New Product Development in an Omnichannel World

Firms compete in an increasingly omnichannel environment. Customers no longer travel a single linear path but traverse a complex map invoking many channels, firm-owned and external, seamlessly through integrated technology. The associated changes in consumer behavior and the ways that firms engage consumers have led many to reshape the way they innovate their product portfolios. This article presents a structured overview of some of the most striking changes to firms’ new product development (NPD) processes in B2C settings. Enlisting the classic NPD funnel, it describes how the omnichannel environment and its technologies affect speed and execution in each development stage. It illustrates key changes with examples from packaged goods, consumer technology, and fashion.

Scaling a Multi-dimensional Organization Horizontally

Customers of multinational enterprises (MNEs) exist almost everywhere. Cross border B2C e-commerce is expected to double by 2022 according to Forrester Research. How do MNE’s efficiently leverage their product portfolios across geographic markets? This is called horizontalization. Synergies exist in terms of resources needed in these products due to relatedness between them. Economies of scale can be exploited to reduce costs of needed resources. In this case study an MNE utilized a multidimensional organization design to reach customers in many parts of the world. The author presents findings from this case and ultimately extracts nineteen propositions to guide support function synergies. Absent these measures, risk of revenue loss is enhanced significantly.

Examining the nutritional quality of the product portfolios of major packaged food and beverage companies in Canada

Canada's food supply is abundant in energy-dense products containing excess amounts of sodium, saturated fat and free sugars, increasing Canadians' risk of developing obesity and non-communicable diseases. Food companies shape the food supply through their control over the formulation of their products; however, no studies have examined the healthfulness of products offered by different companies in Canada. This study aimed to assess and compare the nutritional quality of the product portfolios of major packaged food and beverage companies in Canada. Twenty-two top food companies were selected for study, representing a combined 50% and 73% of Canadian packaged food and beverage sales in 2018, respectively. This included 18 multinational companies, 2 Canadian manufacturers and 2 retailers with private-label brands. Nutritional information for products was sourced from the University of Toronto Food Label Information Program 2017 database. The nutritional quality of all products offered by the sampled companies that were included in the database (n = 8,211) were evaluated using the Health Star Rating (HSR) system, with HSRs ranging from 0.5 (less healthy) to 5 (healthier). Descriptive analyses and analysis of variance with post-hoc tests examined the HSRs of each company's products overall and by food category (n = 24). Mean HSRs of companies’ overall product portfolios ranged from 1.8 to 3.7 (μx̅ = 2.7, σx̅ = 0.5) and differed significantly between companies (p < 0.001). Mean HSRs differed between companies for all food categories except eggs (p = 0.5), seafood (p = 0.2), legumes (p = 0.1), nuts and seeds (p = 0.4), and vegetables (p = 0.08). Variation in mean HSRs of products offered by different companies was greatest for beverages (range = 1.3–5.0, μx̅ = 2.0, σx̅ = 1.0), fats/oils (range = 0.7–4.4, μx̅ = 3.6, σx̅ = 1.6), fruit/fruit juices (range = 0.8–4.0, μx̅ = 2.6, σx̅ = 0.9), and sauces/dips/gravies/condiments (range = 0.5–3.4, μx̅ = 2.3, σx̅ = 1.0). These findings demonstrate that the nutritional quality of products offered by leading food manufacturers in Canada varies significantly overall and by food category, with many of these products considered less healthy according to the HSR system. Differences between companies may reflect the nature of their products; for example, products offered by dairy companies were healthier than those of confectionary and soft drink manufacturers, on average. Variation in nutritional quality within food categories illustrates the need and potential for many companies to improve the healthfulness of their products. By identifying companies that offer less healthy products compared with others in Canada, this study may prompt reformulation.

Recent developments in China’s biopharmaceutical industry (2012-2017)

Purpose The paper aims to take stock of China’s recent biopharmaceutical industry development by analyzing product innovation and changes in the firms’ product portfolios during the five-year period between 2012 and 2017. Design/methodology/approach The paper introduces a classification of biopharmaceutical products. By applying the classification to the product data of China’s drug regulator, the CFDA, it becomes possible to trace the developments within the sector by looking at changes in the number of firms within each subgroup and changes in the number of subgroups in which each firm is involved. The classification allows an evaluation of the latest product innovation achievements. Findings The paper demonstrates a mild shakeout of firms in the relatively long-existing domestic market segments, a trend toward more specialized product portfolios and an enduring prevalence of innovation strategies aimed at exploiting relatively unpopulated domestic market niches instead of pioneering entirely new products. Especially the capability of upgrading to second-generation protein therapeutics has become a key criterion for separating the wheat and the chaff in China’s domestic sector. The paper moreover points out the relevance of acquisitions as a corporate growth strategy. Research limitations/implications The research does not consider complementary indicators, product pipelines in particular. Future research should compare patterns across emerging economies. Originality/value The paper is unique in using the CFDA database for systematic academic research on (bio)pharmaceutical innovation and in introducing a biopharmaceutical product classification to trace innovative activities and changes in corporate product portfolios over time.

Complexity Reduction in Mass Customization to Facilitate Better Decision Support

Mass customization provides a way to satisfy an increasing number of customers by tailoring product details to their preferences. Moreover, there is a considerable amount of pressure on industries that embrace mass customization in their product portfolios to consistently produce innovative and market defining technology. To ease this pressure, this study offers organizations a perspective on what combination of attributes is most influential on choice when approaching decision support for the purchase of a Configure-to-Order product. Laptops are used here as a case study, but the approach is generalizable to any family of products. This approach first uses metrics gained from a modified conjoint analysis applied to data gathered from a student consumer base. Customer satisfaction is measured as a function of how many product offerings are provided, identifying and quantifying a trade-off between customizability and consumer satisfaction. This aims to cater to the requirements of the consumer base and key business advantages allowing for greater usability and maximum profits.