The thesis work aimed at developing a framework for portfolio management and business case development that can be used as decision support for a company for new product development. The assignment was to study relevant literature resulting in an aggregated view on this topic and the parameters that impact successful product development. The literature involves project initiation, different levels of product innovation development and information about important research criteria to include when forming new product projects ideas. This information helps to support how to objectively evaluate and compare product projects. The literature also involves different relevant tools to use for providing information and manage product portfolio management along with their benefits. Out of this aggregated view, a template and suggested decision model specific for the company has been established. The resulting template has for purpose to be used for preparation of providing a solid information base when a new product project idea is to be presented. The decision base has the purpose to help the members and managers in the product council to form a decision on what product idea to proceed with, which hopefully will result into launch and success. The framework aims to assess individual product development initiatives as well as managing the product portfolio aspect. Except the study of a considerable amount of literature, qualitative research has been made as well. The qualitative research has been performed in the form of semi-structured interviews together with people within the company that has been used as case study in this report. The interviews contributes with information about the current state of the company’s product offering process together with attention paid for what is missing and what improvements that is sought. In such way, the qualitative research contribute to the result of the framework in the sense that it is attributed towards the company in the case study and thus slightly towards technological network industries, although the framework is made for a generic use. As by this thesis, the framework focus on one company, but it has for purpose to be adaptable and inspiring for any company with respect for the individual company’s restrictions.

Made available in DSpace on 2010-04-20T20:51:20Z (GMT). No. of bitstreams: 3 154937.pdf.jpg: 21751 bytes, checksum: 368da5f727409c22cbac72a42fbee48e (MD5) 154937.pdf: 977672 bytes, checksum: 718f8bf3b0738007ff2d0934c3a71f69 (MD5) 154937.pdf.txt: 390263 bytes, checksum: ea1a305f22b0ab25798fb12b60f41224 (MD5) Previous issue date: 2006-02-07T00:00:00Z / The present scenario is marked by intensive information and networks, besides rapidly technology evolution and globalization effects. Moreover, the continuous raise of competition has consequences such as hard product and services differentiation based on costs and quality. This is an opportunity for new products introduction processes and politics as an important source of value as well as profit. There are several examples of companies that have had great success mainly due to products or services innovations. The purpose of this research is the study of financial institutions, particularly the analysis of retail banks in Brazil and their product (and service) development processes. These financial institutions, as well as Brazilian banking industry, has suffered several and significant transformations in recent years. The banking industry has an important role at Brazilian scenario, with positive rates of assets and profit growth in last years. This banking industry picture presents a rare chance of studies in this area. On this way, the authors elaborated an exploratory research based on a multiple case studies methodology. The study used a sample of six retail banks answering with 50% of this industry in Brazil. In order to analyze these cases, some classic conceptual models concerning new product development was used, as well as some theoretical references regarding the intensive information and network aspects of Brazilian retail banking industry. Applying this conceptual background on these case studies, the authors were able to understand and map the product development process, as well as their stages. The analysis still made possible the comprehension of underlying subjects to the main theme that appeared along the study. / O cenário que se desenha é fortemente marcado pela informação intensiva e pelas redes, além de evolução acelerada da tecnologia e globalização. Além disso, o contínuo aumento da competição tem tornado mais difícil a diferenciação com base em custos ou qualidade, gerando uma oportunidade para que a introdução de novos produtos se destacasse e se transformasse em uma fonte de ganhos competitivos. Vários são os exemplos de empresas que tiveram (e têm) sucesso em grande medida através de inovações em seus produtos ou serviços. O propósito desta pesquisa é o estudo de instituições financeiras, particularmente a análise de bancos de varejo no Brasil e seus respectivos processos de desenvolvimento de produtos e serviços. As instituições financeiras, do qual o setor bancário brasileiro faz parte, têm sofrido grandes e significativas transformações nos anos recentes. Este segmento possui expressiva participação no cenário nacional, apresentando taxas positivas de crescimento de ativos e lucros nos últimos anos. Esse cenário de intensas mudanças apresenta uma rara oportunidade de estudos nessa área. Dessa maneira, conduziu-se uma pesquisa de cunho exploratório que fez uso de estudos de casos múltiplos. Utilizou-se uma amostra de seis bancos que respondem por cerca de 50% do segmento no país. Para a análise dos casos, utilizaram-se alguns modelos conceituais clássicos a respeito de desenvolvimento de novos produtos, além de referências acerca do cenário em que a amostra está imersa. Pela aplicação deste arcabouço aos estudos de casos, mapeou-se o processo de desenvolvimento de produtos, bem como suas etapas. A análise possibilitou ainda a compreensão de questões subjacentes ao tema principal que surgiram ao longo do trabalho.

Ce travail de thèse a pour thème le co-développement de nouveau produit avec les fournisseurs.Nous proposons une méthode d’analyse des dysfonctionnements liés à ce type de conceptiondite « collaborative » qui permet d’en améliorer la pratique. Ce travail s’appuie sur des études decas réalisées au sein de l’entreprise Somfy, des interviews menées au sein de 10 entreprises etune étude quantitative menée avec l’Université de Twente. A partir de la littérature et des étudesde cas, nous proposons une liste des dysfonctionnements puis une classification de ces derniersen 5 classes selon le cycle de vie de la collaboration client/fournisseur. Puis, une analysequantitative d’impact des dysfonctionnements sur la performance projet via une enquête estproposée pour généraliser les résultats des études de cas. Le résultat final de cette thèse est unoutil d’analyse de risques en co-développement avec les fournisseurs développé avecl’entreprise Somfy et inspiré de la démarche AMDEC. Cet outil permet, en début de projet de codéveloppement,d’identifier les dysfonctionnements potentiels les plus critiques de façon àmettre en place un plan d’action adapté. / This thesis is focused on collaborative development of new products with suppliers. A method toanalyze failures linked to this type of development is proposed and enables to improve thispractice. This work is based on case studies carried out at Somfy Company, on interviews carriedout with 10 companies and on a quantitative study carried out with the University of Twente.From a literature review and our case studies, a list of failures is proposed followed by a failuresclassification in 5 classes following the customer/supplier collaboration lifecycle. Then, aquantitative impact analysis of the failures on the project performance via a survey is proposedto generalize the case studies’ results. The final result of this thesis is a risk analysis tool appliedto collaborative development with suppliers developed with Somfy and inspired by the FMEAapproach. This tool enables, at the beginning of a collaborative development project, to identifythe most critical potential failures in order to set up an adapted action plan.

The rapidly evolving global market scenario raised multiple challenges for an organization such as: change in customer needs and lifestyle, increased competition, compulsion to enter into new markets, pursue to innovate and so on, which raises an additional challenge for organization to sustain and succeed. In order to meet these multiple challenges, continuous New Product Development (NPD) turns out to be one of the essential tasks for any organization to improve market share, profitability and to succeed. In this scenario, a new product portfolio with best mix of new projects that ensures strategic alignment, balance of portfolio and improves organizations’ potential gain is compulsion. However, From the literature, it is observed that, ‘As nearly half of initial NPD ideas occur informally or without a specific goal, even a best performing organization requires a major improvement in the decision making process of Project Evaluation and Selection (PES)’. This emphasizes the significance of decision on Project Evaluation and Selection (PES) of NPD. Additionally, huge investments and resources need to be employed based on decision that is taken at PES phase of NPD. Thus PES turns out to be a crucial and essential phase of New Product Process (NPP). All these stated aspects of this challenging and crucial strategic decision of PES provoke for the requirement of an efficient management system and decision making model. In the literature the management system and decision making processes for formulation of portfolio is termed as “New Product Portfolio Management (NPPM)”. Though various researchers have been focusing on this particular issue of improving NPPM Performance, from the analysis of literature, to the best of our knowledge, it is observed that no one has identified or considered an exhaustive list of possible evaluative dimensions while taking the decision on PES of NPPM (PES-NPPM). This thesis makes an attempt to address this research gap, and the scope of this study is pertained to three sectors of manufacturing industry, namely, Automotive, Electronics and Machine Tools. Accordingly, the main objective of this thesis is “ In order to achieve this particular objective the following sub-objectives, methodologies, and analysis are carried out. For this purpose, first and foremost analysis of literature on PES is carried out. Accordingly, five evaluative dimensions are identified for PES-NPPM and they are: (i) Strategic Fit; (ii) Portfolio-Innovation Balance; (iii) Risk-Uncertainty Estimation; (iv) Cost-Revenue Estimation and (v) Optimized Resource Allocation. Furthermore, it is observed that, there is no study considering all the five evaluative dimensions simultaneously for PES-NPPM either to analyze their impact on performance of NPPM or to develop a decision making model. Thus, we are addressing a new problem configuration in the area of PES-NPPM. Additionally, though the requirements of multi-criteria models for PES-NPPM is discussed both in academic and practioners points of view, the real demonstration of the applicability of multi-criteria models are given a scant treatment in the literature. . By the end of the achieving this objective, we identified five distinct evaluative dimensions which are used in different combinations for PES-NPPM. Further, for measuring each of these five evaluative dimensions, we identified 23, 11, 15, 10, and 18 measurement variables respectively. Based on the evaluative dimensions considered in this study, a framework work is proposed for PES-NPPM. Due to the limitation of empirical evidences on considering the identified evaluative dimensions and respective measurement variables towards the proposed initial framework for PES-NPPM, another exploratory study: a case study method is carried out. In addition to the process of triangulation, the case study approach is carried out to understand (a) significance and nature of the identified measurement variables of all the five evaluative dimensions for PES-NPPM, and (b) real-life practices in decision making process of PES-NPPM and to identify the requirements of decision making tools. Accordingly, 12 case studies (4 each) from three manufacturing sectors, considered in this study, are conducted. Further, 12 case study reports are prepared and inferences are drawn. The inferences drawn are verified by conducting an individual brain-storming session with 3 academicians and 4 practitioners. The detailed analysis of the 12 case study reports endorsed the necessity of considering all the five identified evaluative dimensions in the proposed framework for PES-NPPM. In addition, the case study analysis revealed some of the variables originally considered for measuring the evaluative dimensions are not really the measurement variables, whereas those variables are expected to impact the decision making environment of PES-NPPM (or) NPPM Performance. Further those non-measurement variables are classified into (a) Characteristic Variables of PES-NPPM, and (b) Moderating variables for NPPM. Based on this, case study analysis identified 8 characteristic variables and 8 moderating variables. This specific observation resulted to analyze further the existing literature in order to identify if there exist any additional variables which impact decision making environment of PES-NPPM (or) NPPM Performance. Thus, from the analysis of literature and case study analysis 17 characteristic variable and 13 moderating variables are identified. Additionally, For this purpose, Partial Least Square – Path Modeling (PLS-PM) (or) regression analysis is conducted depending upon type of variables with 104 observations (representing 34, 39, and 31 observations of the three sectors respectively) to analyze the relationships between characteristic and moderating variables on decision-making environment of PES-NPPM and NPPM Performance respectively. From case study analysis, it is observed that the decision making tool required should provide: (a) ability to incorporate judgmental scores along with financial and other quantitative metrics, (b) ability to attain a balance of portfolio and consider interactions among project, and (c) ability to provide alternatives and rank the alternatives. In addition to the observation drawn from the case study analysis on the need of MCDM based tool(s), analysis of the literature is carried out to verify the same. As this problem scenario considers both quantitative and qualitative data for the development of a decision making tool, an appropriate technique/methodology needs to be employed. Based on analysis of literature and the case study reports, this study proposes an integrated Data Envelopment Analysis and Balanced Scorecard (DEA-BSC) model for individual PES. Further, the proposed DEA-BSC model is extended for evaluation of new product portfolio. In the process of formulation of new product portfolio, first, every new product project is evaluated with the proposed integrated DEA-BSC model. Second, an algorithm is designed to generate alternate portfolios with the selected set of efficient new product projects. Then, DEA-BSC model is employed to evaluate the generated portfolios. At this step, an accumulation functions are proposed which considers interactions among projects. These accumulation functions determine the overall input and output of the portfolio along with interactions involved. Accordingly, the proposed integrated DEA-BSC model for portfolio evaluation is expected to result in a balanced portfolio with profitable new product projects. In addition, the workability of the proposed integrated DEA-BSC model is demonstrated by developing a suitable numerical example. Finally, a sensitivity analysis is carried out on proposed DEA-BSC model to analyze the robustness of the results. In summary, this thesis examined a problem of decision making of NPPM. Further, this problem was retained with main focus on PES phase. Accordingly, the major contributions of this thesis are as follows: Identified an exhaustive lists of evaluative dimensions: (i) Strategic Fit; (ii) Portfolio-Innovation Balance; (iii) Risk-Uncertainty Estimation; (iv) Cost-Revenue Estimation and (v) Optimized Resource Allocation. Also identified the significance of these five dimensions in case of PES-NPPM. In addition, all the five evaluative dimensions are considered simultaneously for development of a multi criteria decision making tool for PES-NPPM. Identified the required measurement variables for each of the evaluative dimensions, considered in this study, that are essential for PES, and analyzed their influence on performance of NPPM. Identified and analyzed characteristic and moderating variables that influence decision making environment of PES-NPPM and performance of NPPM respectively. Identified the requirements of a decision making tool for PES-NPPM and developed an integrated DEA-BSC model for PES. To the best of our knowledge, the proposed integrated DEA-BSC model is considered to be the first hybrid model applied to PES-NPPM. Furthermore for implementing the proposed DEA-BSC model, an algorithm is proposed in this study and this is expected to assist decision maker for selecting the right set of projects for new product portfolio with higher development potential, profitability and minimize the associated risk. Identified possible project interactions caused due to external or internal factors and accordingly proposed an accumulation function to capture these interactions. Proposed an algorithm for formulation of new product portfolio and accordingly proposed a detail step-by-step procedure for implementation of the proposed integrated DEA-BSC model. Though this study analyzes the impact of characteristic variables on decision-making environment of PES-NPPM, we limit to link this impact to DEA-BSC Model. In this study, an attempt is made to capture the moderating effect on NPPM Performance, but this study limits to link this moderating effect in proposed DEA-BSC model. Finally, the validation of the workability of proposed DEA-BSC model is limited to the numerical example considered in the study and not to the real-life problems scenarios.

Abstract The importance of product development in companies has increased, as competition in many industries has turned global and product life cycles have become shorter. Despite the rich literature and the significance of product development in businesses, many organisations still struggle to develop products that meet market and customer needs. Furthermore, product development for a large number of international customers involves various stakeholders with conflicting needs. Thus, product development is increasingly complex to manage. This doctoral dissertation aims to improve the outcome of product development by clarifying the factors that initiate product development in companies, the relations of different external and internal stakeholders to these drivers, and how the needs of key stakeholders are obtained. The study focuses on the early product development phases of new product development (NPD) intensive companies that are based in Finland, but have major international operations and large customer bases. The research was carried out by collecting and analysing data from companies representing product development practices in both business-to-business (B2B) and business-to-consumer (B2C) markets. The experiences of managers across different industries are utilised. This dissertation adopts a qualitative research approach, and surveys and interviews are utilised as the main data collection methods. This dissertation shows that many significant drivers for product development exist in companies. In addition, these drivers differ significantly between projects, companies, and even individuals. Based on the results, companies should clarify their product development drivers and align them among the relevant stakeholders to enhance the decision-making and focus of product development efforts. The study also reveals the relations between different external and internal stakeholders and the product development drivers, and the key stakeholders for the individual drivers. The results indicate that companies should identify the most important stakeholders based on the project drivers and allocate managerial attention appropriately. As expected, the research findings support previous studies by identifying customers as the most important external stakeholders in product development. On the other hand, the significance of product management among internal stakeholders is highlighted in the results. This dissertation indicates that companies should enable product management to lead collaboration with stakeholders close to customers in product development projects. The role of product management involves leading customer definition, representation, and customer needs identification for R&D. However, product management must also collaborate with many customer-related stakeholders in product development efforts. The main implication of this dissertation is a new managerial framework that, if successfully implemented, can significantly enhance product development outcomes by providing appropriate focus on customers and reducing unnecessary complexities through the clarification of the project drivers, the key stakeholders, and customer needs. / Tiivistelmä Tuotekehityksen merkitys yrityksille on kasvanut globaalin kilpailun ja tuote-elinkaarien lyhentymisten myötä. Lukuisista tutkimuksista ja tuotekehitystoiminnan tärkeydestä liiketoiminnalle huolimatta useilla organisaatioilla on edelleen haasteita kehittää markkinoiden ja asiakkaiden tarpeita vastaavia tuotteita. Lisäksi tuotekehityksessä isolle, kansainväliselle, asiakaskunnalle on mukana useita erilaisia sidosryhmiä, joiden tarpeet ovat ristiriidassa keskenään. Tämän takia tuotekehityksen johtamisesta on tullut entistä monimutkaisempaa. Tämä väitöskirja pyrkii parantamaan tuotekehityksen tulosta selventämällä tekijät, jotka ovat syynä tuotekehityksen aloittamiseen yrityksissä, erilaisten ulkoisten ja sisäisten sidosryhmien suhteet näihin tuotekehitysajureihin sekä miten tärkeimpien sidosryhmien tarpeet selvitetään. Tutkimus keskittyy tuotekehityksen alkuvaiheisiin Suomessa toimivissa yrityksissä, joilla on voimakas panostus tuotekehitykseen ja lisäksi merkittävää kansainvälistä toimintaa sekä suuri määrä asiakkaita. Tutkimus tehtiin keräämällä ja analysoimalla tietoa yritysten tuotekehityskäytännöistä sekä tuotantohyödykemarkkinoilla että kuluttajamarkkinoilla. Tietoa kerättiin myös eri teollisuudenaloilta. Tämä väitöskirja perustuu laadulliseen tutkimukseen ja tutkimusaineiston keräämisessä on hyödynnetty kyselytutkimuksia sekä haastatteluita. Tämä väitöskirja osoittaa, että yritysten tuotekehitykseen löytyy useita merkittäviä ajureita. Tämän lisäksi nämä ajurit eroavat merkittävästi projektien, yritysten ja jopa yksittäisten henkilöiden välillä. Tulosten perusteella yritysten pitäisi selvittää, mitkä ajurit ovat niiden liiketoiminnan kannalta olennaisimpia ja tarkentaa niitä tuotekehityksen päätöksenteon ja painopisteen parantamiseksi. Tutkimus paljastaa myös ulkoisten ja sisäisten sidosryhmien suhteet tuotekehitysajureihin sekä tärkeimmät sidosryhmät yksittäisille ajureille. Tulokset osoittavat, että yritysten pitäisi tunnistaa tärkeimmät sidosryhmät projektien ajureiden perusteella ja ottaa ajurit huomioon sidosryhmäjohtamisessa. Tutkimuksen löydökset tukevat aikaisempia tutkimuksia osoittaen asiakkaiden olevan tärkein ulkoinen sidosryhmä tuotekehityksessä, kun taas sisäisistä sidosryhmistä nousee esille tuotehallinta. Tämä väitöskirja osoittaa, että yritysten tuotekehitysprojekteissa tuotehallinnan tulisi johtaa asiakkaita lähellä oleviin sidosryhmiin liittyvää sidosryhmäyhteistyötä. Tuotehallinnan tehtäviin kuuluu asiakkaan määrittely, edustus ja asiakastarpeiden tunnistaminen. Tuotehallinnan pitää myös tehdä yhteistyötä useiden asiakkaisiin liittyvien sidosryhmien kanssa tuotekehityksen aikana. Tämä väitöskirja tarjoaa uuden johtamisen viitekehityksen, joka oikein toteutettuna voi parantaa merkittävästi tuotekehityksen lopputulosta. Projektin ajurien, tärkeimpien sidosryhmien ja asiakastarpeiden selventäminen varmistaa oikeanlaisen keskittymisen asiakkaisiin ja vähentää tarpeettomia monimutkaisuuksia tuotekehityksessä.