DOCSLIB.ORG

The Product Lifecycle Management Opportunity

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Product Lifecycle Management Opportunity Fulfillment The Product Lifecycle Management Opportunity Stephen Proud and Michael Wetzer Accenture In response to increased customer demand and fast-moving bilities, enterprise resource planning (ERP) competition, companies are under unprecedented pressure to systems, and middleware had to be reached. Nowadays, advanced technology solutions generate profitable products at high speed. Product lifecycle from companies such as Ariba and ICG management (PLM) offers companies a new way to rapidly plan, Commerce have brought new, collaborative organize, manage, measure, and deliver new products or services. capabilities to, for example, e-procurement and contract manufacturing. Similarly, ERP systems from companies such as SAP, Product lifecycle management is to product product development link: the capability to Oracle, and J.D. Edwards have developed information what enterprise resource plan- truly integrate existing enterprise resource decision-support capabilities in areas such ning is to enterprise resource information, or management and customer relationship as demand management and distribution customer relationship management is to management (CRM) capabilities with inte- network design. Additionally, integration- customer information. It represents a new grated and real-time product information. focused solutions from companies such as way to plan, organize, manage, measure, and By doing so, it brings the informed input of PTC and MatrixOne now are available to deliver new products or services. Early on, every relevant constituent into a product’s help companies share information more this capability was known as product infor- planning, definition, design, development, seamlessly, and thereby develop, build, and mation management (PIM). However, its sole manufacture, sale, movement, support, and manage products more collaboratively. Other focus then was on product development even retirement. The core capabilities of key capabilities also have come of age. These activities, and associated processes generally multiple functions and organizations collabo- include advanced data-storage systems to were confined to an organization’s four walls. rate across the extended enterprise, whereby manage PLM’s significant increases in data Later, PIM evolved into CPC, or collaborative the product and its associated processes are volume, as well as improved computational product commerce. Internet technology was managed as company assets rather than the speeds and bandwidths to transmit pictures the primary force behind CPC, helping province of individual departments. and solid model objects and also facilitate companies bring external business partners Perhaps most important, PLM represents a interaction among CAE/CAD/CAM systems, into the product development loop. cost-management and business-enhancement product configuration tools, and ERP and But today’s approach – product lifecycle opportunity. For example, by linking down- CRM applications. Technologically speaking, management – is where PIM and CPC were stream functions to the development cycle, the time is right for PLM. headed all along. PLM’s promise is an enter- companies can make better, more cost-effec- On the market side, companies are under prise view of a product’s complete lifecycle – tive decisions about design, componentry, unprecedented pressure to generate fast and from initial design concept through to retire- production specifications, and market timing. profitable product-related responses to ment. PLM represents a real opportunity to: But at the same time, they also gain the changing market demands and competitive •Develop a single environment in which potential to introduce more and better prod- market opportunities. product content, process information, ucts without hiring new people or expanding In some market sectors, typified by and program status information are fully corporate infrastructures or capacities. In aerospace and marine, products often have integrated. both contexts, PLM is a tool for making lifecycles measured in decades. As price pres- • Understand the precise status of a prod- better decisions. sure is exerted on the original equipment uct at any stage throughout its life. market, companies are responding by seeking • Share product-related information among Why Now? profitable growth in the aftermarket and by all internal factions and external business Like many breakthroughs, PLM is the moving away from selling straight products partners, including designers, suppliers, offspring of technological innovation and to offering solutions. Strategies of this type engineers, contract manufacturers, mar- market demand. On the technology side, a may change the company’s economic model, keters, supply chain service providers, high level of sophistication in Internet capa- which in turn requires them to have a better- support personnel, financial personnel, and even customers. Stephen Proud is an associate partner in Accenture’s Supply Chain Management Service Line who specializes in product lifecycle management. He leads the company’s Manufacturing and Design practice in the United Kingdom. Michael Wetzer is a partner in Accenture’s Communications and High-Tech operating Product lifecycle management provides what group. He has 23 years of experience in product engineering, engineering information technology, and for many companies has been the missing product management. ASCET • 157 Fulfillment In short, shifting business requirements Time-to-Market and technological achievements have Improvement aligned to produce the need for – and the means to attain – an integrated approach to product development. Product lifecycle Margin/ Sales Price management is that approach: helping companies design, develop, manufacture, move, store, and service new products in Margin an integrated way that results in: Improvement •Faster rates of innovation, time to market, time to volume, and efficiency •High-quality new-product ideas, conceptual research, and product- development decisions • Scalability of labor force and infrastructure •Repeatability: leveraging intellectual Revenue Time property and developing standardized, Uplift proven work methods Figure 1 By improving time to market, the sales curve shifts up and to the left, and profit margin is •Reliability, consistency, and reductions in increased through price and expanded market share. the enterprise learning curve •Increased profitability through shorter integrated, enterprise- and lifecycle-wide neered products (such as an airframe), and time to margin, increased customer approach to managing product information. therefore do not need the power of PLM. satisfaction, lower cost of goods sold, In this complex aftermarket environment, However, in these industries, the complexity lower failure rates, and reduced costs product development decisions at an early is often in other dimensions, such as •Value extracted from the later stages of stage in the product lifecycle can dramatically managing global product specifications, the product lifecycle affect the downstream shape of the ROI curve controlling the recipe and associated manu- of the product – and thereby the long-term facturing process instructions while permit- Getting PLM Right profitability and viability of the product. ting regional variations, and managing rapid Any initiative with such significant rewards Companies will not only need to manage packaging innovation while maintaining the is bound to be difficult and potentially their own product information (such as the integrity of the global brand. PLM also can costly. PLM is no exception. At the outset, location and configuration of their installed help companies implement these strategies. building an economic case is tricky because base of products), but they may also need to In response to such market pressures, companies tend to operate differently in a track other companies’ installed products on companies must focus on getting the product PLM environment. Certain departments or which delivery of these solutions are depend- right the first time (on time and defect-free), functions may have to be eliminated or ent. PLM is a key tool in helping companies becoming more scalable in their product- replaced by new capabilities, which compli- in these sectors maintain control of their development capabilities, increasing the flexi- cates the establishment of clear cost/benefit product data from cradle to grave while they bility of their cost structures, and duplicating projections. PLM implementations also are implement the strategies that seek to exploit their market successes without reinventing lengthy, so the concept might have to be the opportunities to extract value from the the wheel. Similarly, they are more pressed sold and resold as executives and sponsors aftermarket tail of the product lifecycle. than ever to submit reliable estimates about come and go. This means inevitable In other industry sectors, such as sales levels and production timing to the changes in long-term working relationships consumer goods, product lifecycles are investment community. Additionally, few and the likely politicalization of issues and sometimes shorter – requiring the capability dramatic opportunities remain to reduce costs missions. Like any major business undertak- to rapidly and reliably bring new product to in many companies. Therefore, the only way ing, broad buy-in is critical. market with the goal of capturing market to advance their business agendas may be to Implementation challenges are further
Load more

Recommended publications
  • Mediating Customer Relationship Management on the Effect of Incremental Innovation on Product Life Cycle
    INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 8, ISSUE 09, SEPTEMBER 2019 ISSN 2277-8616 Mediating Customer Relationship Management On The Effect Of Incremental Innovation On Product Life Cycle Erna Setijani, Sumartono, Pudjo Sugito Abstract: This study aims to analyze the mediating customer relationship management on the effect of incremental innovation on product life cycle. The population of this study are batik entrepreneurs in Madura island, Indonesia. The sampling technique uses a proportional random sampling at three locations, namely: Bangkalan, Sampang, Pamekasan and Sumenep Regency. The number of respondents is 200 batik entrepreneurs. This research was carried out by designing questionnaire and testing the validity dan reliability of research instrument. Furthermore, the questionnaire was broadcasted to the batik entrepreneurs who were randomly selected. The primary data was analyzed using structural equation model with the Partial Least Square (PLS) data processing program. The result of this study demonstrates that incremental innovation affects customer relationship management, incremental innovation affects product life cycle, customer relationship management affects product lifecycle and incremental innovation affect indirectly product life cycle through customer relationship management. It means that both incremental innovation and customer management relationship can extend product life cycle of Madures Batik. Index Terms: Incremental Innovation, Customer Relationship Management, Product Life Cycle ———————————————————— 1 NTRODUCTION Industry, Indonesia, 2018). Unfortunately, the marketing of Batik is attached as a cultural part of several regions such Madurese batik products remains ups and downs. In fact, in as Solo, Yogyakarta, and Pekalongan. In East Java, the past three (3) years, it has stagnated and dropped. The Madura Island, besides being known as a salt island, has results of preliminary studies indicate that Bangkalan turned out to have a wealth of cultural sites, i.e.
    [Show full text]
  • The Product Life Cycle : It's Role in Marketing Strategy/Some Evolving
    UNIVERSITY OF ILLINOIS LIBRARY AT URBANACHAMPAIGN BOOKSTACKS £'*- ^3 Digitized by the Internet Archive in 2011 with funding from University of Illinois Urbana-Champaign http://www.archive.org/details/productlifecycle1304gard BEBR FACULTY WORKING PAPER NO. 1304 The Product Life Cycle: It's Role in Marketing Strategy/Some Evolving Observations About the Life Cycle David M. Gardner College of Commerce and Business Administration Bureau of Economic and Business Research University of Illinois, Urbana-Champaign BEBR FACULTY WORKING PAPER NO. 1304 College of Commerce and Business Administration University of Illinois Urbana-Champaign November 1986 The Product Life Cycle: It's Role in Marketing Strategy/ Some Evolving Observations About the Life Cycle David M. Gardner, Professer Department of Business Administration The Product Life Cycle: It's Role In Marketing Strategy- Some Evolving Observations About The Product Life Cycle The Product Life Cycle is an attractive concept, but one which the common consensus is that it has some descriptive value, but rather limited or non-existent prescriptive value. This paper is based on the premise the Product Life Concept has the potential to become a central, if not, the central concept in marketing theory and practice. Prior to making suggestions on steps toward this ambitious goal, the concept is reviewed along with its major limitations. Based on a review of research evidence published since 1975, it is suggested that three areas need to be explored and expanded. The first is a careful reexamination of the foundation of the concept, then there needs to be a focus on the product life cycle as a dependent variable, and third, there is a need from application of meta-theory criteria to guide future research.
    [Show full text]
  • Product Quality Management
    P8: Pharmaceutical Quality System Elements: Process Performance and Product Quality Monitoring System By Deborah Baly, PhD Product Quality Management Deborah Baly, Ph.D Sr. Director, Commercial Product Quality Management, GNE/ROCHE 1 Presentation Outline: • Product Quality Management – Regulatory landscape and need for integrated product quality management • Role of the Product Quality Steward – Product quality oversight by linking systems, data, and people • Product Lifecycle Management - Commercial Product Lifecycle approach • Conclusions P8: Pharmaceutical Quality System Elements: Process Performance and Product Quality Monitoring System By Deborah Baly, PhD Regulatory Landscape Growing Expectations for Modern Manufacturing • Quality is built in • Lifecycle approach from Development to Product Discontinuation • Understand complex supply chain CMO networks • Robust process measurement & analytical tools •Real‐time assessment of product & process capability • Maintaining “state of control” throughout commercial lifecycle Product Quality Management: Fundamental Elements Product Complaints • Identifying early warning signals of product quality issues in the field Product Assessment & Trending • Proactive assessment of product quality attributes across the manufacturing process Product Quality Stewards • Single point of Contact for Quality to key stakeholders • Routine assessment of product control plans to address trends • 8 Qtr Plan provides foresight and proactive approach QC testing network support • Harmonized approach to test method
    [Show full text]
  • Future Directions for Product Lifecycle Management (Plm) and Model-Based Systems Engineering (Mbse)
    FUTURE DIRECTIONS FOR PRODUCT LIFECYCLE MANAGEMENT (PLM) AND MODEL-BASED SYSTEMS ENGINEERING (MBSE) Sanford Friedenthal, SAF Consulting Sponsored by Aras Future Directions for Product Lifecycle Management (PLM) and Model-based Systems Engineering (MBSE) Future Directions for Product Lifecycle Management (PLM) and Model-based Systems Engineering (MBSE) SANFORD FRIEDENTHAL, SAF CONSULTING 1. INTRODUCTION Industries such as automotive, aerospace, biomedical, and telecommunications, continue to face increasing system and product development challenges that require a strategic response. Organizations must innovate to advance technology at an accelerating rate in areas such as computing, networking, sensors, and materials, and insert these technologies into their product development. They must manage growing system complexity that results from increased system and software functionality and inter-connectedness. The need for new technologies and increases in system complexity are often in response to customer demands for smarter and more autonomous systems that require less human interaction and are more fault tolerant and secure. Organizations must provide this capability within the constraints of shortened development cycles and reduced costs, while relying on extended supply chains, all to meet increasing global competition. An organization’s capability to develop and evolve systems must address these challenges to stay competitive. The development process is complex in its own right and involves interaction and collaboration among many different engineering disciplines and other stakeholders across the lifecycle. The development process must also facilitate innovation, while at the same time, leverage previous design experience and knowledge that builds on existing products. Today’s multi-disciplinary engineering practices are often stove-piped and disconnected creating many inefficiencies, rework, and limit the opportunity for reuse.
    [Show full text]
  • Overview to Teamcenter Product Lifecycle Sourcing Closing the Loop Between Your Product Procurement and Product Development Processes
    Teamcenter Overview to Teamcenter Product Lifecycle Sourcing Closing the loop between your product procurement and product development processes fact sheet Siemens PLM Software www.siemens.com/plm Summary Siemens PLM Software teams with A.T. Kearney Procurement Solutions to facilitate Teamcenter ® Product Lifecycle Sourcing software – a compre hensive range of software and services that product makers can use to digitally transform product procurement and sourcing and integrate these processes with the rest of the engineering and product development initiatives driven by product lifecycle management (PLM). Defining Teamcenter The challenge Product Lifecycle Sourcing In today’s economy, even a modest Provides procurement and improvement in the cost of doing engineering teams with real-time business can yield a tremendous access to a single source of product and process data competitive edge. Leading companies Streamlines information flow recognize this and their executives between your procurement and are giving unprecedented attention to engineering teams and facilitates the procurement process as a means “closed loop” communications between purchasing and product for improving shareholder value. development by leveraging Chief procurement officers are under intellectual capital created by these pressure to minimize purchasing disciplines in otherwise isolated information silos costs and enhance the value of their Enables product makers to company’s supplier relationships. eliminate duplicate parts/designs For example, consider the views
    [Show full text]
  • A Framework of Implementation of Collaborative Product Service in Virtual Enterprise
    CORE Metadata, citation and similar papers at core.ac.uk Provided by DSpace@MIT A Framework of Implementation of Collaborative Product Service in Virtual Enterprise X. G. Ming and W. F. Lu, advantages for survival [6] [12]. Abstract—To satisfy new market requirements, Supported by the modern Internet technology, manufacturing industry has shifted from mass production that collaboration, in the form of both online and off-line, has takes advantage of the scale of production, to quality been recognized as one of the most effective technologies to management that optimizes the internal enterprise functions, to improve the efficiency and effectiveness of business e-manufacturing era that leverage intellectual capital via collaborative innovation. In the same time, the product itself is activities, in both intra-enterprise and inter-enterprise. becoming the most important asset for sustainable business However, the traditional enterprise application systems [2], success. Consequently, the effectiveness, efficiency and such as, Computer Aided Design (CAD), Computer Aided innovation for the development of the product across the whole Process Planning (CAPP), Computer Aided Manufacturing product lifecycle are becoming key business factors for (CAM), Product Data Management (PDM), Enterprise manufacturing enterprise to obtain competitive advantages for Resource Management (ERP), Manufacturing Execution survival. To tackle such challenges, a new business model called collaborative product services in virtual enterprise is System (MES) are not able to address such needs adequately. proposed in this paper. The architecture of this new model is This is because they focus on special individual activities in developed based on the framework and the application of web an enterprise and are not developed to support collaborative service and process management for collaboration product business requirements specialized in product lifecycle.
    [Show full text]
  • Chapter on Supply Chain Risk
    Copyright © 2015 Andrew Hiles. This is an excerpt from the book Business Continuity Management: Global Best Practices, 4th Edition, ISBN 978-1-931332-35-4. Rothstein Publishing, publisher. This excerpt may be used solely for one-time professional development use and may not be reproduced In quantity or distributed or used for any other purpose without permission from [email protected] Chapter5 Managing SupplyChain Risk 121 5.5 The Strategic ProcurementLifecycle The strategic procurement lifecycle is, in essence, the amalgamation of two concepts, namely the product lifecycle and strategic procurement. This section provides an overview of the subject, and how companies should consider it as an important aspect relating to procurement and acquisition strategies. 5.5.1 ProductLifecycle Most people today are well aware of the product lifecycle, and how it is consistent with the biological lifecycle. This cycle can be illustrated via the classic “bathtub curve,” which shows that low, introductory sales are to a few innovating customers, while high, mature sales capture the market at large. Sitting alongside the product lifecycle, we can also envisage a comparative industrial lifecycle, showing how fledgling, high-growth, mature, and declining industries exist within and across economies. 5.5.2 The Strategic ProcurementLifecycle If we consider the key aspects relating to demand and supply, then we can see how buyers may adjust their positioning regarding sourcing and supply, depending on the lifecycle of the product or industry. Figure 5-3 below shows a working model of the strategic procurement lifecycle, relating to the relative maturity of the industry from which the product is being purchased.
    [Show full text]
  • Product Lifecycle Management Through Innovative and Competitive Business Environment
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Gecevska, Valentina; Chiabert, Paolo; Anisic, Zoran; Lombardi, Franco; Cus, Franc Article Product lifecycle management through innovative and competitive business environment Journal of Industrial Engineering and Management (JIEM) Provided in Cooperation with: The School of Industrial, Aerospace and Audiovisual Engineering of Terrassa (ESEIAAT), Universitat Politècnica de Catalunya (UPC) Suggested Citation: Gecevska, Valentina; Chiabert, Paolo; Anisic, Zoran; Lombardi, Franco; Cus, Franc (2010) : Product lifecycle management through innovative and competitive business environment, Journal of Industrial Engineering and Management (JIEM), ISSN 2013-0953, OmniaScience, Barcelona, Vol. 3, Iss. 2, pp. 323-336, http://dx.doi.org/10.3926/jiem.v3n2.p323-336 This Version is available at: http://hdl.handle.net/10419/188426 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte.
    [Show full text]
  • Oracle Agile Product Lifecycle Management for Process Supply Chain Relationship Management User Guide, Release 6.1.1 E29795-01
    Oracle® Agile Product Lifecycle Management for Process Supply Chain Relationship Management User Guide Release 6.1.1 E29795-01 January 2013 Oracle Agile Product Lifecycle Management for Process Supply Chain Relationship Management User Guide, Release 6.1.1 E29795-01 Copyright © 1995, 2013, Oracle and/or its affiliates. All rights reserved. This software and related documentation are provided under a license agreement containing restrictions on use and disclosure and are protected by intellectual property laws. Except as expressly permitted in your license agreement or allowed by law, you may not use, copy, reproduce, translate, broadcast, modify, license, transmit, distribute, exhibit, perform, publish, or display any part, in any form, or by any means. Reverse engineering, disassembly, or decompilation of this software, unless required by law for interoperability, is prohibited. The information contained herein is subject to change without notice and is not warranted to be error-free. If you find any errors, please report them to us in writing. If this software or related documentation is delivered to the U.S. Government or anyone licensing it on behalf of the U.S. Government, the following notice is applicable: U.S. GOVERNMENT RIGHTS Programs, software, databases, and related documentation and technical data delivered to U.S. Government customers are "commercial computer software" or "commercial technical data" pursuant to the applicable Federal Acquisition Regulation and agency-specific supplemental regulations. As such, the use, duplication, disclosure, modification, and adaptation shall be subject to the restrictions and license terms set forth in the applicable Government contract, and, to the extent applicable by the terms of the Government contract, the additional rights set forth in FAR 52.227-19, Commercial Computer Software License (December 2007).
    [Show full text]
  • Managing Product Lifecycle Complexities in Pharma Session ID: 11229
    Managing Product Lifecycle Complexities in Pharma Session ID: 11229 How Oracle Agile could Prepared by: improve productivity and Arun Sharma compliance NexInfo Solutions Remember to complete your evaluation for this session within the app! 04/08/2019 Who is NexInfo? SUMMARY • Consulting company focused on helping clients achieve Operational Excellence via an optimal blend of Business Process & Software consulting services • Deep domain expertise, including: Integrated Business Planning (IBP/S&OP), Enterprise Resource Planning (ERP), Product Lifecycle Management (PLM), Customer Relationship Management (CRM), Enterprise Planning Management (EPM), Human Capital Management (HCM), Predictive Data Analytics, Security, & Business Transformations • Founded in 1999 and managed by computer industry & business process professionals • Clients include emerging companies and Fortune 1000 corporations • Recognized in the industry, including features in Gartner Reports, The Silicon Review (50 Smartest Companies of the Year 2016 and 10 Fastest Growing Oracle Solution Providers 2017), and CIO Review (100 Most Promising Oracle Solution Providers 2015) PARTNERS CORPORATE INFO • HQ in Orange County, CA with offices in Redmond, WA, Chicago, IL, Bridgewater, NJ, Dublin, Ireland, Chennai & Bangalore, India • Operations across the United States, Europe (Ireland, UK, Switzerland, Belgium) & India Industry Experience How to manage product lifecycle in Pharma from Pre-Clinical trials to Commercial Manufacturing Case study based on implementation of Oracle Agile
    [Show full text]
  • Teamcenter Direct Materials Sourcing
    Teamcenter direct functions, such as engineering, quality materials sourcing and manufacturing, and externally with suppliers. Without early collaboration, sourcing strategies are limited to cost containment techniques such as con- solidating suppliers, combining volumes across plants and developing new Decrease costs by extending purchasing suppliers in emerging markets. Cost influence throughout the product lifecycle containment techniques are indeed essential, but the purchasing function must grow beyond its transactional Benefits Summary origins and proactively engage with key • Provides an understanding of cost The Teamcenter® software direct functional stakeholders throughout the drivers early in the product develop- materials sourcing solution empowers product lifecycle if true cost reduction ment cycle companies to efficiently manage the and accelerated time-to-market are to sourcing process with their supply • Shortens sourcing cycle time by facili- be achieved. chains. The Teamcenter platform tating efficient, secure information provides a single source of data and For many companies, the biggest road- exchange with respondents enables you to streamline sourcing block to early collaboration is finding a • Delivers streamlined, round-trip processes across the extended enter- way to automate and streamline pro- sourcing integrated with product prise. The result is lower product costs cesses, such as direct materials development processes such as NPI, and faster time-to-market. sourcing, which is intertwined with ECR and ECN other product development processes, The challenge such as new product introduction (NPI) • Provides cloud-ready environment Competitive pressures are motivating and change management. option for easy deployment with companies to deliver value-driven multi-tenancy capabilities to reduce With Teamcenter direct materials sourc- products at lower prices and an acceler- administrative overhead ing, you can extend the influence of ated pace.
    [Show full text]
  • Impact of Customer Relationship Management on Product Innovation Process
    Impact of Customer Relationship Management on Product Innovation Process Supervisor Dr. Ossi Pesämaa Authors Yelin Li and Nguyen Thi Thu Sang Dec 2011 Abstracts In marketing, the common view is that customer relationships enhance innovativeness. Regularly it involves doing something new or different in response to market conditions. However, previous studies have not addressed how customer relationship management (CRM) plays its role in product innovation process. This thesis proposes and tests how key CRM activities influence and relate to each stage in product innovation process. The objective of this study is to test how customer relations management activities influence four basic stages of product innovation process. Five practices of CRM is found in the literature (i.e., information sharing, customer involvement, long-term partnership, joint problem-solving and technology-based CRM). Furthermore, our literature review suggests four stages of innovation process (i.e., innovation initiation, input, thoroughput and output). The one-to-one relationship between CRM activities and innovation stages are established in four models. These associations are tested and some are verified in a survey-based study. Specifically data from 83 respondents were collected. All respondents represent a strategic business unit and work closely with R&D, product development or marketing. Regression analysis is conducted to examine the impacts of CRM on innovation process. The statistical results indicate that not all CRM activities make contributions to each stage within innovation process. It is found that 1) information sharing effectively enhances both innovation throughput and innovation output. 2) Customer involvement and joint problem-solving exert positive influence on innovation throughput stage, while long-term partnership has significant effects on innovation output.
    [Show full text]