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CROSS-FUNCTIONAL SHIFTS IN ROADMAPPING: SEQUENCE ANALYSIS OF ROADMAPPING PRACTICES AT A LARGE
CORPORATION
Lianne Simonse
Delft University of Technology, Faculty of Industrial Design Engineering, NL e-mail: L.W.L.Simonse@tudelft.nl
Helen Perks
Nottingham University Business School, UK e-mail: Helen.Perks@nottingham.ac.uk
ABSTRACT
This study unravels the nature of inter-functional integration in roadmapping. Roadmapping is indicated as an important innovation phenomenon and is practiced by multiple large organizations. Functional integration is widely acknowledged to play a significant role in enhancing new product success. Roadmapping outcomes have been shown to shape and influence NPD practices and performance. Yet, little is known about the nature of functional involvement in roadmapping and its impact on roadmapping performance. This paper provides an empirical contribution to the understanding of the roadmapping phenomenon and extends the existing body of knowledge on functional integration towards the context of front end innovation. The aim is to unravel the nature of inter-functional integration in roadmapping from the rationale that detailed interactions must be tracked to offer a realistic account of how roadmapping occurs and how employees from different functional departments integrate their contributions into a roadmap.
A sequential analysis method is employed to examine roadmapping practices. In this rigorous data analysis procedure to systematically evaluate and make sense of longitudinal data also ‘objects’ are included to be able to analyse the maps used for inter-functional mapping. Philips, the large multinational corporation of Dutch origin, was chosen as the case site. Roadmap data spanning five years from 2002 to 2007 were collected at the Philips Beverages business unit. Supported by the QDA miner software, the detailed analysis led to a substantial data set of 479 identified events and 137 objects. The overall analysis resulted in the reconstruction of 21 sequences. These sequences are associated with the roadmapping outcome; the envisioned products on the roadmap. The end results determined six patterns of commonalities and differences among the sequences of actions, interactions and objects. The sequence patterns are 1.Technology innovation route; 2.Market creation route; 3.Market competitor-inspired route; 4. Market innovation route; 5. Product improvement route; 6.Market improvement route. With respect to the new product performance of envisioned versus actual new products, the results indicate that mapping with numerous functional involvement may not result in more successful product introductions. Overall, the results show a shift in functional leadership of roadmapping practice to marketing, demonstrating a broadening of cross-functional relations. Contrary to the literature, we found that technology involvement in roadmapping can be low. Further, our case analysis indicates how marketing domination in early roadmapping practices can lead to unsuccessful product launches.
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INTRODUCTION
This paper draws from a cross-functional integration perspective to investigate roadmapping practices. It adopts a longitudinal approach and seeks to unravel how and why functional orientations in roadmapping shift overtime, and the impact on product innovation outcomes.
Despite growing acknowledgement of the importance of roadmapping, the nature of functional roles and integration in the context of roadmapping has received little attention. To date, research has concentrated on technology roadmapping as a strategy practice of R&D managers (Kapel, 2001), with less attention put to the interactions between functional professionals. Addressing this gap is important. Roadmapping is associated with early front end innovation (FEI) activities (Koen et al., 2002) which lead to the initiation and articulation of ensuing new product development (NPD) projects. Roadmapping outcomes constitute the new product launches envisioned in the future, providing the directions for NPD projects. Research has shown that such product visions shape the NPD process and its outcomes (Lynn and Akgun 2001; Tessarolo 2007). This indicates that roadmapping outcomes are highly influential on NPD success.
In parallel, there is emergent interest in understanding the contingencies surrounding inter-functional integration in NPD. Research has investigated whether different levels or types of integration are appropriate among different contexts, product and competency types and stages of the NPD process (Song, Thieme, and Xie, 1998). Yet, whilst substantive work has investigated the determinants and outcomes of inter-functional integration in the context of NPD, little is known about the nature of functional involvement in roadmapping and its impact on roadmapping performance. In this study, we address these gaps by investigating the nature of inter-functional integration in roadmapping. This paper provides an empirical contribution to the understanding of the roadmapping phenomenon and extends the existing body of knowledge on functional integration towards the context of front end innovation. The aim is to unravel the nature of inter-functional integration in roadmapping from the rationale that detailed mapping interactions must be tracked to offer a realistic account of how roadmapping occurs and how employees from different functional departments integrate their contributions into a roadmap.
In the next section, this paper addresses the theoretical background on roadmapping and inter-functional integration, followed by the method section with specific attention to sequence analysis of the data. Then, the results section reports on the patterns found in the functional-integration analysis of the interaction, activities and object sequences in the roadmaps of multiple products of a major division (Philips Beverages) of the multinational organization; Philips. In the final discussion section, the qualitative results are interpreted, conclusions are drawn and reflections on the sequence analysis methods in use are summarized.
THEORETICAL BACKGROUND Roadmapping
Roadmapping is defined as mapping innovation elements to a timeline by a time pacing strategy and a synchronizing dialogue (Simonse et al., 2014). It is important to new product development because it strongly influences the direction and content of
3 the ensuing NPD effort. Roadmapping outcomes can shape NPD and ultimately influence NPD performance. They play important signaling roles for NPD projects. Scholars have demonstrated the core role of project directions and visions in determining NPD performance (Lynn and Akgun 2001; Kessler and Chakrabarti, 1996, Tassarolo, 2007). Tassarolo (2007) defines the product vision as the defining of clear objectives and a well-recognized strategy for the development process. These studies suggest that the nature of goals and directions set a priori NPD can affect the process and outcomes of NPD . This puts attention to the importance of roadmapping and its outcomes in the NPD process.
Roadmapping concerns three core elements; (1) interlinking functional activities of technology foresight, long-term market encounters and product line evolutions in the early front-end activities of innovation; (2) inter-functional interactions in the synchronizing dialogue, of a creative group conversation about the future plans on innovation with the timeline as a focal point for creating mutual understanding (Simonse et al., 2014) and (3) the maps used for the inter-functional mapping of gathered strategy information and knowledge on existing and potential innovations, such as for instance the innovation matrix map (Groenveld, 1997) and the product roadmap, technology roadmap and R&D project roadmap (Phaal et al., 2004). These mapped objects of roadmapping are important with respect to the capturing of the results of the roadmapping activities and interactions, namely the product vision plotted on a timeline of the future.
Roadmapping activities
Wheelwright & Clark (1992) were the first to examine technology roadmapping as a strategy practice at Motorola. They were followed by a growing number of scholars who captured best practices of firms and provided overviews of roadmapping elements and architecture (Kostoff & Schaller, 2001; Lee & Park, 2006), levels of decision influence (Kappel, 2001) and extended the pioneering work of practitioners with more methods and tools (Phaal et al., 2004; Moehrle & Isenmann, 2005; 2013). Roadmapping is typically executed in the front end of innovation (FEI) (Koen et al., 2002) interlinking functional activities and decisions of opportunity identification & analysis, idea generation & selection and concept & technology development (Bertels et al. 2011). As is typical of FEI practices, insights, strategies and ideas are conceived, discovered and envisioned rather than systematically developed and exploited. The activities in FEI are naturally found to be explorative, ambiguous, intuitive and uncertain in outcome. Successful approaches in FEI are found to effectively link business strategy, product strategy, and product-specific decisions (Khurana & Rosenthal, 1998), but so far, roadmapping has not been investigated in-depth with respect to the interlinking of FEI functional activities. In creating a vision (to inform subsequent NPD) from cross-functional activities little is known about functional actions in roadmapping. Particularly, this paper focuses on the functional activities in FEI. As a vehicle to do this we, specifically focus on how actions relate to interactions and objects within roadmapping. These are explained in more detail below.
Roadmapping interactions
An integral part of roadmapping consists of synchronizing dialogues. This concerns creative group conversation about future plans on innovation with the timeline as the focal point for creating mutual understanding (Simonse, 2014). As roadmapping is within the FEI, interactions are assumed to involve three levels—environmental,
4 individual, and organizational—and when these perspectives are telescoped together, the individual acts as an important conduit for funneling environmental-level changes into organizational-level processes through their boundary-spanning and gatekeeping roles (Reid and Bretani, 2004). However, these interactions in roadmapping have not been investigated in-depth with respect to the interlinking of functional roles from employees within different departments.
Roadmapping objects
The strategic dialogues and cross-functional conversations not only cover linguistical aspects but, in a broad view, cover a complex, information-rich mix of auditory, visual, olfactory, and tactile events (Ford & Ford, 1995). In particular visually mapping contributions of the participants is assumed to be crucial. A roadmap is considered as a ‘boundary object’ (Henderson, 1999; Carlile, 2002): a vehicle to cogitate, articulate and communicate across functions (Ewenstein and Whyte, 2009). So far, the use of maps, the objects of roadmapping, has not been investigated. This paper explores and unravels the objects in roadmapping in-depth and in particular focuses on the functional attribute mapping with these objects. Functional attributes might for instance be the strategic technologies that are mapped to another functional attribute of market segments, or product functions attributes that are mapped to customer needs attributes or value drivers attributes mapped to product-market combinations attributes.
Functional-integration
Researchers have found that linking technology to market is critical to successful innovation performance (Souder, 1988; Griffin & Hauser, 1996). There is a well-established research body which has investigated determinants and outcomes of inter-functional integration. Much of this has its roots in the work of Lawrence and Lorsch (1967) who were amongst the first to explain the need to bring together disparate functions with specific information gathering responsibilities to achieve organisational goals. Further work has sought to explicate the nature of integration. Much of this work focuses on the ongoing exchange or sharing of information, along with functional involvement or agreements on decision, as core determinants of integration (Bonomo et al,1997; Gupta, Raj, and Wilemon, 1985, 1986; Song and Parry, 1992). Some work has explored the nature of activities for integration of multiple functions (Denison et al., 1996; Song et al., 1997; Gomesa et al., 2003; Rubera et al., 2012). High levels of functional integration have been shown to be associated with significant benefits for new product development (Gupta and Wilemon, 1990; Gupta et al., 1985, 1986; Nakata and Im, 2010). Further evidence indicates that where organisations face both technology-led environments and complex markets (where new opportunities are subtle and require advanced market sensing capabilities), integration between critical functions can lead to more successful new product development (Gupta et al., 1985; Brettel et al, 2011). To date, most literature has explored the marketing-R&D relationship. It has been found that integration between these functions increases new product success (Gupta et al, 1985), However, integration among other functional units have been less well investigated and recent work recognizes the importance of studying integration of functions with external actors, such as suppliers and customers (Rubera et al, 2012).
In addition, there is emergent interest in understanding the contingencies surrounding inter-functional integration in NPD. Research has investigated whether different
5 levels or types of integration are appropriate among diverse contexts, product and competency types and stages of the NPD process. For example recent studies show that there is a difference in the effect of integration dependent on the exploratory or exploitation nature of NPD (Rubera et al, 2012) and how integration varies across different phases of the NPD process (Song, Thieme, and Xie, 1998). In this study, we add to recent work which puts attention to the nature of integration at different phases of the innovation process. We focus on the very front end of innovation – roadmapping. The overall aim of this paper is to understand the nature of inter-functional integration in roadmapping. To address this aim we pose the following three research questions which guide the research;
1. Is roadmapping practice affected by the integration of functional involvement and orientations throughout the process?
2. What is the nature of inter-functional integration in roadmapping?
3. Do functional orientations in roadmapping impact upon product innovation outcomes?
METHOD Case study
The research adopts an embedded in-depth systematic case study method, with multiple units of analysis. Done well, case study research is convincingly grounded in the evidence and generates frame breaking insights (Eisenhardt, 1989). Philips was chosen as the case site. Philips is a large multinational corporation of Dutch origin with divisions in the three domains of consumer lifestyle, healthcare and lighting. With approximately 160,000 employees in more than 60 countries, Philips is one of the world's biggest electronics and leisure companies for health and well-being and Europe's largest. Philips has market leadership positions in medical diagnostic imaging and patient monitoring, domestic appliances, electric shavers and lighting. It has R&D expenditure of approximately 1,500 million euros per year, ranked no.17 of R&D investments in Europe. As a diversified technology group, Philips has 17 Market clusters with business categories and innovation units. One of these business units is Beverages, providing tea and coffee appliances to consumer markets in100 countries. In addition to its size, complexity and international coverage, Philips was selected for this in-depth case study investigation, due to its heritage of being, besides Motorola and Lucent in the US, one of the founding companies of the roadmapping approach in Europe. This is evidenced through a historic publication of best practices by the European Industrial Research Management Association (EIRMA WG 52, 1997), and a widely cited article by an innovation manager from Philips Electronics (Groenveld, 1997) in Europe. Over a period of 20 years, roadmapping at Philips has become a standardized innovation process in which functional managers and experts are involved, linking the innovation strategy to new product development projects.
Data sample
The sample for the study consists of 21 envisioned product launches in the Roadmap Beverages BMC (business market combination) Group spanning five years from 2002 to 2007 at Philips Beverages, a major Category/Innovation unit. The Roadmap Beverages BMC was created in February 2002. The process of roadmapping started in
6 August 2001. Data for this study was collected through a mix of secondary and primary data and direct observation throughout a 5 year period from 2005-2010. However, given the need to carefully trace roadmapping practices for over more than five years, the main source of evidence came from documentary evidence within the company archives. 331 pages within 54 documents formed a substantive part of the data set. A second dataset of press releases of new products provided the performance data on the launch of the projected product versions. Data was collected with regard to the detailed activities of different functions and interactions between functions during the roadmapping processes.
Sequence data analysis
We employed a rigorous data analysis procedure by adopting sequence analysis (Perks and Roberts, 2012). This is an appropriate method to systematically evaluate and make sense of longitudinal data.
1. The first step entailed classifying outcomes. We identified the roadmap object, comprising envisioned innovation outcomes, as the outcome of a roadmapping activity. In the present study, we took the product version to be launched at a certain moment in the future, as the final unit of analysis.
Table 1. List and Numerical Codes of Envisioned Products and Type of innovation1
Number Envisioned Products Type
1 Lucid Comfort Kettle ICP
2 Cucina Kettle ICP
3 Comfort Cucina kettle ICP
4 Essence Kettle NGP
5 Ceramics teakettle + tea pot NGP 6 Tea brewing - Carafe Teamaker RNP 7
Cup by Cup Hotdrinks:
Tea-Coffee-Chocolate-Soup RNP
8 Water Purification appliance RNP 9 Cooking (Kettle) extension appliance RNP
10 Senseo2 ICP
11 Senseo UL ICP
12 Senseo3 milk frothing ICP
13 Senseo Solo (Semi-professional) NGP
14 Senseo Pad Handling NGP
15 Cup & Carafe coffee RNP
16 Lucid Dripfilter ICP
17 Lucid Comfort Dripfilter ICP 18 Cucina Dripfilter Thermos ICP
19 Cucina Dripfilter ICP
1 Type of innovation: Incremental new product innovation (ICP), Next generation architectural
7 20 Essence Dripfilter electro-dosing NGP
21 Gourmet3 NGP
We identified 21 product innovations, with respectively 8 product innovations for the product line “Kettles” and 6 product innovations for each product line “Dripfilter” and” Senseo”. Additional performance data on launch of the projected products was included in the outcome analysis. All envisioned product innovations were classified according to three types of innovation: incremental innovation, a next generation (architectural) innovation or a radical new product innovation (Hendersons & Clark, 1990). These are coded: ICP; NGP; RNP.
2. A second step comprised event and object identification and reconstruction of the sequence of activities and objects. As sequence analysis commonly reconstructs events we made an addition of object identification, because a roadmap is defined as a visual portrait of market/product/technology plans plotted on a timeline (Simonse, 2014).The timeline is crucial in a roadmap. The timeline on the roadmap makes the roadmap function as a temporal boundary object that make time concrete and negotiable for various groups of participants (Yakura, 2002).
A. Events encompassed different types of front end innovation activities and interactions carried out by employees from the different functional departments involved in the roadmapping process. Besides the individual and group activities exchanged between employees of Marketing and R&D departments, also the interactions with facilitators, and external organisations such as suppliers, customers and business partners were included.
B. Objects encompassed different types of mapping objects used to map functional attributes of, for instance, marketing attributes - to technology attributes. With a timeline element the object is identified as a roadmap. We uncovered product roadmaps, technology roadmaps, marketing roadmaps and project roadmaps for R&D projects or Marketing projects, (coded: OtP; OtM; OtT; OtTpj; OtMpj). Others objects appeared to have a matrix outline or included drawings and descriptions of a new conceived concept (coded: OM2T; OM2C; OP2C; OT2P etc.). We uncovered that a critical set of cross-functional objects are used in building up the final roadmap object.
We reconstructed and sequenced the activities and objects in time order. Given the large number of pages with the data, we used the QDA miner software to support the sequence reconstruction. First we coded the events and objects and then used and interpret the automated coding analysis of co-concurrence and inter-sequence distances (Abbot, 1990)]. Furthermore, additional tabulation was used to chart the individual event sequences.
This step led to a substantial data set of 479 identified events and 137 objects. With respectively (A) 30 codes for critical bilateral functional interactions, (B) 122 for roadmapping session interactions and (C) 327codes for roadmapping activities associated with front end activities and (D) 104 codes for mapping objects and (E) 33 codes for the roadmap objects. These events and objects were ordered chronologically and reconstructed in meaningful sequences for each identified outcome.
3. Thirdly all the events and objects were then classified into categories. For this critical third analysis step, we carefully crafted the classification scheme in such a
8 way that events were classified into mutually exclusive and cumulatively exhaustive categories. This required a number of iterations in refinement and modification of categories, triangulating across multiple sources of evidence (Isabella, 1990) and researchers to ensure reliability of the event classification. Coding categories merged, were eliminated, and newly created during this process. We coded events and objects into 4 categories: (A) bilateral functional interactions with sender to receiver orientation, 10 coding categories for (B). Session interactions: multiple interactions with leading and multiple participation orientation, and 14 coding categories for (C) front end innovation activities with functional orientation and 9 coding categories for (D) objects used mapping between functional attributes and 7 coding categories for (E) roadmap objects with a timeline element (Yakura, 2002). The codebook is appendix 1.
4. In the fourth step we compared the sequences and analyzed patterns of similarity and dissimilarity. We undertook this process manually (Isabella, 1990) using visual aids of tabulation charts of individual event sequences. We used again the QDA miner software to support this analysis of co-concurrence and inter-sequence distances (Abbot, 1990). We determined patterns of commonalities and differences among the sequences. We made fine distinctions within the data set. After analyzing the distances, the clusters showed the patterns of commonalities among the sequences. In this final analysis, the 21 sequences were clustered into six patterns. We also analyzed if these clustered sequences were conditioned or influenced by independent variables and specified the constraints.
5. In the final fifth step we interpreted the cluster results in relation to final outcomes, assessing for heterogeneity or homogeneity of sequences within the clusters to support such interpretation (Salvato, 2009).
In conducting these five steps of sequence analysis we employed care and rigor, paying particular attention to issues of interpretation and reliability.
RESULTS
Roadmapping outcomes: new product performance
Starting with the classification of outcomes, we identified 21 new product versions of new coffee and tea appliance, on the top level roadmap of Philips Beverages. All these 21 products, from either the product line Kettles, Senseo or Dripfilter, were envisioned for launch in the future, mapped on the timeline of 2002 – 2007, and pinpointed to a certain year. For instance the new coffee cup by cup appliances, ‘Senseo3 with milk frothing’ was envisioned for launch in the second half of 2004. The ‘Essence dripfilter appliance with electronic dosing’ was envisioned for launch in the second half of 2005 and the cold water ‘purification’ appliance was envisioned for launch in the first half of 2006.
Some envisioned products concern an incremental innovation: n=10, (50%) such as the Senseo milk frothing, others a new platform generation innovation: n=6, (30%) such as the essence dripfilter and a few a radical new innovation n=4, (20%) like the water purification appliance.
From all the envisioned products, 14 products have successfully been launched on the global market versus 7 envisioned products that were not launched and thus unsuccessful. Those most successful and on-time were the incremental new products and next generation products with some launched earlier ( + or – 1 year), and some
9 launched one year later. Most delays concerned the radical new product innovations with 3 to 5 years delay.
Table 2. Philips Beverages roadmapping product performance
Number Type Launched Envisioned
Time
Launched Time
1 ICP --- 2003 ---
2 ICP Waterboiler Cucina I/B Cuni 2004 2004
3 ICP --- 2007 ---
4 NGP
Philips Pure Essentials Collection Water kettle HD4686/30 1,5 l, 2400 W, digital temperature regulator.
2005 2007
5 NGP Kettle Aquabelle Ceramic White 2005 2004 6 RNP Philips Tea maker ( Teezubereiter
HD7310 ) 2004 2011
7 RNP SENSEO® Coffee pod systeem New
Generation Chocobreak 2005 2009
8 RNP
Philips UV water purifier WP3890/01 UV Class A
+ Philips On tap water purifier WP3861 Pure Taste
2006 2008 (2x)
9 RNP --- 2006 ---
10 ICP Senseo II Polar White 2003 2002
11 ICP Senseo XL Spec.Usa 2003 2004
12 ICP SENSEO® Latte Select 2004 2008
13 NGP SENSEO® Coffee pod systeem New
Generation Volume Select 2005 2006
14 NGP --- 2006 ---
15 RNP
SENSEO® SARISTA SARISTA Bean-funnel Coffee maker HD8030 Deep Black three taste choices and thermo carafe
2007 2012
16 ICP --- 2003 ---
17 ICP --- 2005 ---
18 ICP Coffeemaker Cucina Ii Therm.Iv/Bl -
HD7528 2004 2006
19 ICP --- 2007 ---
20 NGP Essence Coffee Maker.Thermos 1.2l
Metallic (without electronic dosing!) 2005 2005 21 NGP Philips Coffee maker with glass jug Boil
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Identification of functional involvement and orientation in
roadmapping
Functional involvement and orientation in roadmapping activities
In identifying the roadmapping interactions, activities and objects of the beverages roadmapping process, figure 1 shows first an overview of the identified activities by functional orientation. This coding analysis results shows the critical functional activities, their intensity and chronology by calendar months and year (see figure 1). The Beverages roadmapping process started in June 2001 and ended in February 2002. The period lasted over 9 months with the most intensive activities in the five months of September, October, November, December and January. From June and December 1999 stem the strategy reports used to start up the Beverages roadmapping process in June 2001, for instance the Food & Beverage Marketing Strategy” report and the Technology Research report on the subject of ‘Water purifier with boiling water treatment: the scaling problems’.
Legend:
Functional: ‘M’ is Marketing function, ‘T’ is R&D function, ‘P’ is the Product Marketing function, bridging the two functions, ‘C’ is Consumer Research function, ‘D’ is Design function.
(Front end innovation) Activities: AS=Activities of Scouting,
AR=Activities of Research investigation and analysis, AVD=Activities of Vision Direction and decision, AG=Activities of generating, ASD=Activities of selection decisions, AE=Activities of Estimation.
Figure 1: Results of analysis (enabled by QDA Miner software): Activity Frequency of Roadmapping Philips Beverage Appliance Categories: Kettles, Senseo and Dripfilter by Chronological order in Months – Years.
With the exception of a high intensity of R&D involvement (TAR-Dec99) in the beginning of the roadmapping process, overall marketing is most intensely involved in this roadmapping process of Philips Beverages. The activities of scouting, research investigation and analysis and vision direction and decisions during the early months
11 were predominantly executed by employees from the marketing department (MAS, CAS, MAR, MAVD). In the last three months of the roadmapping process the orientation of the activities is more cross-functional and less dominated by particular functions; This is specifically evident in the activity of generating new concepts. This indicates that towards the end the process there were evidence of activities which lead to building consensus.
Functional involvement and orientation in roadmapping interactions
In identifying the functional involvement and orientation in roadmapping interactions of the beverages roadmapping process, we traced that the critical interactions concern process interaction more than content interaction (21,1%). Almost 40% of the analysed documentation comprises process communication (see figure 2). This suggests a high complexity within the process interactions. In further tracing back the initiator of these interactions, 30% were initiated by the process facilitators from the corporate service support unit Philips CFT. This unit provides in-company innovation (process) services with high confidentiality and corporate specific knowledge. From the frequency of used codes for bilateral or meeting session interactions, most of the interactions relate to roadmapping sessions (code freq. =122) and relatively few interactions concern bilateral interactions (code freq. = 30). The leader to whom most of the bilateral interactions are related is the Senior Marketing Director of the Beverages business unit of Philips. This is evidenced in the coding; from the 30 codes; 14 coded interactions from the facilitator to this marketing director compared to 4 coded interactions from the facilitator to the R&D director. This evidences that the functional lead of the roadmapping process lies with Marketing. Besides the process interaction, about 20% of the critical interactions concern content. Content concerns critical inputs or outputs for the mapping activities in the roadmapping process. In unraveling these mapping interactions the objects for functional mapping were investigated.
Figure 2: Document analysis result (enabled by QDA Miner software): Frequency distribution by Document Variable of Content, Process or Object.
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Functional involvement and orientation in roadmapping objects
In identifying the roadmapping objects, we uncovered 21 objects associated with the beverages roadmapping process. More than a quarter (27%) of the case documents comprised a roadmapping object, used for mapping functional attributes (see figure 2). An illustration of such objects is the consumer value tree map (n=7 used for mapping product attributes (functions and features) to the values of unique defined target consumer groups. In this roadmap, the content of the value tree map comprises five unique consumer target groups. Three target groups are related to the previous roadmap with the existing product/market combinations for the consumer segments; namely ‘Family Sociables’, ‘Quality Oriented Traditionals’ and ‘Optimizers’. The latter was not selected by the Philips beverages team for the market roadmap of this roadmapping process. Two other uniquely defined target groups, the ‘Expressives’ and the ‘Culinary creatives’, relate to new value spaces of market creation, driving new platform generation innovation and radical product innovation. For each of the target groups the value trees (initial results from the voice of the customer tool) are used for mapping functions of products to the tree. Also in this roadmapping process we found that consumer trends are mapped to these value trees.
Another type of roadmapping objects are matrix maps. We found a considerable amount of matrix documents (n=10) with names such as: Dissatisfier matrix, Product lines- Consumer segment matrix, Technology Functions-Concepts matrix and Project Estimation Functions-Concepts matrix. Surprisingly, of actual roadmap objects that comprises a timeline for mapping, this type only holds 2 roadmap documents, namely A. A top-level product roadmap with a high abstraction level of the products mapped on the timeline and B. a compiled roadmap with detailed level roadmaps. The latter includes a market roadmap with consumer segments and competitor product/market combinations, a product roadmap, and a R&D project roadmap that outlines the manpower and lead times for the technology function development projects (Pre-development stage) and new product (Pre-development projects ((Pre-development stage). These include subprojects of module development projects in-house and at suppliers. This final roadmap is built up with the matrix objects that are produced in the mapping activities.
Synthesis of functional involvement and orientation in three stages
The coding of all events, objects, bilateral interactions, and event activities were finally classified into 616 codes, with respectively 30 codes for critical functional interactions, 327codes for roadmapping activities, 122 for roadmapping session interactions, 104 codes for objects and 33 codes for the roadmaps. In analyzing the co-occurrence of the codes, the dendogram reveals three stages of clustered actions, interactions and objects (see figure 3).
Co-concurrences of codes within the same document are analysed by the QDA Miner software. The first stage relates to selecting and mapping “scouting and analyzing” content from marketing, technology, consumer or product and technology into matrices and value trees. The second stage relates to decisions and action regarding providing direction with vision statements that leads to the generation and conceptualization of new products. The third stage relates to the building up of the actual roadmaps with activities of detailed estimation of R&D projects lead-times and manpower. Further analysis of the inter-sequence distances and sequence resemblance with the intersequence analysis matrix (see appendix 1) confirms the high relations between the codes of each stage.
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Figure 3: Code analysis co-concurrences results (enabled by QDA Miner software): Dendogram
Analysis of functional – integration in roadmapping
Final clusters: Patterns of functional-integration in roadmapping:The previous analysis had involved coding the substantial data set and then ordering it chronologically along patterns of family sequences for each of the 21 identified outcomes and the three stages of family sequences. In assessing for heterogeneity or homogeneity of sequences, six clusters were unraveled, comprising patterns of activities, interactions with objects and individual interactions. The clusters revealed patterns of commonalities among the sequences. Sequence table 3 summarizes these and provides indicative evidence from the sequences. It also shows the performance/outcomes effects of these sequences. The sequences are shown, and discussed below:
1. Technology innovation route 2. Market creation route
3. Market competitor-inspired route 4. Market innovation route
5. Product improvement route 6. Market improvement route
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Table 3. Action, Interaction and Object Sequences of Product Conceptualization
O P 2C =D is sa tis fie r m at ri x O P 2C =V al ue F un ct ion T re e O P 2C =V al ue T re nd T re e O P 2C =Pr odu ct /C on su m er s eg m en t m at ri x O M 2C =T ar ge t G rou p be ha vi or /C on su m en t M ar ke t s eg m en t m at ri x O tP /O tM =p ri or P rodu ct /M ar ke t R oa dm ap T ype 1 IC P O tP AVD O T 2P T A E O T 2P AG M A V D O T 2P T A R M A V D O M 2C O M 2M C M (F )M M M M D M A R O P 2C M A R M A V D O M 2C M (F )M M M M D M A R 2 IC P O tP AVD O T 2P T A E O M 2T AG M A V D O T 2P T A R M A V D O M 2C O P 2C M A R M A V D O P 2C O M 2C M (F )M M M M D M A R O tP O tM 3 IC P O tP AVD O T 2P T A E O T 2P AG M A V D O T 2P T A R M A V D O M 2C O P 2C M A R M A C D O P 2C O M 2C M (F )M M M M D M A R O tP O tM 4 N G P O tP AVD O T 2P T A E O T 2P AG M A V D O T 2P T A R M A V D O M 2C O P 2C M A R M A V D O P 2C O M 2C M (F )M M M M D M A R O tP O tM 5 N G P O tP AVD O T 2P T A E D A V D O T 2P AG M A V D O T 2P T A R O P 2C M A R 6 RNP O tP AVD O T 2P AE O T 2P AG M A V D O T 2P T A R O P 2C A S D M A S 7 RNP O tP AVD O T 2P T A E I2+ S u /C u /U O T 2P AG M A V D O T 2P T A R O P 2C A S D O P 2C A S D M (F )M M M M D CAS 8 RNP O tP AVD O T 2P T A E IF 2T O T 2P AG T A V D O T 2P T A R O P 2C M A S D T A R 9 RNP O tP AVD O T 2P T A E O M 2T AG S A V D O T 2P T A R O P 2C S A V D 10 IC P O tP AVD O T 2P T A E D A V D O T 2P AG T A S P A V D O T 2P T A R M A V D O M 2C O P 2C T (F )T T T M P A R 11 IC P O tP AVD O T 2P T A E O T 2P AG M A V D O T 2P T A R M A V D O M 2C O P 2C T (F )T T T M P A R O P 2C M A R 12 IC P O tP AVD O T 2P T A E O M 2T AG M A S P A V D O T 2P T A R M A V D O M 2C O P 2C M A R 13 N G P O tP AVD O T 2P T A E M A V D O M 2C O M 2M C M (F )M M M M D M A R 14 N G P O tP AVD O T 2P T A E O M 2T AG T A S M A V D O T 2P T A R M A V D O M 2C O P 2C M A R 15 RNP O tP AVD O T 2P T A E O M 2T AG M A V D O T 2P T A R O P 2C A S D M A S 16 IC P O tP AVD O T 2P T A E O T 2P AG P A V D O T 2P T A R M A V D O M 2C O M 2M C M (F )M M M M D M A R O P 2C M A R M A V D O M 2C M (F )M M M M D M A R 17 IC P O tP AVD O T 2P T A E O T 2P AG M A S M A V D O T 2P T A R M A V D O M 2C O M 2M C M A R O P 2C M A R M A V D O M 2C M (F )M M M M D M A R 18 IC P O tP AVD D A V D O T 2P AG M A S M A V D O M 2C O P 2C T (F )T T T M P A R 19 IC P O tP AVD O T 2P AG T A S M A V D O M 2C O P 2C M A R M A V D O P 2C O M 2C M (F )M M M M D M A R O tP O tM 20 N G P O tP AVD O T 2P T A E O T 2P AG M A V D O T 2P T A R M A V D O M 2C O P 2C M A R M A V D O P 2C O M 2C M (F )M M M M D M A R O tP O tM 21 N G P O tP AVD O T 2P T A E O M 2T AG M A V D O T 2P T A R O P 2C M A R O P 2C A S D M (F )M M M M D CAS N um be r
15 1. Technology innovation route:
Technology Research leading to Radical New Product conceptualization (TAR to RNP)
In technology roadmapping one would expect this route to be the classical roadmapping route. Yet, in our case, from the total of 21 sequences (see table x) only one sequence starts with results from technology research and leads to a radical new product; in our case the cold water purification appliance. This envisioned product was radical in the sense of new technology and new market creation. Researched technology creation included new technologies of “reversed osmosis, ion exchange, polyphosphate and hyper filtration”. Researched value spaces for new market creation were envisioned and defined by the new target group of the “Culinary creatives”.
2. Market creation route:
Consumer trend scouting leading to Radical New Product conceptualization (CAS to RNP)
From all four sequences reconstructed for the outcomes of radical product innovation, the other three sequence start with marketing trend scouting activities. One sequence starting with social cultural trends and two sequences starting with competitor trend spotting. Although both routes comprise market trend scouting activities the consumer trend scouting strongly relates to market creation vs radical product innovation for the existing market with radical new appliance concepts and related technologies. Therefore we distinguish this as market creation by consumer scouting route. Starting with socio-cultural trend scouting (CAS) this
route creates a value segment (blue ocean) in the market for ‘Expressives’ and conceives the radical innovation of a “Cup by Cup Hot drinks: Tea-Coffee-Chocolate-Soup appliance” (RNP). A second sequence leads to the next generation platform innovation of “Gourmet3” (NGP) for the new market of “Culinary creative”. Exceptionally in this sequence is also the product conceptualization with reference to partnership collaboration, with Douwe Egberts Master Blenders, beverages fast moving consumer goods multinational. Furthermore, the designer is involved (DAVD) and relates to the conceived concept for the Expressives by stating the vision of ‘Coffee on Demand’ for this new innovation.
3. Market competitor inspired route:
Competitor trend scouting leading to Radical New Product conceptualization (MAS to RNP)
Starting with spotting existing propositions of the coffee and tea appliances of competitors at exhibitions, through the internet and other market research sources, this route creates innovation for the existing consumer market segment. It concerns a radical new product with new technologies. By radical it is meant in the sense of completely new for the company and not new for the world.
4. Market innovation route:
brand creation for incremental innovation products (MAR-ICP)
Differentiation in creating a new brand is the source of innovation in this route. Three sequences lead to incremental innovation products (ICP) of the ‘Lucid Comfort Kettle’, ‘Lucid Dripfilter’ and ‘Lucid Comfort Dripfilter’. These are all related to the creation of the new brand ‘Lucid’ with the positioning slogan of “See the
16 extraordinary in the everyday” and the conceived “Big Idea: Visual Fascination”. This indicates a pure marketing innovation approach. Attributes used in the briefings for concept generation include aspects such as “The Lucid communication objectives: Create perception of breakthrough, - never seen before; new technology; design totally original; Create Buzz among consumer and distribution; -premiumness- innovation attribution. Gain Attention.”
5. Product Improvement route:
product dissatisfier investigation for incremental innovation products
(PAR-ICP).
Three sequences have this pattern of optimizing an existing product, leading to the envisioned product launch of the ‘Senseo2’, ‘Senseo UL’ and ‘Cucina Dripfilter Thermos’. These start with a product analysis of current products, from a consumer perspective. The feedback and customer complaint reports are part of the content for this analysis. Typical for this sequence is also the fact that the concept artefact was technology oriented in its briefing (TAS) and product description (OT2P).
6. Market improvement route
: feature creation for incremental innovation products (OtM/P-ICP).
Six sequences lead to incremental innovation products and next generation platform innovation based on the addition of new features. This is illustrated, for instance, in the next generation concept of the “Entertainment Senseo concept” that is defined in its briefing as “Entertainment is related to features not related to the basic functions of Senseo (Coffee, milk frothing)”. Starting with market research and leading to incremental product innovation this sequence optimizes the existing products in existing markets. The sequence is clearly market dominated, revealing 9 ‘M’s representing the marketing function.
DISCUSSION AND CONCLUSION
This study contributes to NPD knowledge by unraveling the nature of inter-functional integration in roadmapping. Roadmapping is indicated as an important innovation vehicle and is practiced by multiple large organizations. Furthermore roadmapping outcomes, in terms of direction and product visions, have been shown to shape and influence NPD practices and NPD performance. Functional integration is widely acknowledged to play a significant role in enhancing new product success. In our study, we have extended and linked this body of evidence through an investigation of inter-functional integration in roadmapping. Our detailed results suggest that the way functions are involved and integrated in the roadmapping process can influence roadmapping outcomes. These form vital inputs into new product development and their nature can effect NPD performance.
Specifically the findings unravel six patterns of sequences that demonstrated commonalities across functional involvement in roadmapping (namely actions, interactions and objects) and roadmapping outcomes. The outcomes were multi-faceted covering both envisioned outcomes and actual new product performance. Through these findings we show some interesting insights. Contrary to the literature, we find that technology involvement in roadmapping can be low. In our case only two
17
Table 4. Clusters, Indicative functional integration evidence and roadmapping performance outcome
18 of the six patterns of sequences, patterns 1 and 5, show high involvement of the technology function (see table 4). This can be explained by the desire to imbed a market-led perspective to roadmapping, common in organizations facing multi-segmented finely differentiated markets. In our case we find that this can alienate R&D involvement in later stages and can lead to delayed new product launches. A lack of R&D involvement in early roadmapping can constrain its ability to make later appropriate contributions in the development of new products built around the earlier envisioned concept. Through our detailed analysis of actions and interactions, we show that technology can be left out of decisions at very early stages. Early criteria set by marketing can too narrowly define and specify product concepts based on target segment requirements. These can then dominate subsequent mapping processes and dictate mono-marketing functional involvement. R&D then has a very narrowly defined brief to work to at the product development stage. Effective product development can thus involve lengthy readjustments by the R&D function as it needs time to develop know-how and resources to address the product vision. Our case analysis shows that marketing domination in early roadmapping practices can lead to unsuccessful product launches (see pattern sequence number 4 in table 4). Here preoccupation with brand-mapping in early stages for incremental developments can alienate R&D functional involvement entirely. Lack of any technology voice early on can adversely affect involvement at later development stages.
In conclusion, this study contributes to innovation roadmapping research by exploring and articulating the nature of the relationship between roadmapping and inter-functional integration. It shows that the inter-inter-functional integration impacts on roadmapping and our investigation explains, through systematic sequence analysis, where and why this happens. The findings alert managers to the shifts in roadmapping functional leadership and suggest a need to ensure balanced cross-functional roadmapping practices.
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21
APPENDIX 1. CLASSIFICATION OF ACTIONS, INTERACTIONS AND OBJECTS ASSOCIATED WITH ROADMAPPING (CODEBOOK). Product Innovation Outcome
ICP Incremental Product Innovation Outcome
NGP Next Generation Product Innovation or Next Platform Innovation
RNP Radical New Product Innovation
Ot Roadmap Object with Timeline mapping of functional elements
OtT Technology roadmap: Object with timeline used to map Technology attributes OtM Marketing Roadmap: Object with timeline map used to map Marketing attributes OtP Product roadmap: Object used to map product line(family) to timeline.
OtTpj Technology projects roadmap OtMpj Marketing projects roadmap Ot+D/Mf/SS/Uf Technology roadmap with additional functional attributes of
Design/Manufacturing/Sales and Services/other internal departments.
Ot+Su/Cu/Uu Roadmap with additional participation of Supplier firms and/or participation of Customer organisations or consumers and/or participation of Unusual organisations.
O Object-mapping between functional attributes
OM2C Object used to map marketing attributes - to customer attributes. OM2MC Object used to map marketing attributes - to competitor attributes. OP2C Object used to map product attributes - to customer attributes. OM2T Object used to map marketing - to technology attributes. OT2P Object used to map technology attributes - to product attributes. O2+D/Mf/SS/Uf Object mapping of technology attributes to additional
Design/Manufacturing/Sales and Service or other internal function attributes.
O2+Su/Cu/Uu Object used to map Technology attributes to additional Supplier firms and/or Customer organisations or consumers and/or Unusual organisations attributes.
OmU Object used to map unusual attributes to be specified.
OP2MC Object used to map product attributes - to competitor attributes. Front End Innovation Activity
MAS Activities of Market Competitors Scouting by employees from the Marketing department CAS Activities of Consumer trends and opportunity scouting by employees from the Marketing
department
TAS Activities of Technology Scouting by employees from the R&D departments
MAR Activities of Marketing research investigation by employees of the marketing department TAR Activities of Technology research investigation by employees of the R&D departments PAR Activities of Product research investigation by employees of the Marketing departments. MAVD Activities of marketing vision direction and decisions by employees of the Marketing
departments
TAVD Activities of technology vision direction and decisions by employees of the R&D departments
DAVD Activities of Design vision direction and decisions by employees of the Design departments
SAVD Activities of strategic vision direction and decisions by employees of the Strategy departments
PAVD Activities of product vision direction and decisions by employees of the Marketing departments
AG Activities of generation and creation. KEYWORDS: Of new innovation elements such as market segments, new technologies, new product concepts.
22
ASD Activities of evaluating and selection decisions KEYWORDS: of innovation elements, new products, markets, technologies associated with decision criteria.
AE Activity of estimation of risks, cost, time, quality, feasibility. 2 Functional Interaction (with Sender to Receiver orientation)
IF2T Dyadic contacts between employees of roadmapping consultancy/facilitator departments and manager of R&D departments.
IM2M Dyadic contacts initiated by employees from Marketing departments towards employees of Marketing departments
IM2T Dyadic contacts initiated by employees from Marketing departments towards employees of R&D departments
IT2M Dyadic contact initiated by employees from R&D departments towards employees of Marketing departments.
IT2T Dyadic contact initiated by employees from R&D departments towards employees of R&D departments.
IF2M Dyadic contacts of roadmapping consultancy/facilitator departments and manager of Marketing departments.
IM2F I2+D/Mf/SS/Uf Dyadic contacts with Design/manufacturing/Sales and services or other internal department.
I2+Su/Cu/Uu Dyadic contact with external organisations, supplier/customer organisations or others.
m Multiple interaction (with leading + multiple participation orientation)
T(F)mTTTT Multiple interactions initiated (or chaired) by employees from R&D departments with mono participation of employees from R&D departments.
T(F)mTTTM Multiple interactions initiated (or chaired) by employees of R&D departments with minor participation (less then <25%) employees of Marketing.
T(F)mMMTT Multiple interactions initiated (or chaired) by employees of R&D departments with equal participation (around 50%) of both employees of Marketing and R&D
departments.
T(F)mMMMT Multiple interactions initiated (or chaired) by employees of R&D departments with major participation (more then >75%) employees of Marketing.
M(F)mMMMM Multiple interactions initiated (or chaired) by employees of Marketing departments with mono participation of employees from Marketing departments. M(F)mMMMT Multiple interactions initiated (or chaired) by employees of Marketing
departments with minor participation (less then <25%) of employees from R&D departments. M(F)mTTMM Multiple interactions initiated (or chaired) by employees of Marketing
departments with equal participation (around 50%) of employees from R&D departments. M(F)mTTTM Multiple interactions initiated (or chaired) by employees of Marketing departments with major participation (more than > 75%) of employees from R&D departments.
m+D/Mf/SS/Uf Multiple interactions with additional (< 20%) participation of employees of Design departments and/ or Manufacturing and/or Sales and Service and/or Unusual functional roles.
m+Su/Cu/Uu Multiple interactions with additional participation of Supplier firms and/or participation of Customer organisations or consumers and/or participation of Unusual organisations.
23
APPENDIX 2. PATTERNS OF SEQUENCES IN DETAIL 1. Technology innovation route:
Technology Research leading to Radical New Product conceptualization (TAR to RNP)
RNP-OtP-AVD-OT2P-TAE-IF2T-OT2P-AG-TAVD-OT2P-TAR-OP2C-MASD-TAR
S This sequence resulted in the envisioned radical innovation outcome (RNP): Philips Pure Essentials Collection Water kettle HD4686/30 1,5 l, 2400 W, digital temperature regulator.
tarts with the only one research report document in the sample: the Technology research (TAR) report on “Water purifier with boiling water treatment. The scaling problems,” dated one year before the start of the roadmapping process: 1999-12-14. As a product attribute, the purification function is selected (MASD) and mapped to the value tree (OP2C) of Culinary creative consumers for Kettles. Then cold water purification is further investigated in relation to technology alternatives (TAR) and as a result four alternative technologies are mapped in the function-concepts matrix (OT2P). This is synthesized in a briefing (TAVD) for generating new concept ideas (AG). This activity results in a concept artefact drawing and technical description (OT2P) that underlines technology innovation with explicit directions for contacting technical experts from Philips research labs (IF2T). Then in the final stage of
roadmapping the lead-time for technology development, function development and new product development is estimated (TAE) with the Time/FTE TD- NPD Matrix (OT2P), described in the innovation strategy and envisioned on the final product roadmap (OtP), for launch in earlier 2006.
2. Market creation route:
Consumer trend scouting leading to Radical New Product conceptualization (CAS to RNP)
RNP/NGP-OtP-AVD-OT2P-TAE-I2+Su/Cu/Uu-DAVD-OT2P-AG-MAVD-OT2P-TAR-OP2C-ASD- M(F)MMMMD-OP2C-ASD-CAS
Starting with sociocultural trend scouting (CAS) this route creates a value segment (blue ocean) in the market for ‘Expressives’ and conceives the radical innovation of a “Cup by Cup Hot drinks: Tea-Coffee-Chocolate-Soup appliance” (RNP). And a second sequence leading to the next generation platform innovation of “Gourmet3” (NGP) for the new market of “Culinary creative”.
From the social trend scouting activities only a few trends were selected (ASD) by mapping these to the value tree (OP2C) of the target group “Expressives”. As value drivers for new product ideas for this new market the trends of “1: Greater
24 Convenience, 2: Independence & Customization, 3: Extended Enjoyment and 5: Variety & Excitement” were selected and mapped on value tree (CAS-ASD-OP2C). Exceptionally in this sequence is also the product conceptualization with reference to partnership collaboration, with Douwe Egberts Master Blenders, a beverages fast moving consumer goods multinational. Furthermore, the designer (DAVD) relates to the conceived concept for the Expressives by stating the vision of ‘Coffee on
Demand’ for this new innovation.
3. Market competitor inspired route:
Competitor trend scouting leading to Radical New Product conceptualization (MAS to RNP)
RNP-OtP-AVD-OT2P-TAE-OM2T-AG-MAVD-OT2P-TAR-OP2C-ASD-MAS
The two sequences with this pattern lead to the radical new product envisioning’s of the Tea brewing - Carafe Tea maker and the Cup & Carafe coffee maker. From a presentation on beverages trends and opportunities (MAS) we traced back two spotted products that served as inspiration for the product conceptualization in this route (see figure x).
From all competitors trends spotted (MAS) only a few were selected during the value tree mapping sessions. We found product attributes of the Tea brewing - Carafe Tea maker and the Cup & Carafe coffee maker mapped to the value tress of the existing consumer market segment values of the “Quality Oriented Traditionals” and the “Senseo target group” (OP2C-ASD-MAS). In the second stage of roadmapping the product conceptualization was also found to be market oriented, as the briefing for the concept generation also included market oriented visions (MAVD) and the concept artefact was predominantly described in relation to market attributes (OM2T).
4. Market innovation route:
brand creation for incremental innovation products (MAR-ICP)
RNP-OtP-AVD-OT2P-TAE-OM2T-AG- MAVD-
OT2P-TAR-OP2C-ASD-MAS
The two sequences with this pattern lead to the radical new product envisioning’s of the Tea brewing - Carafe Tea maker and the Cup & Carafe coffee maker. From a presentation on beverages trends and opportunities (MAS) we traced back two spotted products that served as inspiration for the product conceptualization in this route (see figure x).
From all competitors trends spotted (MAS) only a few were selected during the value tree mapping sessions. We found product attributes of the Tea brewing - Carafe Tea maker and the Cup & Carafe coffee maker mapped to the value tress of the existing consumer market segment values of the “Quality Oriented Traditionals” and the “Senseo target group” (OP2C-ASD-MAS). In the second stage of roadmapping the
