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1 – 10 of over 48000The paper analyses the implications of a platform strategy in new product development with reference to the automobile industry. The implications and benefits of a platform…
Abstract
The paper analyses the implications of a platform strategy in new product development with reference to the automobile industry. The implications and benefits of a platform strategy are discussed from both the technical and organisational points of view. The impact of a platform strategy on international product development is then analysed. The paper draws on examples from the experience of major Japanese automobile companies. In general, the analysis highlights how platform strategies are evolving and how they must be recognised more and more in relation to the internationalisation processes of R&D activities and operations. Moreover, different approaches are pointed out concerning more advanced and/or conservative approaches to platform development. A more advanced approach leads to more benefits in terms of the performance of the product development process and the reorganisation of the development process on a global level.
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Chun Hsien Wang, Ching-Hsing Chang and Zui Chih Rick Lee
This study attempts to reveal product platform strategy via business-to-business (B2B) platform ecosystems. The authors advance the views of platform ecosystems in the innovation…
Abstract
Purpose
This study attempts to reveal product platform strategy via business-to-business (B2B) platform ecosystems. The authors advance the views of platform ecosystems in the innovation literature by introducing a contingency perspective that underscores the role of market, organizational and technological innovativeness in product platform strategy.
Design/methodology/approach
This study explores three contingent factors, specifically market innovativeness, technological innovativeness and organizational innovativeness that affect the product platform strategy of high-tech firms. The theoretical model is empirically validated using survey data from 191 high-tech firms.
Findings
Using a data set of high-tech manufacturing firms, the results show that product platform strategy is positively related to firm performance. Additionally, the results provide evidence supporting the positive moderating effect of the three-way interaction among market, organizational and technological innovativeness on the contribution of product platform strategy to firm performance.
Research limitations/implications
A platform product strategy is a determining factor in firm performance that requires firms to have a “fit” with their innovation activities. This study contributes to theoretical development at the intersection of product platform strategy and innovativeness.
Practical implications
When firms seek to align their technological innovativeness with their organizational innovativeness, the benefits of such innovativeness may be more pronounced in a platform product context. Moreover, the results may help guide platform managers and decision makers in identifying and securing appropriate innovation activities to enhance product platform strategies.
Originality/value
This study provides a product platform strategy in B2B platform ecosystems and shows how different innovation activities interact to improve the product platform strategy.
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Sihem Ben Mahmoud‐Jouini and Sylvain Lenfle
The platform strategy adopted by firms in a multi‐project context reduces lead‐time and development cost, enhances reliability, allows mass customization and increases…
Abstract
Purpose
The platform strategy adopted by firms in a multi‐project context reduces lead‐time and development cost, enhances reliability, allows mass customization and increases manufacturing flexibility. While the major challenges of this strategy have been highlighted, the evolution of the platform and its management during its lifecycle is under studied. The paper address this missing point by considering the sustainability of the platform during its life cycle.
Design/methodology/approach
For that purpose, the paper has carried out a field methodology research at a car manufacturer six years after the successful setting of the platform strategy. It analyzes at a fine‐grained level the development of a second generation product on this existing platform.
Findings
Using a model that traces the design decisions taken during this development, it has identified that, in order to reuse the platform over two generations, the engineers implicitly apply, besides the design rules that correspond to the very definition of platform strategy as presented in the literature such as the carry‐over and the lean design, a learning routine that challenges these rules. It designates this routine by “smart reuse” because it enables the reuse of the platform from one generation to another. It highlights the interplay between the products and the platform that co‐evolve by pointing out the reciprocal prescription relationships. This co‐evolution operates through two levels: between the product planning and the platform on one hand and the product development and the platform on the other.
Practical implications
The paper has several implications, such as the central role of the platform director in the platform reuse and the platform architecture, mainly its modularity, and its impact on the platform progressive renewal. This research reveals ideas that need to be validated and tested through other methods and in other industrial contexts.
Originality/value
The paper offers insights into platform‐re‐use, focusing on the automotive industry.
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Maximilian Pasche, Magnus Persson and Hans Löfsten
The purpose of this paper is to investigate effects of platforms on new product development (NPD) projects. Emphasis has been put on the following effect categories: project…
Abstract
Purpose
The purpose of this paper is to investigate effects of platforms on new product development (NPD) projects. Emphasis has been put on the following effect categories: project performance, process changes, and the use of performance measurements.
Design/methodology/approach
The paper is based on data collected in a survey of Swedish manufacturing firms. The survey collected data on platform characteristics and NPD characteristics. This paper reports correlations and regression analyses of the different variables.
Findings
The application of a platform strategy leads to a significant increase of component commonality on the product program level. However, it was observed that firms still have problems with sticking to project budgets in terms of cost and lead‐time restrictions. Moreover, platform implementation often involves significant process adaptations. Finally, it showed that firms are hardly applying measurements to follow up on their platform‐related activities.
Research limitations/implications
It appears that predictions made in current literature regarding platform effects are not generally valid for all firms. Therefore, this study indicates that there may be contingencies affecting the applicability of a platform strategy for specific firms.
Practical implications
Owing to potential contingencies affecting the applicability of platforms, firms have to carefully consider if a platform strategy is promising in their specific situation. Moreover, product platform implementation does not only demand an adaptation of product structures but also involves significant process adaptations.
Originality/value
By statistically testing effects of platforms on product development performance, the tendency of the current literature towards case‐based research is overcome. Hereby, the findings of current literature are challenged in terms of their generalizability.
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Yohanes Kristianto, Petri Helo and Josu Takala
This paper focuses on decision making related to the use of strategic inventory allocation in product platform design. The purpose of the paper is to present a novel approach to…
Abstract
Purpose
This paper focuses on decision making related to the use of strategic inventory allocation in product platform design. The purpose of the paper is to present a novel approach to managing product variety by considering product and manufacturing strategy, and considering the supply chain benefits.
Design/methodology/approach
Discrete event simulation is used for analyzing product platform performance in terms of inventory level and throughput. Simulation parameters such as lead times and safety stock allocation are optimized by using an analytical model of strategic safety stock allocation.
Findings
The results show that strategic safety stock allocation supports product platform strategy by increasing production output, and reducing inventory level and customer order queues at a higher level of product variety.
Research limitations/implications
Linking the safety stock allocation and product platform strategy facilitates simultaneous product and process design by providing the most optimum platform strategy at minimum safety stock allocation.
Practical implications
Strategic safety stock allocation facilitates decision making with regard to lean strategy by reducing inventory level, agile strategy by increasing the amount of product variety and outputs, and responsiveness by reducing the number of customer order queues.
Originality/value
The paper presents an innovative customer order decoupling point decision.
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Marc Wouters, Susana Morales, Sven Grollmuss and Michael Scheer
The paper provides an overview of research published in the innovation and operations management (IOM) literature on 15 methods for cost management in new product development, and…
Abstract
Purpose
The paper provides an overview of research published in the innovation and operations management (IOM) literature on 15 methods for cost management in new product development, and it provides a comparison to an earlier review of the management accounting (MA) literature (Wouters & Morales, 2014).
Methodology/approach
This structured literature search covers papers published in 23 journals in IOM in the period 1990–2014.
Findings
The search yielded a sample of 208 unique papers with 275 results (one paper could refer to multiple cost management methods). The top 3 methods are modular design, component commonality, and product platforms, with 115 results (42%) together. In the MA literature, these three methods accounted for 29%, but target costing was the most researched cost management method by far (26%). Simulation is the most frequently used research method in the IOM literature, whereas this was averagely used in the MA literature; qualitative studies were the most frequently used research method in the MA literature, whereas this was averagely used in the IOM literature. We found a lot of papers presenting practical approaches or decision models as a further development of a particular cost management method, which is a clear difference from the MA literature.
Research limitations/implications
This review focused on the same cost management methods, and future research could also consider other cost management methods which are likely to be more important in the IOM literature compared to the MA literature. Future research could also investigate innovative cost management practices in more detail through longitudinal case studies.
Originality/value
This review of research on methods for cost management published outside the MA literature provides an overview for MA researchers. It highlights key differences between both literatures in their research of the same cost management methods.
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Summarizes some of the findings of a two‐year research projectconcerned with how technology‐based companies can master marketchallenges and so improve their product strategy…
Abstract
Summarizes some of the findings of a two‐year research project concerned with how technology‐based companies can master market challenges and so improve their product strategy. Identifies best practices and some of the prerequisites of successful strategy development which have already been implemented with clients of the authors′ organization, Pittiglio, Rabin, Todd & McGrath.
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Wenhui Fu, Qiang Wang and Xiande Zhao
The purpose of this paper is to systematically review the platform literature and synthesize the various topics of research into a common framework to reveal the relations between…
Abstract
Purpose
The purpose of this paper is to systematically review the platform literature and synthesize the various topics of research into a common framework to reveal the relations between platform-based service innovation, system design and other platform-related factors.
Design/methodology/approach
A quantitative descriptive analysis led to an overview of the distribution of research focuses of the 187 sample articles identified by a well-established search strategy. A qualitative in-depth review was then used to clarify the detailed research topics and generate an overall conceptual model to link them, with a focus on platform-based service innovation and system design.
Findings
In total, 11 research topics of three research perspectives were identified and linked by a framework that accounts for the relationships between platform-based service innovation and system design and their influences on platform evolution. A small panel of industry experts validated the accuracy and utility of the proposed framework.
Originality/value
This paper provides an integrated framework for separately developed research perspectives and the topics investigated in the platform literature. Through the proposed framework, this paper helps to improve the knowledge on platform study and management, and lays a foundation for exploring the research opportunities in platform-based service innovation and system design.
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Harshavardhan Karandikar and Srinivas Nidamarthi
The benefits of a platform strategy in volume product businesses are well established. Such a strategy can also pay dividends in a low‐volume systems or projects business. The…
Abstract
Purpose
The benefits of a platform strategy in volume product businesses are well established. Such a strategy can also pay dividends in a low‐volume systems or projects business. The benefits include increased engineering efficiency, higher solution reliability and reduced direct costs. The purpose of this paper is to describe the mechanism for the implementation of such a platform strategy via a design standardization initiative and discuss the technical challenges involved. The paper describes the case of the automotive powertrain assembly line business.
Design/methodology/approach
For the past three years, the authors were an integral part of the engineering teams at four systems businesses, automotive suppliers with a global footprint, driving the process of standardization and engineering platform development. The concepts presented in the paper were developed and validated during the course of this effort.
Findings
Implementation of an engineering platform can succeed via a design and work process standardization initiative embedded in a strong business context. The problems involved – technical, organizational, and cultural – must be dealt with simultaneously and comprehensively.
Practical implications
The practical steps that need to be taken and the comprehensive approach required to implement platform concepts in a systems/projects business are highlighted.
Originality/value
There is considerable literature on the planning and design of product platforms. However, there is less discussion of how to implement these platforms in practice considering the organizational constraints and legacy products. Further, there is even less published literature on platform development for complex systems treated as products.
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When competing in a turbulent environment, strategic flexibility can be a competitive advantage. One source of flexibility is the new product development (NPD) process, or more…
Abstract
Purpose
When competing in a turbulent environment, strategic flexibility can be a competitive advantage. One source of flexibility is the new product development (NPD) process, or more specifically product design. The purpose of this paper is to investigate platform-based product design and its relationship to environmental turbulence, strategic flexibility, and market performance.
Design/methodology/approach
A theoretical model is developed and relationships are empirically tested using structural equation modeling. Data were collected from engineering design managers in the US manufacturing industry.
Findings
The paper found that the higher the level of environmental turbulence the more firms turned to platform product design. Also, the higher the level of platform design the higher the level of market performance, both in the short term and the long term. Finally, the paper showed that strategic flexibility positively and partially mediates the positive relationship between platform design and performance.
Originality/value
Platform-based product design is a research area noticeably devoid of empirical work. Furthermore, research has called for a better understanding of the different contexts in which platforms are applied stating that platform planning is too often decoupled from NDP strategy resulting in unsatisfactory results.
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