Information and Communication Structures in the Planning of Market-oriented Product Innovations

Transcription

1 Information and Communication Structures in the Planning of Market-oriented Product Innovations Konrad Schachtner, Ludwig-Maximilians-Universität Munich The following report deals with information and communication structures in product planning and their effect on product innovations that meet market requirements. In this regard, it provides some advice on how to develop efficient and effective organization using information technology in product planning. Finally, this report uses Siemens Information and Communication Networks Group as a practical example of a successful solution to these problems. 1 Market-oriented Products as a Success Factor The increasing dynamics of market and technology force companies to continually adapt their products to changing needs and opportunities. Since product life cycles are becoming shorter [1], this development leads to the ever-increasing significance of new products to company success. These structure changes require that companies continuously innovate their products. Innovation, as used herein, refers both to the development of entirely new products and to changes in products as perceived by the company and the market [2]. Product innovation, however, is no longer the sole key to success. Heightened global competition, fragmentation of sales markets, increased customer demands and increasing worldwide market transparency will compel companies to begin abandoning technology-oriented strategies in favor of stronger market-oriented strategies [3]. Hence, rapid conversion of product requirements and ideas into market-oriented product innovations is the key factor influencing success in gaining a competitive advantage in the market. The product planning stage is critical in the development of new products. It is in this stage that the formation and conception of future products are carried out [4]. Effective and efficient planning thus forms the basis for the success of product development. Market globalization and accelerated technological progress, however, are constantly increasing the complexity of planning. Goal-oriented planning faces special challenges, especially in the case of complex products which are sold worldwide and which have short product life cycles. Hence, the present report will be limited to the complex planning processes involved in dealing with these kinds of products. 1

2 2 Product Planning The following section will briefly explain the significance of product planning for new product development, the steps involved in product planning and the specific goals of market-oriented product planning. 2.1 Market -oriented Product Planning Product planning is the first stage of a company s product development process. In the course of the planning process, a product and project plan is developed which, in the subsequent realization process, is transformed into a product which is ready to go into production. Market-oriented products are characterized in that the development goals are directed more acutely to the needs of the market and the customer [5]. With this in mind, market-oriented product planning should be understood as a process which promptly produces projects for the realization of products having customer-oriented quality and market-oriented costs (cf. Figure 1) [6]. Timely Introduction to the Market Customer-oriented Product Quality Market-oriented Products Market-oriented Costs Figure 1: Target Figures of Market-oriented Products 2.2 Product Planning as an Information Processing Activity Product planning is being viewed here as a dynamic process. Its goal is to use ideas to produce new market-oriented product concepts. The individual steps of the product planning process are shown in Figure 2. 2

3 Product Planning Idea Collection Idea Evaluation and Selection Product and Project Definition Idea Formation Idea Collection Idea Evaluation Idea Prioritization Idea Selection Project Formation Project Planning Project Selection Figure 2: Product Planning Process Product planning is an information processing activity which transforms market data and technical opportunities into information resources for production [7]. Planning processes are triggered by ideas, some of which already exist and some of which have yet to be generated [8]. These ideas are collected and then inter alia evaluated and prioritized from a strategic, economic and technical point of view. The best ideas are then selected and grouped together into new product development projects. The realization of the product begins with the project approval decision. The product planning process makes great demands on information processing (cf. Figure 3). For one thing, it is characterized by a high need for information. The newest ideas and demands must continuously be recorded, and current information about the numerous factors which influence new product concepts (e.g. customer needs, market conditions, construction technique or available resources) must be obtained. The more successfully this information requirement is met, the better the dependencies of the influencing factors can be taken into consideration and the more successful the goaloriented product planning solution will be. This need can only be satisfied by diverse information from numerous and changing sources (e.g. from professionals in varying functional areas or from special databases). The information is often difficult to formalize (e.g. technical drawings or problemrelated benefit analyses) and enter the planning process largely unstructured. Furthermore, the necessary sources of information are difficult to access since, usually, there is no direct connection to product planning (e.g. customers or suppliers) and the sources are usually scattered locally (e.g. in international markets). 3

4 Goals rapid development customer-oriented quality market-oriented prices High Need for Information numerous and varying sources diverse information unstructered information difficult to access High Need for Communication many an varying communication partners varying communication channels Complex Information processing systematization and coordination of information processing structured documentation and management of information flexible process sequences Figure 3: Information Processing in Product Planning [9] Obtaining large amounts of information from diverse fields requires intensive communication. This high need for communication can only be met by many and varying communication partners from areas both within and outside of the company. This requires having various communication channels which can be consulted in turn. The conditional factors presented here lead to complex information processing in product planning. In order to enable the creation of new market-oriented product concepts, the information and communication structures of product planning must be organized in such a way that the proper information regarding customer and market needs and the fulfillment of those needs is gathered early and can be processed quickly and in a goal-oriented manner. 3 Organization of the Information and Communication Structures of Market - oriented Product Planning From the perspective of this report, the success of product planning lies in focussing information processing on the target figures of market-oriented products. An important prerequisite for successful product planning, however, is that the company s strategic 4

5 development goals are clearly specified in advance. Planning implementation and performance control are oriented around these. All activities thus require a feedback to the strategic goals [10]. In the following points, recommendations are given for effective and efficient organization of information and communication structures of market-oriented product planning on the basis of these guidelines (cf. Figure 4). This requires the creation or provision of, for one, general organizational conditions, and for another, suitable information and communication technology tools, for the goaloriented completion of process tasks and for the optimization of the process sequences. Strategic Specifications Collection Evaluation Project Preparation Product and Project Plan Idea Sources Acceptance Idea Pool Core Team Core Team Experts Experts Continuous Communication Figure 4: Information and Communication Structures in Market-oriented Product Planning 3.1 Organization The way in which product planning is organized will determine the context for the coordination of information processing. It must be organized in a manner which corresponds to the specific challenges of market-oriented product planning. Teamoriented process organization meets these requirements, since it allows both the necessary structuring of process sequences as well as the flexibility needed to perform the tasks involved Systematizing Production Systematizing process sequences reduces the complexity of information processing, since it enables structured management and control of the process. On the basis of process sequences, a uniform critical path can be developed which sets the scope for content of and time for the development of process steps, whereby setting process- 5

6 oriented milestones serves the structuring of sub-activities [11]. The respective requirements regarding content of and time for the fundamental process steps of idea collection, idea evaluation and project preparation must be documented for processing. In order to expedite the process sequences, the activities should be processed in parallel to the greatest extent possible [12]. Collection The first important sub-activity in product planning is the systematic collection and organization of ideas [13]. The ideas for new product definitions may originate from the most varied sources within and outside of the company: customers, suppliers, product managers, sales offices, customer service, marketing, research & development, etc. In order to ensure that a large portion of the existing ideas are passed on to product planning, communication lines which are easily accessible to all idea sources, for one, and an incentive plan to motivate communication of the ideas [14], for another, must be created. In particular, the establishment of a central contact point for idea collection offers advantages here. In this way, the idea sources know where to go with their suggestions. This reduces the risk that ideas in the company fizzle out because it is not clear where they should be taken (e.g. to research & development or marketing). Above all, customer integration is highly valuable for market-oriented product planning [15]. It offers a great opportunity to incorporate current customer needs and demands directly, quickly and at an early stage [16]. Moreover, the customer holds a great potential for customer-oriented innovation ideas [17]. The customer should therefore have direct or indirect access to the idea contact point. With direct access, the customer has the opportunity to bring his ideas and demands directly to the contact point. This, however, also holds the danger that too much worthless input will be given. With indirect access, the actual delivery of customer ideas takes place via company employees who have regular contact with customers (e.g. sales employees, product managers or customer service employees). Other, more sophisticated access structures are also imaginable here, such as e.g. direct access for particularly important and experienced customers (so-called lead users [18]), indirect access for the other customers. The sum of all collected ideas yields a central idea pool from which future product definitions are drawn. The idea pool creates high transparency among all the ideas 6

7 received. Among other things, it gives an overview of the current market tendencies, current technical developments, and particularly active product fields. The convergence of information from widely varying areas will also generate room for creative links between available opportunities and wishes in the sales market [19]. Evaluation and Selection of Ideas Of the large amount of ideas received, the most promising ones must be chosen. To this end, a structured screening process should be developed which tests an idea s potential step by step (cf. Figure 5). This is useful since, as the product becomes increasingly concrete, the expenditures for processing the ideas increase disproportionately [20]. It is particularly important to clarify the market significance of an idea at an early stage. This involves checking, in the first stages of the screening process, whether an actual advantage for the affected or potential customers can be achieved by realizing an idea. In addition, competition should be considered in relation to the idea. Finally, the market appeal of the idea can be derived from this information. Doing this will prevent an idea from being pursued e.g. solely on the basis of technical appeal [21]. The respective stages of evaluation should be guided by corresponding evaluation lists (e.g. checklists) which document the respective stages. The markedness of the respective criteria are used to prioritize the ideas [22]. Thereafter, at the conclusion of each stage, it is decided whether the idea will be discarded or pursued further. Those ideas which have successfully passed all stages form the final pool for the definition of new products. 1 st Stage Supporting strategic goals 2 nd Stage Customer benefit Profitable market potential Efficient realization potential 3 rd Stage Prioritizing in consideration of the company s concrete situation (e.g. available resources) Figure 5: Screening Process for Idea Selection [23] Product and Project Definition In the last stage of the planning process, concrete products must be defined from the pool of selected ideas and project suggestions formed for their realization. 7

8 In forming project suggestions, a market-oriented grouping of the ideas at hand must be checked. The ideas may be grouped according to markets, customer segments or related customer needs. Project suggestions are then evaluated and selected according to market orientation, i.e. above all with regard to customer-oriented implementation of the idea, customers affected, the potential market segments, and to changing competition (e.g. with respect to competitors). If the project suggestions are positively assessed from a market point of view, further evaluation analyses are sought out for the final evaluation (e.g. as regards economy, necessary and available resources). Thereafter, project suggestions are prioritized. A ranking or scoring method, for example, in which customer utility is accorded a special weighting, may be used for this. After choosing the most promising project suggestions, the fine planning for the realization of projects finally begins Complete Documentation Complete documentation of planning results and processes is important to the achievement of greater transparency of process and information [24]. A documentation concept should be developed which sets uniform rules for the type and intensity of the documentation, as well as for the management of the documents. For example, inclusion of ideas with standard formulas containing precise information about the origin, contents and utility of the idea may be documented. Likewise, uniform lists may be drafted for the respective evaluation steps, in which the requisite evaluation information (e.g. expected market potential, engendered costs) can be specified in a structured manner. In this way, general evaluation criteria can be specified which assure customer and market orientation. All information needed for planning should also be systematically documented in this manner (e.g. regarding ideas and the project). This increases the transparency of planning across existing ideas, evaluation and project information. This increased transparency reduces duplication of efforts and makes accessing and locating existing information easier. Comprehensive documentation further enables the continuous availability of information about the status, problems and results of planning, thus accelerating the planning process. Further, documentation necessitates uniform and complete evaluation of all ideas and project suggestions. This decreases the risk of biased political influence being exerted 8

9 (e.g. by product managers) as well as the risk of poor decisions regarding future products. The documentation of the final project definition forms the basis for subsequent development stages. The more structured and complete it is, the more likely it is that the projected development schedule and product quality will be met. The process flow can be documented using flow documents which list the activities needing to be carried out. These flow documents are to be filled out in accompaniment with the process. Documenting the process flow makes it possible to comprehend the planning activities which were carried out (e.g. in the case of planning which is faulty or too lengthy). This offers the possibility of continuous process control. Complete documentation facilitates an analysis of the procedure steps with a view to time and content. In this way, weak points in the information processing stage can be uncovered, such as protracted processing times or unfounded evaluation results Linked Process Teams The product planning process must leave room for creativity and ensure largely nonhierarchical decisions. These requirements can best be fulfilled in a team structure [25]. For product planning tasks, it seems useful to employ a core team which covers overlapping functional areas and is closely linked to experts from various professional and functional areas. At a further level, communication relations with other involved groups, especially with the idea sources, should be taken into consideration (cf. Figure 6). The core team completes or, as the case may be, coordinates the necessary process activities from idea collection to project preparation. Short and non-bureaucratic lines of communication reign within the core team. A vote regarding information and decision-making takes place in regular meetings. Such teams can thus ensure quick decision-making [26]. The presence of various fields of knowledge in the core team reduces the risk of biased decision making (e.g. overemphasis on technical functionality). This is why, above all else, representatives from marketing, sales and quality assurance are so important as regards market-oriented products. The number and size of core teams and the amount of hours worked by team members can be flexible. For example, it is conceivable that, for each of the various business 9

10 areas, one core team is set up whose members work full- or part-time, depending on the size of the area. Extended Team Development Marketing Sales Production Design Quality Core Team Customers Suppliers Figure 6: Team Structure Configuration for Product Planning [27] If information is required which exceeds the teams information stand, the team members turn to the experts in the appropriate professional area (e.g. production engineers). Such participation by professionals from all bordering disciplines creates a qualified information pool and provides an opportunity to get product managers from the markets which are affected by the product planning more closely involved in the planning. In this way, close agreement between innovation plans and the respective customer wishes and market conditions can be achieved on site. Furthermore, the communication channels to the idea sources, e.g. customers or suppliers, should remain in place throughout the entire the planning stage. In this way, any ambiguities regarding the submitted ideas can be discussed directly with the appropriate groups. Furthermore, the idea source has the opportunity to track the further development of his idea and possibly to give further tips. 3.2 Information and Communication Technology Efficient process-oriented information processing in product planning can only be achieved with comprehensive information and communication technology support of the product planning process. A team-oriented arrangement of information and communication technology (ICT) is provided as appropriate for the complexity of 10

11 information processing and organizational structures of product planning. The ICT must support information processing as regards both content and process orientation [28]. Database and document management systems which support consecutive or simultaneous processing of information objects, e.g. idea descriptions, CAD-drawings or market analyses, as well as structured data archival of accumulated documents are suitable for content support. Within the scope of team-oriented support, however, the requisite system is distinguished from simple central databases. It must consider the diversity of the users, information sources, and documents, as well as the flexible information flow. On one hand, the participating team members access to information must be coordinated by a user model with dedicated rights. On the other hand, a comprehensive yet easily comprehensible functionality must be provided for entering and processing not only structured, but above all also unstructured data and sources of information. Databases Team-oriented Information and Communication System Content Support Document Management Systems Workgroup Systems Workflow Systems Process-oriented Support Figure 7: Content and Process-oriented ICT Support of Product Planning [29] Workgroup and workflow systems are suitable for consideration as elements in processoriented support. Workflow systems control the flow of process steps in information processing. In planning, however, a workflow system may only assume basic process control. Excessively automating the flow would not permit the flexibility required by process variants. Workgroup systems which are adjusted to the peculiar communication 11

12 situation in product planning (e.g. distributed communication with many participants) are suited to meet team-oriented communication requirements. Comprehensive information and communication technology support of all information processing steps, from idea collection to composing project plans, is of particular importance here. The basis of the system must be one uniform EDP platform which expresses the planning process as a digital chain. This platform should provide standardized interfaces through which the various system elements can be integrated. An important beneficial effect is the qualitative improvement of information flow [30]. All process participants, who might be separated by space and time, work with current information, the completeness and consistency of the information is increased and the existing information becomes more transparent. Moreover, the processing times of the planning process are reduced since, among other things, media interruptions, duplicate efforts and access time to documents are minimized. Likewise, the effort required to find existing information is noticeably reduced as a result of structured electronic data management. Further advantages are the improvement of data security, increased capacity (e.g. via reduced archival and retrieval expenditures) and the reduction of costs (e.g. personnel, space or paper costs). In addition, the process sequence is saved together with its related documents, thus enabling participants to gain a quick overview of the previous process steps and the status of the process. Efficient process controlling, which is the prerequisite for continuous process improvements, can be established on the basis of this process transparency [31]. A comprehensive information and communication technology solution should, however, be defined and implemented in mutual accord with the organizational arrangement, so that the potentials of organization and technology can be used to their full advantage. ICT may not only lead existing, stable processes to a higher level of efficiency, it may also open up new organizational arrangement options (e.g. location and time distributed planning teams with customer integration) [32]. 4 Case Study: Product Planning at Siemens, Information and Communication Networks The Siemens Group Information and Communication Networks, with approx. 63,000 employees and a sales volume of DM 25 billion, is the world market leader for communication and transmission systems. There, the peculiar challenges of product development lie in the dramatically changing business segment on international 12

13 information and telecommunication markets. This is evidenced inter alia by the quickly progressing change in technologies, applications and customer needs [33]. In the early 1990s, the development time for new products was too long to be able to react to the changing conditions in time. Additionally, there were problems registering sophisticated customer needs on the international markets and adequately converting these to new products in accordance with their respective economic significance. The basic reasons for this could be found in the feeble structures of the planning process and in the opportunities for political influence of the planning goals which went along therewith. Thus, in the mid-1990s, among other things, the area of responsibility of product planning was reorganized into a complete process with consistent focus on market and customer needs [34]. The ICT-supported process concept described below was developed in the "Enterprise Switching Networks" division, where it was productively utilized. 4.1 Reorganization of Product Planning Following reorganization, the product definition process was restructured and divided into the sub-processes collection, evaluation and bundling (cf. Figure 8). Collection comprises gathering product ideas and demands (= requests). In evaluation, the requests are evaluated and selected on the basis of various specifications with a view to customer benefit, technical implementation and economy. The final process is grouping together related requests (= bundling). Projects for the realization of new products are formed from these bundles. These projects are planned and prepared during the product definition stage for subsequent product realization. The realization of the respective sub-processes is measured against the achievement of preset process milestones (e.g. request evaluated). The handling of the various process steps is carried out, for the most part, by employee teams covering overlapping function areas, i.e. definition teams. 13

14 Central Contact Point Collection Evaluation Bundling Requests Definition Team Requestor Experts Experts NR D0 D1 M0 M1 Status Process Flow New Request Request Complete... X Rejected Request Evaluated Bundle Started Realization Approval ICT-Support Browser TopInfo-R Database Browser Siemens LAN/Intranet LAN Client LAN Client Document Management System Figure 8: ICT-Supported Product Planning at Enterprise Switching Networks, Siemens 4.2 Introduction of an Information and Communication Technology System Implementing the reorganized product definition process quickly resulted in the need for ICT support in order to enable efficient management of the complex information processes. There were particular problems in integrating the persons involved, as well as with the uniform documentation of the accumulating information. In collaboration with a software company [35], the comprehensive IT-solution Top-Info was developed for product definition (cf. Figure 8). TopInfo provides everyone involved in the process with a uniform information technology basis to support the respective process tasks. This enables anyone who is connected to enter requests directly into a central database via the company-wide intranet. The only requirement for this is a Web browser. Thus it was possible to integrate employees from marketing companies which are dispersed worldwide and, consequently, to increasingly absorb market information. The collected requests may be called up and processed with the aid of the Request Manager, a LAN client. To do this, after the requests are entered, they are assigned to a definition team member, who is then the direct contact person for all future matters pertaining to the assigned request. The Request Manager controls the process sequence 14

15 during the subsequent request evaluation. Completed operation steps are also assigned to the respective request so that the current request status can be called up at any time. Depending on the assignment of rights, requests can be called up both by employees and by idea sources. TopInfo is supplemented by an integrated document management system which runs autonomously in the TopInfo background. The documents, however, are managed via the TopInfo user interface. This allows all documents associated with a request, e.g. technical specifications, to be linked directly to the respective request and called up in TopInfo. In this way, (worldwide) cooperation between team members or with consulted professionals can be eased considerably. The communication and document exchange among connected team members and experts is carried out via a separate module, the Notification Manager. For the preparation of realization projects, users have access to another system module, the Package Manager. This enables inter alia the bundling of evaluated and selected requests into packages, definition of realization projects, and coordination of the projects cost, deadline and capacity planning. Beyond the basic functionalities described here, the implemented IT-solution offers numerous secondary functions. There are diverse search and filter functions for existing data, structured processing of the information in reports, or the replication capability between the TopInfo databases utilized at Siemens in Munich and at Siemens in Santa Clara, USA, to name a few. 15

16 Figure 9: Request Manager on the Siemens Intranet 4.3 Successes The main goal, reducing planning times, was fully achieved by introducing ICTsupported product planning. The planning times were reduced by more than half. Additionally, product accuracy has increased, since sophisticated customer demands in the various markets are recognized earlier. Product stability was increased, as well, since technical defects in the products have been minimized. Essential factors contributing to this success were the introduction of a structured process, the formation of a linked team and comprehensive ICT support. In this way, the paths used prior to reorganization are replaced by clear procedural steps. Through the definition teams which work together, in some cases globally, diverse information can be processed effectively and complex decisions can be reached more quickly and on a more sound basis. As a result of the transparency of requests which has ensued, the various product managers are now in a position to profit from the ideas of other markets and to use these ideas for their own markets. With the introduction of the IT-solution, clear responsibilities and continuous comprehensibility of the procedural steps was achieved, as was the transparency of all 16

17 data [36]. This facilitated the implementation of a controlling process with which the definition process is continually evaluated. This, in turn, enables inter alia the determination and analysis of the processing times of individual requests. This allows inefficient points, where e.g. the request lies around too long or the information processing must often be carried out twice, to be localized and improved. The effect on planning costs and the subsequent processes can not be precisely quantified. It may be assumed, however, that advantages were realized via the marked shortening of planning times and reduced transaction costs. 5 Outlook The configuration of information and communication structures in product planning significantly influences the development of market-oriented products. The arrangement of organization and information and communications technology must not, however, be limited to the initial process of product development, but must also include the further stages of the product life cycle - from realization to disposal of the product. The concrete implementation of planning concepts occurs in the subsequent stages. There it must be ascertained, for one thing, that the projects are implemented in conformity with the goal and that the customer-oriented functionality is successfully communicated to the market. For another thing, it is important that the market-relevant information which emerges in the subsequent stages be consistently provided to planning. This may be achieved via a bi-directional arrangement of the information flow which encompasses all stages. It must be considered, however, that each of the tasks in the various cycle stages places different demands on information processing. This is why integrating organization and information structures must be developed which are not only cycle-encompassing, but which also support stage-specific steps of information processing. 17

18 Bibliography [1] Cf. Bullinger, H.-J., Wasserlos, G., Reduzierung der Produktentwicklungszeiten durch Simultaneous Engineering, in: CIM-Management (6/1990), pp [2] Following Castiglioni, E., Organisatorisches Lernen in Produktinnovationsprozessen, Wiesbaden (Gabler) 1994, p. 41 ff. [3] This is the conclusion of the international investigation Vision in Manufacturing, conducted by Deloitte & Touche Consulting regarding trends and strategies in the processing industry. The study was presented in March [4] In product planning, basic decisions are made regarding the new product. Approx. 70% of the quality, approx. 60% of the costs and approx. 80% of the deadlines are determined here. Thus, it is largely determining for the economic success of the product innovation. Cf. Dorbrandt, J., Fröhlich, J., Schmelzer, H. J., Schnopp, R., Ausgewählte Projektbeispiele zur Reduzierung der Entwicklungszeit, in: Reichwald, R., Schmelzer, H. J., Durchlaufzeiten in der Entwicklung, München u.a. (Oldenbourg) 1990, p. 38. Cf. also Eßmann, V., Planung potentialgerechter Produkte, Wiesbaden (Gabler) 1995, p. 23. [5] Cf. for the creation of market-oriented products Siegwart, H., Senti R., Product Life Cycle Management, Stuttgart (Gabler) 1995, p. 31 ff. [6] Target figures influence each other. More customer-oriented functions often lead to longer development times and greater costs. Likewise, an increase in development speed can cause additional expenses. Therefore, market-oriented product planning is concerned with conceiving the best possible product, from a customer point of view, while taking the quoted target figures into consideration. [7] Cf. Clark, K. B., Fujimoto, T., Automobilentwicklung mit System - Strategie, Organisation und Management in Europa, Japan und USA, Frankfurt am Main (Campus) 1992, S. 30 and Helbig, K., Methoden der Produktplanung von Investitionsgütern, Frankfurt am Main (Lang) 1997, p. 2. [8] The problem of idea generation is outside the scope of this report. For this problem cf. Hummel, T., Einflußgrößen auf die Ideengewinnung im Unternehmen, München (VVF) 1982, Helbig, K., Methoden der Produktplanung von Investitionsgütern, Frankfurt am Main (Lang) 1997, p. 53 ff. and Eßmann, V., Planung potentialgerechter Produkte, Wiesbaden (Gabler) 1995, p. 101 ff. [9] Following Euringer, C., Marketorientierte Produktentwicklung, Wiesbaden (Gabler) 1995, p. 66. [10] Closer observation of the strategic focus of company product planning is dispensed with here. Cf. in this regard Fricke, G., Lohse, G., Entwicklungsmanagement, Berlin u.a. (Springer) 1997, p. 52 and 54 ff. as well as Sawalsky, R., Management and Controlling der Produktentstehung, Wiesbaden (Gabler), 1995, p. 91 ff. [11] Cf. Drüke, H., Kompetenz im Zeitwettbewerb, Berlin u.a. (Springer) 1997, p. 58 f. [12] Cf. Fricke, G., Lohse, G., Entwicklungsmanagement, Berlin u.a. (Springer) 1997, p. 31 f. [13] Cf. Helbig, K., Methoden der Produktplanung von Investitionsgütern, Frankfurt am Main (Lang) 1997, p. 55. [14] This report will not go into detail regarding the creation of suitable incentive structures. Cf. in this regard Staudt, E. et al., (1990), Anreizsysteme als Instrument des betrieblichen Innovationsmanagement, in: Zeitschrift für Betriebswirtschaft, (11/1990), pp [15] A study of English and Japanese companies showed that more than 70% of the companies view the success factor of new products in the fulfillment of customer needs. Customer recommendations, however, were used as an actual source of new product developments by only approx. 20% of these companies. Cf. Edgett, S., Shipley, D., Forbes, G. (1992), Japanese and British Companies Compared: Contributing Factors to Success and Failure in NPD, in: Journal of Product Innovation Management, (9/1992), pp [16] Customer integration yields the greatest success rate particularly in the early stages of innovative product development. It is particularly in these stages, however, that there is a clear deficit in customer integration. Cf. Homburg, C., Gruner, K., Kundenorientiertes Innovationsmanagement - Bestandsaufnahme, Erfolgsfaktoren, Instrumente, Wissenschaftliche Hochschule for Unternehmensführung, Koblenz 1996, p. 15. [17] Cf. Hippel, E. v. (1988), The Sources of Innovation, New York (Oxford University Press) 1988, p. 13 ff. [18] Cf. Hippel, E. v., The Sources of Innovation, New York (Oxford University Press) 1988, p. 102 ff. 18

19 [19] Cf. Picot, A. (1986), Informationsmanagement und Unternehmensstrategie, in: 3. Europäischer Kongreß über Bürosysteme und Informationsmanagement, München 1986, p. 763 f. [20] Helbig, K., Methoden der Produktplanung von Investitionsgütern, Frankfurt am Main (Lang) 1997, p. 97. [21] In order to ensure the best possible fulfillment of market demands and wishes, one can refer e.g. to the Methods of Quality Function Deployment (QFD). Cf. in this regard Danner, S., Aachen (Shaker) 1996, p. 45 ff. [22] The prioritization and selection of ideas can be aided e.g. by a point evaluation method. Cf. Helbig, K., Methoden der Produktplanung von Investitionsgütern, Frankfurt am Main (Lang) 1997, p. 115 ff. [23] Following Fricke, G., Lohse, G., Entwicklungsmanagement, Berlin u.a. (Springer) 1997, p. 66 f. [24] Cf. Schmelzer, H. J., Steigerung der Effektivität and Effizienz durch Verkürzung von Entwicklungszeiten, in: Reichwald, R., Schmelzer, H. J., Durchlaufzeiten in der Entwicklung, München u.a. (Oldenbourg) 1990, p. 45. [25] Cf. Euringer, C., Marktorientierte Produktentwicklung, Wiesbaden (Gabler) 1995, p. 68. [26] Cf. Fricke, G., Lohse, G., Entwicklungsmanagement, Berlin u.a. (Springer) 1997, p. 30 f. [27] Following Ehrlenspiel, K., Integrierte Produktentwicklung: Methoden für Prozeßorganisation, Produkterstellung and Konstruktion, Wien (Hanser) 1995, p [28] Cf. regarding Informations- und Kommunikationssytemen für gruppenorientierte Aufgabenabwicklung Picot, A., Reichwald, R., Wigand, R.T., Die grenzenlose Unternehmung, 2. Aufl., Wiesbaden (Gabler) 1996, p.146 ff. and p. 253 ff. [29] Following Picot, A., Reichwald, R., Informationswirtschaft, in: Heinen E. (Hrsg.), Industriebetriebslehre, 9. Aufl., Wiesbaden (Gabler) 1991, p [30] Cf. Wohlenberg, H., Gruppenunterstützende Systeme in Forschung und Entwicklung, Wiesbaden (Gabler) 1994, p. 48 f. [31] With the aid of workflow components, for example, it can be precisely determined how long which process steps lasted. Likewise, e.g. the duplication rate of individual process steps can give clues to their quality. [32] Cf. in this regard Gaitanides, M., Müffelmann, J., Zur Überwindung des IuK- Produktivitätsparadoxons beim Business Reengineering, in: DV-Management, (1/1996), pp [33] In the Enterprise Switching Networks Group, 90% of the products sold today are less than two years old. [34] The information regarding the product definition process in the Enterprise Switching Networks Group at Siemens comes from conversations with Siemens AG employees. In particular, Mr. Helmut Wittmann ( Helmut.Wittmann@icn.siemens.de) should be named, who inter alia is in charge of information management. [35] The information regarding TopInfo comes from the manufacturing company F&F Computer Anwendungen und Unternehmensberatung GmbH ( info@ff-muenchen.de). [36] Today, TopInfo is used in five business segments in the ICN division at Siemens. Approx. 1,500 users and 17 definition teams work with this system. Approx requests are received monthly and processed with the aid of the system. Because of its great success, TopInfo is now being introduced in other Siemens divisions and in other companies. This is possible with minimal customizing because of its flexible concept structure and open architecture. About the Author Konrad Schachtner has a Master s degree in Commerce Education and is a scientific collaborator at the Research and Service Center for Applied Information Technology in the School of Business at the Ludwig-Maximilians-University Munich, Telephone ++(49) , kscha@bwl.uni-muenchen.de. 19