scholarly journals How preference markets assist new product idea screening

2016 ◽  
Vol 116 (3) ◽  
pp. 603-619 ◽  
Author(s):  
Giancarlo Lauto ◽  
Finn Valentin
Keyword(s):  
New Product Development ◽  
Early Stage ◽  
New Product ◽  
Management Committee ◽  
Content Type ◽  
Complex Information ◽  
Development Professionals ◽  
Decision Making Processes ◽  
Innovation Contest

Purpose – The purpose of this paper is to examine the different heuristics adopted by a crowd and a management committee to evaluate new product proposals, and whether, in assessing the value of proposals, they emphasize different features. Design/methodology/approach – The study takes a quantitative analysis approach to study an internal innovation contest held by the biotechnology company Novozymes. The contest generated 201 proposals that were evaluated by 109 research and development professionals by means of a virtual preference market, and by a management committee. Findings – The crowd and the committees’ assessments of the value of the proposals were based on different features. The committee emphasized experience and inventors’ seniority; the crowd set more store on informative idea descriptions but penalized overly complex and lengthy proposals. Research limitations/implications – The design of the innovation contest does not allow full comparison of the preference functions of crowd and committee. The findings from this case study cannot be generalized. The early stage of new product development seems fruitful for investigating crowdsourcing and knowledge management. Practical implications – Firms should consider adopting preference markets for idea screening and evaluation since they appraise ideas from different angles compared to managers. However, they complement, rather than substitute managerial evaluation, especially in the case of more detailed proposals. Originality/value – This is one of the first attempts to identify differences in the decision-making processes of crowds and committees. The paper identifies their strengths as evaluators of new product ideas and finds that the “wisdom of crowds” has some limitations in relation to the ability to process complex information.

A case study on FMEA-based improvement for managing new product development risk

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Antonio Carrizo Moreira ◽  
Luis Miguel D.F. Ferreira ◽  
Pedro Silva
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Early Phase ◽  
Design Methodology ◽  
New Product ◽  
Manufacturing Companies ◽  
User Friendliness ◽  
Content Type ◽  
Development Risk

PurposeThe purpose of this paper is to explore the applicability of the failure mode and effects analysis (FMEA) as an effective tool for decreasing failure risk in the early phase of the new product development (NPD), which adds to existing literature on the application of FMEA in NPD.Design/methodology/approachThrough the application of action research (AR) methodology, it was possible to develop a case study examining the use of FMEA to decrease NPD risk in an early phase of NPD execution.FindingsThe importance and immediate gains of identifying NPD failures support FMEA's usefulness for NPD risk decrease. Moreover, its user-friendliness, timeliness and cost advantages facilitate the introduction of FMEA in the early phase of NPD execution.Originality/valueFMEA is a well-known method used in manufacturing companies to identify and correct failures in products, processes and systems. This article explores the lack of practice-oriented evidence on the use of FMEA in the early phase of NPD execution and provides support to its applicability and effectiveness.

Project risk planning in high-tech new product development

2016 ◽  
Vol 29 (2) ◽  
pp. 110-124 ◽  
Author(s):  
Jorge Ayala-Cruz
Keyword(s):  
Risk Management ◽  
New Product Development ◽  
New Product ◽  
High Tech ◽  
Project Risk ◽  
Content Type ◽  
Management Framework ◽  
Risk Management Framework ◽  
Project Risks

Purpose The purpose of this paper is to present the implementation and testing of a modified project risk management framework that integrates PMI’s framework with Monte Carlo simulation to improve the effectiveness in high-tech new product development (NPD) projects. Design/methodology/approach The modified framework considers three bodies of knowledge: project management, risk management, and Monte Carlo simulation to produce an enhance project risk management framework. Its application is shown through a case study. Findings Using the integrated framework in a recent case study project and prior NPD projects measures (as benchmarks), it was shown that it could help to enhance risk responses caused by task durations and costs’ uncertainties. The framework proved to be better than segregated generic best practices and was key in providing insight to the issue of early project risk assessment. Research limitations/implications More experimental replications are required for enhancement effectiveness assertions of the framework, through the application of the framework to similar case studies. Furthermore, this could improve its reliability and soundness. Practical implications Future directions for research could include case and empirical studies that include hypothesis’s testing, and the integration of optimization procedure for improved NPD project’s planning and execution. Originality/value This paper outlines a way to close the gap of project risks management planning in NPD’s initiatives. It was motivated by a relatively new tendency in exploring integrated frameworks to deal with complex project risks issues.

scholarly journals The dark side of effectuation in a key account management relationship

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Phillip McGowan ◽  
Chris Simms ◽  
David Pickernell ◽  
Konstantios Zisakis
Keyword(s):  
Product Development ◽  
New Product Development ◽  
New Product ◽  
Dark Side ◽  
Key Account Management ◽  
Supplier Relationships ◽  
Content Type ◽  
Account Management ◽  
Key Account

Purpose The purpose of this paper is to consider the impact of effectuation when used by small suppliers within key account management (KAM) relationships. Design/methodology/approach An exploratory longitudinal case study approach was used to examine a single small supplier operating in the snack foods sector of the UK foods industry, as it entered into a new KAM relationship with a major retailer and undertook four new product development projects. Findings Findings suggest effectuation may positively moderate the ability of a small supplier to enter into a KAM relationship by enabling it to obtain resources and limit risk. However, once within the relationship, the use of effectuation may negatively impact success by increasing the potential for failure to co-create new product development, leading to sub-optimal products, impacting buyer confidence and trust. Furthermore, a failed KAM relationship may impact other customers through attempts to recover revenues by selling these products, which may promote short-term success but, in the long-term, lead to cascading sales failure. Research limitations/implications It cannot be claimed that the findings of just one case study represent all small suppliers or KAM relationships. Furthermore, the case presented specifically concerns buyer-supplier relationships within the food sector. Practical implications This study appears to suggest caution be exercised when applying effectuation to enter into a KAM relationship, as reliance on effectual means to garner required resources may lead to the production of sub-optimal products, which are rejected by the customer. Additionally, a large customer considering entering into a KAM relationship with a small supplier should take care to ensure their chosen partner has all resources needed to successfully deliver as required or be prepared to provide sufficient support to avoid the production of sub-optimal products. Originality/value Findings suggest the use of effectuation within a KAM relationship has the potential to develop a dark side within business-to-business buyer-supplier relationships through unintentional breaches of trust by the selling party.

Flexibility and control in managing collaborative and in-house NPD

2019 ◽  
Vol 15 (1) ◽  
pp. 30-57 ◽  
Author(s):  
Emer Curtis ◽  
Breda Sweeney
Keyword(s):  
Control Systems ◽  
New Product Development ◽  
Business Models ◽  
New Product ◽  
Management Control ◽  
Content Type ◽  
Prior Literature ◽  
Operational Constraints ◽  
And Control

Purpose Prior literature provides little insight on how management control systems have responded to the growth of collaborative new product development (NPD). The purpose of this paper is to contrast the use of budgets to manage collaborative and in-house NPD and to consider the implications for enabling flexibility. Design/methodology/approach The paper reports on the findings of a case study company in the medical devices industry that uses two different business models for its NPD activities. While the company engages in in-house NPD for its own products, it also engages in collaborative NPD services with a range of customers. Findings The study illuminates how two types of budgets (annual and project) can have very different impacts on flexibility under different business models. The annual financial budgets imposed rigid constraints on in-house NPD and resulted in reduced flexibility, whereas in collaborative NPD, they had little impact on flexibility. Project budgets created hard operational constraints in collaborative NPD which generated a highly pressurised yet highly creative environment, whereas project budgets had little impact on flexibility in in-house NPD. Originality/value The study contributes detailed empirical insights into the control systems used to manage collaborative NPD from the supplier perspective, where creativity is largely responsive and contrasts these with the management of in-house NPD where creativity is largely expected. The authors also contribute an analysis of the key control systems and other factors that sustain flexibility in this highly pressurised open innovation environment.

Adoption of product lifecycle management in new product development: a case study of automotive organisation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ganesh Tanpure ◽  
Vinod Yadav ◽  
Rakesh Jain ◽  
Gunjan Soni
Keyword(s):  
Product Development ◽  
New Product Development ◽  
New Product ◽  
Product Lifecycle Management ◽  
Product Lifecycle ◽  
Content Type ◽  
Study Approach ◽  
Manufacturing Organization ◽  
Lifecycle Management

PurposeThe Product Lifecycle Management (PLM) system has found varieties of deployments in various domains of product-based industries. Current study aims to provide a framework for the adoption of PLM systems in manufacturing organizations to meet the actual requirements of industries.Design/methodology/approachFirst, a systematic review of extant literature was performed, and further, the case study approach is opted to study the process of New Product Development (NPD) in a manufacturing organization. Triangulation methodology was adopted wherein the interview results, actual observations, and authorized documentations were used to validate the result and provide conclusions.FindingsA conceptual framework and implementation architecture for PLM is derived. The complete ecosystem for digital footprint is mapped for New Product Development (NPD) activities.Practical implicationsThe study could be helpful for Techno-Functional Managers. For individuals with only functional/technical knowledge, additional training might be required to adopt the framework in actual practices.Originality/valueThe paper contributes to the existing literature by providing a framework and demonstrating the feasibility of implementation through the case study.

Selecting ideas for new product development

2015 ◽  
Vol 18 (3) ◽  
pp. 380-396
Author(s):  
Geng Cui ◽  
Ling Peng ◽  
Laurent Pierre Florès
Keyword(s):  
New Product Development ◽  
Early Stage ◽  
Generalizability Theory ◽  
Screening Method ◽  
Strong Support ◽  
Cost Effective ◽  
New Product ◽  
Content Type ◽  
Product Concept ◽  
Heated Debate

Purpose – New product concept screening, i.e., selecting a few viable innovative concepts from numerous candidates, involves high stakes and is complicated and resource intensive. Over the years, there has been heated debate about the relative merit of monadic (sequential) tests vs that of preference-based paired comparisons. The paper aims to discuss these issues. Design/methodology/approach – This study proposes the Generalizability Theory as a framework to assess and compare the performance of traditional monadic test with the Adaptive Concept Screening (ACS) in terms of their testing results and psychometric quality. Findings – Using 50 yogurt concepts and two independent groups of respondents, the results indicate that ACS requires a significant smaller sample of respondents to achieve a necessary minimum G coefficient for decision making. Moreover, ACS offers a more discriminating and reliable solution for early stage concept screening as manifested by a higher G coefficient and greater percentage of variance due to the selected concepts given the same sampling design. Practical implications – The results lend strong support to ACS as a more cost-effective method for screening new product concepts and the Generalizability Theory as a systematic framework for assessing concept testing methods. Originality/value – This study adopts the Generalizability Theory framework to assess the validity of new product concept screening method.

Decision-making and cost deviation in new product development projects

2018 ◽  
Vol 11 (4) ◽  
pp. 1066-1085 ◽  
Author(s):  
Anne-Cathrine Thore Olsson ◽  
Ulf Johannesson ◽  
Roger Schweizer
Keyword(s):  
Decision Making ◽  
Product Development ◽  
New Product Development ◽  
Single Case ◽  
New Product ◽  
Development Project ◽  
Single Case Study ◽  
Product Cost ◽  
Content Type

PurposeEmphasizing the importance of product cost deviation; the purpose of this paper is to contribute to the new product development (NPD) literature and research on decision making by discussing: How are decisions related to product cost deviations made during a product development project?Design/methodology/approachAn in-depth single case study approach studying the decision-making process of Volvo Cars Cooperation during a car development project is applied.FindingsThe paper suggests that factors influencing how decisions related to cost deviations are made during a NPD are not limited to the classic trade-offs among time, cost and scope, but include managers’ complex cause-and-effect analysis under the influence of values, behaviors and norms. Furthermore, the context is not limited to NPD projects; rather the frame for the decisions and its influencers is at least as wide as the corporate context.Research limitations/implicationsThe common limitations of a single case study apply.Practical implicationsThe study emphasizes the importance of clearly defined targets during a NPD project that need to well communicated, acknowledged and understood by all involved to serve as true business levers. A poor target is likely better than no target. Furthermore, lack of overview or responsibility for the success of the projects, increase the risk for sub-optimization and silo thinking.Originality/valueThe study is pioneering by highlighting the importance of and explaining the implications of decision making related to cost deviations during a NPD project.

Agile manufacturing practices for new product development: industrial case studies

2016 ◽  
Vol 27 (4) ◽  
pp. 560-576 ◽  
Author(s):  
Marco Leite ◽  
Vanessa Braz
Keyword(s):  
Product Development ◽  
New Product Development ◽  
New Product ◽  
Agile Manufacturing ◽  
Operational Performance ◽  
Content Type ◽  
Huge Impact ◽  
History Of

Purpose – For decades multiple management philosophies directed toward lean production and mass were assumed as to respond to process inefficiencies and rampant consumerism, optimizing operation costs. However, new customization and flexible productions philosophies have been gaining ground in some industries, such as the agile manufacturing. From a literature review that addresses the history of this philosophy, it is clear that agile manufacturing is not fully comprehended, with very scarce information about practical cases. The paper aims to discuss these issues. Design/methodology/approach – In this paper the authors describe an exploratory methodology approach, with three semi-structured case study interviews. The goal is to study which of agile manufacturing practices are being applied in the studied companies and what is the perceived effect that these have on operational performance. Since most of these companies develop highly customized products, the role of agility on new product development can have a huge impact on their operational performance. Findings – Agile manufacturing is not yet a widespread philosophy of managing for the companies studied, being virtually unknown as a global concept. However, it was found that many of the practices of agile manufacturing are already implemented in these companies without association with this philosophy. It was also concluded, by the finding through respondents opinions, that agile practices contribute positively to the studied companies operating performance. Originality/value – The novelty of this research derives from observation of agile manufacturing practices in SMEs. This research is useful to SMEs implementing agile manufacturing principles.

Harnessing the power of reputation for business cooperation

2020 ◽  
Vol 36 (12) ◽  
pp. 5-7
Keyword(s):  
New Product Development ◽  
Design Methodology ◽  
New Product ◽  
Collaborative Partnerships ◽  
Foreign Markets ◽  
Content Type ◽  
Potential Partner ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This case study paper concentrates on why small and medium-sized enterprises (SMEs) enter into collaborative partnerships, and how reputation impacts how they choose partners to work with. To understand the dynamics of cooperation agreements, managers and owners are advised to analyze the reputation and trustworthiness of any potential partner in the context of whether they’re an asset for new value creation. A credible and trustworthy partner can in turn grant easier access to foreign markets, smooth the path to new product development, and/or offer to share efficiency-driving resources. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Failure mode and effects analysis (FMEA) in the context of risk management in new product development

2008 ◽  
Vol 25 (9) ◽  
pp. 899-912 ◽  
Author(s):  
André Segismundo ◽  
Paulo Augusto Cauchick Miguel
Keyword(s):  
Decision Making ◽  
Risk Management ◽  
Product Development ◽  
New Product Development ◽  
Single Case ◽  
Essential Element ◽  
New Product ◽  
Decision Making Process ◽  
Content Type

PurposeEffectively managing risk is an essential element of successful project management. In this sense, the present study seeks to propose a systematisation of technical risk management through the use of FMEA to optimise the decision making process in new product development (NPD).Design/methodology/approachThe methodological approach adopted in this paper is a case study at an automaker in Brazil. Data were gathered from various sources, mostly participant observation and document analysis of two important NPD programmes. The risk management system was described and its influence on programs development analysed.FindingsResults included a reduction in the number of project and test planning loopings as well as a reduced number of prototypes needed to approve product components. In addition, there was a positive influence on the product development decision‐making process, evidenced by better allocation of resources among projects at the programme.Research limitations/implicationsThe study is limited to a single case study which considers two major NPD programmes. Replications among other units of analysis are needed to further validate current findings.Originality/valueThis paper is one of the few published studies that report and discuss the FMEA within a broad context of risk analysis.

Sign in / Sign up

Export Citation Format

Share Document