Information on the spot: Its role in product development.

Abstract

The goal of this dissertation is to develop insights into the roles and character of information on the spot in product development. Information on the spot in product development is context-specific information which is obtained from the interaction of product development members with customers in naturalistic settings. Despite a significant body of work on product development, we still do not know the micro-level process by which customer needs, especially their tacit needs, are discerned and finally translated into product features. This dissertation intends to fill this gap by developing the concept of information on the spot in product development. Four case studies of product development projects were chosen as the sample for the study. Two were selected from a corporation with a reputation for innovation and two from a corporation with a less innovative reputation. There are two main research findings from the case study. The first concerns the role of information on the spot in the innovative company and the non-innovative company. At the innovative company, information on the spot was used consistently and intentionally. In contrast, at the non-innovative company, information on the spot happened, but took on a very idiosyncratic pattern. The consistency and intention in the use of information on the spot that characterized the innovative company could not be found. The second concerns the role of information on the spot. Information on the spot plays three roles in the product development process. During the idea-generation phase, it plays the role of conceptualization. During the planning and specification phase, it plays the role of organizational persuasion. During the test and evaluation phase, it plays the role of fine-tuning. From these findings, I developed nine hypotheses explaining the roles and application of information on the spot in product development. I contend that consistent and intentional use of information on the spot helps product development project members find tacit customer needs. Consistent and intentional use of information on the spot will also be facilitated by several macro-conditions: active organizational intrusiveness into the environment and organizational acceptance of experiments as learning mechanisms.