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The Fuzzy Front End of New Product Development for Discontinuous Innovations: A Theoretical Model
Abstract
The fuzzy front end of the new product development (NPD) process, the time and activity prior to an organization's first screen of a new product idea, is the root of success for firms involved with discontinuous new product innovation. Yet understanding the fuzzy front-end process has been a challenge for academics and organizations alike. While approaches to handling the fuzzy front end have been suggested in the literature, these tend to be relevant largely for incremental new product situations where organizations are aware of and are involved in the NPD process from the project's beginning. For incremental new products, structured problems or opportunities typically are laid out at the organizational level and are directed to individuals for information gathering. In the case of discontinuous innovations, however, we propose that the process works in the opposite direction—that is, that the timing and likelihood of organizational-level involvement is more likely to be at the discretion of individuals. Such individuals perform a boundary-spanning function by identifying and by understanding emerging patterns in the environment, with little or no direction from the organization. Often, these same individuals also act as gatekeepers by deciding on the value to the organization of externally derived information, as well as whether such information will be shared. Consequently for discontinuous innovations, information search and related problems/opportunities are unstructured and are at the individual level during the fuzzy front end. As such, the direction of initial decisions about new environmental information tends to be inward, toward the corporate decision-making level, rather than the other way around.
... Incremental innovation usually involves improving products using existing technologies and targeting existing markets. (Reid & Brentani, 2004;Salerno & Gomes, 2018) consider that Incremental innovation is an innovation that changes some features of an existing product to extend its economic life, increase sales, or decrease costs. Thus, the company undertakes new product designs based on its current competencies, which are linked with the concept of "Exploitation" (Bessant et al., 2014;Lavie et al., 2010;March, 1991). ...
... Researchers and company managers have identified that the phase preceding the beginning of a formal project is the most critical of new product development and has an essential influence on its final result (Cooper, 1988;Frishammar et al., 2016;Khurana & Rosenthal, 1997;P. Koen et al., 2001;Markham & Lee, 2013;Reid & Brentani, 2004;Reinertsen & Smith, 1991). FFE was defined as the period between the generation of an idea for a new product and the company's decision to invest in its development (Reinertsen & Smith, 1991). ...
... On the other hand, authors focusing specifically on the FFE, which propose activities and ways to relate them to the FFE structure: in the context of incremental innovation (Cooper, 1988;Khurana & Rosenthal, 1997Riel et al., 2013), at a higher level of innovation (P. A. Koen et al., 2014;P. Koen et al., 2001;Vizioli, 2019), and for HDI, highlighting the research of (Brentani & Reid, 2012;Reid & Brentani, 2004, 2010Reid et al., 2014) and (Florén et al., 2017;Frishammar et al., 2011Frishammar et al., , 2013Frishammar et al., , 2016. The latter researches propose FFE models with a clear separation into Early FFE, problem identification, and information gathering; and Late FFE, idea generation, and concept development. ...
... Thus, specific FEI references gradually replaced traditional NPD references. Rosenthal (1997, 1998), Murphy and Kumar (1997), Koen et al. (2001), Kim and Wilemon (2002) and Reid and de Brentani (2004) represent this group. In the network of the last period, FEI articles are occupying the central positions in the FEI intellectual structure. ...
... This issue already began to be analysed at the end of the first period (Moenaert et al., 1995;Veryzer, 1998). Although it is not an empirical article, the seminal work by Reid and de Brentani (2004) highlights this issue and claims that the existing knowledge used for FEI was focused on incremental innovation, and, therefore, did not fully represent it. Thus, they discussed the dynamics of innovation through three perspectives (environment, individual and organization) and proposed a model to describe the decision-making process for discontinuous innovations embracing three primary interfaces: boundary, gatekeeping and project. ...
... It started as the first stage of new product development in the first period analysed (1987)(1988)(1989)(1990)(1991)(1992)(1993)(1994)(1995)(1996)(1997)(1998)(1999), marked by works like Cooper (1988) and Rosenthal (1997, 1998). In the second period (2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009), following a more comprehensive view of innovation management and marked by works like Koen et al. (2001) and Reid and de Brentani (2004), FEI assumes a more comprehensive construct as the FEI. Then, in the last analysed period (2010-2020), FEI became more independent of product and innovation processes, positioning itself as a strategic innovation bridge between strategy, research and development to create innovation concepts leading to diverse types and degrees of innovation in organizations. ...
Purpose
This study investigates the intellectual structure of the front-end of innovation (FEI) research field and elaborates a lifecycle model, which embraces the FEI progress and conceptual development.
Design/methodology/approach
This study analysed 355 papers published from 1987 to 2020 in the Scopus and Web of Science databases through bibliometrics, network analysis and content analysis.
Findings
This study reveals FEI research themes and topics and explores their evolution through three periods. In addition, following a lifecycle approach, it also sets the research field foundation and discusses the maturity and potential progress of the FEI intellectual structure.
Originality/value
This study complements the existing FEI reviews by capturing the most relevant topics in the area, showing how these topics relate to each other to form the intellectual domain and providing insights concerning the research progress through different lifecycle stages. It also extends the FEI database used in the other literature reviews.
... Figure 1.2 | The innovation process, adopted from (Koen et al., 2001) The innovation processes of products and services depend to a large extent on the input to the process, the reason why we focus on the first activity domain, the front-end of innovation (Jacoby, 2012). Pointed out by prior research (Langerak, Hultink, & Henrys, 2004;Reid & De Brentani, 2004), FEI decisions impact both product and service parts in the supposed offer, whereas decisions taken in the development phase can only have an impact on partial aspects of the product or service (Karlsson, Larsson, & Öhrwall Rönnbäck, 2017). Product-service systems come with increased complexity and put additional pressure on an approach not only holding the design of separate elements but also the integration of product and service and how they work together. ...
... According to Jacoby (2012), the innovation processes of products and services depend to a large extent on the input for the process, the reason why we focus on the early stages or Front-End of Innovation (FEI). Pointed out by prior research (Langerak et al., 2004;Reid & De Brentani, 2004), FEI decisions impact both product and service parts in the supposed offer, decisions taken in the development phase can only have an impact on partial aspects of the product or service (Dewit, 2014). ...
This thesis places an integrated approach to PSS design at the center. Therefore, we delineate a PSS logic and associated constraints (relevant requirements) to support the design process, and create a PSS design toolkit (actionable approach) to enable synthesis between product and service, rather than maintaining the dichotomy. With an emphasis on context, interrelationships and the whole, we prepare future generations of designers for challenges associated with product service system design.
... Incremental and radical innovations form two different strands within the organization as they are totally different. While incremental innovation is linked to the current technological trajectory, which is normally used by firms seeking to master and enhance their current established organizational capabilities [3,10] so that they can serve their current markets [11,12], radical innovation is normally linked to disruptive technological This paper has theoretical and practical contributions that must be underlined. First, in the context of emerging economies, Mozambican firms demonstrate they were able to take advantage not only of innovation capabilities to enhance their export performance, but also of their ambidextrous exploitation and exploration capabilities to deploy both short-term, incremental innovation and long-term, radical innovation. ...
... ICs are also understood as incremental and radical ICs [3,10,39] and are normally related to a short-and long-term orientation so that firms can adjust their capabilities and cope with stable and disruptive technologies and markets. Djoumessi et al. [37] put forward three different types of ICs: institutionalizing, implementing, and stimulating ICs. ...
Innovation capabilities are among the main driving sources of export performance; however, the literature on how exploration and exploitation innovation influence export performance in the context of emerging economies is scarce. As such, the purpose of this paper is to assess the relationship between innovation capabilities and export performance, mediated by exploration and exploitation innovation. For that, an online questionnaire was implemented surveying 250 Mozambican Small and Medium Enterprises (SMEs) in the agro-industry, agro-processing, and fishing sectors. Based on a Partial Least Squares Structural Equation Model (PLS-SEM) relating innovation capabilities, exploitation, and exploration innovation to export performance, it is possible to state that innovation capabilities influence the export performance of SMEs in this emerging country. Moreover, exploration and exploitation innovation exert important mediation effects, the latter being more prevalent than the former. The results constitute a major contribution as it is possible to claim that, in the context of emerging economies, Mozambican SMEs have managed to enhance their export performance, based on innovation capabilities, but, also, to master their ambidexterity with exploiting capabilities, normally linked to their current technological trajectories, being more prevalent that exploitation capabilities, which are focused on the pursuit of radical innovation.
... To implement such projects requires actions even before the formal phase of project development, linked to creating a favorable environment (Koen et al., 2001). Then, we can define strategic project management as a set of steps organized and adjusted to the requirements of the markets that allow orienting business action plans, and try to anticipate foreseeable events that could affect or impact the organization (Muralidharan, 2020;Hernández, Cardona, & Del Rio, 2017;Reid & Brentani, 2004). ...
... The ability to make decisions regarding the resources to be allocated for the main actions to take place, where the effectiveness will be influenced by such decisions and their objectives (Reid & Brentani, 2004). ...
The aim of the article is to explore organizational innovation capability variables that could have an impact on performance in business to business (B2B) context. This work used systematic analysis of the literature supported through bibliometric analysis indicating the following organizational innovative capabilities: innovation strategy and management projects, collaborative networks and market orientation. The authors propose an explanatory model and provide empirical evidence from B2B sector in Chile, surveying 242 senior executives. The best position was the mining sector. However, all the sectors studied need more emphasis on market orientation, value co-creation and innovation to obtain better and more sustainable results.
... According to Rozenfeld et al. [5] and Pigosso et al. [6], the PDP is a strategic activity closely linked to consumer demands, identifying their desires and responding with innovative and well-designed products. Reid and De Brentani [7] divided the innovation process into stages, including the Fuzzy Front End (FFE) or Front End of Innovation (FEI), which is the initial and critical phase of the integrating environmental and social aspects. The STRL tool assesses the initial planning of the product or PSS, providing guidelines for sustainable development over time. ...
This study evaluates the presence of sustainability parameters in the product development process, especially in the early stages of innovation, using the Sustainability Technology Readiness Level (STRL) tool. STRL assesses the initial planning of products or product and service systems (PSS) and suggests possibilities for incorporating sustainable features in the short, medium, and long term based on responses from startups (EBTs). The research was conducted in two ecosystems at different maturity levels: Florianópolis (Brazil), a more mature stage, and Santander (Colombia), which is rising, considering their cultural and social differences. To validate the STRL tool, four out of the eighteen winning startups from the MuEBTe SANTANDER public funding project in Colombia were selected. Characteristics of the two researched ecosystems, their actors, strengths, approaches, and expansion possibilities were identified and compared. The innovation lies in establishing a sustainable baseline when applying the tool by acquiring the front-end characteristic matrix. It was observed that sustainability as a variable has relevance and independence from product design in product planning, allowing for the selection of short, medium and long-term actions throughout the product's lifecycle. It was concluded that considering sustainability involves context and vision, resulting in significant choices of materials, processes, and production methods that add value and appreciation for the customer.
... In the early stages of product development, a company can significantly influence the outcome of the final product and its operational phase. In these stages, concepts and components have a low cost [12]. However, the number of unknowns and uncertainties is high [13]. ...
The industry acknowledges the value of using data and digitalization approaches to improve their systems. However, companies struggle to use data effectively in product development. This paper presents a conceptual framework for Data Sensemaking in Product Development, exemplified through a case study of an Automated Parking System. The work is grounded in systems engineering, human centered-design, and data science theory. The resulting framework applies to practitioners and researchers in the early phase of product development. The framework combines conceptual models and data analytics, facilitating the range from human judgment and decision-making to verifications. The case study and feedback from several industrial actors suggest that the framework is valuable, usable, and feasible for more effective use of data in product development.
... Wagner (2012) drew on the idea of a relationship between the fuzzy front end of the productinnovation process and the project performance of NPD. The fuzzyfront-end phase of the NPD process includes the portion of time between the initiation of idea generation and the initiation of product development (Koen et al., 2001;Reid and Brentani, 2004;Hauser et al., 2006). They showed that by integrating suppliers in the fuzzy front end of the NPD process, buyers are able to learn from suppliers, and consequently suppliers could have a constructive role in enhancing the performance of product innovation projects. ...
The critical role of product innovation in sustaining competitive advantage in the marketplace has long been acknowledged by both management scholars and practitioners. Although there are many studies on the success factors of product innovation or new product development, there is no comprehensive review of the antecedents of product innovation from the perspective of operations and supply chain management. This paper uses a systematic literature review to examine the antecedents of product innovation from the perspective of operations and supply chain management. Building upon the resource-based theory of competitive advantage, we grouped the identified antecedents into five categories: the value system, matching processes with strategy, knowledge management, firm capabilities, and social capital. We found that among the supply chain capabilities identified, the capabilities related to the value system are the ones most frequently addressed in the literature: partner innovativeness, partner involvement, network capability, and collaboration. We present a conceptual framework that can be used for further operationalization and supplementary validation and refinement. We also identify the limitations and potential future directions for research, which mainly include operationalization of the model, development of more understanding of the importance of product innovation capabilities, and incorporating a perspective of strategic management into the research on product innovation.
... At its core, the innovation process consists of two stages: an initial stage of ideation and concept development and the following part of innovation implementation (Cooper, 2019;Glynn, 1996;Khurana & Rosenthal, 1998;Reid & De Brentani, 2004). The front-end of innovation (FEI) entails all the activities leading to the concept development of a new product or service (Eling & Herstatt, 2017;Koen et al., 2001). ...
During the front end of innovation, teams embody abstract meanings into product concepts. The literature on Innovation of Meaning suggests that focusing on a single product‐user interaction supports this process. This Moment of Meaning facilitates the development of shared meaning and knowledge. We explore how the Moment of Meaning acts as a Boundary Object to support the innovation process.
We study six Innovation of Meaning projects in different companies to explore how the Moment of Meaning supports the transition from abstract meaning to a concrete solution. Attending company meetings and workshops, we collected extensive qualitative data on the usage of the Moment of Meaning.
We identify four uses of the Moment of Meaning. Depending on its degree of abstraction and perspective, it represents a Metaphor, a Product Vision, a Core Feature or an Experience Concept. Our study sheds light on the reification of meanings in early stages of innovation. Also, we highlight the potential evolution of Boundary Objects over time. To managers, we provide actionable knowledge on how a simple boundary object could ease the transition from an innovation strategy to a concrete product concept.
... The fuzzy end denotes all time and activity spent on an idea prior to the first official group meeting. Understanding the "fuzzy front end" has been a challenge for different types of organisations (Reid & De Brentani, 2004). Detailed and better understanding of the project requirements and the activities envisaged within a project may lead towards a successful implementation. ...
The convergence of cloud computing, mobile technology and big data technologies are transforming information technology faster than ever before. While there is an established knowledge base of known implementation issues relating to project management, technology, user resistance, organisation/environment and outsourcing, digital technologies introduce new challenges. This chapter summarises traditional challenges in information system implementation and discusses some of the issues arising from the deployment of digital technologies including migration to the cloud, security, data protection and ICT governance, contractual issues in the cloud, big data and mobility.
... Projects were classified as low, medium, high, and super-tech [56,57]. In these projects, fewer features are common [57,58], high and low uncertainty projects have to be managed differently [33], radical and incremental NPD projects' FE are different [59][60][61], and there is no universalistic theory [56], [62][63][64]. Oppositely, radical and incremental projects' FE has no dramatic differences [7]. ...
If the dynamic fuzziness of the Front End (FE) part of New Product Development (NPD) cannot be treated in a timely manner, fuzziness accumulates over other parts of NPD hence NPD can result in costly mistakes. The authors tried to remedy this strategically critical problem by implementing mainstream theoretical/methodological approaches, but they found inherent weaknesses of each. The purpose of this study is to bring an objective and intelligent decision-making model to FE so as to lessen fuzziness of it. Model quantizes ideas based on pillars, and re-clusters them with every new idea addition thanks to combining non-mainstream approaches like K-means, distance-based algorithm with gravitational theory inspiration, an accumulation of idea and an exponential function. Study showed that fuzziness of FE can be lessened by quantizing, and objectively managing. The founded core reasons of fuzziness can guide practitioners and authors for better understanding and coping with fuzziness of FE; moreover, the model can be used by companies. Introducing an objective and intelligent decision-making model working like a human brain to FE is a unique idea that has not been tried ever before.
... In addition, as pointed out by Bocken et al, the lean startup, especially the business model canvas, is neither intended nor well suited for generating a novel business model idea (Bocken & Snihur, 2020). The business model canvas is not well suited for the explorative ideation process that happens at the fuzzy front end of the innovation process (Gassmann & Schweitzer, 2014;Reid & De Brentani, 2004). ...
Using an action-research case study of a prominent telecom incumbent that established a moonshot factory, whose one of three missions was to explore distant and uncertain transformational bets to re-think digitally-enabled massive mental healthcare provision, we uncover and ad-dress the epistemological limitations of the lean startup heuristic in addressing such ‘wicked problems’ and related bets, involving heterogeneous, multiple stakeholders, operating at different time scales. We derived a novel epistemologically grounded and design-led framework for entrepreneurial renewal through corporate moonshot design and acceleration, i.e., wicked acceleration that might be applicable in different industrial contexts. In so doing, we extend the design science-based lean startup heuristic and contribute to the streams on design and entrepreneurship, experimentation vs. transformation, and corporate innovation acceleration to address wicked challenges.
... The perspectives represented in a project are therefore limited from the outset by the number of people involved. Second, innovation projects are characterized by a particularly high degree of fuzziness [28]. Precise activities are defined in the project on the basis of the current state of knowledge and, because this changes, are adapted again and again. ...
Background:
Informal Knowledge Sharing Interactions (IKSI) are particularly valuable for innovation projects if they connect partners who are categorically, socially and formally distant from each other. Then the chances are higher that partners possess non-redundant knowledge and can thus open up new perspectives. By improving their knowledge supply, IKSI enhance the success, job satisfaction and well-being of employees in knowledge-intensive industries. So far, however, it is unclear how such interactions between heterogeneous partners emerge.
Objective:
The paper examines the formation of IKSI and develops the argument that serendipitous IKSI are more likely than planned IKSI to connect heterogeneous partners and open up new perspectives.
Methods:
The paper develops the argument in detail and empirically grounded by drawing together the unconnected literatures on the formation and impact of IKSI. Furthermore, the argument is empirically tested using 132 IKSI from developers collected with event-based diaries.
Results:
In line with the conceptual work, the empirical analysis shows that serendipitous IKSI are more likely than planned ones to open up new perspectives.
Conclusion:
Serendipitous IKSI are of particular significance and require appropriate promotion in order to enhance innovative capability. The increasing virtualization of work is creating opportunities and challenges in this regard.
... Furthermore, the multidisciplinary project team engages in design-driven research for building a vision of a radical new meaning and design language. Moreover, the team member's contacts in the network can take the role of boundary spanners and gate keepers, and which can contribute with specific knowledge and expertise (Reid & de Brentani, 2004). In this way, the multidisciplinary project team is also managing the interface with the organisation for acquiring resources and support, and furthermore, handles the uncertainties that are related to radical innovation (Leifer, et al., 2002). ...
The master's thesis objective is to implement design-driven innovation at a Danish lighting company. The case company designs and manufactures lamps for private label brands. The thesis addresses the company's challenges regarding its product development process alongside its business customers, and aims to introduce design-driven innovation as a new competitive strategy that can be put in practice to solve these tensions.
In this thesis, design-driven innovation is referred to as the innovation of product meanings. It is focusing on the creation of new products which address both tangible and intangible needs, and where it is combined new technologies and design language that propose these new product meanings. Design‐driven innovation offers new opportunities to develop radical innovation and achieve competitive advantage through product differentiation, which results in high growth opportunities for long term success.
Based on the empirical analysis and synthesis of theoretical findings, design‐driven innovation is discussed and a conceptual model is developed for the organisation. The model is used for addressing the barriers the company is facing in implementing design-driven innovation as a growth strategy, both at the level of organisational structure as well as the predevelopment phases required. In this conceptual model, five dimensions are proposed and explored, which provide a structure to review the required conditions to implement and operate within a design-driven approach. The model can further be tailored and adopted by other companies which operate in different contexts and industries. Furthermore, the conceptual model creates a context for future research – it facilitates subsequent studies on the different dimensions and which can be discussed in relation to the other aspects of design-driven innovation.
Key concepts: innovation management, knowledge management, network analysis, product meanings, new product development, design management
... Specifically, the front-end of the innovation process represents the generation of ideas and concepts for innovation, which is called the upstream sub-process of innovation [49]. It ranges from the generation of ideas to the development process, that is, the implementation decision of the development process and the input of innovation resources [50,51]. ...
Open innovation has drawn significant attention over the years, and there is a growing body of literature that highlights the importance of considering this phenomenon at the national level. Less appreciated, however, is the radiative capability of national innovation systems (NIS) and the linking inbound and outbound processes. We provide a measurement of the dual innovation capability (DIC) of NISs based on process-oriented concepts by using a multi-indicator approach, which provides a more comprehensive picture of sectoral NISs compared to currently used metrics. To assess the DIC of NISs, a composite weighting method was used to obtain the score of our selection of 65 countries. The results show the spatio-temporal evolution of DIC from 2010 to 2018 and explore the interactions among sub-elements within the framework. The 65 countries were grouped into 4 categories based on the sub-dimension scores, and we provided 3 possible paths that can be chosen to improve DIC. The index provides a powerful tool to enrich research on innovation systems, guide national positioning, and optimize policies.
... In the case of market culture, there are several facts in favor of and against it. The external orientation of a market culture encourages innovation as offering new ideas and markets the company familiar with the needs of customers (Reid & Brentani, 2015). In contrast, other studies find that excessive attention to the current needs of customers can be a barrier against some types of innovation, however, in general, the literature on the subject believes that the external orientation encourages innovation. ...
Isu penghinaan agama Islam di Malaysia terutamanya di media sosial masih tidak dapat ditangani dengan sebaiknya melalui sistem perundangan sedia ada. Sehingga ke hari ini masih berlaku perbuatan mencerca, menghina dan merendahkan martabat agama Islam di negara ini. Melihat kepada situasi semasa maka satu langkah pencegahan perlu diambil bagi menangani isu ini. Untuk tujuan tersebut kajian ini telah menjalankan kajian untuk mengenal pasti apakah faktor-faktor yang menyebakkan berlakunya penghinaan agama Islam di Malaysia. Kajian ini telah menggunakan pendekatan kualitatif, di mana data diperolehi melalui analsis teks (textual analysis) dan temu bual mendalam (in-depth interview). Para informan dipilih dari kalangan individu yang mempunyai kepakaran dan pengetahuan untuk menjelaskan isu dan permasalahan kajian ini. Data temu bual telah ditranskip dan dianalisis secara deskriptif. . Dapatan kajian mendapati bahawa terdapat pelbagai aspek dan konteks berlakunya penghinaan agama yang secara asasnya saling berkait rapat. Oleh itu, pendekatan pencegahan perlu dimulakan daripada aspek pendidikan dan da’wah.
... phase two entails concept development, product planning, and market analysis (Herstatt & Verworn, 2004;Kim & Wilemon, 2002;Reid & Brentani, 2004). Previously discussed in Insight 3, this sequence of divergent and convergent thinking is also used in design thinking (Dam & Siang, 2020a). ...
New Zealand’s red meat industry faces challenges of the evolving alternative proteins sector, emerging consumer trends, and environmental concerns, all of which drive innovation. A hybridised lens of design thinking, systems thinking, and regenerative thinking was used to investigate the innovation processes and systems within New Zealand’s red meat industry. The case studies selected centred on the emerging relationship between Silver Fern Farms (a meat processor) and the Food Design Institute at Otago Polytechnic (a culinary educational institute that undertakes new product development as part of their curriculum) in the innovation space. Incremental innovations were found to be the primary output of the Silver Fern Farms’ stage-gate innovation process. Meanwhile, the Food Design Institute’s design thinking innovation process leads to more creative and radical innovations. Maintaining a competitive advantage requires the proactive response to the drivers listed above and the consideration for designing radical innovations. Several opportunities were identified for Silver Fern Farms and New Zealand’s red meat industry in general to maximise the co-creation of value for themselves, consumers, and socio-ecological systems. The majority of opportunities identified employ collaboration with other industries and organisations, especially those that utilise different frameworks and have expertise in niche markets. Opportunities include pathways for creating radical innovations and strategies for responding to the challenges.
... What this emphasis on a structural perspective ignores is the "performance" of these routines by agents: thus, "structure" (used in the social ontological sense) is given primacy at the expense of a focus on "agency" (Giddens 1984). In fact, individuals rather than routines spot opportunities and channel information (da Costa and Brettel 2011; Reid and de Brentani 2004). It is only by examining the "performative" mode of routines that the role of agency in the potential for routines to be flexible sources of incremental innovation, becomes apparent. ...
The aim of this paper is to demonstrate the effectiveness of applying flock theory to the study of corporate innovation and entrepreneurship. Flock theory is a method for explaining and analysing collective phenomena in animal groups, particularly self-organising emergent systems (Rosen 2010; Giardina 2008; Reynolds 1987). Flock theory is presented as a model for understanding the underlying processes involved in corporate innovation and entrepreneurship that goes beyond network and systems theories, to investigate more fundamental processes. Used in this way flock theory sits with the ecological approach of the Chicago School (Abbott 1997; Park 1972). Traditional approaches to the study of corporate innovation often focus on one or more levels of analysis: individual, group and organizational. Rather than focusing on organizational constructs, flock theory allows the researcher to map the fundamental human interactions which underpin innovation and entrepreneurship. Flock theory, we argue, contributes to current theory on corporate entrepreneurship by providing a fresh perspective which can generate new insights. A conceptual model, to investigate and measure corporate entrepreneurship and innovation, based on ecological processes and flock theory, was developed and tested on 291 corporate executives. The aim was to test the efficacy of using flock theory to map processes involved in corporate entrepreneurship and innovation. A review of previous studies revealed a number of key antecedents needed to foster corporate innovation. These included elements of organizational structure and culture. In particular, the ability of potential entrepreneurial executives to communicate throughout the organization across functions and departments was highlighted in the literature. Also important is a reward structure supportive of innovation and creativity. Alongside this, another necessary antecedent is the existence of teams or groupings of employees with shared goals, which are isomorphic with organizational goals. The aim of this study was to test the efficacy of flock theory in mapping corporate innovation and entrepreneurship. Support was found for using constructs from flock theory in a measurement scale designed to identify different types of flock organizations. 2 In avian ecology there are three main rules of flocking: separation (steer to avoid crowding adjacent birds; alignment (steer towards the average heading local birds); and cohesion (steer to move toward the average position of local birds) (Crichton 2003; Reynolds 1987). This study has adapted these simple rules and applied them to organizational structure and culture, to uncover the ecological processes that underlie organizational innovation and entrepreneurship. Our study measured structural distance (open communications); decentralised structures; and collaboration. A three-stage pyramid model of organizational flock types was designed to demonstrate movement between low flock organizations and high flock organizations. The pyramid also provides a way of clarifying the distinction between creativity, innovation and corporate entrepreneurship. Further research is needed to validate the use of flock theory in measuring corporate entrepreneurship, in different sectors. The findings about firms in the energy sector also warrant further research. Furthermore, given the findings about small firms with fewer than 50 employees it would also be useful to test the use of flock theory to investigate small firm networks, and so apply flocking to inter-firm ecological processes as well as intra-firm ecological processes as in this paper. 3
... An example of a study in this line of enquiry is Artto et al. (2008a, b). Similarly, the notions of structural interface, intra-face and boundary spanners (Albers et al., 2016;Aldrich and Herker, 1977) can inform research on the interplay between the parent organisation and the internal project (Reid and De Brentani, 2004). ...
Purpose
The purpose of this conceptual paper is to describe and explain how organisations use internal projects to implement organisation-level strategy objectives.
Design/methodology/approach
Theory development with an emphasis on explaining key constructs and their mutual relationships. The theoretical contribution is represented in a diagram along with a detailed verbal account.
Findings
The paper develops a dynamic, cross-level framework to illustrate the organisational processes and outcomes that determine project-based strategy implementation within a single organisation. The interplay between the base organisation and the project, and benefits realisation were singled out as key future research areas. The proposed framework engages with central discourses in the fields of project management, strategic management, innovation studies, knowledge management and organisation studies.
Research limitations/implications
Only the contours of an organisation-level theory of strategically motivated internal projects are outlined. Future research must elaborate on the complexities, the non-linear relationships and the boundary conditions that follow from the proposed framework.
Practical implications
Managers are alerted to the strategic role of internal projects, how these projects help connect strategy and performance and what the accompanying organisational processes and outcomes look like.
Originality/value
The paper constitutes an early conceptual treatment of strategy-driven internal projects as a distinct project category, thus addressing a major knowledge gap in project studies. Organisational project-management theory is extended with suggestions for future research.
... Decisions in the initiation stage strongly impact on the subsequent stages in the digital innovation process, yet are made under uncertainties (Reid and Brentani 2004). ...
Digital technologies fundamentally drive socio-technical change for individuals and society as well as for organisations and the economy. With their unique characteristics, digital technologies change the nature of innovation and facilitate digital innovation. Digital innovation has transformative effects on products, services, processes, and business models, and enables organisations to reach new market opportunities, increase their efficiency, and contribute to a better society. Thus, digital innovation opens opportunities for organisations but also poses disruptive threats. Academics and practitioners agree that organisations need to capitalise on opportunities, anticipate disruptive threats, and develop digital innovation to maintain a competitive advantage and thrive in the digital economy. However, many organisations struggle in the different stages of the digital innovation process. Although research into digital innovation has matured considerably, it still lacks guidance on understanding and managing digital innovation processes and outcomes. Against this background, this cumulative doctoral thesis comprises six research articles that examine the processes and outcomes of digital innovation. Taking different conceptual lenses as well as applying qualitative and quantitative research designs, this thesis provides frameworks and methods that guide organisations in initiating and developing digital innovation and that structure digital social innovation as a specific innovation outcome type. The insights are relevant for academics and practitioners as they provide both a scientific perspective and practical guidance. Concerning the initiation of digital innovation, research article #1 presents an opportunity-led ideation method that systematically guides organisations to capitalise on opportunities in the initiation stage of the digital innovation process. Incorporating different opportunity sources, the method reduces the uncertainty that organisations experience during the unstructured initiation stage. Complementing the opportunity-led perspective, research article #2 conceptualises the evolution of disruptive threats and provides a method that helps organisations to identify and assess disruptive threats. This thesis goes on to provide descriptive and prescriptive insights into developing innovation in challenging organisational contexts. Some organisations face barriers that impede innovation, for instance, limited qualified personnel, limited financial resources, or a lack of capabilities. These barriers increase organisations’ need to complement their set of resources and capabilities. For small and medium-sized enterprises (SMEs), for instance, cooperation is a way to complement resources as well as share the costs and risks of innovating with external partners. Research article #3 presents a taxonomy that structures characteristics of cooperation setups to foster SMEs’ innovativeness and provides guidance on why, with whom, and how to cooperate. Since the taxonomy revealed a lack of actionable practices that support organisations in developing digital innovation, additional frameworks are presented. Research article #4 investigates the development of citizen-centric digital public services and presents success factors and a blueprint to guide this approach in the public sector. Research has revealed that developing digital innovation requires an environment that is conducive for digital innovation. Thus, organisations must assess whether their internal organisational environment is ready for digital innovation adoption and whether and how they should adapt it. Focusing on artificial intelligence (AI) as a digital technology, research article #5 conceptualises AI readiness factors for AI adoption. The findings emphasise that AI readiness is an integral part of organisations’ decisions across the entire AI adoption process to guide AI-related investments, prioritisation, and resource allocation. The thesis concludes by investigating an emerging digital innovation outcome type, digital social innovation, which enables organisations to reach new markets, new customers, and new sources of profit by combining social and economic value creation. Connecting the research into digital innovation with the research into social innovation, research article #6 proposes a conceptualisation of digital social innovation, summarising relevant characteristics and combinations that commonly co-occur in industry. Overall, this thesis contributes to the research into digital innovation processes and outcomes, applying qualitative and quantitative research methods, i.e. action design research, design science research, taxonomies, explorative case study research, and a qualitative interview study. Further, this thesis builds on and extends relevant research streams into digital innovation initiation and development processes, as well as digital innovation outcomes.
... It is thought that the externally driven market culture will support innovation by providing new ideas from the market and becoming familiar with the needs of the customers (Hartnell, Ou and Kinicki, 2011;Lucas and Ferrell, 2000;Reid and Brentani, 2004;Salavou, Baltas and Lioukas, 2004). However, the pro-control and stability policies of companies with a market culture can be seen as an obstacle to innovation. ...
The purpose of this research is to determine the effect of organizational culture types on innovation and to reveal the mediating role of psychological safety in this relationship. This research was carried out with 445 people working in four-star and five-star hotel enterprises, which allowed the research, operating in Turkey. Within the scope of this research, organizational culture was examined over four types of organizations: clan, adhocracy, hierarchy and market. As a result of the analysis, it can be seen that clan, adhocracy and market culture positively affect organizational innovation. However, when psychological safety is included in the model as a mediating variable in the relationship between clan and adhocracy, the analysis shows that psychological well-being is partial in the relationship between clan culture and innovation, and it is fully mediated in the relationship between adhocracy and innovation. JEL Classifications: M140, M540, O310
... Firms need to respond speedily to opportunities and leverage internal and external resources (Reid, Roberts and Moore, 2015). Funding is often not yet allocated (Reid and de Brentani, 2004), and so managers need to capitalize on the resources that exist. Effectuation logic resonates well with these conditions. ...
This research examines whether and how customer co-creation activities moderate the relationship between effectuation logic and performance in the early stage of the innovation process. Effectuation logic is a promising decision-making logic for innovation success, but the tools that help translate this approach into innovation performance are under-researched. Three key dimensions of effectuation logic are examined: means-driven, partnerships and control. The results of a large-scale survey-based study indicate a varied and nuanced role of co-creation as a means to enhance the contribution of effectuation logic to early innovation success. This research helps increase our understanding of the often-abstract principles of effectuation logic by examining its manifestation within the context of innovation and by showing how specific firm practices, here customer co-creation activities, can accentuate the contribution of effectuation logic to early innovation performance.
... In the managerial context, the vision plays a central role in several domains: from the generation of strategic decisions (Carlisle & Baden-Fuller, 2004;Liedtka, 1989) to organizational phenomena, including identity (Ashforth & Mael, 1989), culture (Schein, 1985), personorganization fit (Cable & Edwards, 2004), and socialization (Dose, 1997). In this study, we focus on the vision as the trigger of the innovation process: the antecedent of concrete ideas, providing boundaries for thinking, and allowing the team to grasp the underlying core values (Waldman & Bass, 1991;Reid & De Brentani, 2004). ...
This article investigates how service companies might engage frontline employees in transforming a market vision into a new service routine. This is a major challenge given the separation between those making decisions at the managerial level and those interacting with customers, ultimately enabling the service experience. Through interviews and observations, we capture the mechanisms and practices that emerged in an in-depth case study of a radical service innovation anchored in a new market vision. Our findings show that frontline employee engagement in the innovation process has to be triggered by managers, thereafter unfolding naturally in cycles of proactive behaviour and experimentation. The emerging routinisation process allows transitioning from the definition of a new vision to new routines through guiding and building on employees’ experience and proactive behaviour, institutionalising the new practices that ultimately lead to radical service innovation. This study contributes to the service innovation literature by merging two very different sources of knowledge, namely vague, intangible, and radically new visions, and practical and tacit frontline employee experiences usually associated with incremental innovation.
... z. B. Reid und De Brentani 2004;Eling und Herstatt 2017), der nicht wirklich mit wissenschaftlichen Methoden verstanden werden kann, sondern auf ungerichtete Inspiration und zufällige Entdeckung angewiesen sei. Die Kreativitätsforschung hingegen widerspricht hier nicht nur, sondern verweist auf die Rolle von kreativen Prozessen im gesamten Innovationsprozess: von der ersten vagen Idee über die konkrete Erfindung bzw. ...
In diesem Beitrag diskutieren wir, nach kurzer Klärung des Verhältnisses von Kreativität und Innovation, welche Rolle das Thema bislang in der wissenschaftlichen Entrepreneurship-Literatur spielt, und wie vor allem eine explizite Kreativitätsforschung in diesem Bereich in Zukunft ausgebaut werden könnte. Dazu analysieren wir zunächst die bislang noch eher überschaubare explizite Kreativitätsforschung im Entrepreneurship-Feld, die das Individuum, das Team oder das soziale Netzwerk von Gründerinnen fokussiert. Sodann diskutieren wir, inwieweit das Thema der Kreativität in dieser Forschung ein zumindest implizites Thema darstellt. Darauf aufbauend identifizieren wir Potenziale für die Kreativitätsforschung im Entrepreneurship-Feld.
... It is described fuzzy due to the uncertainties involved: both, the idea as well its real life applications are not formed yet, and they both evolve during the preliminary phases of the product development. Reid and Brentani (2004) denotes that the FE includes all the time spent on the idea generation, enrichment and strengthening it. FE's focus is on product/ service development and helps to result in competitive advantage according (Kim & Willemon, 2002). ...
Banking environment, traditional with an established physically collocated work culture, has been disrupted by the COVID-19 pandemic. It triggered the evolution of innovation management processes to handle the issues related to spatial spread, fuzziness and collective information development during idea evaluation. In this paper, Vakıfbank Innovation Management System (V-IMS) was exemplified utilizing ICT for virtual collaboration, MCDM (Multi Criteria Decision Making) methods within stage-gates, transforming knowledge and exploiting collaboration at the fuzzy front end. There, physically collocated work culture was transformed into delocated collaboration with an agile approach utilizing lean information flow, which emphasizes the people exchanging tacit into explicit knowledge on the move rather than long documentations. Moreover, the culture of innovation has been fostered, innovation management metrics were improved significantly and both the number of sessions and ideas presented in the sessions were found to be increased. It was observed that the satisfaction level and innovation commitment of the employees were increased with the new system as well.
... The front end of innovation, where the market pull and technology push strategies are applied, is also known as the 'fuzzy front end'. It refers to the early stages of ideas development; the time spent on strengthening an idea before it is officially discussed (Reid and De Brentani, 2004). Brem and Voigt (2009) describe the divisions of the innovation process proposed by Thom (1980); 'idea generation', 'idea acceptance' and 'idea realization'. ...
Although extensive resources are spent each year on university scientific research, the migration of this knowledge to the market remains low; only a few university research projects manage to generate the expected impact on nations' economies. This thesis proposes a framework that combines best practices from technology innovation management and product development to steer university scientific research projects towards commercialisation. A case study of a collaboration between designers and scientists showed several contributions of utilising such a framework, mainly in the early recognition of commercial opportunities for new technologies and creating market-oriented technology demonstrators.
... It also explains that the low level of awareness is a determining factor in a customer's aversion and the reluctance of using financial services over the Internet. According to Reid and De Brentani (2004), innovation is adopted or rejected when the consumer becomes aware of the product. Sidek (2015) found that e-payment adoption by businesses was strongly influenced by the degree of awareness. ...
This research focuses on the future of cryptocurrency in GCC countries. Using an organized survey, this paper tries to discover the GCC population awareness of cryptocurrency and their degree of trustiness in this currency. The Likert scale questionnaire had a section related to the willingness of the GCC people to use cryptocurrency in their daily life and investment. Another section in the survey has been oriented to evaluate the importance of the fluctuation of cryptocurrency from the respondents' point of view. The analysis of the 212 responses has demonstrated that the awareness of cryptocurrency in the GCC region is at an average level, and the people have some doubts about the stability of cryptocurrency. They also have a low level of trustiness in this innovation. Regarding the willingness to use cryptocurrency, the results revealed an inconclusive decision towards the willingness to use cryptocurrency as the highest percentage of answers were concentrated in the midpoint answer (3) and on the close sides of the average answer (2 and 4).
... It also explains that the low level of awareness is a determining factor in a customer's aversion and the reluctance of using financial services over the Internet. According to Reid and De Brentani (2004), innovation is adopted or rejected when the consumer becomes aware of the product. Sidek (2015) found that e-payment adoption by businesses was strongly influenced by the degree of awareness. ...
Journal of Legal, Ethical and Regulatory Issues Volume 24, Special Issue 1, 2021Business Ethics and Regulatory Compliance 1 1544-0044-24-S1-189DEGREE OF TRUSTINESS AND AWARENESS OFCRYPTOCURRENCY: FACTORS AFFECTING THEFUTURE CURRENCY IN THE GULF COOPERATIONCOUNCIL (GCC)Abdelrhman Meero, Kingdom UniversitySaad Darwish, Kingdom UniversityAbdul Aziz Abdul Rahman, Kingdom UniversityABSTRACTThis research focuses on the future of cryptocurrency in GCC countries. Using an organizedsurvey, this paper tries to discover the GCC population awareness of cryptocurrency and theirdegree of trustiness in this currency. The Likert scale questionnaire had a section related to thewillingness of the GCC people to use cryptocurrency in their daily life and investment. Anothersection in the survey has been oriented to evaluate the importance of the fluctuation ofcryptocurrency from the respondents' point of view. The analysis of the 212 responses hasdemonstrated that the awareness of cryptocurrency in the GCC region is at an average level, andthe people have some doubts about the stability of cryptocurrency. They also have a low level oftrustiness in this innovation. Regarding the willingness to use cryptocurrency, the results revealedan inconclusive decision towards the willingness to use cryptocurrency as the highest percentage ofanswers were concentrated in the midpoint answer (3) and on the close sides of the average answer(2 and 4)
(3) (PDF) DEGREE OF TRUSTINESS AND AWARENESS OF CRYPTOCURRENCY: FACTORS AFFECTING THE FUTURE CURRENCY IN THE GULF COOPERATION COUNCIL (GCC). Available from: https://www.researchgate.net/publication/353323734_DEGREE_OF_TRUSTINESS_AND_AWARENESS_OF_CRYPTOCURRENCY_FACTORS_AFFECTING_THE_FUTURE_CURRENCY_IN_THE_GULF_COOPERATION_COUNCIL_GCC [accessed May 21 2022].
Der folgende Beitrag erklärt die Anwendung organisationaler Ambidextrie aus den drei Perspektiven organisatorische Struktur, Prozess und Führung. Kern der Ambidextrie ist die Herstellung
von Balance zwischen Effizienz und Innovation, trotz gegensätzlicher organisatorischer Voraussetzungen, die dafür benötigt werden. Im ersten Teil wird die konzeptionelle wissenschaftliche Grundlage für organisationale Ambidextrie
durch Strukturen dargelegt. Darauf aufbauend wird die Umsetzung von Ambidextrie durch Anpassung der Prozesse einer Organisation betrachtet. Im letzten Teil wird praxisnah beschrieben, welche wichtige Rolle Führung bei der Umsetzung von Ambidextrie einnimmt.
Turbulent market environment imposes new conditions of market behaviour. Hypercompetition directs the focus of enterprises towards the analysis of each individual consumer. In the mentioned environment, customer relationship management is the key feature of competitiveness. Therefore, enterprises focus not only on the research of a target group of customers, but also on the detailed analysis of competition and market conditions with the aim of determining appropriate prices of their own products or services. The mentioned factors influence price setting. Moreover, each numerical mark in the price has symbolic and visual importance, which should be thoroughly considered while setting the price. In addition to the following statement, enterprises use additional marketing tools for price setting. They also use the aspects of psychological price setting in order to make the price of a product or service more attractive to the consumer. Therefore, it is necessary to analyse the way in which the psychological price influences consumer behaviour and product or service purchase decisionmaking. The key hypothesis of this paper is: ‘Psychological price has a significant influence on consumer behaviour and on purchase decision-making. Research of the impact of the psychological price on consumer’s behaviour in practice was carried out with the aim of analysing the above mentioned issue on the market. The research was conducted via questionnaire on the sample of 100 participants. Through the offered questions, the participants showed how they perceive both the price and the importance of the price in product or service purchase decision- making process. The results of the carried out analysis show the importance of the impact of price on consumer’s purchase decision-making, as well as strong impact of the psychological price on guiding consumer decisions.
Biomarkers have been proposed as powerful classification features for use in the training of neural network-based and other machine learning and artificial intelligence-based prognostic models in the field of personalized medicine and for targeted interventions in patient management. Biomarkers are measurable indications of a health state, that can be derived from blood sample, tissue or other bodily fluid. An example of a biomarker is the electrocardiogram that records electrical signals from the heart, and thus evaluates heart condition. Biomarkers can lead to actionable insights and for that are important tools for patient management and treatment administration. In this paper, we outline a medical application with a machine learning backbone built with biomarkers retrieved from blood exams that define health states (obesity, metabolic syndrome and systolic pressure), via rational unified process and cross industry standard process for data mining. By adopting novel ways to deploy these industry standards we can identify health sector related requirements and challenges and thus design and propose smart solutions that add value to all stakeholders. New technologies have the potential to create new pathways in medicine by bridging the gap between the laboratory and the patient, however strong medical validation of processes is required to ensure usability and patient’s safety. We recognise regulation and validation as key challenges and important factors for the improvement of the development of health care applications. Towards this we shall define when a software application is considered as a medical device. Since the regulator is identified as an important stakeholder, strategies are suggested for the proper handling of this stakeholder through out the production cycle.
Running a contest can help managers elicit creative ideas from employees by providing employees with incentives to develop and share ideas that will help the firm. Little is known, however, about how contest design affects the outcomes of subjectively evaluated creativity‐based contests. We conduct an experiment to investigate the impact of two contest design choices, the job role of the contest's evaluator and the number of prizes that participants compete for, on employee participation behavior. We also examine how these contest design choices impact the creativity of the submitted ideas. We find that using a peer of the employees as an evaluator increases the number of ideas shared, but it does not impact the number of unique participants who enter the contest. In addition, we find that using peer evaluators leads to an increase in the creativity of the ideas. We find that awarding more prizes to participants does not increase overall participation, but it does increase the number of ideas shared by employees from under‐represented demographics. Awarding more prizes, however, reduces the creativity of the ideas. Together these results show that contest design choices have an important impact on employee creative idea‐sharing and that managers should carefully consider how to tailor contests to fit their firms' needs. This article is protected by copyright. All rights reserved
Managers of manufacturing firms have important tasks in choosing novel technology solutions for the firm's production process. The emergence of ideas for radical manufacturing technology innovations and managers' proactive search for radical ideas and concepts for developing production processes have not been well understood. This study concentrates on managers' search practices at the front end of radical manufacturing technology innovations. We analyzed managers' practices in the early phase of nine radical manufacturing technology innovation projects across three firms. Radical manufacturing technology innovations require acknowledging both process innovations for the manufacturer and product innovations for the equipment supplier. The findings of this study revealed alternative patterns regarding the use of directed and autonomous search processes, internal and external information sources and open and closed supplier searches. This study offers new knowledge on the nature of the information processing task that managers face and on the search practices that managers use at the front end of radical manufacturing technology innovations. The study contributes by differentiating the managers' search practices based on the specific innovation scope in terms of the technology, equipment and production concept. Propositions are offered concerning the drivers and use of managers' search practices at the front end of radical manufacturing technology innovations.
Through its associated practices and ways of thinking, strategic design is supposed to contribute to developing organizations' innovation capabilities. This study provides an overview of the concrete manifestations and impacts of the “design turn” experienced by five French companies with varied profiles. In 2017, those joined an action research program aimed at integrating strategic design practices. The aim here is to analyze the actual evolution of the design and innovation processes, and the relationships between actors.
The implications of this empirical study firstly relate to the posture of the drivers of change, and to the key skills and composition of the innovation teams. Secondly, insights emerge regarding the connection of initiatives within the company. Those are required to follow “along the way strategizing” model, allowing the appropriation of knowledge and the deployment of change. Though, such impact remains nuanced in the cases studied. The analysis concludes on the role of the learning community and its animation, providing protection and support to disseminate a design culture, in accordance with each organizational context.
Purpose
Project management scholars and practitioners have long debated how best to harness social interactions to optimise knowledge exchange and enhance stakeholder alignment and value. This study aims to assist project managers to understand and manage fuzziness and create enduring front-end value. It views the project life cycle as a potential source of co-created value. The paper uses a social capital lens to provide a deeper understanding of the project front-end; it uses a three-dimensional view (structural, relational, cognitive) to explore how stakeholder social capital can overcome front-end fuzziness to enhance decision-making and, thus, value creation.
Design/methodology/approach
Semi-structured interviews were conducted with senior managers from teleconnections companies, which, when combined with secondary data, established the impact, nature and dimensions of social capital within a project management setting.
Findings
The research found that social capital can help to reduce complexity, uncertainty and equivocality in the early stages of projects, making them more clearly defined and thus helping to create greater stakeholder value in the later stages of the project. A surprising finding was that some project team members engaged in intentional equivocality to try to promote their own benefits rather than those of the organisation.
Originality/value
This paper reconceptualises the impact of social capital on stakeholder value creation in the front-end of projects. The paper contributes to a more holistic view of the front-end of project management, focusing social capital to reduce the sources of front-end fuzziness.
A capacidade de inovar e se adaptar ao mercado em constante mudança é um fator de competitividade crescente para as indústrias de bens de consumo, contudo, os riscos e as incertezas inerentes à inovação são contrários à necessidade que as indústrias têm por segurança, previsibilidade e controle. Este estudo propõe uma nova abordagem da inovação tecnológica por meio da adoção de um conjunto de instrumentos que representem uma gestão mínima dos processos de inovação com a finalidade de minimizar incertezas, fracassos e seus impactos financeiros sem exigir das empresas abordagens excessivamente novas. Neste estudo, foi realizada uma pesquisa bibliográfica acerca desse problema, depois foi aplicada uma entrevista com gestores das principais empresas nacionais de linha branca e estudo de seus processos e, na sequência, foram apresentados os instrumentos da metodologia proposta. O estudo sugere que uma abordagem acessível poderá viabilizar a inovação tecnológica e promover o fortalecimento da indústria nacional.
This chapter focuses in on a special case of vision development, which is associated with the creation of a “Technology Vision” (“TV”). This type of vision development does not pertain to the experience of all entrepreneurs, nor does it occur within all companies. It is, however, important to have a chapter devoted to it, as it plays an important role for those entrepreneurs involved with the creation and development of applied technologies and, as such, requires some discussion and differentiation from Market Vision (“MV”).
In this chapter, we describe what vision context means and why it plays a major role in the selection of early advisors
There is a growing interest in and focus on understanding what underlies the initial decision of any given individual to undertake a business initiative. Specifically, there is an increasing degree of importance being accorded to understanding the triggers which motivate any given individual to become an entrepreneur. Motivation types and levels are key indicators of the likelihood of a given individual’s active participation in processes involved with entrepreneurship (Shane et al., 2003). As such, entrepreneurial motivation serves as a good basis for understanding why and how entrepreneurs get started on a given entrepreneurial path.
In the pursuit of all things in life, having a clear, tangible, and magnetic long-term future goal in front of you—i.e., a vision—helps to power you more successfully along the path to that goal. The academic research we have performed, in addition to our 50+ years of combined entrepreneurial experience, indicates that, when bringing new innovations and ideas to market, there are significant competencies that are critical to focus on building as early on in the process as possible. For entrepreneurs, developing a strong vision starts with building a visioning competence and supporting processes and resources. These resources, in turn, are significantly linked to early success with lead customers, access to capital, and competitive advantage. For the startup entrepreneur, vision is everything!
In this chapter, we provide a tool for measuring “willingness-to-adopt: (“W-T-A”) and investigate its use across various levels of new product innovativeness and types of adopters. This tool—a questionnaire—was developed by Reid et al. (2018, 2019) in research on technology-based devices for seniors (mobile devices and stove sensors). As a result, in this chapter, we seek to:
Prior research has extensively discussed the incidence of exploration and exploitation capabilities on innovation. Theoretically, cultural factors are considered variables that benefit this relationship. However, this rationale has not been evaluated in previous research. The present study examines the moderating role of cultural factors in the relationship between exploration and radical innovation, as well as in the relationship between exploitation and incremental innovation. This was performed by means of Structural Equation Modelling (SEM), using Partial Least Squares (PLS), with data from 251 large Colombian firms that intensively use information and knowledge. The results hereof indicate that exploration and exploitation influence radical and incremental innovation, respectively. This is a novel finding on firms from developing countries, as it is a relationship that has been mainly studied in organisations from developed regions. It was also found that the cultural factor alignment strengthens the relationship between exploitation and incremental innovation. However, the cultural factor adaptability does not benefit the relationship between exploration and radical innovation. These results bridge the existing literature gap on how exploration/exploitation capabilities, cultural factors, and innovation behave as a whole. In addition, these findings are helpful in managerial terms, because they offer a better understanding of the ways in which firms can achieve innovation results.
As new products exhibit increasing connectivity, cybersecurity will become ever more important to the safety and functionality of these new offerings. Product designers, however, struggle to integrate cybersecurity with other considerations during early-stage design. This paper develops an approach to help designers engage with cybersecurity, articulated as a card-based intervention to support three well-defined modes of engineering design creativity: analysis, generation, and evaluation. Developing cybersecurity support questions for each of those modes across the Research, Analyze, Ideate, Build, and Communicate phases of the human-centered design process, we assemble 15 cards total. A human subjects study using the cards was conducted with 33 students in a design course, validating that novice designers found value in the cards when engaging with a diverse range of design projects. This work adds design creativity to the broad dialogue around cybersecurity education, and forms a foundation for further creativity- and design-process-based interventions in cybersecurity.
Purpose
This paper aims to explore professional product designers’ views on creative design and to compare their viewpoints with the related academic literature on product marketing.
Design/methodology/approach
To find the designers’ views on creative design, face-to-face in-depth interviews based on repertory grid analysis and semi-structured questions were conducted with 32 professional and award-wining product designers who mostly design for international producers.
Findings
Although marketing scholars often approach design as a noun – something that can be viewed and analysed as a bundle of attributes, dimensions or characteristics – professional designers view design differently. To them, design is a verb, a problem-solving process through which they meet the challenges consumers have with products. Comparing professional product designers’ views on design creativity with the main topics in the product marketing literature places scholars’ dispositionalism against designers’ situationalism; it also enables marketing scholars to improve their viewpoints on product design and to bring practical problem-solving and design thinking into their research. This also increases mutual understanding between marketers and designers.
Research limitations/implications
This research enhances the knowledge of marketing scholars, marketers and designers about each other’s perspectives on product design creativity, which will improve their mutual understanding and the business-to-business relationship between marketers and designers.
Originality/value
To the best of the authors’ knowledge, this research is the first study that has attempted to discover product designers’ opinions on the main topics in the related academic literature.
Purpose
Integrating supplier innovation is considered an effective strategy to reduce uncertainty at the fuzzy front end (FFE). However, the large number of supplier innovation resources and the task environment forces buying firms to precisely identify more valuable or interesting innovation resources for integration. The impact of the interaction between supplier innovation and task environment on FFE performance needs to be further explored. Therefore, this paper aims to propose a contingency framework to examine the relationship between supplier innovation (technology-push and market-pull) and buying firm’s FFE performance in different task environments, with the aim of clarifying which supplier innovation resources should be integrated to create high FFE performance in the face of an uncertain task environment.
Design/methodology/approach
Survey data from new product development team leaders in Chinese high-tech firms were collected and analyzed. Furthermore, using multiple regression analysis, the relationship among supplier innovation, task environment and FFE performance was examined.
Findings
The results show that although both technology-push and market-pull supplier innovation can improve FFE performance, there are significant differences between the influences of these two types of supplier innovation in the face of different task environments.
Practical implications
Practical guidelines are provided for buyer managers on how to effectively identify the “best” supplier innovation resources to improving the effectiveness and efficiency of supplier involvement in the FFE.
Originality/value
This paper deepens the knowledge of identifying supplier innovation resources in the FFE and enriches the research on supplier-enable FFE innovation.
Society is in constant flux and increasing in complexity, challenging organizations to approach innovation in a more proactive manner. This entails anticipating, rather than reacting to what could be next by preparing for a variety of possible futures. Specifically, it means exploring the future value of an idea rather than analysing it as is. In the context of the fuzzy front end of a new product development, scholars highlight the efficacy of using anticipatory systems and the underlying futures-oriented reasoning to make more accurate decision making (i.e., futures thinking, abductive reasoning and contingency mapping). Yet how to systematically stimulate such reasoning in practice is still understudied. The paper presents findings from semistructured interviews with expert innovation managers, which show that futures thinking approaches do feature in strategic decision making on innovation ideas. Yet they are limited in their use and in most cases outweighed by more classical, deductive reasoning patterns. The paper proposes the Innovation System Roadmap (ISR) for innovation managers making strategic decisions on early-stage ideas. It leads users to employ the cognitive processes underlying anticipatory systems. The Innovation System Roadmap stimulates innovation managers to hypothesize the future value of a given innovation idea and how it may (not) be turned into a commercial success following further development. We contend that the Innovation System Roadmap supports innovation managers for sound decision making in early-stage innovation under extreme uncertainties.
Despite the growing importance of using social media to leverage external knowledge for new product development (NPD) in innovation, few studies have examined firm capabilities that underpin this knowledge acquisition route. This paper provides an empirical examination of firm capabilities that leverage external knowledge, utilising social media for the fuzzy-front-end (FFE) phase of the NPD process. With evidence from 27 interviews conducted with executives’ from large fast moving consumer goods (FMCG) firms, a thematic analysis using NVivo 12 is used to develop a conceptual framework capturing the key capabilities for using social media in the FFE. The findings reveal that the utilisation of social media is an ongoing process of experimenting with new technologies within the NPD phase of a firm’s innovation efforts. Hence, the results of the study suggest FMCG firms may consider developing the following capabilities to help effectively acquire external knowledge via social media: use staff specialised in social media for external knowledge identification; dedicate an independent department for social media knowledge acquisition; and encourage an open innovation culture.
Very Small Entities (VSE) delivers a substantial percentage of the world's product and services. These agile and innovative companies approach their market in a flexible, informal, and human‐centered approach. Their transformation from startup phase to an established company can be problematic. As they grow, the VSE must put more emphasis on incorporating formal organizational structure and processes to cope with the increased size and complexity. Failure in adapting often results in a negative market effect. Systems Design Thinking (SDT) is a combination of Systems Engineering, Systems Thinking, and Design Thinking. There is an increased awareness that the perspectives of SDT bring value to organizations. However, the advantage of SDT is not well understood for VSEs that are in the maturing phase. In this work, the researchers explore the value of SDT for very small enterprises transitioning from infancy to adolescence. The article presents a new method for idea development based on SDT principles and tailored to the needs of a VSE. Case‐based research is applied in a small company to understand the needs and verify the desirability, feasibility, and viability of our proposed method. The results suggest that an SDT approach improves the company's ability to capture and develop ideas and can help grow the company.
"Nowhere does history indulge in repetitions so often or so uniformly as in Wall Street," observed legendary speculator Jesse Livermore. History tells us that periods of major technological innovation are typically accompanied by speculative bubbles as economic agents overreact to genuine advancements in productivity. Excessive run-ups in asset prices can have important consequences for the economy as firms and investors respond to the price signals, resulting in capital misallocation. On the one hand, speculation can magnify the volatility of economic and financial variables, thus harming the welfare of those who are averse to uncertainty and fluctuations. But on the other hand, speculation can increase investment in risky ventures, thus yielding benefits to a society that suffers from an underinvestment problem.
“Every day, I try to go out and grab lightning.”
—Terry Fadem, Director, New Business Development, DuPont Corporation
Managing new product development (NPD) is, to a great extent, a process of separating the winners from the losers. At the project level, tough decisions must be made throughout each development effort to ensure that resources are being allocated appropriately. At the company level, benchmarking is helpful for identifying the critical success factors that set the most successful firms apart from their competitors. This company- or macro-level analysis also has the potential for uncovering success factors that are not readily apparent through examination of specific projects.
Using research in social psychology, the authors illustrate how two key routes to improve communication between marketing and engineering are dependent on the strength of managers' psychological connection to their functional area compared to the firm as a whole (i. e., relative functional identification). In particular, they argue that relative functional identification moderates the relationship between strategies traditionally used to affect interfunctional relationships (information-sharing norms and integrated goals) and the frequency, bidirectionality, and coerciveness of interfunctional communication behaviors. In turn, these communication behaviors are linked to information use and perceived relationship effectiveness. The authors empirically test predictions of the framework in two studies. Study 1 results suggest that (1) the efficacy of the traditional strategies depends on marketing managers' relative functional identification and (2) the traditional strategies can have negative and unintended effects on communication behaviors. In Study 2, the authors replicate and extend Study 1 by illustrating that bidirectional communication is as important as frequency in increasing both information use by engineering personnel and the perceived effectiveness of interfunctional relationships. The authors conclude with implications for theory building and managerial practice.
A plethora of definitions for innovation types has resulted in an ambiguity in the way the terms 'innovation' and 'innovativeness' are operationalized and utilized in the new product development literature. The terms radical, really-new, incremental and discontinuous are used ubiquitously to identify innovations. One must question, what is the difference between these different classifications? To date consistent definitions for these innovation types have not emerged from the new product research community. A review of the literature from the marketing, engineering, and new product development disciplines attempts to put some clarity and continuity to the use of these terms. This review shows that it is important to consider both a marketing and technological perspective as well as a macrolevel and microlevel perspective when identifying innovations. Additionally, it is shown when strict classifications from the extant literature are applied, a significant shortfall appears in empirical work directed toward radical and really new innovations. A method for classifying innovations is suggested so that practitioners and academics can talk with a common understanding of how a specific innovation type is identified and how the innovation process may be unique for that particular innovation type. A recommended list of measures based on extant literature is provided for future empirical research concerning technological innovations and innovativeness.
Although increasing evidence points to the importance of champions for keeping product innovation ideas alive and thriving, little is known about how champions identify potential product innovation ideas, how they present these ideas to gain much needed support from key stakeholders, and their impact on innovation project performance over time. Jane M. Howell and Christine M. Shea address this knowledge gap by using measures of individual differences, environmental scanning, innovation framing and champion behavior to predict the performance of 47 product innovation projects.Champion behavior was defined as expressing confidence in the innovation, involving and motivating others to support the innovation, and persisting under adversity. Interviews with 47 champions were conducted to collect information about the innovation projects and the champions’ tendency to frame the innovation as an opportunity or threat. Survey data were obtained from three sources: 47 champions provided information on their personal characteristics (locus of control and breadth of interest) and activities (environmental scanning), 47 division managers subjectively assessed project performance at two points in time, and 237 innovation team members rated the frequency of champion behavior.The results revealed that an internal locus of control orientation was positively related to framing the innovation as an opportunity, and breadth of interest was positively related to environmental scanning. Environmental scanning of documents and framing the innovation as a threat was negatively related to champion behavior, while environmental scanning through people was positively related to champion behavior. Champion behavior positively predicted project performance over a one-year interval.Overall, the findings suggest that in scanning the environment for new ideas, the most effective source of information is the champion’s personal network of people inside and outside the organization. Also, the simple labeling of an idea as a threat appears to diminish a champion’s perceived influence and erode credibility in promoting an innovation. From the perspective of division managers, champions make a positive contribution to project performance over time, reinforcing the crucial role that champions play in new product development process.
Winning at New Products is a 2001 book. It is now in its 5th edition, "Winning at New Products: Creating Value Through Innovation" 5th ed..
Available as paperback on Amazon.
Product development professionals may have the feeling that yet another buzzword or magic bullet always lurks just around the corner. However, researchers have devoted considerable effort to helping practioners determine which tools, techniques, and methods really do offer a competitive edge. Starting 30 years ago, research efforts have aimed at understanding NPD practices and identifying those which are deemed “best practices.” During the past five years, pursuit of this goal has produced numerous privately available reports and two research efforts sponsored by the PDMA.
Drawing on the marketing and management literatures, the authors identify strategic, tactical, and environmental factors that influence the commercial success of new products. They test the resulting conceptual model using data collected on 788 Japanese and 612 American new product development projects. The results provide insights into the antecedents and correlates of new product success and failure in both Japanese and U.S. firms, as well as into successful and unsuccessful management practices.
It is proposed that a firm's strategy and how it perceives environmental uncertainty can influence the need for R&D–marketing integration. Factors related to organizational design and senior management support, along with the sociocultural differences between R&D and marketing managers, can influence the level of integration achieved by an organization. Finally, it is proposed that the gap between the level of integration needed and that achieved can influence innovation success.
Using research in social psychology, the authors illustrate how two key routes to improve communication between marketing and engineering are dependent on the strength of managers’ psychological connection to their functional area compared to the firm as a whole (i.e., relative functional identification). In particular, they argue that relative functional identification moderates the relationship between strategies traditionally used to affect interfunctional relationships (information-sharing norms and integrated goals) and the frequency, bidirectionality, and coerciveness of interfunctional communication behaviors. In turn, these communication behaviors are linked to information use and perceived relationship effectiveness. The authors empirically test predictions of the framework in two studies. Study 1 results suggest that (1) the efficacy of the traditional strategies depends on marketing managers’ relative functional identification and (2) the traditional strategies can have negative and unintended effects on communication behaviors. In Study 2, the authors replicate and extend Study 1 by illustrating that bidirectional communication is as important as frequency in increasing both information use by engineering personnel and the perceived effectiveness of interfunctional relationships. The authors conclude with implications for theory building and managerial practice.
The Kahn et al. (1964) theory of role dynamics was used to generate four hypotheses concerning boundary-spanning activity (BSA) on 51 professional employees in a research and development organization. BSA was hypothesized to be positively related to role conflict and ambiguity, marginality, and economic and political value orientations, and negatively related to job satisfaction, and aesthetic and religious value orientations. None of the research hypotheses was supported. The data did show, however, a significant, negative correlation between BSA and role ambiguity, and significant, positive correlations between BSA and job satisfaction with opportunities for promotion, pay, and co-workers. Contrary to prior theory and research, this study found boundary-spanning roles to have advantageous aspects for their incumbents. Those in boundary-spanning roles had more accurate perceptions of their organization's goals and purpose (hence, less role ambiguity), and more visibility and contact with top management (resulting in higher satisfaction with opportunities for promotion, pay, and co-workers). Implications of the data for organizational management include the importance of boundary-spanning roles for monitoring environmental changes and facilitating the flow of information across boundaries, and the potential of boundary-spanning roles as fruitful paths for those seeking upward mobility in organizations.
The linkage between firm size and product innovation has frequently been discussed by both researchers and other writers. John Ettlie and Albert Rubenstein report the results of a study which, by distinguishing between the incorporation of radical and incremental technology, attempts to resolve some of the controversy surrounding this issue. In particular, the authors hypothesize that up to a certain point, large firms with greater resources are more likely to commercialize radically new products successfully. Findings generally support this theory but refinements to the model are now possible. For example, firms with 1000 employees or less need not be excluded from radical product introduction if they resolve critical funding and research problems. This size‐radicalness distribution is shaped like a fish hook or a claw. That is, up to about 1000 employees, there is no significant relationship between number of employees and radicalness of a new product. Between 1200 and 11,000 employees there is a significant, direct relationship. Finally, very large organizations (in excess of about 45,000 employees) are unlikely to introduce radically new products. Larger firms were significantly more likely to adopt ambitious new processing technologies in order to introduce these new products. Also, new product success was significantly predicted by the absence of funding problems in introducing the innovation and the degree to which the new product was a radical departure from existing practice.
The author reports on a study of new product planning in 125 American firms. Based on the information obtained from both the business press and personal interviews, he identifies a key element in this planning - the Product Innovation Charter. The author outlines a composite charter and uses examples from the companies studied to illustrate its various components.
If corporate innovation is to be fostered, research indicates the necessity for the presence on technical staffs of five key individuals: a creative scientist or engineer, an entrepreneur (who provides an impetus towards commercialization), a project manager, a sponsor (a high-level manager whose role is that of protector and advocate), and a gate-keeper (who provides liaison with the marketplace and/or with commercial technology). If you want to affect the future of your firm, you need not only the right kind of staffing in your technical organizations and the right kinds of structures to enhance information flow in and transfer out. You need a strategic posture which displays critical points for paying attention to certain dimensions of product and technology, and you need to have an allocation of managerial time that brings the best talents of the company to bear on these focal points at the critical time.
Based on a multi-year field study of internal ventures in several established firms, this article highlights the central dilemmas that confront innovation from concept to commercialization. The chief difficulties in generating innovation arise from five key dilemmas encountered in locating, seizing, and then methodically navigating creative sparks through the maze and haze of large organizations. To systematically address these dilemmas, firms must endeavor to integrate their entire innovation effort. Three overarching themes are useful for understanding how to holistically manage the dilemmas of innovation in large firms: Strategic Envelope, Strategic Pacing, and Strategic Partnerships.
Supported by data from forty-five cases of product development with varying degrees of success, the concept of product champion and his-role in the innovation process is explored in this article. Problems as well as the desirable qualities of a successful product champion are examined and organizational factors conducive to innovation are identified.
The ability to link advanced technologies to market opportunities is a crucial aspect of radical innovation. When markets do not yet exist, it is difficult to persevere, given organizational pressures for immediate profit. To study this problem, eleven radical innovation projects are examined in nine large, mature organizations in a real-time field setting. The sample is augmented by interviews of four additional individuals who have repeated experiences in linking advanced technologies to markets. From results that are qualitative in nature, four themes emerge. First, vision is built and sustained through a variety of mechanisms that may operate in combination or serially. Second, there are a number of roles that individuals play in creating and evangelizing a vision through an organization. Third, there exist a few tools and methods for aiding in developing visions that are not dependent strictly on individual initiative, but these are not systematically employed by organizations. Finally, visions undergo a process of validation and internal acceptance that may depend heavily on reaching out beyond the familiar customer/market set of the firm. Building on these themes, we derive two sets of insights. The first identifies three different ways that visions might develop. We did not discover a singular process across firms or even within a single firm by which visions develop. Second, we identify three elements that occur when a vision is formulated and utilized in organizations: Motivation, Insight and Elaboration. Thus a vision does not arise through a single creative leap, but develops over time and requires focus, discipline, energy, and the involvement of many people. Awareness of this conceptual underpinning of visioning may help managers understand how to encourage this activity and help sustain long-term growth and renewal in their organizations.
Drawing on the marketing and management literatures, the authors identify strategic, tactical, and environmental factor that influence the commercial success of new products. They test the resulting conceptual model using data collected on 788 Japanese and 612 American new product development projects. The results provide insights into the antecedents and correlates of new product success and failure in both Japanese and U.S. firms, as well as into successful and unsuccessful management practices.
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Perhaps no other article published in the management literature has had the impact of Richard Pascale's piece on the "Honda Effect" that was published in the Spring 1984 issue of the California Management Review. This now classic article has stimulated considerable debate over the role and value of corporate strategy in business decision making—which is the subject of this forum. This special collection of essays includes an abridged version of Pascale's original article ["Perspectives on Strategy: The Real Story Behind Honda's Success"], an exchange of correspondence between Henry Mintzberg and Michael Goold, and new essays by Richard Rumelt, Michael Goold, and Richard Pascale, who revisits his own original article as well as this whole debate.
Does customer input play the same key role in every successful new-product development (NPD) project? For incremental NPD projects, market information keeps the project team focused on customer wants and needs. Well-documented methods exist for obtaining and using market information throughout the stages of an incremental NPD project. However, the role of market learning seems less apparent if the NPD project involves a really new product—that is, a radical innovation that creates a line of business that is new not only for the firm but also for the marketplace. In all likelihood, customers will not be able to describe their requirements for a product that opens up entirely new markets and applications.
The authors report the results from a three-year study of new product development practices in Japanese firms. They develop a causal model of factors correlated with new product success. They test the model using data collected on 788 new products developed and commercialized by Japanese firms in the past four years. The "best practices" identified in this study suggest that Japanese new product success is positively influenced by the level of cross-functional integration and information sharing, the firm's marketing and technical resources and skills, the proficiency of the new product development activities undertaken, and the nature of market conditions. Cross-functional integration and product competitive advantage are two key determinants of new product success. The authors also discuss managerial and research implications.
The authors seek to understand which of three different strategic orientations of the firm (customer, competitive, and technological) is more appropriate, when, and why it is so in the context of developing product innovations. They propose a structural model of the impact of the strategic orientation of the firm on the performance of a new product. The results provide evidence for best practices as follows: (1) A firm wishing to develop an innovation superior to the competition must have a strong technological orientation; (2) a competitive orientation in high-growth markets is useful because it enables firms to develop innovations with lower costs, which is a critical element of success; (3) firms should be consumer- and technology-oriented in markets in which demand is relatively uncertain - together, these orientations lead to products that perform better, and the firm will be able to market innovations better, thereby achieving a superior level of performance; and (4) a competitive orientation is useful to market innovations when demand is not too uncertain but should be de-emphasized in highly uncertain markets.
Although increasing evidence points to the importance of champions for keeping product innovation ideas alive and thriving, little is known about how champions identify potential product innovation ideas, how they present these ideas to gain much needed support from key stakeholders, and their impact on innovation project performance over time. Jane M. Howell and Christine M. Shea address this knowledge gap by using measures of individual differences, environmental scanning, innovation framing and champion behavior to predict the performance of 47 product innovation projects. Champion behavior was defined as expressing confidence in the innovation, involving and motivating others to support the innovation, and persisting under adversity. Interviews with 47 champions were conducted to collect information about the innovation projects and the champions' tendency to frame the innovation as an opportunity or threat. Survey data were obtained from three sources: 47 champions provided information on their personal characteristics (locus of control and breadth of interest) and activities (environmental scanning), 47 division managers subjectively assessed project performance at two points in time, and 237 innovation team members rated the frequency of champion behavior. The results revealed that an internal locus of control orientation was positively related to framing the innovation as an opportunity, and breadth of interest was positively related to environmental scanning. Environmental scanning of documents and framing the innovation as a threat was negatively related to champion behavior, while environmental scanning through people was positively related to champion behavior. Champion behavior positively predicted project performance over a one-year interval. Overall, the findings suggest that in scanning the environment for new ideas, the most effective source of information is the champion's personal network of people inside and outside the organization. Also, the simple labeling of an idea as a threat appears to diminish a champion's perceived influence and erode credibility in promoting an innovation. From the perspective of division managers, champions make a positive contribution to project performance over time, reinforcing the crucial role that champions play in new product development process.
Enhanced capabilities for concurrent engineering, rapid prototyping, and smoothly functioning supplier partnerships have helped reduce product design and development times. Management attention has shifted to the cross-functional front-end strategic, conceptual, and planning activities that typically precede the detailed design and development of a new product. Here, new product ideas gain the shape, justification, plans, and support leading to their approval and subsequent execution. The front-end activity in eleven companies is discussed which highlights the best practices based on the authors assessment of seven critical activities.
This comparative study of the evolution of Intel Corporation's strategic position in two semiconductor memory businesses and in the microprocessor business provides insight into the forces that drive strategic business exit in dynamic environments. Inertial forces caused Intel's distinctive competence to diverge from the evolving basis of competitive advantage in the memory business. Inertial forces also caused Intel's corporate strategy to diverge from strategic actions taken by middle-level managers. Intel's internal selection environment played a key role in the strategic business exit process by causing it to shift the allocation of scarce manufacturing resources from the memory business to the emerging microprocessor business before corporate strategy was officially changed. The paper contributes to the development of theory about the role of strategy in firm evolution by offering insight into how the internal selection environment mediates the coevolution of industry-level sources of competitive advantage and firm-level sources of distinctive competence and into the link between corporate strategy and strategic action.
The book presents the latest research and theory about evolutionary change in organizations. It brings together the work of organizational theorists who have challenged the orthodox adaptation views that prevailed until the beginning of the 1980s. It emphasizes multiple levels of change - distinguishing change at the intraorganizational level, the organizational level, the population level, and the community level. The book is organized in a way that gives order and coherence to what has been a diverse and multidisciplinary field. (The book had its inception at a conference held at the Stern School of Business, New York University, January 1992.)
In high-velocity, intensely competitive markets, traditional approaches to strategy give way to "competing on the edge" - creating a flow of temporary, shifting competitive advantages. The author's research on entrepreneurial and diversified businesses demonstrates that successful firms in these markets have fast, high-quality, and widely supported strategic decision-making processes. These firms use four approaches to create strategy: 1. Management teams build collective intuition through frequent meetings and real-time metrics that enhance their ability to see threats and opportunities early and accurately less successful teams rarely meet with their colleagues in a group and make fewer and larger strategic choices, relying on market analyses and future trend projections that are idiosyncratic to the decision. 2. Executives stimulate conflict by assembling diverse teams, challenging them through frame-breaking tactics, such as scenario planning and role playing, and stressing multiple alternatives to improve the quality of decision making. less successful performers move quickly to a few alternatives, analyze the best ones, and make a speedy decision. 3. Effective decision makers locus on maintaining decision pace, not pushing decision speed. They sustain momentum through the methods of rime pacing, prototyping, and consensus with qualification. ineffective decision makers stress the rarity and significance of strategic choices. Because the decision then looms large, they oscillate between procrastination and "shotgun" strategic choices against deadlines. 4. Managers on successful teams rake a negative view of politicking. Their perspective is collaborative, not competitive. These teams emphasize common goals, clear turf, and having fun. less effective decision makers have a competitive orientation and lack a sense of teamwork. Together these approaches direct executive attention reward strategic decision making as the cornerstone of effective strategy.