Virtual Customer Integration in New Product Development

1,643 views

Published on

Published in: Education, Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,643
On SlideShare
0
From Embeds
0
Number of Embeds
13
Actions
Shares
0
Downloads
39
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Virtual Customer Integration in New Product Development

  1. 1. Virtual Customer Integration in New Product Development Guido Lang University of Bern, Switzerland, guido.lang@iwi.unibe.ch Marc Fetscherin Rollins College, USA, mfetscherin@rollins.edu Christoph Lattemann University of Potsdam, Germany, christoph.lattemann@uni-potsdam.de International Academy of E-Business 8th Annual Conference, March 20-23, 2008
  2. 2. Introduction Cf. Füller et al. (2004), Sawhney et al. (2003), Leonard-Barton (1993), von Hippel (1988). <ul><li>Virtual Worlds </li></ul><ul><ul><li>May impact the way businesses interact with customers </li></ul></ul><ul><ul><li>Market is constantly changing and evolving </li></ul></ul><ul><ul><li>Second Life (SL) encountered widespread public attention </li></ul></ul><ul><ul><li>SL is entirely built and owned by its residents </li></ul></ul><ul><li>New Product Development </li></ul><ul><ul><li>Innovation is key for competitive advantage </li></ul></ul><ul><ul><li>External knowledge to succesfully launch new products </li></ul></ul><ul><ul><li>Integration of customers into the product development process </li></ul></ul><ul><ul><li>Different development stages and integration forms </li></ul></ul><ul><li>If and how are companies using Virtual Worlds for customer integration in new product development? </li></ul>
  3. 3. Literature Review <ul><li>Various authors conceptualized the new product development process using stage models </li></ul><ul><li>Lengnick-Hall (1996) described distinct roles for customer contributions in the value-creating process </li></ul>
  4. 4. Methodology <ul><li>Focus on Second Life, as no other Virtual World attracted comparable amount of companies to establish presences </li></ul><ul><li>Case study approach due to explorative-qualitative nature </li></ul><ul><li>Three-step data collection and analysis </li></ul><ul><ul><li>List of companies in Second Life (n=130) </li></ul></ul><ul><ul><li>Public announcements of companies‘ activities </li></ul></ul><ul><ul><li>Qualitative content analysis of public announcements </li></ul></ul><ul><ul><ul><li>Categorization of each case </li></ul></ul></ul><ul><ul><ul><li>Cross-case analysis </li></ul></ul></ul>Cf. Yin (2003).
  5. 5. Results <ul><li>Data collection until October 2007 </li></ul><ul><li>First company, BBC Radio 1, in May 2006 </li></ul><ul><li>Since then monthly average of 10 companies entering </li></ul><ul><li>Peak in March 2007 (23 companies) </li></ul><ul><li>Prominent examples include IBM, Sun Microsystems, GM, Dell, NBC Universal, Mercedes Benz, AMD, Microsoft, etc. </li></ul><ul><li>Cross-case analysis revealed similarities/differences </li></ul><ul><ul><li>Core product </li></ul></ul><ul><ul><li>Main objective </li></ul></ul><ul><ul><li>Competitive contribution </li></ul></ul><ul><ul><li>Ongoing development </li></ul></ul>
  6. 6. Results continued Vgl. bspw. Festinger/Katz (1965), Bortz & Döring (2003).
  7. 7. Conclusion <ul><li>Only 17 percent of companies in Second Life use it for customer integration in new product development </li></ul><ul><li>Development of new core products mainly in later stages </li></ul><ul><li>If used during concept and design or product testing, this tends to be the main objective </li></ul><ul><li>Companies organize competitive contributions when customers are integrated in the concept and design phase </li></ul><ul><li>Most companies plan their activities as an ongoing development effort - not as a one-time event </li></ul><ul><li>Limitations </li></ul><ul><ul><li>Qualitative-explorative, hence no statistical generalization </li></ul></ul><ul><ul><li>Public announcements often only intention to act </li></ul></ul><ul><ul><li>Study conducted at an early development stage </li></ul></ul>
  8. 8. References Dahan, E., Hauser, J. (2002). The Virtual Customer, Journal of Product Innovation Management, Vol. 19, Issue 5, pp. 332-353. Enkel, E., Perez-Freije, J., Gassmann, O. (2005). Minimizing Market Risks Through Customer Integration in New Product Development: Learning from Bad Practice, Creativity and Innovation Management, Vol. 14, Isssue 4, pp.425-437. Füller, J., Bartl, M, Ernst, H., Mühlbacher, H. (2004). Community Based Innovation. Proceedings of the 37th Hawaii International Conference on System Sciences. Füller, J., Matzler, K. (2007). Virtual Product Experience and Customer Participation – A Chance for Customer-Centred, Really New Products. Technovation, Vol. 27, pp. 378-387. Lengnick-Hall, C. A. (1996). Customer Contributions to Quality: A Different View of the Customer-Oriented Firm. Academy of Management Review, Vol. 21, No. 3, pp. 791-824. Leonard-Barton, D. (1993). Developer-User Interaction and User Satisfaction in Internal Technology Transfer, Academy of Management Journal, Vol. 36, Issue 5, pp.1125-1140. Nambisan, S. (2002). Designing Virtual Customer Environments for New Product Development: Toward a Theory. Academy of Management Review, Vol. 27, No. 3, pp. 392-413. Sawhney, M., Prandelli, E., Verona, G. (2003). The Power of Innomediation. MIT Sloan Management Review, Vol. 44, No. 2, pp. 77-82. von Hippel, E. (1988). The Sources of Innovation. New York: Oxford University Press. Yin, R. K. (2003). Case Study Research. 3rd Ed., Thousand Oaks: Sage Publications.

×