3.1.1 The Impact of IT on Product Architecture and Project Outcomes

Abstract

AbstractProduct Architecture and scalable product platforms are primary assets in leveraging R&D resources for continued firm growth. This study explores the impact of information technology (IT) on the development of robust, scalable architecture and their shared product platforms. Over the past twenty years, the implementation of information technology infrastructure and associated tools has transformed how firms approach new product development (NPD). IT solutions have migrated from a focus on detailed engineering design and associated production and launch (i.e. 3D computer‐aided ‐design (CAD) and product lifecycle management systems), to up‐front activities like architecture planning and development. Given the expanding role of IT and digital design tools further up‐front in the NPD process, we investigate their impact on developing robust product architecture. Through an empirical study of 122 firms and follow‐up interviews, we study the impact of IT (ie. digital design tools, IT infrastructure, IT embeddedness) and team collaboration on the efficiency and effectiveness of product architecture and overall project outcomes. The results indicate that a firm's IT infrastructure and team collaboration have strong, significant relationships with the development of an efficient and effective product architecture. The findings also show a strong, positive relationship between product architecture and project outcomes. Specifically, efficient and effective product architecture results in meeting project performance goals.