Product Development: Past Research, Present Findings, and Future Directions

Abstract

This review of the state of research on product development as of the mid-1990s finds that it is quite fragmented, and sets out to create a framework by which to view the literature. Most empirical research can be grouped into three views of the nature of the product development process: rational plan, communication web, or disciplined problem solving. Based on the prior research, a model of success factors is developed, which highlights the value of various stakeholders, or agents, and distinguishes between success in the process and a successful product. The focus on product development as successful when rationally planned identified the value of organizational characteristics such as cross-functional teams and product champions, and the importance of market conditions. Research on the role of communication, within the product development team and externally, focused on the importance of a communication strategy and the need for gatekeepers and boundary spanners on the team. The disciplined problem solving approach emerged first in studies of Japanese product development processes. This approach requires strong leadership and a clear vision. With a clear goal in mind, and input from various functions, there is also autonomy to experiment, going through multiple problem solving iterations. These research streams overlap, and from that commonality a model is developed herein that emphasizes the importance of such factors as cross-functional teams, strong leadership, resource availability and information flow. Three issues for future product development research are (1) the role of senior managers; (2) the organization of work (e.g., improvision vs planning); and (3) the connections and dependencies between the development process, market factors, effective products and financial performance.