New product development 333
The advantages of viewing the process this
way are as follows:
1 Iterations among participants within stages are
allowed for.
2 The framework can easily accommodate third
parties.
3 Mechanisms for integration throughout the
process among different functions are set in
the convergent points.
4 The model can fit into the most appropriate
NPD structures for the company.
Iterations within stages
As the relevant functions are viewed in terms of
their contribution to each stage in the process
by their specialist contribution, the cross-func-
tional linkages between stages are incorp-
orated. The extent of involvement of different
bodies or outside parties will be determined by
the specific needs of each development in each
firm. Thus, within-stage iteration can benefit
from both task specialization, which will
increase the quality of inputs, and integration
of functions via information sharing and deci-
sion making.
Accommodation of third parties
Several studies have shown the importance of
involving users in the NPD process to increase
success rates (Von Hippel, 1978; Biemans, 1992).
Equally, there is growing interest in the need for
supplier involvement, in order to benefit from
the advantages of supplier innovation and JIT
(Ragatzet al., 1997).
Mechanisms for integration
Although the need for cross-functional integra-
tion has been widely claimed, there is some
evidence to suggest that, in practice, this is not
easy to achieve. In Biemans’ study, most of the
companies showed an understanding of the
need to integrate R&D and marketing activities,
although the desirability of this is not con-
sidered to be automatic, based on the evidence
of the companies surveyed. A key element in
integration is the amount of information shar-
ing, and the multiple convergent process offers
the opportunity for information sharing which
is neglected by other models. Clearly, a host of
other factors are likely to influence the amount
of cross-functional information sharing, includ-
ing organizational climate and structure. This
said, the multiple convergent model carries
within it the impetus for information sharing
through the convergent points that can be
located liberally throughout the process.
However, studies stress that the appro-
priate level of integration must be decided
upon, and that this level is dependent upon
organizational strategies, environmental uncer-
tainty, organizational factors and individual
factors. This requires attention, not only to the
process of developing new products, but also to
the mechanisms used to manage the people
responsible for bringing new products and
services to the market.Managing the people in NPD
The process of developing successful new
products needs to match technological compe-
tence with market relevance. Based on our
discussions thus far, numerous inputs are
required to achieve these twin goals. Much
research has been carried out into various
aspects of ‘co-ordination’ and ‘integration’ of
the perspectives of different disciplines in NPD.
This research is confusing, however, not only
because of the sheer number of aspects of
functional co-ordination which have been
investigated, but also because of the variety of
terms used to refer to what this article calls
‘functional co-ordination’. Pinto and Pinto
(1990, p. 203) make an informative summary of
the different terms which have been used.
Whatever the precise definition, it is important
for companies to institute NPD processes and
design structures which promote integration