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New Product and Process Development (1)


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Title: New Product and Process Development (1)

New Product and Process Development (1)
  • ???, ???

Goodness of Fit
  • ???? ???? ??? form ??.
  • Form ??? ?? ??? ??? regular or homogeneous ???
    force ? form ? ?? ???, irregular ? ????? form ?
  • ?? ???? ??? ? ??? entities, ? form ? context ???
    fitness ? ???? ?? ???? ?? ????,
  • Form ??? ?? ???? ??. Context? ?? ??? ??? ????
  • ??? ? ???.
  • Context ??? ??. ??? ??? ???? ??.
  • Design form ? context ? ???? ??? ?? ?.
  • ? , ??? ???? ?? ?? ?, ??? ??? form ? ???? ???,
    form ? ??? context ? ???? ???? ??? ??.
  • The rightness of the form depends on the
    degree to which it fits the
  • rest of the ensemble.
  • ??? ensemble ? ? (p.16)

  • ???? form ? context ??? fit ? characterizing ???.
  • Real world ?? ??? ??? ?? context ? ??? unitary
    description ? ??.
  • Context ? ?? ???? ?? ??? ??? ???? ?? ??? ???? ???
    ????? ??? ??? ??,
  • Form ?? ??? ?? ?? ??? ?? ??? ??? ? ? ????
  • Form? context ? ??? ???? ?? fitness ?? ??? ?????,
    ?? ???? context ??? ?? ???? ???? ??? ???.
  • Good fit ???
  • ?? ??? ???? ??? ?? ??? ???? ?? ????, good fit? ??
    ????? ???.
  • ???? fit ? ?? ????? ???? misfit ???? ???.
  • (ex) misfit ? ? (p.23)

Source of Good Fit
  • Unselfconscious culture
  • ??? ??(general principle)? ???? ?? ???? ?????,
  • ??? ??? ????? ??? ?? ??? ?? ???? ?? ??.
  • Communication ??? ???? ??? written records ?
    architectural drawings ? ??, intercultural
    exchange ? ?? ??.
  • ?? ??? ??? ?? ??? ?? ??, ??? ????? ?? ??? ?????
    ????, ???? ??? habit ? ?? ????? ??? ???? ??? ???
    ??, ??? ??? ???? ??? ?. ??? ?? form ? ?? ?????
  • ??? Form-making ? imitation ?? correction ? ??
    informally ?? ???? ?? unselfconscious culture ?
  • Selfconscious culture
  • ??? formal ?? ??? ??, teaching ? ??? ??? ????
    ????. ???? ???? ??? ?? ??? ? ?? ?? ? ??.
  • ???? instruction ? ????, ????? ??? ??? ??, ??? ?
    ?? ???? ??? ?? ? ??? ?.
  • ??? purpose ? ?? ??? ???.
  • ??? context ? ????? ?? ???? ?? ??? ???? ???? ????
    ???? ?? ??? ???.
  • ??? form-making ? ??? ??? ?? academically ?????
    selfconscious culture ? ??.

The Natural and Artificial Worlds
  • Natural science
  • Knowledge of things in the world,
    characteristics, properties, behavior,
  • Goal is to find pattern in apparent chaos.
  • The task of science is to show that the wonderful
    is not incomprehensible, to show how it can be
    comprehend- but not to destroy wonder
  • Artificial science
  • Knowledge about artificial objects and phenomena.
  • Four distinctions between natural and artificial
  • Artificial things are synthesized by human beings
  • imitate appearances of nature, but lack some
    aspects of reality of natural
  • can be characterized by functions, goals,
    adaptation and
  • are often discussed in terms of imperatives along
    with descriptive.

  • Inner environment vs. outer environment
  • the real nature of the artifact is the interface.
  • Interface is considered as a meeting point
    between inner environment, the substance and
    organization of the artifact itself, and an
    outer environment, the surroundings in which it
  • The design artifact mediates the demands of the
    outer environment through a set of operative
    principles in its inner environment.
  • Design is concerned with how things to be and the
    natural sciences are about how things are.
  • Optimization theory- in designing, it based on
    utility theory and statistical decision theory,
    and it is used as a logical framework for
    rational choice among given alternatives by
    deducing which of the available alternatives is
    the optimum.

  • Choosing satisfactory alternatives
  • A practical procedure pursuing not the best but
    better, satisfactory alternatives, satisficing
    design solutions.
  • Searching for all alternatives is the
    computations required astronomical and cannot be
    carried out by humans and existing or even
    prospective computers
  • design as resource allocation
  • Cost minimization as a design criterion has
    changed from implicit to explicit consideration
    design functions as resource allocation
  • In Designing
  • The complex system that might to be constructed
    in a hierarchy of levels
  • Design of complex system decompose it into
    semi-independent components corresponding to its
    many functional parts.
  • Mutually rewarding conversation and experiences
    sharing helped us combat our own
    multiple-cultures isolation

Fuzzy Front End of New Product Development
NPD (New Product Development)
One Market Success
1.7 Launched
10 to Front End
4 to Development
Takes 40-60 of total development time and
determines 80 of total costs (Smith,
Reinertsen 1995, p. 49, Schmidt 1995)
Product development cycle
Incremental technology improvements need to be
motivated then anticipated and then acquired.
Implementation of new technology next requires
research in how to embed the technology into a
new model of a product, plan that new
model, design, and produce the new product
model. In the product - development cycle, the
technology implementation stage begins with
research (benchmarking), which then leads to
product planning (necessary and desired
features), and then into product design before
product production
Frederick Betz, "Managing Technological
Innovation Competitive Advantage From
Change", 3rd Edition, John Wiley Sons,
What is new product development?
  • Ulrich and Eppinger (20042) define NPD as the
    set of activities beginning with the perception
    of a market opportunity and ending in the
    production, sale, and delivery of a product.
  • Addressing this larger context, Wheelwright and
    Clark (1992 Chapter 1) defined NPD as the
    effective organization and management of
    activities that enable an organization to bring
    successful products to market, with short
    development times and low development costs.
  • Clark and Fujimoto (1991 7) add that
    performance results from consistency in total
    organization and management.

C. H. Loch and S. Kavadias, Handbook of New
Product Development Management
Butterworth-Heinemann, 2007.
NPD ?? ?? ????
  • NPD encompasses a large number of topics and
    challenges in a firm, such as strategy
    formulation, deployment, resource allocation, and
    coordinated collaboration among people of
    different professions and nationalities, and
    systematic planning, monitoring, and control.
  • In that light, NPD has long been an important
    topic for several business research disciplines,
    certainly economics, marketing, organizational
    theory, operations management, and strategy.

C. H. Loch and S. Kavadias, Handbook of New
Product Development Management
Butterworth-Heinemann, 2007.
Product Development Past Research, Present
Findings, and Future Directions (1995) - Shona
L. Brown and Kathleen M. Eisenhardt
  • Innovation ?? ?? ??
  • economics-oriented tradition patterns of
    innovation across countries and industrial
    sectors, evolution of technologies
  • organizations-oriented tradition microlevel
    regarding how specific new products are developed
    -gt ? ??? ??
  • Product development? ???
  • Product development is critical because new
    products are becoming the nexus of competition
    for many firms(e.g., Clark Fujimoto, 1991)
  • Product development is thus a potential source of
    competitive advantage for many firms (Brown
    Eisenhardt, 1995)
  • Thus, product development is among the essential
    processes for success, survival, and renewal of
    organizations, particularly for firms in either
    fast-paced or competitive markets

?? ??
  • Product-development literature? three streams? ??
  • ?Rational plan, ?communication web, and
    ?disciplined problem solving
  • The research within each stream is theoretically
    and methodologically similar.
  • Synthesize these research findings into a model
    of factors affecting the success of product
  • Potential paths for future research

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Product Development as Rational Plan
  • pioneering work Myers and Marquis(1969) and
    SAPPHO studies (Rothwell, 1972 Rothwell et al.,
  • This rational plan perspective emphasizes that
    successful product development is the result of
    (a) careful planning of a superior product for an
    attractive market and (b) the execution of that
    plan by a competent and well-coordinated
    cross-functional team that operates with (c) the
    blessings of senior management.
  • Simply put, a product that is well planned,
    implemented, and appropriately supported will be
    a success.

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  • a product that is well planned, implemented, and
    appropriately supported will be a success.

Product Development as Rational Plan
  • ??
  • This broad-brush approach leads to an excellent
    and a comprehensive overview of the
    product-development process, which emphasizes
    features of the product, internal organization,
    and the market.
  • ??
  • The findings of many studies read like a "fishing
    expedition- too many variables and too much
    factor analysis. In this research stream, it is
    not uncommon for a study to report 10 to 20 to
    even 40 or 50 important findings
  • the research stream relies heavily on
    retrospective sense making of complex past
    processes, usually by single informants.
  • Most important, the research in this stream often
    presents results without relying on well-defined

Product Development As Communication Web
  • pioneering work Allen at MIT (1971, 1977)
  • early studies highlight the importance of
    external communication to success. Specifically,
    these studies observed the presence of
    "gatekeepers"-(i.e., high-performing individuals
    who also communicated more often overall and with
    people outside their specialty) (Allen, 1971).
  • Von Hippel (1986) noted how important
    communication with key customers was regarding
    better product designs.
  • more effective teams engaged in both political
    and task-oriented external communications,
  • the relationship among the mean tenure of a team,
    the degree of external communication, and
    performance. but this relationship reversed and
    performance dropped off after five years.
  • Two theoretical theme information-processing
    view, resources dependence view

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Product Development As Communication Web
  • ??
  • In contrast to the first perspective, this stream
    is narrowly focused on one independent
    variable-communication. Thus, these studies
    emphasize depth, not breadth as in the rational
    plan, by looking inside the "black box" of the
    development team
  • ??
  • the principal shortcoming of this perspective is
    that it is so focused on communication by project
    team members that other factors are neglected.
  • performance measures frequently are very
    subjective, and so it is difficult to know
    whether the results would replicate for more
    objective measures of performance, such as
    product profitability.
  • this stream does not distinguish between
    different types of products, such as incremental
    versus breakthrough versus platform products.

Product Development as Disciplined Problem Solving
  • pioneering work studies of Japanese
    product-development practices in the mid-1980s
    (e.g., Imai et al., 1985 Quinn, 1985)
  • Successful product development is seen as a
    balancing act between relatively autonomous
    problem solving by the project team and the
    discipline of a heavyweight leader, strong top
    management, and an overarching product vision.
  • The researchers observed that strong formal ties
    to suppliers and RD networks were very important
    to the product-development process.
  • the authors observed that product development was
    accelerated by overlapping of development phases
    and cross-functional teams only if supported by
    continuous communication among project members.
  • senior management should engage in "subtle

  • They(Clark Fujimoto, 1991) reported that
    extensive supplier networks coupled with
    overlapping product-development phases,
    communication, and cross-functional groups (what
    they term integrated problem solving) improved
    the performance of development teams.
  • Iansiti (1992, 1993) deductively examined the
    mainframe computer industry. The primary result
    is that a high system focus (i.e., a combination
    of technical integration, exposure to systems
    integration, and accumulation of interaction
    knowledge) predicted both lead time and
  • One focuses on factors such as planning and
    overlap that are relevant for more stable
    products in mature settings (e.g., Clark
    Fujimoto, 1991 Iansiti, 1992), and the other
    focuses on experiential product design that is
    relevant for less predictable products in
    uncertain settings, such as personal computers,
    work-stations, and peripherals.

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Product Development as Disciplined Problem Solving
  • ??
  • In contrast to the rational plan stream, this
    stream is more specific about the effective
    organization of work and is more focused on the
    development process and product concept than on
    the financial success of the product.
  • In contrast to the communication web perspective,
    this stream has a broader scope and considers the
    role of suppliers and senior management in
    addition to project leaders and teams.
  • ??
  • One is that there is a lack of political and
    psychological realism.
  • Second, some of the constructs are challenging to
    comprehend. For example, subtle control, product
    vision, and system focus are vague concepts.
  • Finally, there is an extensive reliance on a
    Japanese viewpoint.

  • Project Team
  • Project Leader
  • Senior Management
  • Suppliers and Customers
  • Financial Success

  • One research opportunity is to examine the
    primary links of the model-that is, the links
    among process performance, effective product,
    market factors, and financial performance.
  • A related research opportunity is determining the
    relative importance of these factors.
  • examine whether process performance, product
    effectiveness, and munificent markets are
    actually independent variables.
  • A second area of research is the organization of
    work. As was noted, two models have emerged to
    describe alternative organizations of work.
  • yet this second model(experiential product
    development) has received only limited empirical
  • For huge and lengthy projects, Benghozi (1990)
    suggested that innovation routines, which include
    dynamic planning, monitoring, and scheduling
    projects over time as the environment changes,
    are needed.
  • Third, our understanding of how senior managers
    affect development is incomplete.

Strategy, structure and performance in product
development Observations form the auto industry
(1991) - Michael A. Cusumano and Kentaro Nobeoka
Japanese firms integration of workers and
suppliers, as well as the development and
systematic application of innovative managerial
and quality-control techniques for manufacturing
  • product development as ideally composed of three
    elements a product strategy that determines task
    requirements in individual projects project
    structure and processes (the organization and
    management systems) and product as well as
    project performance.

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Key variables
  • Product strategy
  • product concept, which may include the pricing
    segment (luxury versus economy) or size of a
    model, as well as the degree of new or
    sophisticated technology incorporated into
    different components
  • Task requirements is the individual project
    strategy, which includes project (or task)
    complexity and project scope.
  • Structure and process
  • include the internal organization and management
    of product development, as well as the
    utilization of external resources.
  • Performance
  • Input measures engineering hours and lead
  • Output measures technical performance, styling
    or the match of the product with the target
    customers tastes,
  • Market performance market or production share
    and growth in share.

Major findings - Product strategy to performance
  • Product-strategy taxonomy high-end specialists,
    volume producers
  • Japanese manufacturers in general displayed
    higher development productivity in terms of
    engineering hours and lead time.
  • Japanese firms were more dependent on suppliers
    than the U.S. or European manufacturers -gt
    reduced project scope, the number of in-house
    engineering hours as well as the amount of time
    projects required
  • The number of model lines a company offered also
    correlated closely with its total sales volume.
  • The specific assumption of this study, although
    not tested with performance data such as market
    shares, was that shorter product life cycles for
    replacing existing models and adding new models
    provide an advantage in that faster firms can
    more quickly and broadly expand their product
    lines as well as introduce new technology or
    better meet customer demands as these change over

Major findings - Product strategy to performance
Major findings - Product strategy to performance
replacement rate (the total number of new models
in this period the number of new models
that were new product lines
rather than replacements for existing models,) /
the number of models
the firm had in the base year expansion rate the
number of totally new models /
the number of models the firm had in the base
Major findings - Product strategy to performance
Design for Manufacturability (DFA) asked 19
automobile companies to rank competitors
products in terms of ease of assembly.
Major findings - Structure and process to
  • Japanese manufacturers, in general, have
    heavier heavyweight product managers than their
    U.S. or European counterparts.
  • Japanese projects, in addition to their superior
    performance characteristics in general, had
    higher overlapping ratios.
  • Japanese projects had more informal and intensive
    information processing among various stages
    that seemed to make this higher degree of
    overlapping possible and useful.
  • Japanese auto producers developed extensive
    networks of subsidiaries and other suppliers, and
    then subcontracted huge amounts of manufacturing
    work as well as cooperated in technology
    acquisition and components development

Major findings - Structure and process to
Research critique
  • Product strategy to performance
  • Clark and Fujimoto did not adequately treat the
    level of difficulty
  • Sheriff and Nobeoka do not adequately explain
    how they arrived at the weights used for
    different types of changes or components
  • one project per company does not say much about
    which company is consistently superior in product
  • Krafciks productivity research, centered on
    assembly operations rather than components
    manufacturing as well as assembly.
  • there is the issue of economic returns to
    investments in product development apart from
    market share
  • product-development performance and project
    complexity with changes in sales and profits but
    uses financial data at the company level

Research critique
  • Structure and process to performance
  • no study concentrates on the supplier
    coordination process in product development, and
    there are even fewer studies on other forms of
    inter-organizational coordination.
  • pay more attention to adjusting for differences
    in vertical integration for development
  • needs further exploration is internal project
  • mechanisms through which product managers
    contributed to higher design quality or higher
    development productivity
  • multiple project coordination
  • Have studied only a sample of one project per

Technology integration Managing technological
evolution in a complex environment (1995)- Marco
  • This work aims to fill some of the gap between
    these two bodies of knowledge existing research
    on organizational response to technological
    evolution, and on the management of RD
  • Development performance under discontinuous
    technical change
  • By discontinuous, we mean that relationships
    between product functionality, process
    requirements and disciplinary expertise change,
    necessitating a substantial evolution in the
    knowledge base of the development organization
    (as in Anderson and Tushman, 1990 Henderson and
    Clark, 1990).

?? ??
System-focused organizations will be associated
with high levels of development performance in
environments characterized by discontinuous
technological change.
System-focused organizations will be associated
with a broader approach to solving problems than
other organizations-this will involve information
search and processing activities that cross a
broader base of existing disciplinary expertise.
In a complex environment characterized by
technological discontinuities, high
problem-solving efficiency(and development
performance) will be associated with approaches
that sample a broad base of disciplinary
Empirical approach
  • Mainframe processor, 27 projects, 61
    problem-solving efforts

Empirical results - Problem solving and
ltP1gt In a complex environment characterized by
technological discontinuities, high
problem-solving efficiency(and development
performance) will be associated with approaches
that sample a broad base of disciplinary
  • ???? ??(????) person year, ????
  • RD ????? ??? ??? ?? ?? - disciplinary knowledge
    bases are linked to each other
  • Integration group members had managed to resolve
    a difficult problem early by framing it broadly
    and by making use of a novel combination of
    context-specific knowledge bases.

? ???? ?? ? ?? person year(? ? ???) ? ?? ????
-????? context-specific breadth? ?? -?????
context-independent breadth ???? ??
P1 ??
Empirical results - System focus and performance
ltP2gt System-focused organizations will be
associated with high levels of development
performance in environments characterized by
discontinuous technological change.
  • lt?6gt The correlation between individual
    indicators of system focus(Table 2) and
    development speed and productivity
  • (-)? ??? ???
  • System focused ????? ????? ???? ???

P2 ??
System focus? ????(person year, ????)? ??(-)??
Empirical results - System focus and performance
ltP3gt System-focused organizations will be
associated with a broader approach to solving
problems than other organizations-this will
involve information search and processing
activities that cross a broader base of existing
disciplinary expertise.
  • ????? ??(?), system focus, ?????? ??? ??

P3 ??
????? ?? system focus?? ???? ????? ??? ???(0.1??)
Empirical results - Development process and
problem-solving approach
System-focused organizations do a good job of
identifying potential problem areas early in the
project, before concept selection was completed.
  • Literature Review Paper v.s. Empirical research
  • Physical Product? Software Product? ??? ????
  • NPD v.s. NSD(New Service Development)? ???? ?????
  • ????? ?? ? ?? ?? ?? ?? ??? ??? ?? ? ????
  • ??? ?? ??? ?? ??? ??? ??? ?????
  • ??? ?? ??(???, ????, )
  • ???? ?? ??

?? Past overviews of NPD research - 1
?? Past overviews of NPD research - 2
?? Past overviews of NPD research - 3
?? Elements of evolutionary problem solving
Shane, Scott, Handbook of Technology and
Innovation Management, John Wiley Sons Ltd.,