David Wilemon

A Survey of Major Approaches for Accelerating New Product Development

Abstract Product life-cycles are becoming shorter, leading firms to reduce the time to bring new products to market. Being early can provide a significant competitive advantage, making the acceleration of new product development (NPD) an important area for research and inquiry. Based on their review of a wide range of literatures in business strategy, marketing, new product development, manufacturing and organization management, Murray Millson, S.P. Raj and David Wilemon report a general set of techniques for reducing the developmental cycle time for new products. The article develops a hierarchy of available NPD acceleration approaches and discusses potential benefits, limitations and significant challenges to successful implementation.

The Impact of Organizational Integration and Product Development Proficiency on Market Success

Abstract This research investigates three major hypotheses important to new product market success: the greater organizational integration during the development of new products, the greater the market success; the greater organizational integration during the development of new products, the greater new product development proficiency; and the greater new product development proficiency, the greater the market success. “Organizational integration” is defined as the degree of cooperation and communication between internal and external NPD “support” groups and NPD teams. “NPD process proficiency” is defined as how well new product development stages and the new product development process as a whole is performed. “New product market success” is represented by four measures: the degree to which profits and sales exceeded or fell short of what was expected, and the degree to which the new product was perceived to exceed or fall short of expectations related to entering existing and new markets. Information was obtained concerning the most and least successful new products of U.S. firms in the medical instruments, the electrical equipment, and the heavy construction equipment industries. The field survey approach was utilized in which surveys were mailed to recipients such as new product development managers who already had been designated by executives of the sample firms. Several important findings were uncovered during this research. Overall organizational integration was found to be significantly associated with new product market success. Internal integration, the coordination between new product development teams and functional departments, was found to be significantly related to product market success. A significant relationship between new product development proficiency during the NPD “post-launch stage” and the degree of integration between an NPD team and external NPD organizations, such as customers and suppliers, was detected. During the post-launch stage, new product development proficiency also was found to be significantly related to new product market success. These findings suggest several important implications for new product development managers and scholars.

Sources and Assessment of Complexity in NPD Projects

When examining the reasons why NPD projects are late, over budget, or why they suffer from performance problems, complexity is often directly linked to the results achieved. While some research has been done in the complexity area, more research is needed to assess the role that complexity plays in the successful development of new products. In this paper complexity is defined and several reasons are examined why this factor can be a significant issue in successfully managing NPD efforts. Several sources of complexity are also examined including technological; market; development; marketing; organizational; and intraorganizational complexity, i.e., one company partnering with another to develop a new product or technology. A template is then constructed to help product developers evaluate complexity in their development projects. Finally, the paper concludes with suggestions of how the complexity template can be applied by development managers and their teams.

Seller-buyer interactions during the commercialization of technological process innovations

Abstract For buyers and sellers alike, high-tech process innovations can be a double-edged sword. On the one hand, technological process innovations (e.g., computer hardware and software, factory automation equipment) offer buyers the potential for reduced production costs and enhanced product quality. However, early adoption of such innovations is often a risky proposition. For the seller, successful commercialization requires stimulating not only adoption, but also successful implementation of the innovation. In other words, effective management of seller-buyer relations during the development and commercialization process go a long way toward determining the success of a high-tech process innovation. Gerard A. Athaide, Patricia W. Meyers, and David L. Wilemon examine the relationship marketing activities employed by successful sellers of high-tech process innovations. They identify eight strategic marketing objectives that underlie these relationship marketing activities: product customization, information gathering on product performance, product education and training, ongoing product support, proactive political involvement (to encourage support for the innovation from the various affected parties in the buyers organization), product demonstration and trial, real-time problem-solving assistance, and clarification of the products relative advantage. Their findings suggest that successful sellers engage in relationship marketing activities throughout all phases of the commercialization process. Rather than simply trying to close a deal, these firms seek active involvement from potential customers, ranging from codesigning of products to seeking feedback on productrelated problems or desired modifications. This broader scope of customer involvement necessitates cooperation among various groups in the sellers organization. Product development and engineering work closely with the customer during product customization. Those groups must communicate effectively with the salespeople who demonstrate the product and with the customer support people who obtain feedback and provide real-time problem-solving support. In other words, these relationship marketing activities cut across functional barriers. Consequently, a clear understanding of the buyers needs and environment is essential throughout the sellers organization, not just in the sales and marketing departments.

Building high performing engineering project teams

This article summarizes four years of research into the drivers and barriers of effective teambuilding in engineering work environments. A simple input-output model is presented for organizing and analyzing the various factors which influence team performance. The field survey results supported by correlation analysis indicate that team performance is primarily associated with six driving forces and six barriers which are related to: leadership, job content, personal needs, and general work environment. Specific recommendations are made.

R & D and marketing dialogue in high-tech firms

Abstract Based on an empirical study of more than 200 R & D and marketing managers from high-technology companies, we conclude that (1) there is a great deal of consensus between R & D and marketing managers on the relative importance of the areas requiring integrated efforts; (2) companies successful in their new product program achieve a significantly greater degree of R & D marketing integration; (3) company size does not affect the level of integration achieved; and (4) the companies that achieve a high degree of R & D/ marketing integration do so by concentrating on all 19 areas proposed in the article and do not merely focus on a few key areas.

Strategic issues in managing innovation’s fuzzy front‐end

A product is more likely to be successfully developed and marketed when the “upfront or fuzzy front‐end (FFE)” activities are understood and carefully managed. A framework is developed to illuminate several factors affecting FFE performance. Using this framework, several strategic issues involved in managing the FFE are identified and managerial recommendations are advanced.

Leadership Differences in New Product Development Teams

Abstract Innovativeness is unlikely without skilled leaders to guide the teams which develop new products and technologies. Although the importance of leadership to innovation success is often discussed, the specific practices of effective team leaders are not. In this study, Gloria Barczak and David Wilemon focus on the roles, functions and methods employed by leaders of operating and innovating types of new product development teams. Operating teams are part of the daily activities of the firm, are involved with current markets and develop products similar to current product offerings. Innovating teams do not routincly engage in day-to-day activities. They pursue new markets and develop products quite different from existing ones. The results suggest that successful leaders of both types of teams perform similar roles and functions. However, the methods they use to achieve them vary by the type of new product development team.

Excelling in R&D

OVERVIEW: R&D directors in both high- and low-R&D effective organizations were found to attach similar importance to the skills and knowledge bases needed to have an impact on overall business performance. However, organizations that were rated by their directors as “high-R&D effective” are significantly more capable than their “low-R&D effective” counterparts in almost all areas. They are especially better prepared in accelerating new-product development, forming strategic R&D and marketing alliances, understanding customer needs, and commercializing technology. High-R&D effective organizations develop these capabilities and excel in performance by building extensive internal and external linkages, by pursuing business-driven R&D while encouraging experimentation and risk-taking, and by learning from their prior NPD introduction experiences and quickly launching the next generation of products. Senior management in high-R&D effective organizations is more tolerant of failure, perceives R&D to be an important contributor to business performance, and gets involved during the early stages of NPD.

Successful new product team leaders

Abstract This article examines differences between more and less effective new product development team leaders. We found that successful leaders understood and accepted project goals, perceived more autonomy in managing their projects, and perceived more senior management support for their projects. Moreover, successful leaders learned significantly different lessons from their projects than their less successful colleagues. A discussion of the results, along with several implications for new product development, is presented.