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Transforming innovation concepts into an outcome ph d_v_basile
 

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

“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.

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    Transforming innovation concepts into an outcome ph d_v_basile Transforming innovation concepts into an outcome ph d_v_basile Presentation Transcript

    • 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 IndustryStudent: Vincenzo BasileTutor 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 Innovators 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 productIdentify, develop, andnurture thosetechnologies that will be Process Use the available toolscrucial for the long run to expedite the NPDcompetitive position of process and maximizethe company the products 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 LaunchIn houseactivities 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 YouTesi di Dottorato di Ricerca in Imprenditorialità ed Innovazione – Vincenzo Basile 32