Brave New World

Freedom of Speech in danger?

As an adolescent I was an avid reader of books warning about the threat of loss of our precious freedoms. Brave New World, Fahrenheit 451, 1984, Atlas Shrugged and Animal Farm are ones that I remember especially well.

This summer the release a well-reviewed novel (already chosen for the book-of-the-month) by a first author on an important topic was stopped by a small religious minority in the U.S. I don’t know what is more frightening:

  1. That a small religious minority in the US was able to strike fear in a publisher and then the author, or
  2. That the US press gave the censorship such little notice.

Here is the bland announcement from the cowardly publisher:

http://www.randomhouse.com/rhpg/medinaletter.html

“This is the way the way the world ends               

Not with a bang but a whimper.”

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All NPD is Service Innovation

I have thought since I first read the Vargo and Lusch argument for a “new dominant logic of marketing” (JM 2004) that an obvious corollary to their declaration that “all marketing is service marketing” is that:

All New Product Development is Service Innovation.

A posting at BusinessWeek aimed at NPD managers seems to support this declaration:

 http://www.businessweek.com/managing/content/oct2008/ca2008107_013799.htm?chan=careers_managing+index+page_top+stories

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A Spectrum of Co-creation

The first step towards understanding a phenomena is often to categorize it.

FreshNetworks Blog attempts to categorize NPD co-creation into 5 groupings:

  1. Mass customization
  2. Real-time self-service
  3. Service redesign
  4. New product co-creation
  5. Community product design

See the full posting:

http://blog.freshnetworks.com/category/series/co-creation-series/

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“Wisdom of Crowds” to solve personal problems

 A recurring theme of this blog is collaboration.

I was interested to see that an online community has been formed to solve personal problems. Why write to Dear Abby when a community is available?

http://blog.freshnetworks.com/2008/09/sidetaker-crowdsource-your-private-life/

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PDMA thoughts: Service and Innovation

I have delayed my summary of the PDMA Research Conference, but hopefully the delay helps with perspective… (sound like an ad-hoc rationalization?) The two major themes that still resonate with me a couple weeks later are the call by Gerald J. Tellis, the chair of the 2009 conference, for a broadening of focus on INNOVATION — not simply new product development — and the separate track session on NPD for SERVICE.

Innovation

Dr. Tellis, noted researcher and 2009 chair, called for a broader focus on INNOVATION in the PDMA, noting that the premier NPD journal, JPIM (published by the PDMA), has innovation in its title. To this observer the broadening trend towards innovation seems already underway as both the JPIM and the conference increasingly include research on service innovation, process innovation and entrepreneurship.

Service Innovation

I was of course delighted that there was a track session devoted to service innovation and that I was one of the presenters. It was awkward to be the final presenter, as all three of us had similar introductions:

  1. Even though service is 83% of the US economy and a majority of world GDP, service innovation is under-researched.
  2. NSD research to date has focused on the similarity to NPD for goods industries.
  3. New service development involves users.
  4. New service development is ITERATIVE.

This overlap in introductions may have been the most important result of this separate track session!

Devashish Pujar presented a paper cowritten with Pilar Carbonell and Ana I. Rodriguez-Escudero on selecting customers to participate in NSD. This study had somewhat surprising results: lead users had a positive impact on service innovativeness, innovation speed and competitive advantage; close customers did not. However close customer collaboration had a direct effect on market performance, while lead user collaboration was indirect at best.

Sena Ozdemir and Susan Hart presented a paper cowritten with Stephen Tagg on stages, gates and outcomes in NSD. They found that new product development for service was significantly different from the models of NPD for goods firms. NSD was much less formal, much more iterative, and harder to model.

I delivered a paper coauthored with Albert L. Page on grounded antecedents of new service development success. User input and iterativeness are ubiquitous in NSD. All potential antecedents of NSD success that emerged from a grounded study of 27 service firms were shaped by the concern to enhance user involvement in the process — the organization should have a customer-oriented culture, should employ research methods that engage users individually, and should seek formality in the NSD process only to the extent that iterativeness is not hindered. My slide show in PDF form if you are interested: grounded-antecedents2

 Fuzzy Rear End

 A key insight that I have noted in my previous posts was provided by Susan Hart, University of Strathclyde: the messy, iterative service development process may mean that NSD shares the Fuzzy Front End of NPD but that service innovation also has a “Fuzzy Rear End.”

Conference Overview

The PDMA research conference is supportive, friendly and international. The conference draws academic researchers interested in new product development from the US and Europe (several came across the BIG ocean also). The leading conference on product innovation immeditately follows the research conference. Dr. Abbie Griffin chaired the research conference this year; many of the senior researchers noted that the quality of the research seems to continue to improve.

I was delighted this year to have innovators from several leading companies, including Nokia, RIMM and CircleOne, talk to me after my presentation — some of the practitioners came early and participated in the research conference. [I was able to attend the full conference a couple years ago and was very impressed-more conference “crossover” would be useful.]

A memorable historical perspective on the PDMA was provided in the keynote presentation by Thomas P. Hustad, the original editor of the JPIM and some of the still-active founders, such as Tom Hustad, Albert L. Page, and long time active members such as Abbie Griffin were highlighted. The major theme was change and innovation in the organization.

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 If you are interested in new service or product development, check out the local chapter of PDMA or their website.

PDMA website: www.pdma.org

Agenda, 2008 PDMA Research Conference:  http://conference.pdma.org/AcademicResearchForum.cfm

My slides: grounded-antecedents

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Open source and “orphan markets”

Open source and Lead Users are recurring ideas in effective NSD. I was interested to read about how an organization (goods-designing) is using both techniques for the good of people with missing limbs…

An interesting article in Leatherneck.com (citing Scientific American) discusses how a small organization is advancing design in prosthetic limbs, overcoming the inertia in a too-small market served by too-few firms. Their approach combines open source and lead users.

The article is here:

http://www.leatherneck.com/forums/showthread.php?t=71037

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“Fuzzy Rear-End of Service Development”

In today’s post I review some thoughts from the service innovation section of the PDMA Annual Research Conference this past weekend.

As noted in Monday’s post, a highlight was an insight provided by Dr. Susan Hart: unlike standard models of new product development for goods the development process for services is no more clear than the front end, therefore perhaps we should speak of the “Fuzzy Rear-End of Service Development.”

There were three papers presented in the NSD session:

  1. Selecting Customers for Participation in NSD by Pilar Carbonell (York U.), Ana I. Rodrigues-Excudero (U. Valladolid) and Devashish Pugari (McMaster U.)
  2. An Analysis of the Anatomy of the Innovation Processes by Sena Ozdemir, Stephen Tagg and Susan Hart (U. Strathclyde)
  3. A Grounded Study of NSD by Gary R. Schirr (Radford U.) and Albert L. Page (University of Illinois at Chicago)

All three presentations stressed some common themes:

  1. Despite service accounting for 83% of the US economy and a majority of world GDP, innovation in service is understudied.
  2. Research in service innovation has focused on the degree to which NSD fits models derived for NPD – goods; more research on NSD as a unique process or comparing NSD and NPD would be useful.
  3. New Service Development is a messy, iterative process — hence the “fuzzy rear-end”

(More to come…)

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Fuzzy Front End

Note: a quick overview of the fuzzy front end in new product development, authored by Peter Koen and others, is available on the Steven’s web site:

http://www.stevens.edu/cce/NEW/PDFs/FuzzyFrontEnd_Old.pdf

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A full section on Service Innovation at the PDMA Research Conference

 

Students of new product development are aware of the term the “Fuzzy Front-End of NPD”, which describes the less understood process of idea generation (versus the allegedly more rational development process at the end that is better studied and understood).

Professor Susan Hart, Head of the Marketing Department at Strathclyde Business School and a well-known researcher and author, coined an insightful phrase, the “Fuzzy Rear-End of New Service Development” and discussed at it at the PDMA annual research conference.

As I have noted in past posts, new service development is not characterized by familiar processes like Stage-Gate(R) or other linear or semi-linear processes. The development process is nearly as mysterious at the front-end, hence Dr. Hart’s apt phrase: The “Fuzzy Rear-End.”

I just returned from the annual research conference of the Product Development & Management Association in DisneyWorld. This year there was a full session on service innovation! As was noted in the May JPIM article by Al Page and me the focus of NPD has generally been on goods-companies, so I was encouraged that there was a full session only on service this year. (Dr. Hart was one of the presenters, as was I. Al Page chaired the session.)

Three straight presenters talked about the dearth of research on service innovation, the risk of viewing service innovation through the framework developed from observing goods manufacturers, and the chaotic nature of the NSD process.

The PDMA is a wonderful get together: a two day academic conference followed by a industry focused conference. There is some crossover — I attended the industry conference two years ago, several brave industry people sat through the entire academic research conference this year. I would strongly endorse the PDMA and the two conferences for anyone involved in new product or service development or in broader issues in innovation.

PDMA website: http://www.pdma.org/

I will report observations from the conference in my next few postings. My Wednesday post will give an overview of insights from the service discussion.

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I apologize for the sparse posting recently. In the past 52 days I have defended my dissertation, received my Ph.D., prepared for the PDMA Research conference and delivered a paper and started a new academic year. (Excuses, excuses!) However I will return to posting at least twice a week — on Monday and Wednesday.

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Distributed Co-creation

 Participatory marketing taken to the next level

The July issue of the Mckinsey Quarterly has an interesting article called “the next step in open innovation.” The article is a discussion of how the examples of customer creation  of Wikipedia and Linux can be applied more broadly to most business. [Eric von Hippel has advocated user innovation since the mid-70s, and he and others have criticized the open innovation advocates for under-emphasizing the most useful co-creators, the users of the services and goods.]

The article claims that we are in the early stages of “distributed co-creation” and suggests important issues that need to be addressed such as:

  1. Attracting and motivating co-creators
  2. IP ownership
  3. Structuring problems
  4. Governance to facilitate co-creation

The full article is available at the McKinsey site:

http://www.mckinseyquarterly.com/Information_Technology/Networking/next_step_in_open_innovation_2155_abstract

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