The Role of Tactical Marketing Decisions on New Product Performance: The Moderating Effect of Entry Timing

This study focuses on observing how Finnish companies execute their new product launch processes. The main objective was to find out how entry timing moderates the relationship between launch tactics (namely product innovativeness, price and emotional advertising) and new product performance (namely sales volume and customer profitability). The empirical analysis was based on data collected in Lappeenranta University of Technology. The sample consisted of Finnish companies representing different industries and innovation activities. Altogether 272 usable responses were received representing a response rate of 37.67%. The measures were first assessed by using exploratory factor analysis (EFA) in PASW Statistics 18 and then further verified with confirmatory factor analysis (CFA) in LISREL 8.80. To test the hypotheses of the moderating effects of entry timing, hierarchical regression analysis was used in PASW Statistics 18. The results of the study revealed that the effect of product innovativeness on new product sales volume is dependent on entry timing. This implies that companies should carefully consider what would be the best time for entering the market when launching highly innovative new products. The results also depict a positive relationship between emotional advertising and new product sales volume. In addition, partial support was found for a positive relationship between pricing and new product customer profitability.

Streamlining Launch Support Operations in a Product Platform

The new product development process is a massive investment to a company that aims to reduce their products’ time-to-market. Capability to shorter time-to market allows longer life-cycle to products which are introduced to market earlier but also give advantage to start product launch later while simultaneously learning from customer behavior and competitors. The product launch support operations are the last ramp-up activities before the product launching. This study defines what these operations mean in a product platform and how they can be streamlined to be more efficient. The methodology includes interviews, innovative group brainstorming and regular working group meetings. The challenges concerning the current situation of product launch support operations are allocated into four categories: General, Process, Project Resources and Project Management including altogether ten sub challenges. The challenges include issues related to technology and marketing management, branding strategy, organizing the global platform structure, harmonizing processes and clarifying handovers between shareholders in the process. The study makes a suggestion of a new Product Launch Support organization and clarification of its roles, responsibilities and tasks. In addition a new project management tool and Lessons Learned are suggested to improve the project management. The study can be seen as a pre-study when having an aim at combining technological and marketing know-how in the product ramp-up process before actual production. The future proceedings are suggested to include more detailed specifications and implementation in order to reach the long range target, reduced the time-to-market.

The value of digitalization of services in the new service development

The purpose of this thesis is to study factors that have an impact on the company’s capabilities to identify and analyze the value of digitalization of services during the early stages of service development process and evaluate them from the perspective of a case company. The research problem was defined: “How digitalization of services affects delivering the services of the future?” The research method of this thesis was based on the qualitative case study which aimed to study both company’s and customer’s set of values. The study included a literature review and a development study. The empirical research part consisted of analyzing three existing services, specifying a new digital service concept and its feasibility analysis as part of a business requirement phase. To understand the set of values, 10 stakeholder interviews were conducted and earlier customer surveys were utilized, and additionally, a number of meetings were conducted with the case company representatives to develop service concept, and evaluate the findings. The impact of the early stages of service development process discovered to reflect directly in the capabilities of the case company to identify and create customer value were related to the themes presented in the literature review. In order to specify the value achieved from the digitalization the following areas of strategic background elements were deepened during the study: Innovations, customer understanding and business service. Based on the findings, the study aims to enhance the case company’s capability to identify and evaluate the impact of the digitalization in delivering services of the future. Recognizing the value of digital service before the beginning of the development project is important to the businesses of both customer and provider. By exploring the various levels of digitalization one can get the overall picture of the value gained from utilizing digital opportunities. From the development perspective, the process of reviewing and discovering the most promising opportunities and solutions is the key step in order to deliver superior services. Ultimately, a company should understand the value outcome determination of the individual services as well as their digital counterparts.

Electrical Machine Product Development; Transmission to Lean Approach

The requirements set by the market for electrical machines become increasingly demanding requiring more sophisticated technological solutions. Companies producing electrical ma-chines are challenged to develop machines that provide competitive edge for the customer for example through increased efficiency, reliability or some customer specific special requirement. The objective of this thesis is to derive a proposal for the first steps to transform the electrical machine product development process of a manufacturing company towards lean product development. The current product development process in the company is presented together with the processes of four other companies interviewed for the thesis. On the basis of current processes of the electrical machine industry and the related literature, a generalized electrical machine product development process is derived. The management isms and –tools utilized by the companies are analyzed. Adoption of lean Pull-Event –reviews, Oobeya –management and Knowledge based product development are suggested as the initial steps of implementing lean product development paradigm in the manufacturing company. Proposals for refining the cur-rent product development process and increasing the stakeholder involvement in the development projects are made. Lean product development is finding its way to Finnish electrical machine industry, but the results will be available only after the methods have been implemented and adopted by the companies. There is some enthusiasm about the benefits of lean approach and if executed successfully it will provide competitive edge for the Finnish electrical machine industry.

Customer-driven service product development

This thesis studies customer-driven service product development and how to manage customer involvement in the service product development process. The theory part of this thesis is a literature review of the prior studies and the thesis also includes empirical evidence in the form of a case study about ABB.

Customer involvement in lean startup principles: case of game development studio

The objective of this thesis is to better understand customer’s role in lean startup methodology. The aim is to find out how customers are involved in lean startup methodology implantation and increase the likelihood of new venture survival. This study emphasizes the usage of customers in shaping of new product development processes within companies, through iteration and constant communication. This communication facilitates the development of features that are requested by the customers and enhances the prospects of the new venture. The empirical part of the study is a single qualitative case study that uses action research to implement the lean startup methodology into a pre-revenue venture and examines its customer involvement processes. The studied case company is Karaoke d.o.o., developing a game called kParty. The study used the theory discussed in the literature review: customer involvement (in the survey and interviews conducted for the lean startup methodology), lean principles (through the implementation of lean startup methodology) and lean startup methodology, which are the central building parts of this thesis as a whole. The thesis contributes to the understanding of customer involvement in lean startup methodology, while giving practical implications of customer orientation and product market fitting.

Fostering product innovation by learning through exporting in Eastern Europe

This study discusses the importance of learning through the process of exporting, and more specifically how such a process can enhance the product innovativeness of a company. The purpose of this study is to investigate the appropriate sources of learning and to suggest an interactive framework for how new knowledge from exporting markets can materialize itself into product innovation. The theoretical background of the study was constructed from academic literature, which is related to concepts of learning by exporting, along with sources for learning in the market and new product development. The empirical research in the form of a qualitative case study was based on four semi-structured interviews and secondary data from the case company official site. The interview data was collected between March and April 2015 from case company employees who directly work in the department of exporting and product development. The method of thematic analysis was used to categorize and interpret the collected data. What was conclusively discovered, was that the knowledge from an exporting market can be an incentive for product innovation, especially an incremental one. Foreign customers and competitors as important sources for new knowledge contribute to the innovative process. Foreign market competitors’ influence on product improvements was high only when the competitor was a market leader or held a colossal market share, while the customers’ influence is always high. Therefore, involving a foreign customer in the development of a new product is vital to a company that is interested in benefiting from what is learned through exporting. The interactive framework, which is based on the theoretical background and findings of the study, suggests that exporting companies can raise their product innovativeness by utilizing newly gained knowledge from exporting markets. Except for input, in the form of sources of learning, and product innovation as an output, the framework contains a process of knowledge transfer, the absorptive capacity of a firm and a new product development process. In addition, the framework and the findings enhance the understanding of the disputed relationship between an exporting experience and product innovation. However, future research is needed in order to fully understand all the elements of the framework, such as the absorptive capacity of a firm as well as more case companies to be processed in order to increase the generalization of the framework

Customer involvement in new service development

This case study aims at filling the research gap in the literature, by researching how customers experience customer involvement in new service development, in addition to giving insight on what are the organisational customers’ motivations to become involved in service development. These subjects are studied by conducting three interviews. The thesis gives a review of previous findings regarding customer-driven new service development, customer involvement, customer roles, modes of involvement, communication in the involvement process, what is the role of customer engagement and what are the motivational drivers for customers. The thesis also explains what new service development is and makes a distinction between new service development and new service design. The results revealed that organisational customers want to be involved throughout the development process, with active involvement in the beginning and end phases. Moreover, customers prefer face-to-face methods and active and bidirectional communication throughout the process. The findings propose seven motivational factors, a new framework for customer-driven new service development and communication process map. The managerial implications list five themes for service providers to take into consideration when involving customers to the service development process.

Offering planning with support of roadmapping in project business

Tämän tutkielman tavoitteena on tutkia kuinka roadmapping-tekniikkaa voidaan käyttää tarjonnan suunnittelun tukena uusien tuotteiden valmistamisen yhteydessä. Työ koostuu teoreettisesta ja käytännönläheisestä osasta. Teoreettinen runko on luotu selventämään kuinka tämän hetkisen tutkimus- ja kehitys projektit lopulta muodostavat tulevaisuuden tarjoaman. Menestyksekkään tuotetarjoaman luominen vaatii, sekä uusien teknologioiden kehittämistä, että markkinoilla olevien asiakkaiden tarpeiden ymmärtämistä. Asiakassuuntaisten tuotteiden kehittäminen vaatii toimintaympäristöstä ja asiakasrajapinnasta tulevien signaalien tunnistamista ja niiden ohjaamista tuote- ja teknologia platformeille. Strategia luodaan tukemaan päätöksentekoa prosessin eri vaiheissa. Yrityskohtainen osio koostuu analyysistä, joka on tehty teetetyn kyselyn ja haas-tattelujen pohjalta. Osana analyysia ovat Major project-yksikön tämänhetkinen tarjonnansuunnitteluprosessi, strategian soveltaminen, informaation kerääminen ja priorisointi, portfolionhallinta ja roadmap-tekniikan käyttö. Ratkaisussa on esitet-ty tarjonnan suunnitteluprosessi ja siihen liittyvät kriittiset komponentit. Roadmapping-tekniikkaaon luotu yhdistämään toimintaympäristö, tuotteet ja teknologia toisiinsa. Toimintaympäristö ja tuotteet on yhdistetty myös linked-grids-tekniikan avulla.

Tuotekehitys- ja innovaatioprosessin kehittäminen yrityksessä

Tutkimus käsittelee tuotekehitys- ja innovaatioprosessin kehittämistä ja sen vakiinnuttamista kohdeyrityksissä A ja B. Työssä luodaan ensin kirjallisuustutkimuksena yleinen teoreettinen viitekehys ja lähtötilannemalli tuotekehitys- ja innovaatioprosessin referenssimallille. Tämän vaiheen aikanakäsitellään erilaisia elementtejä ja vaiheita, joita tarvitaan kehitysprosessinkuvaamiseen ja sen kehittämiseen. Prosessimallissa ovat keskeisessä osassa päätöspisteet, joiden arviointikriteereitä ja -tekniikoita työssä käsitellään osana portfolion hallinnan eri mahdollisuuksia. Kehitettyä teoreettista mallia lähdetään implementoimaan työn toisessa osassa kohdeyrityksiin A ja B. Implementoinninyhteydessä käydään läpi sekä prosessikuvaus että siihen liittyvät päätöskriteerit. Tutkimuksen lopputuloksena on yrityksille tuotettu esitys innovaatioprosessista ja sen eri osa-alueista tarkemmalla tasolla sekä tutkimuksen puitteissa rakennettu portfoliotyökalu, jolla kehitysprojekteja voidaan hallinnoida niiden eri vaiheissa.

Onnistuneen uuden tuotteen kehittäminen ja hallinta - Tapaustutkimus: Tekstiilialan yritys

Tuotesuunnittelu on yrityksen selviämisen kannalta erittäin tärkeä toiminto. Menestynyt tuotesuunnittelu vaatii selkeän tuotestrategian, laadukkaasti suoritetun tuotesuunnitteluprosessin ja tarvittavienresurssien yhdistämistä sekä uuden tuotteen tuottojen hallintaa myynnin seurannalla. Kohdeyrityksessä uusien tuotteiden suunnittelun ja hallinnan tärkeys on huomattu ja niiden kehittämiseksi yritys on lisäämässä panostustaan. Tämä tutkimuspyrkii tuomaan kohdeyrityksen tietoon tuotesuunnitteluun ja uuden tuotteen hallintaan vaikuttavat menestystekijät sekä tuomaan esille näitä toimintoja tukevia kehittämismahdollisuuksia. Tutkimus on normatiivinen tapaustutkimus, jossa teoria on koottu tieteellisistä, lähinnä empiirisistä tutkimuksista koostuvista artikkeleista. Yrityksen tuotesuunnitteluun liittyvät prosessit ja toiminnot on selvitetty puolistrukturoiduilla haastatteluilla sekä havainnoimalla. Tutkimuksessa havaittiin selkeitä eroja uuden tuotteen hallinnan menestystekijöiden ja yrityksen toimintojen välillä. Tuotesuunnitteluprosessin uudelleen organisointi, toimitusketjun hallinta ja tuotekohtainen kustannuslaskenta ovat asioita, joita kehittämällä yritys voi mahdollisesti parantaa uusien tuotteiden elinkaaren aikaista hallintaa ja taloudellista onnistumista sekä lisätä yrityksen kannattavuutta.

Dynamic Capabilities and Firm Performance

Firms operating in a changing environment have a need for structures and practices that provide flexibility and enable rapid response to changes. Given the challenges they face in attempts to keep up with market needs, they have to continuously improve their processes and products, and develop new products to match market requirements. Success in changing markets depends on the firm's ability to convert knowledge into innovations, and consequently their internal structures and capabilities have an important role in innovation activities. According 10 the dynamic capability view of the firm, firms thus need dynamic capabilities in (he form ofassets, processes and structures that enable strategic flexibility and support entrepreneurial opportunity sensing and exploitation. Dynamic capabilities are also needed in conditions of rapid change in the operating environment, and in activities such as new product development and expansion to new markets. Despite the growing interest in these issues and the theoretical developments in the field of strategy research, there are still only very few empirical studies, and large-scale empirical studies in particular, that provide evidence that firms'dynamic capabilities are reflected in performance differences. This thesis represents an attempt to advance the research by providing empirical evidence of thelinkages between the firm's dynamic capabilities and performance in intenationalization and innovation activities. The aim is thus to increase knowledge and enhance understanding of the organizational factors that explain interfirm performance differences. The study is in two parts. The first part is the introduction and the second part comprises five research publications covering the theoretical foundations of the dynamic capability view and subsequent empirical analyses. Quantitative research methodology is used throughout. The thesis contributes to the literature in several ways. While a lot of prior research on dynamic capabilities is conceptual in nature, or conducted through case studies, this thesis introduces empirical measures for assessing the different aspects, and uses large-scale sampling to investigate the relationships between them and performance indicators. The dynamic capability view is further developed by integrating theoretical frameworks and research traditions from several disciplines. The results of the study provide support for the basic tenets of the dynamic capability view. The empirical findings demonstrate that the firm's ability to renew its knowledge base and other intangible assets, its proactive, entrepreneurial behavior, and the structures and practices that support operational flexibility arepositively related to performance indicators.

Tuotekehitysprosessin organisaatiolähtöinen kehittäminen

Työn tavoitteena oli kohdeyrityksen tuotekehitysprosessin tehostaminen. Tuotekehitysprosessin tulee huomioida sekä kaikki työvaiheet ideasta tuotantoon että kaikki tuotteen tehokkaaseen lanseeraukseen vaikuttavat toiminnot. Tuotekehitysprosessin pitää tukea rinnakkaissuunnittelua, jossa tuotteen ominaisuuksia, valmistettavuutta ja markkinointia kehitetään samanaikaisesti. Työssä käytetyt teoriat perustuvat alan kirjallisuudessa ja lehtiartikkeleissa esitettyihin malleihin tuotekehitysprosessista ja rinnakkaissuunnittelusta. Kuitenkin työ on tehty nimenomaan kohdeyrityksen tarpeisiin huomioimalla kehityksessä kaikkien prosessiin osallistuvien toimintojen näkemys tarvittavista tehtävistä. Työn tuloksena kehitettiin elektronisessa muodossa yrityksen sisäisessä tietoverkossa oleva kuvaus tuotekehitysprosessin rinnakkaisesta etenemisestä ja päätöksenteosta sekä siihen liitetty vaiheittainen toimintaohjeisto kaikille kehitystyöhön osallistuville organisaatiotahoille. Uusi tuoteprosessi luo edellytykset yhtenäiseen ja tehokkaaseen uusien tuotteiden markkinoille saattamiseen. Elektroninen rakenne helpottaa prosessin käytettävyyttä ja jatkuvaa kehittämistä. Prosessin tulee kehittyä jokaisen tuotekehitysprojektin yhteydessä.

Idea Screening in Telecom Business

Diplomityö on tehty Telecom Business Research Centerissä Lappeenrannassa. Toimialalle tyypillistä on tekniikan ja globaalien markkinoiden nopea kehitys, mikä edellyttää alan tuotekehitykseltä panostamista oikeisiin ideoihin, sekä niiden nopeaa ja joustavaa kehittämistä tuotteiksi. Tuotekehityksen alkuvaihe on johtamisen kannalta erityisen suuri haaste, koska ideoita on runsaasti, mutta resurssit tehdä niihin liittyviä selvityksiä ovat rajalliset. Diplomityön tavoitteena oli tuotekehityksen alkuvaiheen ymmärtäminen ja tutkia kuinka ideoita pystytään seulomaan. Tutkimus perustuu tuotekehityskirjallisuuteen ja haastatteluihin Telecom-teollisuudessa. Työn tuloksena ideoiden seulontaa kirjallisuudessa ja Telecom-teollisuudessa kuvataan ja niiden perusteella esitetään toimivia käytäntöjä tuotekehitysideoiden seulontaan toimialalla. Ehdotettujen käytäntöjen tavoitteena on saada parempia ideoita tehokkaammin tuotekehityksen alkuvaiheesta varsinaiseksi tuotekehitysprojektiksi.