“Transforming innovation concepts into an outcome”: Analysis of New Product Development process case studies in ICT Industry.
Despite the fact that innovation is considered critical to success in business today, often even profitable and modern companies are not designed to aim to unlock the value contained within innovations. Indeed frequently it is not clear how a particular organization can articulate and embed the necessary behaviour patterns, structures and processes needed to make good-practice New Product Development (NPD) work. This thesis studies the NPD process, specifically addressing the case of the ICT industry. The purpose 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. Starting from the Schumpeter approach, the research question aims to address the following research question: “How can the NPD process be modelled from the origin to the outcome phase?”. The applied methodology draws on the existing innovation and NPD literature, identifying the main NPD conceptual models, and supporting the research through two case studies to give real knowledge and concreteness to the study. The final output of this work is to outline a new NPD process taking into account the collected evidence.
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
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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
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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
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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
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6. Contents
1 Introduction - Research Objectives
2 Literature Review
3 Methodology
4 Case Studies
5 Cross Case Synthesis & Findings
6 Conclusions
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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)
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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
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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
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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
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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
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12. Contents
1 Introduction - Research Objectives
2 Literature Review
3 Methodology
4 Case Studies
5 Cross Case Synthesis & Findings
6 Conclusions
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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
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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
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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
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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
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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.
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18. Contents
1 Introduction - Research Objectives
2 Literature Review
3 Methodology
4 Case Studies
5 Cross Case Synthesis & Findings
6 Conclusions
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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
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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
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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
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22. Contents
1 Introduction - Research Objectives
2 Literature Review
3 Methodology
4 Case Studies
5 Cross Case Synthesis & Findings
6 Conclusions
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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
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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
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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
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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
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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
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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
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29. Contents
1 Introduction - Research Objectives
2 Literature Review
3 Methodology
4 Case Studies
5 Cross Case Synthesis & Findings
6 Conclusions
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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
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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
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32. Thank You
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