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New Product and Process
Development (1)
김은희, 조인성
Goodness of Fit
•
디자인의 궁극적인 목적은 form 이다.
•
Form 형성의 이유: 세상이 완전히 regular or homogeneous 하다면 force 와 form
이 필요 없지만, irregular 한 세상에서는 form 이 필요함.
•
모든 디자인의 문제는 두 가지의 entities, 즉 form 과 context 사이의 fitness 를 성
취하기 위한 노력으로 부터 시작되며,
 Form : 문제에 대한 해결책을 의미. Context에 대한 명확한 이해를 바탕으로
디자인 을 구성함.
 Context : 문제를 정의. 본질적 속성을 구성하는 요건.
 Design: form 과 context 를 구성하는 총체에 관한 것.
•
즉 , 우리가 디자인에 대해 말할 때, 진정한 목적은 form 그 하나만이 아니라, form
과 그것의 context 를 조합하는 앙상블을 말하는 것임.
The rightness of the form depends on the degree to which it fits the
rest of the ensemble.
•
다양한 ensemble 의 예 (p.16)
 그렇다면 form 과 context 사이의 fit 를 characterizing 해보자.
• Real world 에서 우리가 다루고 있는 context 를 설명할 unitary
description 은 없음.
• Context 는 매우 복잡하고 여러 변수를 동시에 고려해야 하는 속성이 있으
므로 단일한 방식으로는 설명이 불가능 하고,
• Form 역시 테스트 하는 것은 비용이 많이 들거나 불가능 할 수 있으므로
• Form과 context 는 적절한 수준에서 상호 fitness 하는 관계가 바람직하고,
이를 위해서는 context 자체에 대한 명확하고 구체적인 설명이 필요함.
 Good fit 이란?
• 어떤 면에서 완벽하게 만족할 만한 기준을 제공해줄 수는 없으므로, good
fit에 대한 요구조건은 무한함.
• 그러므로 fit 에 대한 기준으로써 잠재적인 misfit 리스트를 이용함.
(ex) misfit 의 예 (p.23)
Source of Good Fit

•
•
•
•
•
Unselfconscious culture
교육이 규칙(general principle)이 명확하지 않은 상황에서 이루어지고,
노동의 분할이 한정적이기 때문에 어떤 분야에 대한 전문성이 거의 없음.
Communication 기술이 발달하지 못하여 written records 나 architectural
drawings 이 없고, intercultural exchange 가 거의 없음.
다른 문화나 상황에 대한 정보가 거의 없고, 기록이 부족하므로 같은 경험
만 반복적으로 전해지고, 사람들의 행위는 habit 에 의해 지배됨으로 개인이
창의성을 발휘할 필요가 없고, 물리적 패턴을 반복하며 익히게 됨. 따라서
같은 form 이 계속 반복적으로 만들어짐.
문화의 Form-making 이 imitation 이나 correction 을 통해 informally 하게
학습되어 지면 unselfconscious culture 로 부름.
 Selfconscious culture
• 교육이 formal 하게 이루어 지며, teaching 이 명확한 규범을 기반으로 이루
어짐. 사람들은 일반적인 규칙에 따라 빠르게 더 많이 배울 수 있음.
• 공식적인 instruction 에 의지하며, 직접적이고 명확한 원리를 알고, 지도할
수 있는 형태로의 규칙을 만들 수 있어야 함.
• 새로운 purpose 가 항상 새롭게 발생함.
• 현대의 context 는 구조적으로 매우 복잡하고 변수 사이의 연계성이 높으므
로 복잡성과 연계성에 대한 이해가 필요함.
• 문화의 form-making 이 명확한 규칙에 의해 academically 지도된다면
selfconscious culture 로 부름.
The Natural and Artificial Worlds
 Natural science
• Knowledge of things in the world, characteristics, properties,
behavior, interaction.
• Goal is to find pattern in apparent chaos.
• The task of science is to show that the wonderful is not
incomprehensible, to show how it can be comprehend- but
not to destroy wonder
 Artificial science:
• Knowledge about artificial objects and phenomena.
• Four distinctions between natural and artificial
– Artificial things are synthesized by human beings
– imitate appearances of nature, but lack some aspects of reality
of natural
– can be characterized by functions, goals, adaptation and
– are often discussed in terms of imperatives along with
descriptive.
 Inner environment vs. outer environment
• the real nature of the artifact is the interface.
• Interface is considered as a meeting point between
“inner environment”, the substance and organization
of the artifact itself, and an “outer environment”, the
surroundings in which it operates.
• The design artifact mediates the demands of the
outer environment through a set of operative
principles in its inner environment.
 Design is concerned with how things to be and the
natural sciences are about how things are.
 Optimization theory- in designing, it based on
utility theory and statistical decision theory, and it is
used as a logical framework for rational choice
among given alternatives by deducing which of the
available alternatives is the optimum.
 Choosing satisfactory alternatives
• A practical procedure pursuing not the best but better,
satisfactory alternatives, satisficing design solutions.
• Searching for all alternatives is the computations required
astronomical and cannot be carried out by humans and
existing or even prospective computers
design as resource allocation
• Cost minimization as a design criterion has changed from
implicit to explicit consideration & design functions as
resource allocation
 In Designing
• The complex system that might to be constructed in a
hierarchy of levels
• Design of complex system decompose it into semiindependent components corresponding to its many
functional parts.
• Mutually rewarding conversation and experiences sharing
helped us combat our own multiple-cultures isolation
Fuzzy Front End of New Product Development
NPD (New Product Development)
One Market Success
1.7 Launched
10 to Front End
Takes 40-60% of total development time and
determines 80% of total costs
(Smith, Reinertsen 1995, p. 49, Schmidt 1995)
4 to Development
Product development cycle
Incremental technology improvements
need to be motivated then anticipated and
then acquired. Implementation of new
technology next requires research in how
to embed the technology into a new model
of a product, plan that new model,
design, and produce the new product model.
In the product - development cycle, the
technology implementation stage begins
with research (benchmarking), which then
leads to product planning (necessary
and desired features), and then into
product design before product production
Frederick Betz, "Managing Technological Innovation: Competitive Advantage From Change",
3rd Edition, John Wiley & Sons,
What is new product development?
• Ulrich and Eppinger (2004:2) define NPD as ‘the set of
activities beginning with the perception of a market
opportunity and ending in the production, sale, and
delivery of a product.’
• Addressing this larger context, Wheelwright and Clark (1992:
Chapter 1) defined NPD as ‘the effective organization and
management [of activities] that enable an organization
to bring successful products to market, with short
development times and low development costs.’
• Clark and Fujimoto (1991: 7) add that ‘performance results
from consistency in total organization and management.’
C. H. Loch and S. Kavadias, Handbook of New Product Development Management: ButterworthHeinemann, 2007.
NPD 관련 기존 연구방향
• NPD encompasses a large number of topics
and challenges in a firm, such as strategy
formulation, deployment, resource allocation,
and coordinated collaboration among people
of different professions and nationalities, and
systematic planning, monitoring, and control.
• In that light, NPD has long been an important
topic for several business research disciplines,
certainly economics, marketing, organizational
theory, operations management, and strategy.
C. H. Loch and S. Kavadias, Handbook of New Product Development Management: ButterworthHeinemann, 2007.
Product Development: Past Research, Present
Findings, and Future Directions (1995)
- Shona L. Brown and Kathleen M. Eisenhardt
• Innovation 관련 연구 분류:
– economics-oriented tradition: patterns of innovation across
countries and industrial sectors, evolution of technologies
– organizations-oriented tradition: microlevel regarding how
specific new products are developed -> 이 분야에 집중
• Product development의 중요성
– Product development is critical because new products are
becoming the nexus of competition for many firms(e.g., Clark &
Fujimoto, 1991)
– Product development is thus a potential source of competitive
advantage for many firms (Brown & Eisenhardt, 1995)
– Thus, product development is among the essential processes for
success, survival, and renewal of organizations, particularly for
firms in either fast-paced or competitive markets
눈문 구성
• Product-development literature를 three streams로 분류
– ①Rational plan, ②communication web, and ③disciplined
problem solving
– The research within each stream is theoretically and
methodologically similar.
• Synthesize these research findings into a model of
factors affecting the success of product development
• Potential paths for future research
Product Development as Rational Plan
• [pioneering work] Myers and Marquis(1969) and SAPPHO
studies (Rothwell, 1972; Rothwell et al., 1974)
• This rational plan perspective emphasizes that successful
product development is the result of (a) careful planning of
a superior product for an attractive market and (b) the
execution of that plan by a competent and wellcoordinated cross-functional team that operates with (c) the
blessings of senior management.
• Simply put, a product that is well planned, implemented,
and appropriately supported will be a success.
• a product that is well planned, implemented, and
appropriately supported will be a success.
Product Development as Rational Plan
[장점]
• This broad-brush approach leads to an excellent and a
comprehensive overview of the product-development process,
which emphasizes features of the product, internal organization,
and the market.
[단점]
• The findings of many studies read like a "fishing expedition“
- too many variables and too much factor analysis. In this
research stream, it is not uncommon for a study to report 10 to
20 to even 40 or 50 important findings
• the research stream relies heavily on retrospective sense making
of complex past processes, usually by single informants.
• Most important, the research in this stream often presents results
without relying on well-defined constructs.
Product Development As Communication Web
•
[pioneering work] Allen at MIT (1971, 1977)
•
early studies highlight the importance of external communication to success.
Specifically, these studies observed the presence of "gatekeepers"-(i.e., highperforming individuals who also communicated more often overall and with
people outside their specialty) (Allen, 1971).
•
Von Hippel (1986) noted how important communication with key customers was
regarding better product designs.
•
more effective teams engaged in both political and task-oriented external
communications,
•
the relationship among the mean tenure of a team, the degree of external
communication, and performance. but this relationship reversed and
performance dropped off after five years.
•
Two theoretical theme: information-processing view, resources dependence
view
Product Development As Communication Web
[장점]
• In contrast to the first perspective, this stream is narrowly focused on
one independent variable-communication. Thus, these studies
emphasize depth, not breadth as in the rational plan, by looking
inside the "black box" of the development team
[단점]
• the principal shortcoming of this perspective is that it is so focused
on communication by project team members that other factors are
neglected.
• performance measures frequently are very subjective, and so it is
difficult to know whether the results would replicate for more
objective measures of performance, such as product profitability.
• this stream does not distinguish between different types of
products, such as incremental versus breakthrough versus platform
products.
Product Development as Disciplined
Problem Solving
•
[pioneering work] studies of Japanese product-development practices in
the mid-1980s (e.g., Imai et al., 1985; Quinn, 1985)
•
Successful product development is seen as a balancing act between
relatively autonomous problem solving by the project team and the
discipline of a heavyweight leader, strong top management, and an
overarching product vision.
•
The researchers observed that strong formal ties to suppliers and R&D
networks were very important to the product-development process.
•
the authors observed that product development was accelerated by
overlapping of development phases and cross-functional teams only if
supported by continuous communication among project members.
•
senior management should engage in "subtle control."
•
•
•
They(Clark & Fujimoto, 1991) reported that extensive supplier networks
coupled with overlapping product-development phases,
communication, and cross-functional groups (what they term
integrated problem solving) improved the performance of development
teams.
Iansiti (1992, 1993) deductively examined the mainframe computer
industry. The primary result is that a high system focus (i.e., a
combination of technical integration, exposure to systems integration,
and accumulation of interaction knowledge) predicted both lead time
and productivity.
One focuses on factors such as planning and overlap that are relevant
for more stable products in mature settings (e.g., Clark & Fujimoto, 1991;
Iansiti, 1992), and the other focuses on experiential product design that
is relevant for less predictable products in uncertain settings, such as
personal computers, work-stations, and peripherals.
Product Development as Disciplined
Problem Solving
[장점]
• In contrast to the rational plan stream, this stream is more specific
about the effective organization of work and is more focused on the
development process and product concept than on the financial success
of the product.
• In contrast to the communication web perspective, this stream has a
broader scope and considers the role of suppliers and senior
management in addition to project leaders and teams.
[단점]
• One is that there is a lack of political and psychological realism.
• Second, some of the constructs are challenging to comprehend.
For example, subtle control, product vision, and system focus are vague
concepts.
• Finally, there is an extensive reliance on a Japanese viewpoint.
TOWARDA N INTEGRATIVE MODELO F
PRODUCTD EVELOPMENT
•
•
•
•
•
Project Team
Project Leader
Senior Management
Suppliers and Customers
Financial Success
AGENDA FOR FUTURE RESEARCH
•
One research opportunity is to examine the primary links of the modelthat is, the links among process performance, effective product, market
factors, and financial performance.
– A related research opportunity is determining the relative importance of these
factors.
– examine whether process performance, product effectiveness, and munificent
markets are actually independent variables.
•
A second area of research is the organization of work. As was noted, two
models have emerged to describe alternative organizations of work.
– yet this second model(experiential product development) has received only limited
empirical examination.
– For huge and lengthy projects, Benghozi (1990) suggested that innovation
routines, which include dynamic planning, monitoring, and scheduling projects
over time as the environment changes, are needed.
•
Third, our understanding of how senior managers affect development is
incomplete.
Strategy, structure and performance in product
development: Observations form the auto industry (1991)
- Michael A. Cusumano and Kentaro Nobeoka
Japanese firms: integration of workers and suppliers, as well as the
development and systematic application of innovative managerial and qualitycontrol techniques for manufacturing
• product development as ideally composed of three elements: a product
strategy that determines task requirements in individual projects; project
structure and processes (the organization and management systems);
and product as well as project performance.
Key variables
• Product strategy
– product concept, which may include the pricing segment (luxury
versus economy) or size of a model, as well as the degree of new or
sophisticated technology incorporated into different components
– Task requirements is the individual project strategy, which includes
project (or task) complexity and project scope.
• Structure and process
– include the internal organization and management of product
development, as well as the utilization of external resources.
• Performance
– Input measures : engineering hours and “lead time”
– Output measures: technical performance, styling or the match of the
product with the target customers’ tastes,
– Market performance: market or production share and growth in share.
Major findings - Product strategy to performance
•
Product-strategy taxonomy: high-end specialists, volume producers
•
Japanese manufacturers in general displayed higher development
productivity in terms of engineering hours and lead time.
•
Japanese firms were more dependent on suppliers than the U.S. or
European manufacturers -> reduced project scope, the number of inhouse engineering hours as well as the amount of time projects required
•
The number of model lines a company offered also correlated closely
with its total sales volume.
•
The specific assumption of this study, although not tested with
performance data such as market shares, was that shorter product life
cycles for replacing existing models and adding new models provide
an advantage in that faster firms can more quickly and broadly
expand their product lines as well as introduce new technology or
better meet customer demands as these change over time.
Major findings - Product strategy to performance
Major findings - Product strategy to performance
replacement rate: (the total number of new models in this period – the number of new models
that were new product lines rather than replacements for existing models,) /
the number of models the firm had in the base year
expansion rate: the number of totally new models /
the number of models the firm had in the base year.
Major findings - Product strategy to performance
Design for Manufacturability (DFA):
asked 19 automobile companies
to rank competitors’ products in terms
of ease of assembly.
Major findings - Structure and process to performance
• Japanese manufacturers, in general, have “heavier” heavyweight
product managers than their U.S. or European counterparts.
• Japanese projects, in addition to their superior performance
characteristics in general, had higher overlapping ratios.
• Japanese projects had more informal and intensive “information
processing” among various stages that seemed to make this
higher degree of overlapping possible and useful.
• Japanese auto producers developed extensive networks of
subsidiaries and other suppliers, and then subcontracted huge
amounts of manufacturing work as well as cooperated in
technology acquisition and components development
Major findings - Structure and process to performance
Research critique
• Product strategy to performance
– Clark and Fujimoto: did not adequately treat the level of difficulty
– Sheriff and Nobeoka: do not adequately explain how they arrived at
the weights used for different types of changes or components
– one project per company does not say much about which company
is consistently superior in product development
– Krafcik’s productivity research, centered on assembly operations
rather than components manufacturing as well as assembly.
– there is the issue of economic returns to investments in product
development apart from market share
• product-development performance and project complexity with changes in
sales and profits but uses financial data at the company level
Research critique
• Structure and process to performance
– no study concentrates on the supplier coordination process
in product development, and there are even fewer studies on
other forms of inter-organizational coordination.
• pay more attention to adjusting for differences in vertical integration
for development
– needs further exploration is internal project management
• mechanisms through which product managers contributed to higher
design quality or higher development productivity
– multiple project coordination
• Have studied only a sample of one project per manufacturer.
Technology integration: Managing technological
evolution in a complex environment (1995)
- Marco Iansiti
• This work aims to fill some of the gap between
these two bodies of knowledge: existing research on
organizational response to technological evolution,
and on the management of R&D organizations.
• Development performance under discontinuous
technical change
– By discontinuous, we mean that relationships between
product functionality, process requirements and
disciplinary expertise change, necessitating a substantial
evolution in the knowledge base of the development
organization (as in Anderson and Tushman, 1990;
Henderson and Clark, 1990).
연구 모형
System-focused organizations will
be associated with high levels of
development performance in
environments characterized by
discontinuous technological
change.
System-focused organizations will
be associated with a broader
approach to solving problems than
other organizations-this will involve
information search and processing
activities that cross a broader base
of existing disciplinary expertise.
In a complex environment characterized
by technological discontinuities,
high problem-solving efficiency(and
development performance) will be
associated with approaches that sample
a broad base of disciplinary expertise.
Empirical approach
• Mainframe processor,
27 projects,
61 problem-solving
efforts
Empirical results - Problem solving and performance
<P1> In a complex environment characterized by technological discontinuities,
high problem-solving efficiency(and development performance) will be
associated with approaches that sample a broad base of disciplinary expertise.
 개발성과 지표(종속변수): person year, 개발시간
 R&D 조직에서의 지식의 진화와 관련 있음 - disciplinary knowledge bases are linked to each other
 Integration group members had managed to resolve a difficult problem early by framing it broadly and by making
use of a novel combination of context-specific knowledge bases.
P1
성립
큰 문제해결 폭은 더 작은 person
year(더 큰 생산성) 더 빠른 개발속도
-개발성과와 context-specific breadth는 유의
-개발성과와 context-independent breadth
유의하지 않음
Empirical results - System focus and performance
<P2> System-focused organizations will be associated with high levels of
development performance in environments characterized by discontinuous
technological change.
 <표6> The correlation between individual
indicators of system focus(Table 2) and
development speed and productivity
 (-)의 유의한 상관성
 System focused 프로세스는 개발성과와 연결됨을
보여줌
P2
성립
System focus와 개발성과(person year,
개발시간)와 유의(-)하게 나타남(0.1%수준)
Empirical results - System focus and performance
<P3> System-focused organizations will be associated with a broader approach
to solving problems than other organizations-this will involve information search
and processing activities that cross a broader base of existing disciplinary
expertise.
 문제해결의 넓이(폭), system focus, 개발성과간의 논리적 고리
P3
성립
문제해결의 폭은 system focus와의 관련성이
유의적으로 있음을 보여줌(0.1%수준)
Empirical results - Development process
and problem-solving approach
System-focused
organizations:
do a good job of
identifying potential
problem areas early in the
project, before concept
selection was completed.
Discussion
• Literature Review Paper v.s. Empirical research
• Physical Product와 Software Product는 어떻게 다른가?
• NPD v.s. NSD(New Service Development)의 유사점과 차이점
은?
• 미국에서의 일본 및 한국 차에 대한 품질 이슈를 어떻게
봐야 할 것인가?
• 제품의 출시 간격이 시장 성과에 미치는 영향은 무엇인가?
– 주기적 구매 제품(자동차, 스마트폰, …)
– 비주기적 구매 제품
[첨부] Past overviews of NPD research - 1
[첨부] Past overviews of NPD research - 2
[첨부] Past overviews of NPD research - 3
[첨부] Elements of evolutionary problem solving
Creation of variation
- Guided creation
- Unguided creation
Selection
- Mental selection based on representation
- Selection with no representation
Retention / Inheritance
- Reproducible actions
- Unstable system / noise
Shane, Scott, Handbook of Technology and Innovation Management, John Wiley & Sons Ltd., 2008