Incremental Product Development Research Articles

Enhanced function-means modeling supporting design space exploration

AbstractOne problem in incremental product development is that geometric models are limited in their ability to explore radical alternative design variants. In this publication, a function modeling approach is suggested to increase the amount and variety of explored alternatives, since function models (FM) provide greater model flexibility. An enhanced function-means (EF-M) model capable of representing the constraints of the design space as well as alternative designs is created through a reverse engineering process. This model is then used as a basis for the development of a new product variant. This work describes the EF-M model's capabilities for representing the design space and integrating novel solutions into the existing product structure and explains how these capabilities support the exploration of alternative design variants. First-order analyses are executed, and the EF-M model is used to capture and represent already existing design information for further analyses. Based on these findings, a design space exploration approach is developed. It positions the FM as a connection between legacy and novel designs and, through this, allows for the exploration of more diverse product concepts. This approach is based on three steps – decomposition, design, and embodiment – and builds on the capabilities of EF-M to model alternative solutions for different requirements. While the embodiment step of creating the novel product's geometry is still a topic for future research, the design space exploration concept can be used to enable wider, more methodological, and potentially automated design space exploration.

Knowledge reuse in industrial practice: evaluation from implementing engineering checksheets in industry

In multi-domain product development organizations, there is a continuous need to transfer captured knowledge between engineers to enable better design decisions in the future. The objective of this paper is to evaluate how engineering knowledge can be captured, disseminated and (re)used by applying a knowledge reuse tool entitled Engineering Checksheet (ECS). The tool was introduced in 2012 and this evaluation has been performed over the 2017–2018 period. This case study focused on codified knowledge in incremental product development with a high reuse potential both in and over time. The evaluation draws conclusions from the perspectives of the knowledge workers (the engineers), knowledge owners and knowledge managers. The study concludes that the ECS has been found to be valuable in enabling a timely understanding of technological concepts related to low level engineering tasks in the product development process. Hence, this enables knowledge flow and, in particular, reuse among inexperienced engineers, as well as providing quick and accurate quality control for experienced engineers. The findings regarding knowledge ownership and management relate to the need for clearly defining a knowledge owner structure in which communities of practice take responsibility for empowering engineers to use ECS and as knowledge evolves managing updates to the ECS.

Challenges and Enablers for Rapid Product Development

This article describes how new product development (NPD) is critical to maintaining a strong market position. However, full-scale NPD may consume too much time and resources when necessary to react quickly to customer needs or emerging business opportunities. Rapid development (RaDe) is a type of incremental product development complementing the organizations' existing NPD process. In RaDe, new sales items are created by redesigning or upgrading existing products inexpensively, and in a timely manner. This article aims at clarifying the challenges and enablers relating to RaDe implementation in four case companies and by the means of reviewing literature. The identified challenges include the difficulty of differentiating between product developments models, the lack of clear definition for RaDe and issues in product data management. The enablers include structuring and managing projects differently compared to NPD, the utilization of existing supply-chain capabilities and the designed products fitting the current business processes to enable rapid product ramp-ups.

An exploration of product advantage and its antecedents in SMEs

PurposeProduct advantage is consistently identified as the most important product characteristic in explaining the adoption and success of a new product. In small- and medium-size enterprises (SMEs), in particular, improving new product performance is critical in supporting SME survival and growth. Given that SMEs are a vital component of most economies improving their ability to effectively launch new products is an essential activity for sustainability. However, although literature illustrates that developing products with high levels of product advantage and new product development is advantageous, few studies have explored product advantage activities in SMEs and consequently research on product advantage is over-reliant on large firm studies. Given the specific resource constraints which challenge SME new product development (i.e. financial, expertise, access to networks etc.) context-specific research is critical. The purpose of this paper is to address these gaps in literature by exploring the product advantage activities in four manufacturing SMEs actively engaged in product development.Design/methodology/approachThe research question centres on exploring the antecedents of product advantage in SMEs (market uncertainties, competitive intensity, resource uncertainties and technological uncertainties) in the context of multi-dimensional perspective of product advantage (consisting of product innovativeness, product superiority and product meaningfulness). A qualitative interpretivist approach was used to explore the research question exploring the antecedents to, and nature of, product advantage in SMEs. Case studies were used to inductively and holistically view SMEs in their entirety, this approach facilitated in-depth understanding of the reality of the SME and allowed for the interpretation of the SMEs owner/managers perspectives on product advantage.FindingsThe empirical findings suggest that the most significant antecedent of product advantage in the case SMEs was competitive intensity followed by technology uncertainty and resource uncertainty and then market uncertainty. Product advantage was found to be strongly based on product meaningfulness with elements of product innovativeness and product superiority also defining their perspective of product advantage.Research limitations/implicationsThere are several implications for SME owner/managers arising from this study. In the context of these findings, SMEs need to carefully consider three issues in supporting their new product development: first, their dependence on letting existing customers drives their new product development; second, owner/manager perceptions of product advantage are focused on delivering guaranteed sales, this focus nurtures incremental continuous product development rather than radical discontinuous innovation. While this strategy is low risk and supports SME sustainability, it could lead to less ambitious innovation strategies and slower growth for SMEs; third, antecedents of product advantage such as competitive intensity, technology uncertainty and resource uncertainty and market uncertainty need to carefully managed.Originality/valueThis study illustrates the complex nature of the antecedents and nature of product advantage in SMEs. The study provides insight into the product advantage characteristics that SMEs consider important in the development of new products. Different elements of each of the three product advantage constructs (product meaningfulness, product superiority and customer meaningfulness) are considered important under different conditions. Throughout this analysis, market needs and wants, technology, competitors and resources emerged as the defining conditions upon which product advantage decisions are based. More specifically knowledge regarding the market, technology, competition and the availability of resources dictated the type and levels of advantages that were presented in new products.

Importance of tacit knowledge in incremental innovation

PurposeThe purpose of this paper is to examine the role of tacit knowledge in incremental innovation, which has hitherto been neglected.Design/methodology/approachQualitative case analysis was used to focus on two large Japanese pharmaceutical companies’ development of new antihypertensive drugs. The study uses interview data and documentary research materials to explore the knowledge bases of the companies’ research teams as they refined an existing drug to produce new products – a process of incremental innovation.FindingsExplicit knowledge (chemical structure of preceding drug) was used in both successful and failed cases of drug discovery. In the two successful cases, the tacit knowledge of key researchers, based on their long-term experience of related research, provided insight into developing compounds with good in vivo efficacy, which led to successful clinical development.Practical implicationsThe findings suggest that tacit knowledge may play an important role in incremental innovation processes, and that its influence on product development should be considered in such ways as team and organization structure.Originality/valueThis study addresses a gap in the literature regarding the impact of tacit knowledge on incremental innovation processes. It is often assumed that incremental innovation is based on existing technology. This study suggests that tacit knowledge may play a hitherto largely unrecognized role in incremental product development.

Joining Forces or Going It Alone? On the Interplay among External Collaboration Partner Types, Interfirm Governance Modes, and Internal R&D

This paper adds to the emerging literature stream advocating a contingency view on open innovation. Drawing on the relational view of the firm, this study sheds light on the complex interplay among collaboration partner types (market‐ and science‐focused innovation partners), governance modes (informal, self‐enforcing and formal, contractual collaboration governance), and internal research and development(R&D). More specifically, it is proposed that the use of governance modes tailored to both the characteristics of each innovation partner type and the specific innovation objectives pursued by the focal firm (incremental and radical new product development) can increase the payoff from innovation collaboration. Moreover, appropriate collaboration governance is expected to reduce the focal firm's vulnerability to possible negative side effects often assumed to be associated with the simultaneous pursuit of external collaboration and internal R&D, among which most notably the not‐invented‐here (NIH) syndrome. Cross‐industry evidence from 2502 German firms underlines the critical role of collaboration governance—a contingency factor that is at the heart of the relational view, yet has remained surprisingly absent from the open innovation debate so far.

Supporting Incremental Product Development using Multiple Product Line Architecture

Software product line engineering (SPLE) has been successfully applied in various application domains to support systematic reuse. Besides of its benefits it is also acknowledged that the SPLE process can in practice be considered too time consuming and heavyweight due to the required planning and development of the asset base. For this reason more lightweight SPLE processes are required that can be integrated in the ongoing product development of the organization. In this context, the authors share their experiences in adopting a multiple product line architecture to support the incremental product development of Aselsan REHIS, a leading high technology company in Turkey. The authors first discuss the important business needs for defining a more lightweight multiple product line engineering (MPLE) process. Then they discuss the multiple product line architecture and how it has been used to guide the incremental product development.

Differentiating Major and Incremental New Product Development: The Effects of Functional and Numerical Workforce Flexibility*

This study seeks to explain the differential effects of workforce flexibility on incremental and major new product development (NPD). Drawing on the resource‐based theory of the firm, human resource management research, and innovation management literature, the authors distinguish two types of workforce flexibility, functional and numerical, and hypothesize differential effects on NPD outcomes. A large‐scale sample of 284 Dutch firms across various manufacturing goods and business services industries serves to test these hypotheses. The results suggest that functional flexibility positively influences incremental NPD only, internal numerical flexibility negatively influences incremental NPD only, and external numerical flexibility positively influences major NPD only. Thus, differences between major and incremental NPD are grounded in the human resource flexibility of the firm. This complements research that found that such differences lie in critical development activities, learning processes, and capabilities. It also complements product innovation research on flexibility in NPD processes and on flexibility in organizational structures and routines. It extends the resource‐based theory of the firm suggesting that human resource flexibility is part of the dynamic capabilities that allow firms to reconfigure existing competencies. The conclusions imply that managers of manufacturing and service firms may use training and education and create a functional flexible workforce that can progressively enhance incremental NPD outcomes. They may want to avoid paying overtime, because such internal numerical flexibility hampers incremental NPD, but use fixed‐term contracts to expand external numerical flexibility to enhance major NPD.

Rhythms of Learning -- Radical and Incremental Innovation Projects and Problem-solving in the Automotive Industry

This paper studies effects of interaction and communication patterns on learning in radical and incremental New Product Development (NPD) projects. It presents results of a multiple longitudinal case study of project meetings and data exchange along a technological transition path in four sequential car development projects. To gain in depth insights, data were analyzed on project level and on problem-solving level by means of a mixed-method approach. We contribute to the literature on organizational learning and problem-solving in NPD by deriving propositions based on three rhythmic patterns identified. First, we identify that effective project-to-project learning requires communication and interaction overlap, and is moderated by project newness. Second, successful projects form a wave-shaped rhythm of communication defined by changing amplitudes and frequencies. In effective learning, communication follows a decaying oscillation. Third, we observe that interaction is best described as an s-shaped curve, reflecting phases of high and low intense artifact generation. In combination, identified patterns serve as reference values to evaluate project performance and allow managerial intervention.

FRAMING AMBIGUITY DURING PRODUCT DEVELOPMENT: A KNOWLEDGE-INVOLVED PERSPECTIVE

Product development teams sustain the level of ambiguity in product development projects through product configuration and project planning decisions. In this paper, we represent these decisions in terms of earliness, specificity and contingency of front-end activities and test their impact on project performance. We propose that product novelty mediates the impact of configuration and project decisions on performance. Our hypotheses are tested using data from a sample of radical and incremental product development projects. The results support a positive relation between earliness and contingency of front-end activities and development performance for incremental projects. Radical projects benefit from early milestones set during project planning.

Ordered to Innovate: A Longitudinal Examination of the Early Periods of a New Product Development Process Implementation in a Manufacturing Firm

Firms can generate rather long‐lasting growth spurts through continuous innovation. Moreover, literature suggests that, when growing organically, firm performance is enhanced through a revenue expansion emphasis encompassing new‐to‐the‐world or new‐to‐the‐firm physical goods or service augmentations. This organic approach usually outperforms cost‐reduction programs, which often yield minor improvements to existing products; or an emphasis on simultaneous revenue expansion and cost reduction. While this finding has the major implication that firms should focus and generate more radical new products for long‐term success, there is need for research that investigates how firms should implement the strategy change to organic growth via innovation. The authors present a case study, which suggests that in the short run, it might be better to commence a revenue expansion strategy by focusing on incremental new product development (NPD) efforts, rather than focusing too much on new‐to‐the‐world or new‐to‐the‐firm products. Moreover, analyses of the rich, multimethod data, collected over a two‐and‐a‐half‐year interaction with the focal firm, illustrates that to increase success prospects of an organic innovation strategy, managers should not only engage incrementally innovative new product projects initially, but also ensure proficiency in commercializing the new product with cross‐functional NPD teams. Thus, in early stages of organization transformation, the merits of the organic growth strategy will be swiftly demonstrated, the cross‐functional teaming skills are learned and tested, and the new strategy becomes institutionalized. While somewhat contradictory to other studies on this topic, this more evolutionary exploration provides a new perspective for organizational change, especially when a firm is ordered to innovate. In conclusion, the insights gleaned in this study shed light on the journey from stagnating firm to a successful serial innovator via formalized NPD process implementation.

Application of agile methods in the innovation process

The main objective of this study was to analyse the applicability of agile methods for improving the efficiency of the innovation process. The study was conducted by analysing both innovation and software development processes, their similarities and differences, and as well as comparing the criticism against them. As a result of the study, it was found that agile methods provide several improvements regarding to organisational practices, transfer of knowledge and know-how, and understanding of customer needs that could be applied to the innovation process. In addition, this study provides several agile guidelines to managers and project team members for improving the innovation process. These are, e.g., the usage of light user stories as a solution for the heavy documentation, giving up fixed implementations plans for enhancing an incremental product development process, the usage of, e.g., war rooms to facilitate the transfer of knowledge and know-how, and the integration of the fuzzy front end to the w...

A Study on the Difference Between Radical Innovation and Incremental Improvement in Pre-Development Practices of NPD Projects

This paper presents an exploratory study of pre-development practices in Malaysian food and beverage manufacturing SMEs. A questionnaire survey is used to explore the difference in pre-development implementation practices between radical and incremental new product development (NPD) projects. The survey was performed at 164 food and beverage manufacturing SMEs. The respondents were chosen from those who are directly involved with pre-development practices, such as the owner/CEO of the SMEs. The analysis was conducted using Statistical Package for Social Science (SPSS) software version 17. Descriptive statistics and independent-samples t-test were carried out to generate and validate the results observed. The significant difference values for independent-samples t-test is less than .05 (p≤0.05). Survey results revealed the differences in pre-development implementation practices between radical and incremental NPD projects for several activities in pre-development phases. Incremental NPD projects considered listening to customer needs (p=0.00) is an important activity during idea generation phase, however radical NPD projects emphasis that analysis of competitors‟ products (p=0.02) and continuous product improvement (p=0.00) are crucial. Mean while during development of new product concept phase, and project evaluation phase radical NPD projects were more innovative compared to incremental NPD projects in several activities such as creating prototypes/product samples, linking company‟s operational capabilities with proposed product, and conducting a formal risk analysis. The significant values of the activities were between 0.00 and 0.04 which is lower than significant level 0.05.

Subproblem Decomposition: An Exploratory Research Method for Effective Incremental New Product Development

Consumers frequently face problems when using a product or service. Successful incremental product development depends on accurately identifying these problems. Exploratory methods that are commonly used to identify such problems tend to present consumers with stimuli (i.e., questions) that prompt a particular kind of psychological processing. Subproblem decomposition, a new exploratory method, uses stimuli that prompt a different kind of psychological processing. Consumers are asked to think out loud while performing product‐related tasks, and their spoken thoughts are used to identify the “subproblems” faced during product use. Subproblem decomposition, therefore, generates different insights, which complement the perspective gained by more conventional exploratory methods.

Constructing and contesting markets through the market object

This paper focuses on the work that market actors undertake in order to stabilize and de-stabilize market objects. We briefly revisit Igor Ansoff's classic product–market strategy matrix to show how marketing management literature typically equates stability in markets with commodification and inertia. To escape this inertia, marketers often ‘warm up’ or destabilize existing market objects by changing the material bases of the object, for instance in incremental product development. But this ‘warming up’ invites other market actors to also question or destabilize the networks that are supposed to hold the market object in its new (market) space. We utilize archival research to trace one case each of market and product development within the pharmaceutical realm, demonstrating: first, the effort market actors put into ‘cooling down’ and ‘warming up’ market objects; second, how contested such efforts can be; and third, how the object's material attachments may limit its symbolic malleability.

Economic perspectives on the development of complex products for increasingly demanding customers

Rival firms produce products with a variety of characteristics. It is typically assumed that consumers purchase those products that most closely match their ideal set of characteristics. Orthodox production theory economics offers no analysis of how to divide limited product development budgets between different characteristics. Furthermore, orthodox consumer economics assumes buyers make compensatory trade-offs between different product characteristics; this approach ignores problems caused by bounded rationality that, in complex choice environments, leads buyers to formulate simplifying heuristics such as hierarchical (non-compensatory) preferences over characteristics. An integrative analytical framework is developed, drawing upon orthodox economics, behavioural economics and evolutionary economics. Implications for the relationship between incremental product development and the firm's evolving capabilities are emphasized.

When-to-release decisions for features with time-dependent value functions

Release planning is of key importance for incremental software product development. With the increasing size and complexity of software products, as well as with the growing demands for transparency and objectivity of decision-making, intuition alone is no longer sufficient for release planning. EVOLVE+ is a systematic method for release planning, which combines the strengths of formalization and computational efficiency with the expertise of the human experts. From a given set of candidate features, the most attractive ones are selected and assigned to a sequence of releases. In this paper, we consider three extensions to the current systematic planning approach EVOLVE+: (a) value functions describing the estimated value of the feature are continuous functions of time, (b) the actual release dates are no longer fixed but can be varied in some pre-defined interval. As a consequence, the available resource capacities are also functions of time. (c) Calculation of trade-off solutions balancing the risk with the potential additional value of early release. All three extensions substantially increase the complexity of the release planning problem. We have developed a solution method using genetic algorithms that is able to accommodate the additional complexity of the advanced model. A hypothetical case study is conducted as a proof-of-concept for the applicability of the method. The applicability of the method is demonstrated by analyzing six detailed planning scenarios.

Relational resources and competences for radical product innovation

Peter Drucker in 1954 said that there are two distinguishing features of the business: marketing and innovation. In the very first edition of the Journal of Marketing Management, Keith Blois examined the influence of customers and competitors in the new product development process, concluding that the widely referenced process models were insufficient for capturing external inputs central to the progress from the generation of ideas to eventual market launch and growth. In the intervening period numerous authors have published research on "product innovation" with the alternative conceptualisations process centre stage. Much of this research, however, is rooted in theories intrinsically concerned with incremental product development and most of that relating to physical consumer goods. More recently, some product innovation research has turned to the specific issue of radical innovation, concluding again that the traditional "stage" models are a necessary but insufficient conceptual framework for analysis. At the same time, the conceptual foundations of marketing have been strengthened by the discussion of the role of interaction, markets and networks. This paper is located where these trends in marketing and innovation research intersect by examining the marketing competences required for radical product innovation.

KR06 A Systems Engineering Approach to Innovation Management

AbstractTraditional approaches to innovation management have generally been ‘bottom‐up’, starting from suggestion schemes centred on existing, steady‐state processes and incremental product development. This lacks a holistic view of the business, and needs reconciliation with long‐term strategy that may include disruptive technology and business model changes. This paper covers a more balanced approach to innovation management, allowing both bottom‐up and top‐down ideas generation, prioritisation, and alignment with business strategy.

Lean product development: Maximizing the customer perceived value through design change (redesign)

With the incremental product development, one of the main objectives is to make it more attractive and valuable for the customer, which leads to increased sales and higher profit. When existing product design is modified to improve its perceived value, each change needs resource commitment. It is important to identify and pursue only those changes, which give maximum improvement in the perceived value. In this paper a mathematical model is presented for perceived value and step-by-step methodology is provided to capture the optimized design changes with cost implications. With the help of a case study on automotive vehicle development, we show how proposed model and method can be used for highest value added change selection. Application of optimization model for perceived value and change trade-off in general is presented along with some special policy cases for different scenarios.