PRODUCT DEVELOPMENT: PAST RESEARCH, PRESENT FINDINGS, AND FUTURE DIRECTIONS SHONA L. BROWN KATHLEEN M. EISENHARDT 석사과정 김경남 / 오다 아야카

Overall Picture of the Article Understanding the Past Literature: Product Development as Rational Plan, Communication Web, and Disciplined Problem Solving Developing an Integrative Model: What are the Factors that Affect the Success of Product Development? Providing Directions for Future Research: Three Suggestions from the Authors Motivation: Past literature on product development is too varied and fragmented. Objective: To improve the understanding of product development. Focus : Structure and process in the innovation literature 2

Past Research: Comparison of Three Research Streams ConceptsRational PlanCommunication WebDisciplined Problem Solving Key ideaSuccess via superior product, attractive market, rational organization Success via internal and external communication Success via problem solving with discipline TheoryMostly atheoreticalInformation and resource dependenceInformation including problem solving MethodsBivariate analysis; single informant; many independent variables Deductive and inductive; multivariate; multiple informants Progression from inductive to deductive; multiple informants; single industry, global studies ProductProduct advantage- cost, Quality, uniqueness, fit with core competence -Product integrity- product vision that fits with customers and firm MarketSize, growth, competition- Senior management Support-Subtle control Project teamX-functional, skilled-X-functional CommunicationHigh cross-functionalHigh internal, high external-various types and means High internal Organization of work Planning and "effective“ execution-Overlapped phases, testing, iterations, and planning Project leaders-Politician and small group managerHeavyweight leader CustomersEarly involvement-- SuppliersEarly involvement-High involvement Performance(dep endent variable) Financial success(profits, sales, market share) Perceptual success (team and management ratings) Operational success (speed, productivity) 너무나 많은 독립변수 Single informant 에 의존 변수가 잘 정의되지 않음 Communication 요인 중심 연구자 주관에 따른 성과측정 제품유형을 고려하지 않음 Political/psychological 현실성 부족 모호한 변수들 일본기업 관점에서 연구 3

Present Findings: An Integrative Model of Product Development 4

1.Examine the primary links of the model (Process performance, effective product, market factors, and financial performance) - Which factor is more important the other? - Are process performance, product effectiveness, and munificent markets actually independent variables? 2.Explore contingent models for the organization of work 3.Explore how senior managers affect product effectiveness Future Directions 5

Cross-functional teams are considered to be associated with high- performing process. However, team diversity may raise some challenges. What are the challenges, and how can the managers ensure that the advantages of diversity will not be thwarted by those challenges? Nowadays, design team has been an important unit within an organization, especially in the high-tech industry. How can we include variables related to design? – Integration Between Marketing, Design & R&D Discussion Questions: Internal Organization 6  Aesthetics: Well-designed products are more attractive.  Product use (function and ergonomics): Well-designed products are easy to use  Manufacturability: saves time and cost, and enhances quality.  Servicing: Well-designed products are easy to install, maintain, and repair  Disassembly (Product disposal): Well-designed products are easy to dissemble for recycle  Aesthetics: Well-designed products are more attractive.  Product use (function and ergonomics): Well-designed products are easy to use  Manufacturability: saves time and cost, and enhances quality.  Servicing: Well-designed products are easy to install, maintain, and repair  Disassembly (Product disposal): Well-designed products are easy to dissemble for recycle

What are the benefits and costs of involving customers and suppliers in the development process? What factors attribute to customers and suppliers involvement? Discussion Questions: External Organization and Market 7 Critical Elements of the New Product Development Process (Maidique and Zirger, 1985)

According to Brown & Eisenhardt (1995), New Product success is influenced by the level of creativity in the organization. Therefore, we can apply each organization’s creativity in the product development model. According to the model suggested by Brown & Eisenhardt, who has a key role for creativity? Discussion Questions: Learning and Creativity 8 * NP : New Product / * MP : Marketing Program Source : Day, George S. and Robin Wensley (1988), “Assessing Advantage: A Framework for Diagnosing Competitive Superiority,” Journal of Marketing, 52 (April), 1–20.

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