The objective of this thesis is to offer a combined research-based approach for improving new product development processes by means of exchanging proficiencies with externals. More accurately, a critical assessment of the suitability of selected open innovation methodologies at different stages of the innovation process enhances the research focus of this thesis.
In the wake of globalization and digitization trends, entire industrial dynamics have transformed. Particularly product innovation management has significantly matured over the past decades and therefore, gained special attention. Manufacturers are nowadays able to serve regional as well as international markets, while taking advantage of distributed resources and expertise.
On the downside, firms are steadily confronted by two predominant challenges: First, lead times for launching new products are dramatically decreasing due to shortened product life cycles. Hence, development projects need to be well-structured and more time-efficient. Secondly, sophisticated knowledge and expertise evolve more rapidly. Consequently, industrials become more specialized in subfields, which forces manufacturers to engage with others to carry out development projects.
In order to stay competitive in international and fast changing markets, organizations are required to innovate on a regular basis. Though, innovation development has become increasingly challenging and frustrating. New products are supposed to generate higher sales, while revenue margins are decreasing at the same time. Even successful corporations cannot keep up with regularly launching highly performing innovations.
Therefore, many manufacturers rather focus on incremental product improvements instead of developing radical innovations. Particularly as a company grows, the obstacles of launching successful new products become even more difficult to overcome. Simultaneously balancing the needs of new and existing customers as well as discovering new business lines, while pursuing extant business models portray omnipresent struggles of leading firms.
Table of Contents
1 Introduction
1.1 Problem Statement
1.2 Research Question
1.3 Conceptual Framework
2 Theoretical Framework
2.1 The Concept of Innovation
2.1.1 Definition of Innovation
2.1.2 Innovation Indicators
2.2 Innovation Process
2.2.1 Origin and Development of the Stage-Gate Process
2.2.2 Process Components
2.2.3 Evolution of the Stage-Gate System
2.2.3.1 Third-Generation Process
2.2.3.2 Next-Generation Stage-Gate System
2.2.4 Next-Generation Idea-to-Launch System
2.3 Open Innovation
2.3.1 The Closed Innovation Paradigm
2.3.2 The Open Innovation Paradigm
2.3.3 Enablers and Obstacles
2.3.4 Types of Open Innovation
2.3.4.1 Inside-Out Process
2.3.4.2 Outside-In Process
2.3.4.3 Coupled Process
3 Combination of Conceptual Findings
3.1 State of Research
3.2 Application of Selected Open Innovation Approaches at Different Stages of the Innovation Process
3.2.1 Discovery: Idea Generation
3.2.2 Stage 1: Idea Scoping
3.2.3 Stage 2: Build Business Case
3.2.4 Stage 3: Development
3.2.5 Stage 4: Testing and Validation
3.2.6 Stage 5: Launch
3.3 Summary and Evaluation of Findings
3.3.1 Out-Licensing or Selling IP
3.3.2 Customer Involvement
3.3.3 Supplier Involvement
3.3.4 In-Licensing or Buying IP
3.3.5 Alliances with Universities
3.3.6 Alliances with Competitors
4 Conclusion
4.1 Theoretical and Managerial Implications
4.2 Conditions and Limitations
4.3 Further Research Potential
Objectives and Topics
This thesis examines the suitability of various Open Innovation (OI) approaches across the different stages of the innovation process. By linking the structural "Next-Generation Idea-to-Launch" system with specific OI paradigms, the work aims to determine how firms can effectively leverage external knowledge to enhance their product development performance.
- The evolution of structured new product development frameworks (Stage-Gate systems).
- The transition from closed innovation paradigms to open, distributed innovation models.
- Classification of Open Innovation types (Inside-Out, Outside-In, and Coupled processes).
- Critical assessment of OI implementation at specific stages, from discovery to commercialization.
Excerpt from the Book
3.2.1 Discovery: Idea Generation
The ‘Discovery: Idea Generation’ is the first step before a new product idea arrives at the first gate but neither represents a stage nor a gate (Cooper, 1990). Yet, the process of generating an idea will further be assumed to be another work station of the innovation process since knowledge interchanges can support a firm’s ideation efforts. As discussed, firms sometimes do not essentially understand what their customers’ needs and demands are (e.g. von Hippel, 2005). Based on this assumption, the Next-Generation Idea-to-Launch System has adapted insofar as it suggests the conduction of a first feedack iteration loop. More accurately, a first customer revision enables the project team to further specify a new product idea according to market demands (Cooper, 2014).
Out-Licensing or Selling Intellectual Property
By recording either strategic benefits or generating additional revenues, out-licensing or selling IP generally presents an attractive opportunity to pursue, especially in the beginning of the new product development process (cf. Lichtenthaler, 2007; 2009). However, the identification of suitable licensees requires a devoted project team as well as an active dedication (Lichtenthaler, 2011). According to the assumptions of the traditional Stage-Gate Systems, legal work in form of patent and copyright applications is not scheduled before developing the product’s business case, i.e. the second stage of the innovation process (Cooper, 1990). Even though the Next-Generation Idea-to-Launch System premises emphasize that activities should not be bound to certain stages anymore (Cooper, 2014), patent applications are mostly filed as an idea has become more sophisticated (cf. Cooper, 1990). Moreover, particularly since the performing firm needs to assess whether to out-license or sell IP, throughout considerations are paramount (cf. Kotha et al., 2018).
Chapter Summaries
1 Introduction: This chapter introduces the research context, highlighting the challenges of fast-changing industries, and outlines the problem statement, research question, and conceptual framework of the thesis.
2 Theoretical Framework: This section provides a foundation by summarizing the concepts of innovation, the evolution of Stage-Gate process models, and the shift from closed to open innovation paradigms.
3 Combination of Conceptual Findings: This core chapter maps specific Open Innovation approaches to the stages of the innovation process and evaluates their implementation suitability.
4 Conclusion: The final chapter summarizes the research, offers theoretical and managerial implications, acknowledges limitations, and suggests potential areas for future research.
Keywords
Open Innovation, Stage-Gate Process, Idea Generation, Idea Scoping, Build Business Case, Development, Testing and Validation, Launch, Intellectual Property, Customer Involvement, Supplier Involvement, Alliances with Universities, Alliances with Competitors, Product Development, Innovation Performance.
Frequently Asked Questions
What is the primary focus of this work?
The thesis focuses on assessing the suitability of selected Open Innovation (OI) approaches at different stages of the new product development process.
What are the central thematic fields covered?
The research integrates the "Next-Generation Idea-to-Launch" system with three main types of Open Innovation: Inside-Out, Outside-In, and Coupled processes.
What is the central research question?
The central question addressed is: "For which stages of the innovation process are selected open innovation approaches suitable?"
Which methodology does the author employ?
The author uses a deductive approach, combining existing theoretical frameworks of new product development with documented OI strategies to perform a critical suitability assessment.
What is discussed in the main part of the thesis?
The main part provides a stage-by-stage analysis (from Discovery/Idea Generation to Launch), evaluating how specific OI approaches like customer involvement or IP licensing can be integrated.
Which keywords best characterize this research?
Key terms include Open Innovation, Stage-Gate, Product Development, Innovation Process, IP Management, and Strategic Alliances.
How does the "Next-Generation Idea-to-Launch" system differ from traditional models?
It emphasizes adaptability, agility, and acceleration, allowing for more flexible, non-linear activities compared to the rigid original Stage-Gate framework.
Why is "Co-opetition" considered a relevant strategy in this thesis?
It is analyzed as a Coupled OI approach, where competitors cooperate in early stages to share R&D costs and set standards before shifting to a more competitive relationship as the launch approaches.
- Citation du texte
- Claudia Specht (Auteur), 2019, Open Innovation Approaches at Different Stages of the Innovation Process. Suitability for New Product Development Processes, Munich, GRIN Verlag, https://www.grin.com/document/540254
