Abstract
A case study of a tech start-up reveals some of the challenges associated with implementing systems theory in new product development. This area of study hold promise, but there are some implementation issues in the real world that have been identified and perhaps in need of further exploration.
Introduction
Systems thinking focuses on the interrelatedness of different systems, different roles and different disciplines. The system is not simply a set of parts, but it is how the parts work together, how they interact with one another, that forms the system. By focusing on the integrated whole, systems thinking is a natural fit for new product development. Most new product development is overseen by a project manager who works with the different teams involved to drive the new product from concept to market. The reality is that this role should naturally involve a level of systems thinking.
Yet, there is scant literature on the relationship between systems thinking and new product development. There is ample literature on systems thinking, and on new product development, but this intersection is seldom explored. This is to the detriment of business. Most companies need new product development as a means of exploiting market opportunities, and driving both growth and profitability. The focus for new product development cannot simply by on project management or innovation studies. Systems thinking can play a bigger role than it has to this point. This study will focus on the role that systems thinking plays in new product development to this point, but also will explore how systems thinking can be applied to new product development going forward. The focal point of this paper will be a case study, featuring a software company that is working on a new product. While confidentiality agreements preclude me from naming the company or its product, this is the company's second product. The first has been a tremendous success, but there was no process for the first. Only with the second new product launch has the company started to consider the role of process. Thus, this makes for a good case study as to what companies do today with respect to incorporating systems thinking , but more importantly how they can incorporate systems thinking to a greater degree going forward, as they solidify their processes for new product development.
Background to the Topic
Systems thinking has been described as a management discipline "concerning an understanding of a system by examining the linkages and interactions between the components that comprise the entirety of that defined system" (Institute for Systemic Leadership, 2017). This would seem to make systems thinking a natural fit for project management of all types, including the development and launch of new products. Where traditional management sees a company as a set of individual departments, each doing their own thing, systems thinking takes the view that the company is a system, and all of those departments are integrated into the system.
New product development focuses on a couple of different things, first the identification of new product opportunities, and then developing products to exploit those opportunities. If the traditional view of management is applied to new product development, there would be a department focused on identifying opportunities, then another team that might design and build the product, and then another team would market it. If marketing and sales talk to each other, that alone would be considered a victory, let alone the other teams. New product development can actually occur just within the development team, which then dumps it onto marketing and says "Here, sell this." There are a lot of problems inherent in taking the view of the company as a set of individual departments. Systems thinking can and should play a critical role in new product development.
Yet the links between systems thinking and new product development appear to be underdeveloped. Optimally, this would be because it is fait accompli that systems thinking has been incorporated into new product development, but we know that this is not the case. The reality is that there is a lot of room for systems thinking to be incorporated into new product development.
Thesis
Incorporating systems thinking into new product development will improve the quality and marketability of new products. Outcomes for organizations should be better – new products developed in companies with systems thinking should have a better success rate than new products developed in companies without systems thinking as a core philosophy.
Research Hypothesis
The research hypothesis for this study is that products developed using systems thinking are on average more successful than products developed without systems thinking.
Originality
There is a fairly sizable body of literature on systems thinking and a lot of literature again about new product development. Yet, there is little literature that links the two. This, even though in practice there should be significant linkages. There are many companies that actually utilize systems thinking, and apply it to their new product development, yet again there is a paucity of direct study on this subject. This particular study therefore cuts into some new ground in exploring how systems thinking can impact the new product development process. The underlying logic of systems thinking is a good fit with the objectives of new product development, namely to bring products to market profitably. When one thinks about these requirements, they point to lowering the cost of developing viable products, and increasing the viability of the products that are developed. This study should begin to explore how this works in a small company that wishes to bring a new product to life, but is operating without a lot of established processes, as the product in question is only the second product that the company produces.
Contribution to the IE/IEM Profession
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