Information Technology Reference
In-Depth Information
Table 7.2
Characteristics and implications of “closed innovation” teams
Characteristics of product development teams
Implications
•
Internal idea generation, development,
testing, commercialization, distribution,
and servicing of an innovation.
•
Continued spiraling development costs and
high risks borne by a sole firm. Long
innovation cycle time.
•
•
High R&D focus with heavy investment in
research facilities.
Limited application of knowledge to
innovation as the value chain is limited or
excluded from the process.
•
One firm dominates and controls the
innovation process.
•
Limited knowledge creation and creative
solutions to innovation. Restricted view of
customer needs and wants.
•
Reliance of cross-functional innovation
with strong integration between marketing,
research and development, and
manufacturing.
•
Limited idea generation and development as
“outsiders” are not utilized as potential
collaborators.
•
May have high levels of conflict among
them due to interdepartmental differences
arising from varying goals, objectives,
“language,” and timeframes.
•
Limited IP application and restricted
revenue streams.
•
Defensive and very tight control of
intellectual property designed to prevent
extended use by others.
These cross-functional team members are generally collocated, and are consis-
tent from development through manufacture and commercialization. Through the
network aspect to this structure, teams can communicate internally, between each
other, and even across organizational boundaries. Partners are occasionally involved,
but participation in the process is limited. After a specific task or period of involve-
ment, the partner within a closed innovation framework merely steps back to watch
as the rest of the process takes place within specified organizational boundaries.
7.2.3 Team Management
Closed innovation teams follow the NPD process and hold regularly scheduled
meetings in which cross-functional team members discuss team and project particu-
lars. The Product Development and Management Association (PDMA) reports that
over 60% of firms follow a formalized development process with steps including
idea generation, screening and selection, testing, business analysis, development,
and commercialization. The innovation process includes gates signaling go/no go
project decision points, and senior managers determine whether the project moves
further along in the process (Griffin & Somermeyer, 2007).
Studies indicate that communication between cross-functional collaborators
is fraught with conflicts due to discipline-specific language differences, vary-
ing reward systems, dissimilar time horizons, and varying functional priorities.
Managers may not exchange information at the appropriate time or may not even
know who needs what information, where it is located, or its timely and best
Search WWH ::
Custom Search