Literature Review

CHAPTER 2: LITERATURE REVIEW5

2.1 Introduction5

2.2 Innovation5

2.2.1 The Importance of Innovation5

2.2.2 Managing Innovation6

2.3 The Development Stage6

2.3.1 The Importance of Front End Innovation7

2.3.2 Identifying Customer Needs7

2.3.3 Incremental and Radical Innovation8

2.3.4 Ambiguity and Risk9

2.4 The Implementation Stage10

2.4.1 How Important Is Knowledge in NPD10

2.4.2 Knowledge Sharing11

2.4.3 Executing the Project12

2.5 The Decision Making Process12

2.5.1 The Importance of Decision-Making13

2.5.2 Difficulties Making Tough Decisions13

2.6 Commercialization14

2.6.1 The Complex Nature of Commercialization14

2.6.2 Success Factors of Commercialization15

2.6.3 Features That Influence the Commercialisation Process15

2.7 External and Internal Launch Activities16

2.8 Speed to Market17

2.9 Cross Functional Teams17

2.9.1 Purpose17

2.9.2 Importance of Stability18

2.9.3 Information Sharing - Communication19

2.9.4 Diversity in Cross-Functional Teams20

2.9.4.1 Multi- Knowledge20

2.9.5 The Effect of Decision-Making21

2.10 Virtual Teams21

2.10.1 Advantages21

2.10.2 Challenges22

2.11 Organisational Culture23

2.11.1 The Impact of Culture23

2.11.2 Innovative Culture24

2.11.3 Organisation Structure24

2.12 Stage Gate Process25

2.12.1 Stage Gate Post Launch Review28

2.13 Post Launch Review29

2.13.1 The Purpose29

2.13.2 The Process30

2.13.3 The Framework31

2.13.3.1 Senior Management32

2.13.4 Learning and Improvement33

2.13.5 Benefits of PLR34

2.13.6 Challenges with Post Launch Review35

2.13.7 Factors Influencing the Success of PLR36

2.13.7.1 Managing Lessons Learned37

2.13.7.2 Performance Measurement38

REFERENCES40

CHAPTER 2: LITERATURE REVIEW

2.1 Introduction

This chapter of the research aims to elaborate the researches and findings of the previous researches. The illustration of the previous researches will enhance the understanding of the research topic.

2.2 Innovation

2.2.1 The Importance of Innovation

Innovation is an important driver in the medical device sector with a constant flow of new and improved products (Kruger, 2005). New products are seen as the cutting edge of innovation in the marketplace (Tidd and Bessant, 2009). These innovative products are the end result of “interactions between various actors, a collective achievement” (Van de Ven et al., 2008). It is argued that the benefits for organisations make innovation a single vital activity for an organisation (Ahmed and Shepherd, 2010). Innovation is entwined with business strategy (Barczak et al., 2008) to create new products and drive business success. Tusman and Nadler (1986) observe that organisations must adopt innovation as a “way of corporate life” and this advice remains significant today. “The greatest breakthroughs are made by those with the broadest perspectives and the deepest knowledge: they can see the potential in a new idea while also understanding the economics of production and distribution, motivations of competitors, and the needs and moods of customers” (Carr, 2005).

2.2.2 Managing Innovation

However, despite the research emphasising the need for organisations to improve their innovation efforts to compete (Porter, 1980) exactly how to manage innovation effectively, is less obvious (Tao, Probert & Phaal 2010). The route for effective NPD is complex and involves an organisation embarking on innovation where there are no instructions or any guarantees for a successful outcome (Harmancioglu et al., 2007). While, Govindarajan and Trimble (2010) challenge the progress of innovation stating that organisations have the creativity but often lack the ability to covert ideas into commercial success. Therefore, a model of innovation as the “process of turning ideas into reality and capturing value from them” (Tidd and Bessant, 2009) is essential.

Figure 1: Simplified Model of the Innovation Process (Source: Tidd and Bessant, 2009)

2.3 The Development Stage

This section of the literature review will discuss the importance ...