Information Technology Reference
In-Depth Information
Chapter 1
The Role of Information Technology
in Product Development: An Introduction
Satish Nambisan
Abstract
Innovation has assumed considerable importance in the contemporary
business world. In most industries, the very survival of firms is increasingly depen-
dent on their ability to rapidly develop and introduce innovative products and
services. At the same time, information technology (IT) has emerged as a critical
resource for companies to enhance the efficiency and effectiveness of their product
development activities. This chapter provides an introduction to the topic by tracing
the evolution of research on product (service) development and the increasing focus
on IT-related issues in this context. Both traditional and emerging areas of research
on IT and product development are identified. The motivation for the topic is set out
in detail, and the chapter concludes by describing the organization of the topic and
the various chapters.
1.1 Introduction
Innovation has assumed considerable importance in the contemporary business
world. In most industries, the very survival of firms is increasingly dependent
on their ability to rapidly develop and introduce innovative products and services
(Cooper, 2001; Schilling & Hill, 1998). On average, more than one-third of a cor-
poration's revenue comes from products and services that did not exist 5 years
ago. That figure is much higher in certain technology industries (Griffin, 1997).
The nature and the process of innovation have also undergone significant change
in the past several years as more and more firms open up their organizational
boundaries to seek out innovative ideas and expertise from a wide range of exter-
nal entities including customers, suppliers, academic researchers, serial innovators
(Nambisan & Sawhney, 2007). All of this has brought the research and the practice
of innovation to the forefront of management dialog.
At the same time, it is also evident that the issues related to both product and
service innovation will require the adoption of a more interdisciplinary mode of
