DYNAMIC SYSTEMS DEVELOPMENT METHOD

Dynamic Systems Development Method

Dynamic Systems Development Method

Introduction

As competition in global markets becomes intense, firms have begun to recognize the importance of new product development (NPD) and innovation issues, such as time-to-market (Cooper and Kleinschmidt, 1994; Kessler and Chakranarti, 1996; Zhang and Doll, 2001), organizational learning (Argyris and Schon, 1978; Bailey, 1989; Fiol and Lyles, 1985; Gupta and Thomas, 2001), mass customization (Kotha, 1996), and information acquisition and distribution (Arkoff, 1967; Howard, 1997). Among these components, organizational learning has emerged as a key strategic variable and has been found to be an important absorptive process driven by innovation (Cosier, 1981; Cohen and Levinthal, 1990; Kiechel, 1990; Stata, 1989). Learning may also be the only competitive advantage available to the company of the future as environments change dramatically (Cosier, 1981).

Dynamic Systems Development Method

NPD is essentially knowledge development and knowledge synthesizing activities consisting of a stream of routine and non-routine tasks, performed by an array of individuals and groups (Purser et al., 1992; Parker, 2000; Zhang and Doll, 2001; Dougherty, 1990; Donnellon, 1993; Ayers, 1997; Henke et al., 1993). The range of existing conceptualizations of learning has focused primarily on organizational learning: as adaptation; assumption sharing; development of a knowledge base; or as institutionalized experience (Shrivastava and Schneider, 1984; Gupta et al., 2000; Yang and Yu, 2002). However, because NPD is highly knowledge intensive and innovation-type-dependent, we have chosen to focus on conceptualizations which view learning as the development of knowledge accumulation and planning at the individual and organizational level based on corresponding innovation strategies (Duncan, 1974).

Product innovation learning involves increasing the effectiveness of product development efforts as a result of practice and the refinement of innovation-related skills (McKee, 1992; Mishra et al., 1996; Zirger and Maidique, 1990). Although the importance of learning to innovate in product development is widely recognized, only limited attention in the literature has been given to product innovation learning and knowledge accumulation process of NPD.

Many classifications of innovation can be found in the literature. Nord and Tucker (1987), for example, identified the routine and radical innovation classification scheme in product development. Routine innovation is the introduction of something that, while new to the organization, is very similar to something the organization has previously done. A radical innovation involves an addition to an organization that is very different from what the organization has done previously. It is apt to require significant changes in the behavior of employees and the structure of the organization itself.

A similar classification can be made in NPD efforts. Incremental innovation introduces relatively minor changes to the existing product, exploits the potential of established design, and often reinforces the dominance of established firms (Nelson and Winter, 1982; Ettlie et al., 1984; Dewar and Dutton, 1986; Tushman and Anderson, 1986; Henderson et al., 1990). Discontinuous innovation, in contrast, is based on a different set of scientific and engineering principles and often opens new markets and potential applications (Dess and Beard, 1984; Ettlie et al., 1984; Dewar and Dutton, ...