Stephen R. Rosenthal

Towards Holistic Front Ends In New Product Development

Any firm that hopes to compete on the basis of innovation clearly must be proficient in all phases of the new-product development (NPD) process. However, the real keys to success can be found in the activities that occur before management makes the go/no-go decision for any NPD project. In other words, the most significant benefits can be achieved through improvements in the performance of the front-end activities—product strategy formulation and communication, opportunity identification and assessment, idea generation, product definition, project planning, and executive reviews. Noting the inherent difficulty of managing the front end, Anil Khurana and Stephen R. Rosenthal discuss findings from in-depth case studies of the front-end practices in 18 business units from 12 U.S. and Japanese companies. They offer a process view of the activities that the front end comprises, and they discuss the insights that their case studies provide regarding key success factors for managing the front-end activities. The case studies involved companies in industries ranging from consumer packaged goods to electronics and industrial products. Foremost among the insights provided by the case studies is the notion that the greatest success comes to organizations that take a holistic approach to the front end. A successful approach to the front end effectively links business strategy, product strategy, and product-specific decisions. Forging these links requires a process that integrates such elements as product strategy, development portfolio, concept development, overall business justification, resource planning, core team roles, executive reviews, and decision mechanisms. The case studies suggest that firms employ two general approaches for achieving these links. Some companies rely on a formal process to lend some order and predictability to the front end. Other companies strive to foster a company-wide culture in which the key participants in front-end activities always remain focused on the following considerations: business vision, technical feasibility, customer focus, schedule, resources, and coordination. This cultural approach is more prevalent among the Japanese firms in the study; the U.S. firms tend to rely on formality of the front-end process. The case studies also suggest that the front-end approach must be compatible with the firms product, market, and organizational contexts. For example, standardized approaches seem to work best for incremental innovations.

Technology novelty, project complexity, and product development project execution success: a deeper look at task uncertainty in product innovation

This paper applies the construct of task uncertainty to study relationships between product development project characteristics and project outcomes. The authors characterize product development projects in terms of their technology novelty and project complexity levels. This characterization is based on product development literature and organizational information processing theory. They hypothesize that technology novelty and project complexity characteristics contribute to project task uncertainty and are in turn associated with project execution outcomes. A cross-sectional survey of 120 new product development projects for assembled goods was employed to test relationships between project characteristics and project success. Success measures include achievement of individual project goals, such as technical performance, unit-cost, time-to-market and overall achievement of project goals.

Successful execution of product development projects: Balancing firmness and flexibility in the innovation process

Abstract This paper investigates project management methods used during the execution phase of new product development projects. Based on prior field observations, organizational theory and product development literature, we pose hypotheses regarding the effectiveness of the project execution methods of formality, project management autonomy and resource flexibility. A cross-sectional survey sample of 120 completed new product development projects from a variety of assembled products industries is analyzed via hierarchical moderated regression. We find that the project execution methods are positively associated with project execution success. Further, these methods are effective singly and collectively, suggesting that firms can “balance firmness and flexibility” in product development via appropriate execution methods. Surprisingly, the effectiveness of these methods is not contingent on the product or process technology novelty inherent in a given development project. The findings suggest that firms should adopt high levels of these approaches, and that a variety of projects can be managed using broadly similar project execution methods. The findings also suggest limitations on the application of organizational information processing theory to the context of product development projects. Directions for additional theory development are outlined.

Progress toward the “factory of the future”

Abstract Despite the considerable attention being placed on the potential payoffs from programmable manufacturing technologies, remarkably little systematic research has been conducted on organizational plans, decisions, and associated actions. The 1982-83 factory automation surveys project of the Boston University Manufacturing Roundtable reported on here was designed to develop a broad managerial view of computer-aided manufacturing processes in the US. Our purpose was to create a body of information, drawn from the recent experience of leading-edge practitioners, that would begin to describe the range of behaviors accompanying the adoption and implementation of automation technologies, such as advanced numerical control, CAD/CAM and robots, which may be combined to form the “factory of the future”. In short, we wanted to identify the kinds of progress being made by these manufacturers and the barriers that they, and those who are contemplating such process innovations, will face in the future. In each of our three surveys we had a specific target population in mind. The “user” survey was aimed at discrete-part manufacturing organizations that were leaders in adopting factory automation technologies. This survey was designed to address “best practice” at the level of a single strategic business unit and deals with specific automation projects. Our “supplier” survey was aimed at the major producers of each of the various factory automation technologies. Here we sought the observations and opinions of senior marketing executives in those firms with the most success (and therefore experience) in supplying computer-based manufacturing technologies. Finally, our “expert” survey was designed to test some of our preliminary findings from the users and suppliers, including insights gathered from in-depth follow-up telephone interviews with respondents to those two surveys. We intentionally tried to identify a broad sample of individuals whose views would be based on extensive factory automation experience in different capacities. Respondents to our three surveys consisted of 57 users, 38 suppliers and 64 experts. Findings from the three surveys form certain patterns that transcend the isolated facts commonly presented in the literature. The dominant impressions that emerged from the data were: Leading-edge users of computer-aided manufacturing processes believe in learning by doing . Most have proceeded in an incremental fashion to develop an internal base of experience with factory automation technologies. They tend to have supportive management and a sense of where they are heading. Their current measurement capabilities, however, restrict the basis for making adoption decisions as well as the subsequent evaluation of impacts from recent technological innovations. These users usually rely heavily on outside suppliers for critical technical assistance and consider reliability factors to be more important than price in selecting a vendor. They generally feel they cannot afford to postpone decisions until improved technologies become available. Current leadingedge users will strongly affect the future direction of these technologies. Suppliers claim that most manufacturers are not sophisticated customers . They would like potential users to be more aware of their needs for improved manufacturing processes and to be more interested in the long-term strategic benefits of computer-aided manufacturing technologies already on the market. A classic dilemma seems to have arisen: decisions to adopt expensive factory automation technologies are often made by managers who lack the background to assess technological options, while staff familiar with the new technologies are less able to appreciate associated strategic dimensions. A likely outcome is a decision that is either short-sighted or misguided. Suppliers with limited direct experience in new applications of their technologies and little indepth knowledge of the business situations of their customers cannot be expected to help users avoid such errors. The most difficult problems in achieving computer integrated manufacturing are managerial rather than technical. Manufacturers contemplating factory automation face different issues depending on whether they adopt a retrofit strategy using existing production systems or whether they attempt to make a fresh start as new facilities are brought on stream. In either case, they often have inadequate internal technical resources, strong barriers to communication across traditional functional lines, and a reward structure that does not encourage risk-taking in the interest of long-term strategic gains. Manufacturing organizations that do not deal directly with these kinds of managerial problems are not likely to succeed in factory automation, even if appropriate technological options exist. These functions suggest that manufacturing managers ought to reflect on their organizations current strengths and weaknesses as they formulate a strategy for factory automation. In particular, they should begin with a healthy concern for the adequacy of their current base of knowledge, mix of human resources and formal measurement systems. They should also refine their expectations for integrated factory automation applications, to be sure that general goals such as “enhanced flexibility” have explicit operational meanings. Finally, they should improve their organizations ability to identify types of indirect costs, as well as benefits, that are implicit in such goals. These prescriptions apply to manufacturers just beginning to adopt programmable manufacturing technologies, as well as to those who are well along this path. Further in-depth research is needed if the progress being made by leading-edge users is to serve as a basis for more widespread attempts to move toward the “factory of the future”.

Global New Product Development Processes: Preliminary Findings and Research Propositions

This study examines the processes and routines firms employ for developing new global products. Observations from 13 Japanese, American and European multinational companies reveal that global new product development processes vary in terms of the involvement of overseas subsidiaries in project teams and the generation of new product concepts. In particular, when the knowledge about different product design requirements among overseas markets or plants is tacit, firms employ cross-national product development teams and use overseas subsidiaries as sources of new product concepts. Anchoring these findings on information processing theory, we develop a set of research propositions on global new product development processes and suggest directions for future research.

Time Management in New Product Development : Case Study Findings

Abstract Rapid time-to-market for new products has been recognized as a critical capability for manufacturers aiming to succeed in an arena of time-based competition. This paper summarizes findings from seven case studies on the management of the time dimension in new product development projects. Challenges to achieving rapid time-to-market are identified, and directions for future research on product development projects are addressed.

Managing the process-centred enterprise

Abstract This article presents the Enterprise Model which simultaneously addresses business functions and processes. It has two core elements. The first is a schematic network of functions and processes which creates a platform for assessing enterprise-wide alignment and identifying opportunities for performance improvement. The second is the 3Cs —the businesss customer relations, capabilities , and competencies —which constitute the resource platform for the enterprises future strategies and determine the feasibility of its plans. The model links the firms operating decisions to its strategic direction. The article describes the model and how to use it in an integrated audit of an enterprise and its plans.

Service innovation in manufacturing

Purpose – The purpose of this paper is to report on nine in‐depth case histories of manufacturing firms introducing significant new service innovations. Manufacturing firms are under increasing pressure to diversify into lines of business that offer unique contributions to long term profitability and this paper increases understanding of how incumbent firms successfully accomplish this transition.Design/methodology/approach – Using analytical induction the authors sample published announcements of significant new service offerings by well‐established manufacturing firms. An example of this type of service innovation would be General Motors offering of OnStar remote driver support systems (not included in this sample). A total of nine cases (43 percent of the companies contacted) participated in this case study approach.Findings – The paper identifies two primary strategies pursued by these firms development and launch of significant new service innovations representing important diversification moves for...

Research needs in managing factory automation

Abstract The subject of factory automation is a critical one for all business functions, with the potential of creating an entire upheaval in the fields of accounting, finance, marketing, general management, and most significantly, operations management. Totally new ways of managing a business are likely, but it is not yet clear what these ways may be. In spite of the tremendous implications of these new technologies, little research is being conducted in this area. A panel session exploring this topic was thus offered at the 1984 Toronto meeting of the American Institute for Decision Sciences. This article presents the results of that session. The intent of the article is to foster research interest in this area and identify the extensive opportunities available. The article reviews the extant literature concerning the management of factory automation and identifies the gaps in our knowledge where research is needed. Factory automation as defined here is intended to include the areas of both hard automation (CAD/CAM, robotics, FMS, etc.) and soft automation (such as MRP II, group technology, MAP, data networking). Research issues are divided into three major topic areas for ease of discussion: strategic issues, justification issues, and implementation issues. The strategic area encompasses the subjects of corporate strategy and its tie with manufacturing strategy, firm characteristics of leading-edge users of automation, the effect of learning and experience with automation, the concept of “synergy” among automation technologies, technology transfer, and implementation strategy. The justification issues are divided into benefit, cost, and risk aspects. The present inadequacy of economic justification techniques for automation systems and the pros and cons of alternative approaches are explored. The consideration of differing types of automation and their possible need for differing justification techniques is also discussed. For both benefits and costs, the quantification problem is a major issue, particularly with benefits believed to improve the effectiveness of operations, rather than their efficiency (a major advantage of the automation technologies, it is often claimed). Another major issue here is the pre- and postautomation comparison, requiring accurate and thorough manufacturing audit techniques. The risks in automation can be tremendous. Whether this can be reduced through incremental automation, or other approaches, is a very important question. The nature of the risks-technological, financial, sociological—is also an important subject for research, as well as methods to deal with each type. Topics in the implementation area include procedural aspects, human aspects, interface/infrastructure aspects, and measurement and reward aspects. In general, the nature of the automation implementation process, and its solution, is a critical research area that is confounded with multiple factors. There is a need for research to determine if such a thing as a “best” implementation path exists for specific technologies and firms. How does a firm know if it is “ready” for automation, and which automation technology to start with? The effect of automation on workers and management is an important research question. And in addition, what are the effects of these employees on the implementation process? And it will be necessary to know how jobs change under automation, for both line and staff. Research is also needed to determine how automation will affect the way the firm does business, how interdepartmental coordination will be affected, and whether there will even be departments. If automation is implemented piecemeal, can the pieces later be tied together? What will be the problems? Managers need to know if new measurement and reward systems will be needed for workers, or perhaps even more important, for the managers. Will incentives need to be increased, or changed in some other fashion, for managers to be willing to take the risks involved in automation? Last, some advice is given to the potential researcher in this area. Approaching this subject in a way that yields meaningful research, helpful to real managers currently struggling with these problems, is important since real firms are our primary research laboratories in this field. For example, case studies, interviews, surveys, and conceptual development are important early tools in this area compared to the traditional model building and analysis techniques that have historically characterized operations management.

Planning for governmental efficiency through staffing allocation

The planning of personnel requirements for the various divisions of a government agency is a prerequisite to the preparation of reasonable operational budgets. This study describes a method for developing baseline estimates of personnel requirements in public agencies, by adpting traditional task analysis and work measurement approaches to teh broader framework of organizational theory. An application to determining the staffing requirements at the National Science Foundation for Fiscal Year 1979 - 1981 illustrates the method.