Simulation of Generation of New Ideas for New Product Development and IT Services

Abstract

This paper describes a dynamic model of the New Product Development (NPD) process. The model has been occurring from best practice noticed in our research conducted at a range of situations. The model contributes to determine and put an IT company's NPD activities into the frame of the overall NPD process[1]. It has been found to be a useful tool for organizing data on IT company's NPD activities without enforcement an excessively restrictive research methodology refers to the model of NPD. The framework, which strengthens the model, will help to promote a research of the methods undertaken within an IT company's NPD process, thus promoting understanding and improvement of the simulation process[2]. IT companies tested many techniques with several different practices designed to improve the validity and efficacy of their NPD process[3]. Supported by the model, this research examines how widely accepted stated tactics are and what impact these best tactics have on NPD performance. The main assumption of this study is that simulation of generation of new ideas[4] will lead to greater NPD effectiveness and more successful products in IT companies. With the model implementation, practices concern the implementation strategies of NPD (product selection, objectives, leadership, marketing strategy and customer satisfaction) are all more widely accepted than best practices related with controlling the application of NPD (process control, measurements, results). In linking simulation with impact, our results states product success depends on developing strong products and ensuring organizational emphasis, through proper project selection. Project activities strengthens both product and project success. IT products and services success also depends on monitoring the NPD procedure through project management and ensuring team consistency with group rewards. Sharing experiences between projects can positively influence the NPD process.

Full text

Simulation of Generation of New Ideas for New Product
Development and IT Services
Dimitrios K. Nasiopoulos1,a), Damianos P. Sakas1,b), D.S.Vlachos1,c) and
Amanda Mavrogianni2,d)
1University Of Peloponnese, Department of Informatics and Telecommunications, Tripolis 22100,
Greece
2University of Athens, Piraeus, 18534, Greece
a)Corresponding author: dimnas@uop.gr
b)d.sakas@uop.gr
c)dvlachos@uop.gr
d)amanda.mavrogianni@gmail.com
Abstract. This paper describes a dynamic model of the New Product Development (NPD) process. The model has
been occurring from best practice noticed in our research conducted at a range of situations. The model contributes
to determine and put an IT company’s NPD activities into the frame of the overall NPD process[1]. It has been
found to be a useful tool for organizing data on IT company’s NPD activities without enforcement an excessively
restrictive research methodology refers to the model of NPD. The framework, which strengthens the model, will
help to promote a research of the methods undertaken within an IT company’s NPD process, thus promoting
understanding and improvement of the simulation process[2].
IT companies tested many techniques with several different practices designed to improve the validity and
efficacy of their NPD process[3]. Supported by the model, this research examines how widely accepted stated tactics
are and what impact these best tactics have on NPD performance. The main assumption of this study is that
simulation of generation of new ideas[4] will lead to greater NPD effectiveness and more successful products in IT
companies.
With the model implementation, practices concern the implementation strategies of NPD (product selection,
objectives, leadership, marketing strategy and customer satisfaction) are all more widely accepted than best practices
related with controlling the application of NPD (process control, measurements, results). In linking simulation with
impact, our results states product success depends on developing strong products and ensuring organizational
emphasis, through proper project selection. Project activities strengthens both product and project success. IT
products and services success also depends on monitoring the NPD procedure through project management and
ensuring team consistency with group rewards. Sharing experiences between projects can positively influence the
NPD process.
INTRODUCTION
The success of simulation of NPD depends on different things and great research effort referred to
investigating the functions influencing NPD outcomes. Developing new IT products and services is a complex
function that usually involves many functional groups within an IT company[5] as well as external people such
as vendors[6]. Consequently, cohesion, cooperation and coordination both inside the team and between the team
members, operating divisions and external parts are highly influential for the success of growth efforts[7].
Internal interaction between agencies involved in NPD has been examined in numerous studies. Among the
organizational factors that have been explored often is the completion of the marketing and R&D
departments[8]. However, a field necessary for the support of efficient NPD, is the interaction of the
Information Technology (IT) department, both the products and IT services [9]. Through that research provided
information on the interaction between the IT department and NPD teams, as well as IT’s effect in future

improving NPD results.
The IT department is in the sector of selling its services to the rest of the company and takes the risk of
losing its customers. It consequently reconfigures available services and access and range of its infrastructure
based on needs and requests of served sections. Satisfying NPD groups is probably the project with most
requirements because of the specificity demands of each NPD project. This leads in NPD teams that are
multifaceted, strongly focused and with group members that possess varied elements support and service needs.
Therefore, new ideas and many requests that an NPD group makes are unique. This creates a framework for
flexibility and movableness on the IT team and all other actions that service NPD team tasks. For example,
although regulating the service component of an IT team, such as providing several members of an NPD team
access to specific databases, is not hard to attend, a request which requires a special capital cost is harder to
meet because the benefits of any IT investments came partly from the selection value embedded in completion
the original investment. Approval and execution of IT instruments therefore implies time, which is minimal for
NPD teams because they usually have tight schedules to get the new products and services to market. Design
prototype tools may be unique to each person on a prototype project.
Developing an IT-based R&D effort should be seen as a significant aspect of the project of IT in every
company. Techniques based on computers allow large quantities of relatively objective elements to be collected,
separates and to be analyzed in an effective manner. Consequently, IT tools must be improving NPD outcomes
such as evolution cost, elasticity or new project speed. Therefore, it should be noted that collecting the expected
advantages would depend more on who can make the optimal use and less on who has that information.
Administrators consequently expect various benefits from IT in their NPD projects. Specifically in warring
NPD teams, the IT department can restore coordination of separated project activities, exchange of technical
data, forwarding of creativity, quality and creation of a private network as well as growth of trust.
STAGES OF NEW PRODUCT DEVELOPMENT
The NPD process consists of the processes performed by companies when developing and promoting new
products[10]. A new product that appears on the market evolves over a rule of stages, beginning with an
innovative product concept or idea that is evaluated, grows, tested and launched on the market[11]. This
schedule of operations can also be viewed as a set of information gathering and appraisal stages. In fact, as the
new product grows, management becomes more and more knowledgeable about the product and can estimate
and review its original decision to undertake development. After this process of information collection and
assessment can lead to become apparent, new product decisions on the part of companies by minimizing the
level of risk and limiting the resources that required for the products that finally fail. The NPD process varies
from industry to industry and from company to company and it should be adapted to each company in order to
fill precise company resources and needs.
Researchers, who have tried to develop a model that simulates the different stages of the NPD process, have
made many attempts. A multitude of allied NPD models have been planed over the years. The best known is the
Booz, Allen and Hamilton (1982) model, shown in Figure 1, also known as the BAH model[12], which set the
standards for most other NPD models that have been developed. This widely used model appears to enclose all
of the realizable stages of models that have been developed. It is based on extensive research in several
companies, in depth interviews of the specialists, and case studies that correspond to reality and, therefore,
seems to be a fairly good sequence of substantiated practice in industry.

FIGURE 1. The BAH model (Booz, Allen and Hamilton, 1982)
The stages of the model are as follows:
1. New Product Strategy: Connects the NPD process to company goals and provides objectives for new
ideas generation and instructions in determining selection criteria.
2. Idea generation: Searches for product ideas that correspond to company objectives.
3. Screening and evaluation: Consists of a first infiltration to determine which ideas are relevant and worth
more detailed research.
4. Business Analysis: Further assessment of the ideas based on quantitative research, such as economic
gains, Return-on-investment (ROI), and volume of sales.
5. Design and Development: Converts an idea from drawing into a product that is demonstrable and
producible.
6. Testing: Performs commercial tests necessary to check earlier business decisions.
7. Commercialization: Schedules the production.
The results Booz, Allen and Hamilton found, demonstrates that companies that have successfully produced
new products are more likely to follow the model of NPD process and that the product generally follow all of
the above stages.
INVENTION, INNOVATION AND TECHNICAL CHANGE IN IT COMPANIES
An extensive research has been evolved which attempts to provide significant definitions of these terms.
Although there is some disagreements at these definitions has been established a general agreement about the
interdependence and certain essential characteristics of each term.
The essential definition that the method of IT invention: "requires an idea of a series of operations of vision
which leads to a aggregate synthesis of many components that were initially independent" is repeated in several
studies which emphasize the concentration of two (or more) discrete but consecutive data into revolutionary
harmony. According to another aspect, invention related with creativity and discovery and generally requires
construction, spiritual or otherwise. In order to be legally patentable, in any case a contrivance must constitute
New$Product$Strategy$
Idea$Generation$
Screening$and$
Evaluation$
Business$Analysis$
Design$and$
Development$
Testing$
Commercialization$

true innovation and measured to the amount of useful knowledge.
In the method of converting patent to innovation we can detect the importance of economic, environmental
and social factors in determining a constructive environment for successful IT innovation. The Central Advisory
Council on Science and Technology's circumscription of Innovation as: "The technical, industrial and
commercial stages which may produce new manufactured products to the marketing and to the commercial
usage of new technical procedures and products".
The main incidence of the different definitions of innovation is the assessment of the product or process and
its establishment in the market.
We can rank the innovation from three approaches:
From the Producer's View
1. Clearly new IT products: involving various forms, technologies or components from those currently
manufactured by the innovation,
2. Line extension: representing no substantially new forms technologies and services but representing
additions or differentiation to an existing series of IT products,
3. IT product improvement: modifications in the line production and packaging to an existing product.
From the Intermediary's View
1. New IT products: whose form, basic substances and/or method of domestic use varies significantly from
the current stock series,
2. New IT brands: which also contains all brands not previously transferred by the seller,
3. New IT items: including any items included on the material list for the first time.
From the Consumer's View
1. Innovation is not the creation of new items, has to do with behavioral changing.
2. IT companies are not focus in the product, but the reasons why the consumers buy the specific product.
3. Consumer participation tends to vary substantially according on the type of IT product or service.
The process of innovation and invention caused the technical change. It is the effects that these procedures
have on the company, the market and society. Patent Laws play a role to slowdown the counterfeiting rhythm of
technological and IT inventions. The dissemination of innovations through consumer groups is further lag by
the common weakness of the innovator to cover the production when real innovations occur. Many productive
countries attempt to boost this process of technological change by stimulating the spreading of information.
The role of the product developers proves that an important part of the technical change in one IT company
is likely to be the result from the progress and development in another similar IT company.
DYNAMIC SIMULATION MODEL
Based on the results of our research, allows us to be able to ascribe values to the dynamic simulation model
parameterized all those involved in our research[13]. The conjunction between generation of new ideas, new
product development and IT services, is dynamic.

FIGURE 2. Dynamic Simulation Model
As seen from the dynamic simulation model in Fig. 2, the results change when changing the provision of
resources to agents. Depending on the sources that provided by the Company Resources, involving innovation,
invention and technical change, changing the percentage of new ideas generation from the use of information
technology services.
DYNAMIC SIMULATION MODEL SYSTEM ANALYSIS
This section describes the individual parameters of the dynamic simulation model that was developed using
system dynamics modeling concepts. Before discussing the creation of dynamic simulation model, defining the
purpose of each element used. Elements of a stock and flow model consist of: stocks, flows, converters and
connectors. Each of these elements is further described below:
FIGURE 3. Dynamic simulation model parameters
A stock represents the concentration of either a physical or non-physical quantity.
A flow represents an activity, which fills or depletes a stock. The arrow suggests the direction of
positive flow into or out a stock.
A converter can keep values stable or serve as an external input to the model or convert inflows into
outflows through user-defined algebraic or graphical functions.
Connectors provide the connections between models data. Solid wire is an action link and dashed wire
is an information link.

The invention model
An invention can oblige many objectives. These objectives might differ notably and may change over time.
An invention, or a further-developed version of it, may oblige objectives never performed by its original
inventor(s) or even by other people living at the time of its original invention. The invention model enclosing all
the procedures that follows unique or novel devices. These procedures could be new ideas, new methods, new
compositions or new processes.
The innovation model
Innovation is the adjustment of new solutions that meet new demands, basic needs, or current market needs.
This can be achieved through more innovative products, processes, services, technologies, or innovations that
are directly available to people, markets and society. The innovation model enclosing first knowledge, forming
an attitude, a decision to adopt or reject, implementation and use and, confirmation of the decision maker.
The technical change model
A technical change is not indispensably technological as it might be organizational, or due to a change in a
limitation such as adjustment, input prices, or quantities of inputs. It is practicability to measure technical
change as the change in output per unit of factor input. In free-market economies, technological developments
lead to productivity increasement, but at the cost of obsolete, less-efficient methods of production, creating a
level of substructure risk. The technical change model enclosing factors such us technological development,
technological achievement, and technological progress.
IMPLEMENTATION OF THE DYNAMIC SIMULATION MODEL
To create the models, the modeling software tool iThink, from iSee Systems, was used. iThink creates stock
and flow diagrams to model and simulate processes. It presents you the results of specific defined by the user
inputs and connects the interrelationships between procedures and functions. Outputs can be displayed in the
form of graphs and tables. In this case, dynamic simulation model techniques were used in the creation of this
model. The implementation of creating the dynamic model was an iterative process. It began with a very simple
model and then controlled to ensure that the functions defined were correct.
The results of the Dynamic simulation model are shown are shown in tables and graphs (Table 1, Table 2
and Figure 4) that we provide.
Table 1. Satisfaction
Table 2. New Ideas Generation

FIGURE 4. Company Resources in conjunction with the Satisfaction Invention, Innovation and Technical
Change
SUPPORT FOR DECISION MAKERS
There is need to create the interface of the dynamic simulation model, to enable the user to change the values
that the factors can get, studied in the research we've done. Fig. 5 and 6 shows the main user interface of the
simulation model. There are four main sections on this user interface: Invention, Innovation and Technical
Change segmentation.
FIGURE 5. Main user interface
FIGURE 6. Equation Input Device
The Invention section allows the decision maker to determine the segment according the new invention
process through new ideas generation, BAH model and IT services. The Innovation section allows the decision

maker to define the segment according new ideas generation, BAH model and new product development.
Finally, in the Technical change section, the decision maker can define the segment according to new ideas
generation, BAH model, IT services and new product development. To begin the simulation, the user chooses
all the values of the inputs that are desired, and then clicks the run button. The simulation runs for a period
determined by the user and pauses to allow the user to review the effects of the decisions made.
The prototype provides the decision maker with various forms of support that guide them through the
decision making process. These guides range from the use of status alarms and notifications to the use of visual
aids to enhance learning and understating of various relationships in the context of new ideas generation. To aid
the leaders executives in making strategic decisions, the user interface of the sustainability model alerts the user
with various notifications during the course of the simulation.
For example, if the factor of innovation satisfaction is low, a message pops up to notify the user that!a
greater part of the Company Resources should be directed there. When all the segment parts are satisfied, a
message pops up to notify the user and some of the resources returning to the main resources, etc.
This prototype caters from novice users, who may only navigate through three or four main pages, to the
expert users who may take advantage of the advanced functionality available in the prototype. The interface was
kept simple and designed with ample “help” or “?” buttons that provide the decision makers with a description
of various concepts or explanations to improve user autonomy. Color templates as well as repeated and common
items were kept consistent so as not to confuse the user and improve usability.
CONCLUSIONS
New product creation still remains the higher challenge for companies. Most companies have knowledge of
the important role new products must play in their production and quest for prosperity: companies are
continuously searching for ways to refresh, modify and redesign their NPD orders and procedures for maximum
results[14].
This standard suggests that to achieve productivity, new product development companies should have a
specific and well designed product policy. These companies should have determined new product target-markets
along with a lot of confidence, with clear targets. Winning businesses and groups of NPD have devotion
towards the choice of the customer. It is important that company should collect as many concepts as possible
and most should come from clients so that the company can be in a situation to plan and develop new better
products.
Pre designed work before the inception of product design and development has proven to be a key factor in a
company’s success. The significance of implementation of the pre-designed steps - initial consideration,
preparatory market and technical research and business analysis - is closely related to the products economic
returns. Companies should try to reduce the progress time so as to restrict the chances that the development and
customer preferences have changed when the product goes on sale into the market. It is momentous to control
and confirm product implementation requirements and design determination along with customer’s needs before
promoting the product into the market via acceptance and user field-testing.
This paper investigate and resolve the generation of new ideas for NPD process and attempted to
acknowledge fields in which companies can upgrade their implementation when present new products, mostly
through the research of points that are crucial to success. These points were highlighted through an extensive
study of the experience and implementation of successful companies presented in the NPD bibliography. The
critical success factors, which have been presented in the bibliography, are generally determined for the
complete development process, in order to especially addressing each section. To face this problem, this paper
search crucial success agents for each step of the process.
Many different research fields could give additional useful data both to companies finding critical success
points and count product policy success as well as to researchers performing study in this field[15][16].
Moreover, dynamic modeling has been proved to be an effective tool for decision making in various
organisational phenomena [17],[18],[19].
A first research occasion exists in performing and testing the suggested framework. Further studies should
also examine other organisational factors determining innovative behaviour such as quality management,
learning organisation and employees’ attitudes [20],[21]. This would be helpful to become both between the
group of NPD firms and through academic study to define the results of this study on both practice and research.
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