Frontpage  About  admin@impgroup.org
Paper info: Customer Oriented, But Losing Sight of the Big Picture: How Lack of Outside Validation can Limit Market Information Processing in Really New Product Development Projects

Title


Customer Oriented, But Losing Sight of the Big Picture: How Lack of Outside Validation can Limit Market Information Processing in Really New Product Development Projects

Authors


Armand Smits and Robert Kok

Place of Publication


The paper was published at the 27th IMP-conference in Glasgow, Scotland in 2011.

Download



Abstract


Product development (PD) teams enhance their change of success when they process rich
and diverse market information in the course of a product innovation trajectory. A large body
of literature has advocated that including this information, such as insights on developments
in market segments and customer needs regarding product applications, in new product
decision-making is critical for new product performance. Contrary to earlier findings this is
not only the case for incremental PD but also for their really new counterpart. Additionally,
research has focused on within PD team practices that allow firms to be market oriented
innovators, hereby focusing on cross-functional integration, project priority setting, and
using appropriate market research tools. However, the practice of innovation is complex. PD
teams have to spread attention and processing market information can easily be overlooked.
Against this backdrop we present a comparative longitudinal case-study which provides
detailed insights of two new product trajectories, Shield and Anti-resist, in one chemical firm,
ChemCo. We illustrate what market information was processed over the course of the two
innovation processes. We find that project members in Anti-resist processed a larger variety
of market information when compared to the ones in Shield, especially in the early phases of
the project. In due course this led to the Anti-resist team being able of introducing the
product into the market while Shield was put on hold. Lack of market information processing
in Shield was not due to within PD team factors which have been a focus point of previous
literature. Project members in Shield, in comparison to the ones in Anti-resist, were less
proactive in validating their market information processing practices with the wider
organizational context ‘outside’ the PD team in the course of the innovation trajectory by
means of using an established organizational PD protocol and interacting with ChemCo’s
senior management. While marketing literature has praised decentralization for enhancing
market information processing, our main contribution to the literature on market oriented
PD is that this comes with the responsibility of individual PD teams to proactively validate
their own marketing actions along the way.
Keywords: Market information, market orientation, really new product development,
information management, comparative longitudinal case-study
https://www.impgroup.org//cookies.php