Andrews states that New Product Development (NPD) is the ‘best means of utilising a company’s strengths and achieving long-term growth’ (1975, p46). The major stake holders in successful NPD are the customers (Bruce and Cooper, 2000, p48); therefore suggesting that it is the market’s expectations and needs that are crucial to a successful product. However as market needs are ‘difficult to constantly ascertain’, and ‘customers are unable to articulate their requirements’ (Bruce and Cooper, 2000, p48), it consequently becomes essential that ‘companies commit themselves to continuous development of products (Barczak, 1995). Tidd suggests that ‘innovation demands a deep knowledge of user needs and therefore a close relationship with customers would be beneficial (1993).
The Evolution of innovation process systems can be seen in the timeline below (Gordon-Hall, 2011).
The innovation process has traditionally been viewed as a sequence of separable stages oractivities (Trott, 2002, p17). The first variation of this process is known as the ‘Technology Push‘ process (Trott, 2002, p17). Within this process it is assumed that ‘scientists make discoveries, technologists apply them to develop new product ideas, and then engineers and designers turn them into prototypes’ and then lastly ’marketers will promote the product to potential customers’ (Trott, 2002, p17). It is apparent that in this process of innovation the customers have very little say in the product. This process nowadays is most notably used in the pharmaceutical industry (Trott, 2002, p17). The diagram below displays the Technology Push process (adapted from Trott, 2002, p17 description).
Hippel states that it was not until around ‘the 1970s that new studies of actual innovations suggested that the role of the marketplace was influential in the innovation process’ (1978). As a result the second variation of the innovation process was developed, the ‘Market Pull’ process. This emphasises ‘the role of marketing as an initiator of new ideas, resulting from close interactions with customer’ (Trott, 2002, p18). Therefore implying that the research and design of new products is based on what the customers want as apposed to the reverse idea. This is shown in the diagram below (adapted from Trott, 2002, p18 description).
The third generation ‘Push-Pull’ process is also known as the ‘Coupling’ process. It has been stated that the previous processes are linear and are ‘only able to offer explanations of where the initial stimulus for innovation is born’ (Trott, 2002, p18). Therefore the coupling model suggests that it is the blend of manufacturing, R&D, and marketing that will promote innovation (Trott, 2002, p18), instead of one or the other.
E-commerce has enhanced innovation greatly. For example ’electronic data interchange (EDI) facilitated the application of the just-in-time (JIT) approach in management operations’ (Trott, 2002, p158). It has been said that the innovative procedures that the advancement in technology has aided is an integral part of the drive to generate business value (Trott, 2002, p158). Many companies have recognised the potential for innovation when it comes to ‘integrating customers and content in previously impossible ways’ (Trott, 2002, p159). An example of this would be the Encyclopaedia Britannica, this was originally only available in book form, however through e-commerce it has gone from, book to CD to becoming available online in less than a decade. Many business’ now solely run via the internet such as iTunes, Wikipedia, eBay and Amazon etc.
References
Andrews, B. (1975). Creative Product Development; A marketing approach to new product innovation and revitalisation. London
Barczak, G. (1995). New Product Strategy, Structure, Process and Performance in the Telecommunications Industry. Journal of Product Innovation Management, vol. 12, pp 3-15.
Bruce, J. Cooper, R. (2000). Creative Product Design; A practical guide to requirements capture management. Sussex
Tidd, J. (1993). Technological Innovation, Organisational Linkages and Strategic Degrees of Freedom. Technology Analysis and Strategic Management. Vol. 5, (3), pp 273-284.
Trott, P. (2002). Innovation management and New Product Development. Second Edition. Harlow : Pearson Education Ltd.
Von Hippel, E. (1978). Users as Innovators. Technology Review. Vol. 80. (3), pp 30-34.
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