalization                                                       Understanding the levers to maintain the
                           NPD process informatization                                           innovative capabilities while implementing
                                                                                                 operational improvements


                       Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                                                                                       31
Thank You

Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile
                                                                                     32

More Related Content

Viewers also liked

Managing Innovation_innovation concepts
Managing Innovation_innovation conceptsManaging Innovation_innovation concepts
Managing Innovation_innovation conceptsOpenLearningLab
 
Concept Innovation 101 by Chef Bruce Lim
Concept Innovation 101 by Chef Bruce LimConcept Innovation 101 by Chef Bruce Lim
Concept Innovation 101 by Chef Bruce LimHomer Nievera, CDE
 
Session02 innovation concepts
Session02 innovation conceptsSession02 innovation concepts
Session02 innovation conceptsOpenLearningLab
 
What is Innovation
What is InnovationWhat is Innovation
What is InnovationChris Mobbs
 
Business Innovation Concept
Business Innovation ConceptBusiness Innovation Concept
Business Innovation ConceptKoen Klokgieters
 
Accelerating Innovation: Proof of Concept Gap Fund Program Best Practices
Accelerating Innovation: Proof of Concept Gap Fund Program Best PracticesAccelerating Innovation: Proof of Concept Gap Fund Program Best Practices
Accelerating Innovation: Proof of Concept Gap Fund Program Best Practicesinnovosource
 
The Concept of Innovation and Innovation Management
The Concept of Innovation and Innovation ManagementThe Concept of Innovation and Innovation Management
The Concept of Innovation and Innovation ManagementNadia Lushchak
 
How to Build a Proof of Concept
How to Build a Proof of Concept How to Build a Proof of Concept
How to Build a Proof of Concept Michael Hamilton
 
Innovation process & models
Innovation process & modelsInnovation process & models
Innovation process & modelsVijayKrKhurana
 
Entrepreneurship And Innovation
Entrepreneurship And InnovationEntrepreneurship And Innovation
Entrepreneurship And InnovationNajmus-Saquib Khan
 

Viewers also liked (11)

Creating Value Through Design
Creating Value Through DesignCreating Value Through Design
Creating Value Through Design
 
Managing Innovation_innovation concepts
Managing Innovation_innovation conceptsManaging Innovation_innovation concepts
Managing Innovation_innovation concepts
 
Concept Innovation 101 by Chef Bruce Lim
Concept Innovation 101 by Chef Bruce LimConcept Innovation 101 by Chef Bruce Lim
Concept Innovation 101 by Chef Bruce Lim
 
Session02 innovation concepts
Session02 innovation conceptsSession02 innovation concepts
Session02 innovation concepts
 
What is Innovation
What is InnovationWhat is Innovation
What is Innovation
 
Business Innovation Concept
Business Innovation ConceptBusiness Innovation Concept
Business Innovation Concept
 
Accelerating Innovation: Proof of Concept Gap Fund Program Best Practices
Accelerating Innovation: Proof of Concept Gap Fund Program Best PracticesAccelerating Innovation: Proof of Concept Gap Fund Program Best Practices
Accelerating Innovation: Proof of Concept Gap Fund Program Best Practices
 
The Concept of Innovation and Innovation Management
The Concept of Innovation and Innovation ManagementThe Concept of Innovation and Innovation Management
The Concept of Innovation and Innovation Management
 
How to Build a Proof of Concept
How to Build a Proof of Concept How to Build a Proof of Concept
How to Build a Proof of Concept
 
Innovation process & models
Innovation process & modelsInnovation process & models
Innovation process & models
 
Entrepreneurship And Innovation
Entrepreneurship And InnovationEntrepreneurship And Innovation
Entrepreneurship And Innovation
 

Similar to Transforming innovation concepts into an outcome ph d_v_basile

2011 Systematic Innovation Summit
2011 Systematic Innovation Summit2011 Systematic Innovation Summit
2011 Systematic Innovation Summitkevinlu
 
Implementing Innovation in Organizations: TrendsSpotting's Innovation Assessm...
Implementing Innovation in Organizations: TrendsSpotting's Innovation Assessm...Implementing Innovation in Organizations: TrendsSpotting's Innovation Assessm...
Implementing Innovation in Organizations: TrendsSpotting's Innovation Assessm...Taly Weiss
 
Innovation+Change=Transformation
Innovation+Change=TransformationInnovation+Change=Transformation
Innovation+Change=TransformationStephen Danelutti
 
Innovation+Change=Transformation
Innovation+Change=TransformationInnovation+Change=Transformation
Innovation+Change=TransformationStephen Danelutti
 
Business Incubation System (Mot masters research project report )
Business Incubation System (Mot masters research project report )Business Incubation System (Mot masters research project report )
Business Incubation System (Mot masters research project report )Tarek Salah
 
final version dissertation
final version dissertationfinal version dissertation
final version dissertationInka Tiono
 
ILRI Seminar_Presentation by AHall_Our search for effective research and inno...
ILRI Seminar_Presentation by AHall_Our search for effective research and inno...ILRI Seminar_Presentation by AHall_Our search for effective research and inno...
ILRI Seminar_Presentation by AHall_Our search for effective research and inno...Food_Systems_Innovation
 
Individual Peter Magnusan (APS-M3)
Individual Peter Magnusan (APS-M3)Individual Peter Magnusan (APS-M3)
Individual Peter Magnusan (APS-M3)Usman Bhatty
 
Making Use of Corporate Foresight
Making Use of Corporate ForesightMaking Use of Corporate Foresight
Making Use of Corporate ForesightDjordje Pinter
 
INNOVATION MANAGEMENT.pdf
INNOVATION MANAGEMENT.pdfINNOVATION MANAGEMENT.pdf
INNOVATION MANAGEMENT.pdfMuhammadUbaid49
 
Innovation measurement at firm level? Is there a formula?
Innovation measurement at firm level? Is there a formula?Innovation measurement at firm level? Is there a formula?
Innovation measurement at firm level? Is there a formula?Yash Saxena
 
Innovation Manager Certification Basic
Innovation Manager Certification BasicInnovation Manager Certification Basic
Innovation Manager Certification Basicguest7358100
 
Has your innovation program run out of snake oil
Has your innovation program run out of snake oilHas your innovation program run out of snake oil
Has your innovation program run out of snake oilThe BrainLink Group
 
What are innovation audits
What are innovation auditsWhat are innovation audits
What are innovation auditsChris Mobbs
 
EMIC Project - Presentation
EMIC Project - PresentationEMIC Project - Presentation
EMIC Project - PresentationEMICPT
 

Similar to Transforming innovation concepts into an outcome ph d_v_basile (20)

2011 Systematic Innovation Summit
2011 Systematic Innovation Summit2011 Systematic Innovation Summit
2011 Systematic Innovation Summit
 
Implementing Innovation in Organizations: TrendsSpotting's Innovation Assessm...
Implementing Innovation in Organizations: TrendsSpotting's Innovation Assessm...Implementing Innovation in Organizations: TrendsSpotting's Innovation Assessm...
Implementing Innovation in Organizations: TrendsSpotting's Innovation Assessm...
 
Innovation+Change=Transformation
Innovation+Change=TransformationInnovation+Change=Transformation
Innovation+Change=Transformation
 
Innovation+Change=Transformation
Innovation+Change=TransformationInnovation+Change=Transformation
Innovation+Change=Transformation
 
Innovation intro
Innovation introInnovation intro
Innovation intro
 
MIT 323_5 The Technological Innovation Process.pptx
MIT 323_5 The Technological Innovation Process.pptxMIT 323_5 The Technological Innovation Process.pptx
MIT 323_5 The Technological Innovation Process.pptx
 
Business Incubation System (Mot masters research project report )
Business Incubation System (Mot masters research project report )Business Incubation System (Mot masters research project report )
Business Incubation System (Mot masters research project report )
 
final version dissertation
final version dissertationfinal version dissertation
final version dissertation
 
ILRI Seminar_Presentation by AHall_Our search for effective research and inno...
ILRI Seminar_Presentation by AHall_Our search for effective research and inno...ILRI Seminar_Presentation by AHall_Our search for effective research and inno...
ILRI Seminar_Presentation by AHall_Our search for effective research and inno...
 
Individual Peter Magnusan (APS-M3)
Individual Peter Magnusan (APS-M3)Individual Peter Magnusan (APS-M3)
Individual Peter Magnusan (APS-M3)
 
Making Use of Corporate Foresight
Making Use of Corporate ForesightMaking Use of Corporate Foresight
Making Use of Corporate Foresight
 
BII
BIIBII
BII
 
INNOVATION MANAGEMENT.pdf
INNOVATION MANAGEMENT.pdfINNOVATION MANAGEMENT.pdf
INNOVATION MANAGEMENT.pdf
 
Innovation measurement at firm level? Is there a formula?
Innovation measurement at firm level? Is there a formula?Innovation measurement at firm level? Is there a formula?
Innovation measurement at firm level? Is there a formula?
 
Innovation Manager Certification Basic
Innovation Manager Certification BasicInnovation Manager Certification Basic
Innovation Manager Certification Basic
 
Innovation management
Innovation managementInnovation management
Innovation management
 
Has your innovation program run out of snake oil
Has your innovation program run out of snake oilHas your innovation program run out of snake oil
Has your innovation program run out of snake oil
 
What are innovation audits
What are innovation auditsWhat are innovation audits
What are innovation audits
 
EMIC Project - Presentation
EMIC Project - PresentationEMIC Project - Presentation
EMIC Project - Presentation
 
DPPM4
DPPM4DPPM4
DPPM4
 

Recently uploaded

PSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationPSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationAnamaria Contreras
 
8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR
8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR
8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCRashishs7044
 
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCRashishs7044
 
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCRashishs7044
 
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607dollysharma2066
 
Future Of Sample Report 2024 | Redacted Version
Future Of Sample Report 2024 | Redacted VersionFuture Of Sample Report 2024 | Redacted Version
Future Of Sample Report 2024 | Redacted VersionMintel Group
 
Investment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy CheruiyotInvestment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy Cheruiyotictsugar
 
Innovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdfInnovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdfrichard876048
 
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607dollysharma2066
 
India Consumer 2024 Redacted Sample Report
India Consumer 2024 Redacted Sample ReportIndia Consumer 2024 Redacted Sample Report
India Consumer 2024 Redacted Sample ReportMintel Group
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfRbc Rbcua
 
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdfIntro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdfpollardmorgan
 
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort ServiceCall US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Servicecallgirls2057
 
Buy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail AccountsBuy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail AccountsBuy Verified Accounts
 
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deckPitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deckHajeJanKamps
 
Kenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby AfricaKenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby Africaictsugar
 

Recently uploaded (20)

Call Us ➥9319373153▻Call Girls In North Goa
Call Us ➥9319373153▻Call Girls In North GoaCall Us ➥9319373153▻Call Girls In North Goa
Call Us ➥9319373153▻Call Girls In North Goa
 
PSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationPSCC - Capability Statement Presentation
PSCC - Capability Statement Presentation
 
8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR
8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR
8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR
 
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
 
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
 
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
 
Future Of Sample Report 2024 | Redacted Version
Future Of Sample Report 2024 | Redacted VersionFuture Of Sample Report 2024 | Redacted Version
Future Of Sample Report 2024 | Redacted Version
 
Investment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy CheruiyotInvestment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy Cheruiyot
 
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCREnjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
 
Innovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdfInnovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdf
 
Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)
 
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
 
India Consumer 2024 Redacted Sample Report
India Consumer 2024 Redacted Sample ReportIndia Consumer 2024 Redacted Sample Report
India Consumer 2024 Redacted Sample Report
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdf
 
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdfIntro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
 
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort ServiceCall US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
 
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
 
Buy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail AccountsBuy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail Accounts
 
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deckPitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
 
Kenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby AfricaKenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby Africa
 

Transforming innovation concepts into an outcome ph d_v_basile

  • 1. Seconda Università degli studi di Napoli Facoltà di Economia Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione “Transforming innovation concepts into an outcome”: Analysis of New Product Development process case studies in ICT Industry Student: Vincenzo Basile Tutor Prof. F. Izzo XXV Ciclo - Settore scientifico disciplinare SECS-P/08 – 2010/2012
  • 2. Contents 1 Introduction - Research Objectives 2 Literature Review 3 Methodology 4 Case Studies 5 Cross Case Synthesis & Findings 6 Conclusions Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 2
  • 3. 1 Introduction – Innovation importance Many companies struggle to obtain the desired outcomes in the innovation process 2010 Top Innovators Key Findings Innovation R&D Spending A. There is no statistically significant relationship Ranking Ranking between financial performance and innovation spending, in terms of either total R&D dollars or R&D as a percentage of revenues*. 1 70th B. The BCG Innovation survey (2005) states that over 2 34th half the respondents reported their company as being weak or very weak in bringing innovations to fruition, or realizing the value contained within 3 86th innovation 4 32th To maintain consistent and effective competitive advantages a firm should know how to adopt and use a structured innovation processes Source: The Global Innovation 1000 - Why Culture Is Key, Booz&co Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 3
  • 4. 1 Research Objectives – Goals of the study Focus of this study is to gain insight into the activities leading to successful new products, developing an understanding of the success factors characterizing the process and recognizing how the practical stages enable the transformation of a product innovation into a concrete outcome - Chapter 1 Introduction - Chapter 1 Modeling the path of innovation, in particular the NPD process, through the event sequence from inception to completion or abandonment, identifying NPD process any patterns or common practices that typify and identify the management of transforming innovation. Determining any patterns and practices associated with successful, value- creating outcomes in the NPD process in the ICT industry, with special Successful focus on: patterns and – the idea generation process practices – the NPD business process, conceived as a high level overview of the NPD process involving the whole company to get the product to the market Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 4
  • 5. 1 Research Objectives – Question addressed The following questions will be addressed in the next sections Literature Review - Chapter 2 Methodology - Chapter 3 What is meant by innovation? Which type of research analysis has been utilized? Which forms of innovation have been identified? How the research analysis has been How is NPD process developed? performed? Which supports and barriers to implement NPD innovations literature pinpoints? Addressed Questions Which NPD business processes have been identified? Which supports and barriers have been identified in the companies? Which commonalities and differences have been identified in the case studies? Case Studies and significant findings - Chapter 4/5 Conclusions - Chapter 6 Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 5
  • 6. Contents 1 Introduction - Research Objectives 2 Literature Review 3 Methodology 4 Case Studies 5 Cross Case Synthesis & Findings 6 Conclusions Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 6
  • 7. 2 Literature Review – Areas of investigation Three main areas of study have been objective of investigation through literature Reference Framework – Main Authors Scope of Research Methodology of research Innovation New Product Development (NPD) Christensen, C. introduced the idea of Cooper, R.G. & Edgett, S. as the world’s Yin, R. K. for its comprehensive knowledge of disruptive technologies and disruptive foremost experts in the field of product all aspects of the case study method -- from innovation to a generation of managers (The innovation (Stage-gate systems: a new tool problem definition and design to data analysis Innovator's Dilemma, 1997) for managing new products, 1990; Portfolio and reporting (Case Study Research - Design management for new products, 2002) And Methods, 1984; Applications of case Hansen, M. & Birkinshaw J. introduced the study research: Applied social research innovation value chain concept (The Takeuchi, H., & Nonaka, I. for their work on methods series, 1993) Innovation Value Chain, 2007. Harvard different approaches on the management of Stake, R. E. for its studies on case study Business Review) new product development (The new new research and qualitative data analysis product development game, 1986) (Qualitative case studies, 2005) Drucker, P., Tidd J. and Bessant J. for their George, A. L., & Bennett, A. for their work on innovation and entrepreneurship Trott, P. as author of a book on innovation research programmes on the use of case (Innovation and Entrepreneurship, 1987 & management and new product development studies to build and test theories in social 2007) (Innovation management and new product sciences (Case studies and theory development, 2008) development in the social sciences, 2007) Porter M. famed for its core competency on Benbasat, I., Goldstein, D. K., & Mead, M. competitiveness and company strategy (The Schilling, M. A., & Hill, C. W. for their for their articles on case research strategy Competitive Advantage of Nations, 1990) contribution on the new product development and qualitative methods (The case research process (Managing the new product strategy in studies of information systems, Hamel, G., & Prahalad, C. K. for their work development process: strategic imperatives, 1987) on organizational core competencies 1998) Baxter, P., & Jack, S. for their article on (Competing for the future, 1994) study design and implementation of qualitative case studies (Qualitative case study methodology: Study design and implementation for novice researchers, 2008) Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 7
  • 8. 2 Literature Review – Definition of Innovation Innovation meaning and forms have been extensively explored Innovation Definition “Innovation can be defined as a process that provides added value and a degree of novelty to the organization and its suppliers and customers through the development of new procedures, solutions, products and services as well as new methods of commercialization” (McFadzean, O’Loughlin & Shaw; 2005). Innovation Forms According to degree of tangibility and the degree According to innovation impact of customer contact Degree of Tangibility Product Processes Incremental Radical Innovation Innovation Services Degree of Customer Contact Source: Schilling, M. A., & Hill, C. W. (1998). Managing the new product development process: strategic imperatives Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 8
  • 9. 2 Literature Review – NPD process in literature Formal new product processes involving new ways to manage, control and measure new product programs have been extensively discussed in literature New Product Process: a formal blueprint, roadmap, template or thought process for driving a new product project from the idea stage through to market launch and beyond. 1 2 The first generation NPD Process Stage-Gate Systems Developed by NASA in the 1960s, the PPP (phased Stage-gate systems recognized that product project planning), today often called Phased Review innovation is a process Process, is an elaborate and detailed scheme for working with contractors and suppliers on various Applied process-management methodologies to the space projects innovation process PPP broke development into discrete phases: The process is sub divided into a number of funding for the next phase was conditional to the fact stages or work stations. Between each work station or that certain prerequisites had been met stage, there is a quality control checkpoint or gate Methodology designed to ensure that the project was A set of deliverables is specified for each gate, as proceeding as it should is a set of quality criteria that the product must pass before moving to the next work station Designed to deal solely with technical risks and not on the entire process from idea to launch Information about the new product becomes better and better, so risk is managed. Source: Cooper, R. (1994) Third-generation new product processes Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 9
  • 10. 2 Literature Review – Stage Gate model Standard stage gate system may be used as point of departure for custom processes Stage-Gate Systems Model Preliminary Detailed Investigation Development Testing & Full Production & Post Assessment (Business Case) Validation Market Launch Implementation Stages 1 2 3 4 5 Review 1 2 3 4 5 Gates Idea Initial Second Decision on Post- Pre- Development Commercialization Screen Screen Business Case Review Business Analysis 1 2 3 4 5 Initial Screen & Second Screen & Business Case & Post dev. Review & Business Analysis & Preliminary Assessment Detailed Investigation Development Testing and Validation Market Launch First decision to The stage prior to The results of the Check on continued This final gate opens commit resources heavy spending financial analysis are attractiveness of the the door to full to the project Includes market an important part of product and project commercialization: Strategic assessment research, competitive this screen Tests the entire financial projections of the opportunity analysis and concept A number of key items viability of the project: play a key decisional (market value, testing must be agreed such the product itself; the role technical feasibility A detailed technical as target market, production process; Passed the gate it etc.) appraisal must focus product concept and customer acceptance; involves Financial criteria are on the "do-ability" of positioning and the economics of implementation of not part of this first the project Outcome is the the project both the mktg and the screen product development operations plan Source: Cooper, R. (1994) Third-generation new product processes Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 10
  • 11. 2 Literature Review – NPD Strategic issues The effectiveness and efficiency of the new product development depends on five strategic issues to be addressed Focusing on the right process solutions through: Create teams to increase the • Appropriate project valuation likelihood of project success: Develop a context aimed mechanisms • Match structure to project type at reducing innovation • Development of process schemes • Include a diverse range of production cycle time and • The involvement of customers and functions achieving a fit between suppliers in the development process • Match team leader attributes to customer requirements type of team and new product Identify, develop, and nurture those technologies that will be Process Use the available tools crucial for the long run to expedite the NPD competitive position of process and maximize the company the product's fit with Organizational customer Teams Context requirements Technology Innovation Management Tools Strategy Successful NPD Outcome Source: 1) Schilling, M. A., & Hill, C. W. (1998). Managing the new product development process: strategic imperatives 2) Internal elaborations Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 11
  • 12. Contents 1 Introduction - Research Objectives 2 Literature Review 3 Methodology 4 Case Studies 5 Cross Case Synthesis & Findings 6 Conclusions Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 12
  • 13. 3 Methodology – Research models Multiple case studies and qualitative research methods are considered appropriate models to approach specific issues and develop deep understanding of a certain phenomena Qualitative Research Case Studies Qualitative research methods utilizes experience Social science research uses case studies for and interpretation of events by actors with widely organizational studies (Kohlbacher, 2005) as they differing stakes and roles facilitate a better understanding of (company) culture and values: the influence of less tangible Qualitative research methods are valuable in aspects. providing rich descriptions of complex phenomena A group of cases is studied and enables the researcher to explore differences within and The literature indicates that is worth using qualitative between cases. The goal is to replicate findings methods when the phenomenon is not well known across cases or understood with the aim of generating new theories Through case studies data from multiple sources are collected, analyzed, compared and summarized, The use of a quantitative approach was allowing an holistic view of a certain phenomenon considered a limitation as collection of statistical and numerical data would not provide the critical descriptive detail required for this study Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 13
  • 14. 3 Methodology – Overview Multiple case study strategy and protocol development are typically based on a three stage process Methodology Overview B. 1 Develop theory: build a A. C. consistent framework from an Fieldwork & Design Conclusions extensive literature and Analysis documents 2 Select cases and design data 3.1 4.1 collection protocol: select companies and the procedures Write for executing investigations Conduct Case Study individual 3 Conduct case studies: use case semi-structured questions 1 reports carefully designed to provide 1 2 5 6 adequate coverage for the Select Modify purpose of the research. cases theory 4 Draw Write individual case reports, Develop and & cross-case reviewing all relevant documents theory design data Develop conclusions and all interview/survey data collection policy protocol 3.2 4.2 implications 5 Draw cross-case conclusions, analyzing similarities and differences between cases and Write Conduct listing similarities and differences. individual Case Study 6 Modify theory and develop case 2 policy implications utilizing reports provided information to verify hypothesis and refining theory. Source: Yin, R. K., “Case Study Research”, 2003b, p. 50 Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 14
  • 15. 3 Methodology – Interviews The case study has been constructed through the use a semi-structured interviews with key personnel of the firm Interviews Explicit data were gathered using semi-structured interviews conducted with key personnel involved with innovation activity in each company This approach has been chosen rather than a structured because it offers adequate flexibility to approach diverse respondents differently while still covering the same areas of data collection Literature (Tellis, 1997; Umit, 2005; Yin, 2004) advocates open-ended questions in the interviews facilitating free discussion and suggests its use when it is desirable to know what is being thought by people and if the ideas are intricate or problematic to express Literature emphases the significance of interviews needing to be reliable, consistent and have validity, with questions structured and responses collected in order to provide effective information for the purpose of the study Known as “elite interviewing” (Marshall & Rossman, 1999), starting with each company’s most senior person gave access to the overall knowledge of the company’s innovational activities The suggested employees were considered suitable by the senior person as having extensive involvement with each company’s innovation realization processes To reinforce the use qualitative methods, standardization techniques and consistency checks have been performed during the research Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 15
  • 16. 3 Methodology – Criteria for company selection Two company of the ICT industry have been selected as case study reference A sector recognized as both innovation-aware and innovation-driven was requested for this research ICT was chosen because innovation is regarded as a critical requirement for operating in the Industry industry’s rapidly changing environment Selection Competitive forces are felt more keenly than in some other industries with innovative activity at the forefront of management actions in ICT firms. The companies were selected through information available in the public domain (media releases, industry resources) as demonstrating successful innovation activities Criteria for The companies chosen for this study exhibit NPD innovation practices, indicating that Companies innovation systems of some form exist in the organizations Selection The selection of two companies as an appropriate number allowed for some variation (similarities and differences) within the scope of the study and within the time constraints The two companies are all technology-based, yet provide similar services and do not compete with each other, operating in different countries The two companies who agreed to be case study subjects are all privately owned Companies The two companies are perceived as successful members of the technology industry Overview The companies demonstrate relevance to the general industry rather than being unique or extraordinary, supporting replicability and generalization Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 16
  • 17. 3 Methodology – Limitations of Research The methodology and its application have some shortcomings to be considered Limitations of Methodology Research The scope of this study was delimited to two companies that have established innovation-to-outcome systems in the ICT industry. Although multi-case studies are considered more robust than single cases, the selection of two has to be considered as a minor sample potentially reducing general applicability This industry was expressly selected as providing indicators to innovatively successful companies as innovation agility is a pre-requisite for continuing growth in this highly competitive environment The employment of the ICT industry and its distinct nuances may limit generalization to companies outside of the industry Qualitative data are subjective to researcher bias, as are interviews. The assumed limitation of qualitative methods is that they presumably allow more room for the researcher’s subjective and arbitrary judgment. They are often seen as less rigorous than quantitative approaches are. Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 17
  • 18. Contents 1 Introduction - Research Objectives 2 Literature Review 3 Methodology 4 Case Studies 5 Cross Case Synthesis & Findings 6 Conclusions Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 18
  • 19. 4 Case Studies – Selected Companies An italian and a british company were choosed for the case studies Company A Company B One of the top mobile telecommunications A UK company operating in the mobile companies in Italy, offering the full range of telecommunication industry Company telecommunications services Developed the first commercial UK video Overview A leading actor in introducing multimedia mobile network services in the Italian market Voted as Best Network for Mobile Broadband in a survey more than once Established in 2002 Established in 2003 Firm’s turnover in excess of $2 billion Firm’s turnover in excess of $2 billion Company More than 2.000 employees More than 1.500 employees Key Numbers The General director The Senior Marketing manager The CTO (Chief Technology Officer) The ICT development manager Interviewed The Marketing director. A project manager People Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 19
  • 20. 4 Case Studies – Company A NPD Process Selection The NPD selection process addresses different processes according to the deeper analysis needed for different kind of innovations and consequences on the company NPD Process Selection Fast Track Requiring Non Fast Track Requiring From the idea generation the NPD Idea Generation process selection follows a Incremental Rapid Adjustment sequence of steps to identify: Idea Sharing Fast Track If the project is worth of concept Radical Full NPD No Manager refining and if the high level Approval business case holds Yes Concept Detailed Business Case which process typology utilize Refining No Yes (Fast Track, Rapid Adjustment of > 200 k€ investment Full NPD) before detailing the No High Level Yes No Manager Yes No Board Yes business case Business Case Approval Approval different approval responsibilities according to the required Implement Implement investments Full NPD Rapid Adjustment Fast Track NPD The complete process used A simplification of the NPD Process The process for urgent new for the introduction of new Full process, used for new Typologies products requiring shorter products and radical NPD products utilizing yet existing time development innovations platforms Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 20
  • 21. 4 Case Studies – Company B NPD Process Selection Company B NPD selection process addresses different processes according to the required investments and impacts on the company NPD Process Selection Resource From the idea generation the NPD Basic NPD Radical Impact Requiring process selection follows a Idea Generation sequence of steps to identify: > 30 k€ Detailed investment Business Case If the project is worth of a Idea Sharing No concept refining and if the high Yes No Manager > 300 k€ investment level business case holds Approval Yes No which process typology utilize Concept Manager Executive Shareholders (Basic NPD, Resource Requiring Approval Board Approval Refining No Yes No Yes No Yes and Radical Impact) according No Yes to the required investments High Level Business Case different approval responsibilities Implement Implement Implement according to the required investments Radical Impact Resource Requiring Basic NPD NPD For the introduction of A slightly simplified process Process A simplified process involving completely new products or involving mostly NPD Typologies NPD incremental activities radical innovations requiring incremental activities requiring limited investments more than Euro 300,000 requiring up to Euro 300,000 Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 21
  • 22. Contents 1 Introduction - Research Objectives 2 Literature Review 3 Methodology 4 Case Studies 5 Cross Case Synthesis & Findings 6 Conclusions Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 22
  • 23. 5 Case Studies & Findings – NPD Process Selection Comparison Differences in NPD Process Selection of the two companies exist in all the four categories highlighted NPD Process Selection Comparison Company A Company B Process Selection • NPD typology • NPD typology vs. Ratio • Top Management investment required Prioritization Investment • < € 200,000 • < € 30,000 Threshold • > € 200,000 • > € 30,000 and < 300.000€ • > € 300,000 Detailed Business • After the process • Before the Case Timing selection process selection (except Basic NPD) Process Selection • Functional Manager • Functional Manager Responsibility • Board of Directors • Executive Board • Shareholders Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 23
  • 24. 5 Case Studies & Findings – NPD Business Process Comparison Both companies have three NPD process typologies despite organized differently according to NPD typology NPD Business Process Comparison The figure illustrates Company A Company B the different process typology process typology typologies of innovation each process addresses Different kind of Radical Radical process may be used as a risk NPD NPD typology Fast Track management tool to Full NPD face different expected impacts on the company Adjustment Resource Requiring Both companies Rapid Basic Incremental consider also the possibility to NPD introduce 3rd Parties products or their involvement in the Economical thresholds do not process, Fast Track is used for Clarifications: strictly determine selection prioritized new products between RR and Radical NPD Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 24
  • 25. 5 Case Studies & Findings – NPD Business Process Comparison (1/3) The number and division of the activities of the NPD business process sub phases is a possible but not relevant source of differentiation between the two companies NPD Business Process Comparison + Ideation, concept and Product Development Company requirements creation 6 A Product req Tech analysis System Concept and Integration Commercial Sub phases and Analysis Definition planning testing Roll out feasibility and dev vs. Idea & Concept Development Product Development Company B Concept/ Opportunity/Macro Req, Feasibility and Development & Marketing Trial 5 Idea Planning & Sub phases planning definition Test Full Scale Launch In house activities 2 sub phases in 2 sub phases in the 2 sub phases in the Product the initial part of concept development Development for the company B: the process for and requirement different division of the activities company B definition for company A Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 25
  • 26. 5 Case Studies & Findings – NPD Business Process Comparison (2/3) Also governance and operational responsibilities present mismatches between the two companies Distinctive Characteristics of the Business processes Tech Product req Sys. analysis, dev & Integration Commercial roll- Concept definition analysis and ∼2 weeks and feasibility ∼4 weeks planning ∼4 weeks internal testing ∼10 weeks Testing ∼2 weeks out ∼3 weeks The full range of governance and operational responsibilities Detailed Process Detailed Process (cumulative: 6 weeks) (cumul: 10 weeks) (cumul: 20 weeks) (cumul: 22 weeks) (cumul: 25 weeks) described in the previous section present some differences Content Draft Final provider Content Content Media plan; Mock-up brochure Company A Company A & focus between the companies: Concept Business Approve Product Marketing/ Demo Approve groups storyb plan (PDB) case doc web studio Storyboard Proj Product User Initiation req Acceptance Approve Project review board: company A has two different board Product & Concept Approve Approve feasible? Test Services Doc (PRD) doc doc Go/ arrangements depending on which gate of the NPD Project Sponsor Approve Launch? No go doc Det.Tech. SRS Product Analysis SDS SW Ready? Integration CTO: Services, IT, Network, Terminals Analysis Approve doc Proj def doc (PDD)+ Bus case Internal test test process is; differently company B has the same board for Commercial Other ITA Functions (Legal, Regulatory, Admin, CRM, Sales…) Analysis Approve doc plan Contact center all gates. Additionally Company B board meets regularly Review board Go/ No go Go/ No go Go/ No go doc (weekly appointment) for projects updates. Gate 1: strategic and Gate 2: requirements Gate 3: strategic and financial Gate 4: readiness for Gate 5: readiness tech fit; gross margin; stability, product feasibility attractiveness; resources commercial roll-out; for launch resources for analysis. Decide process and High Level Bus Case attractiveness availability according to the planning; project score consistency with concept and focus groups feedback Project Sponsor: In the company A this role is held by the Marketing department while for company B it is performed by the Product & Services function. In the first and in the Opp./ Idea Concept/ Macro planning Requirements, Feasibility and Planning Definition Development&Test Market trial & Full Scale Launch last Gate in the company A the sponsor has the responsibility for the Go/ No Go of the new product Detailed Process Detailed Process Product dev Product manager development/ launch on the market. brief (Mktg) Company A Company B Macro Proj init Product Sys Dev planning doc Req. Req. Doc analysis SRS Dev and Integr Team definition & high testing up to DB3 (PID) (PRD) level SDS testing (BA IT) Project Manager: In the company A it is a person of the design Det. Proj def Project delivery Approve Project doc doc planning manager (PDD) Product & Services with the responsibility for the end to Project Approve Approve Approve Approve Internal Customer end project management of the initiative; in the company B doc doc doc doc manager trial trial Other Req. the project manager is the head of the project team, and Approve analysis doc functions belongs to the function mainly responsible for the Approve Approve Approve Approve Project doc doc doc doc sponsor Project review board* Go/ No go D&B1 Go/ No go D&B2 Go/ No go D&B3 Go/ No go D&B4 Go/ No go D&B5 execution of the product innovation (Tech./P&S) *In the D&B1 NPD Process Selection rules apply Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 26
  • 27. 5 Case Studies & Findings – NPD Business Process Comparison (3/3) According to interviews the overall commonalities about success factors and obstacles overcame differences between the two companies Differences Commonalities Company A prioritizes the Innovation process Presence of a structured technology strategy Success Factors Perceived flexibility to different NPD needs Company A has the capability of allowing the parallelizing of development activities Company values, necessary to stimulate openness of communication Company B is focused on financial Capacity to prepare and plan the upfront activities measurement The importance of quality in the development, Company B is more focused on Portfolio aiming at differentiated and superior products management The need for a champion in resource demanding or complex innovations Similar issues with barriers overall, despite isolated Existence of too many projects and not enough cases regarding: resources. This could outline a generalized lack in the capacity of the two companies in fixing priorities Obstacles Company A too confident attitude towards complex problems which could lead to wrong Too Hurry. This, like the former, could be caused estimations or extra work by strategy management issues, as well as from management practices Possible bottleneck or delay to define the Project Manager (functional organization) for Company B Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 27
  • 28. 5 Case Studies & Findings – Key Findings Important findings may be highlighted following the case studies on the two companies Key Findings Results reveal that the case study companies have similar types of NPD innovation systems and patterns Monetary threshold are used as guidelines to address the innovation approval responsibilities Well defined governance roles (for the NPD project selection and approval responsibilities) provide greater control on projects and structured decision points The importance of access to decision makers and culture open to innovation are recurring features to unlock new value High level business case may permit quick decisions in case of minor product innovations The use of dedicated cross-functional task forces is a good workaround solution when timeliness is critical, as well as fast prototyping methodologies Both companies have arranged their process to enable the introduction of 3rd parties in the new product development Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 28
  • 29. Contents 1 Introduction - Research Objectives 2 Literature Review 3 Methodology 4 Case Studies 5 Cross Case Synthesis & Findings 6 Conclusions Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 29
  • 30. 6 Conclusions – Emerging NPD Process A framework for successful patterns and practices managing NPD innovation is drafted subsequently to literature and case studies analysis Emerging successful patterns and practices in NPD Process Technology Organizational Process Teams Tools Strategy Context Strategy in A defined a Different typologies Implement cross- Implement: accordance to point Governance board of NPD business functional team Rapid prototyping to be incorporated of strength and should govern and process for different working Success Factors Decision making marketing needs control the long term innovational impacts Involve Decision tools and to Seek differentiated new product and specific needs Makers in the teams transform user and superior innovation Use parallel stages Allow the use of task demands into better products Simplify the Implement Fuzzy forces to fast track processes and Plan and resource governance for gates the development products market launch “easy” products Invest your time in activities Software for the Keep the preparation A New Product NPD process innovation instinct Committee should facilitation Involve customers produce an and suppliers operational plan Appropriate project Involvement of management executive champions structure Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 30
  • 31. 6 Conclusions Purpose of this study was to gain empirical evidence on how the NPD process transforms innovational concepts from origin to outcome Investigated various literature on the innovation subject Literature Review Dedicated a major focus to the NPD processes literature Chapter 2 Approach Adopted Introduced success factors and existing obstacles to a successful NPD Explored the qualitative methodologies utilized for the case studies Methodology Chapter 3 Provided a theoretical framework for the analysis, describing the rationale used for interviews, company selection, data gathering Presented results of interviews and analysis, described the NPD systems used by Case Studies and companies, the detailed processes and the key influences significant findings Outlined the key findings resulting from the case studies Chapter 4/5 Provided successful patterns and practices managing NPD innovation Future areas of Improvement Suggestions for Further Research From structured process to NPD smart System, Similar analysis on firms of different industries allowing conditional, situational, and focused Including the laggards in the NPD process analysis decisions Evaluation of innovational performance over time Major recurrence to NPD Process Outsourcing and after the introduction of structured NPD process Externalization Understanding the levers to maintain the NPD process informatization innovative capabilities while implementing operational improvements Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 31
  • 32. Thank You Tesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 32