Constructing an Innovative Design Model by Design Thinking to Evaluate New Product Development Effectiveness of Product-Service System

Universal Journal of Management 2(8): 125-132, 2014 http://www.hrpub.org DOI: 10.13189/ujm.2014.020802

Constructing an Innovative Design Model by Design Thinking to Evaluate New Product Development Effectiveness of Product-service System

Wan-Li Wei*, Ya-Fen Tsai , Ching-Jung Fang

Ming Chuan University, Taoyuan County, Taiwan *Corresponding Author: [email protected]

Abstract Service design is a revolution to drive industry product development by design thinking but also to be innovative. Design thinking, however, is the most commercial opportunities for industries with effectiveness. effective way for the innovation during the process of service design. Service innovation, design methods, or tools of new Keywords Design Thinking, Product-service System, product development are made for customers to create new Innovation, Grounded Theory value and expected to construct user-concerted product service system by macroscopic viewpoints of design and service experiences. Therefore, this research aims at constructing an objective systemic innovative design model 1. Introduction through in-depth interview and grounded theory to discuss The pursuit of innovation, no doubt, has become a global innovative factors of new product development and trend of widespread and integrated thinking nowadays in the limitations of innovation for customer needs-oriented design world. Most of Taiwanese companies are aware of thinking index construction and to review the completeness innovation-driven, and there are operational innovation, of current industrial product service system. The product and service innovation, strategic innovation and contributions of this research show six aspects of innovative management innovation of four internal innovations [1], design model as rules or principles of innovative however, new product design (NPD) and the schedule of development on new product development of industry production are the most of important [2]. A company needs including innovative design basis, innovative design to involve innovation in whatever in-house design or development, innovative design capabilities, innovative outsourcing projects of new product development to fulfill design barriers, innovative design risks and effectiveness the requirements of the market. That means Innovation is an evaluation. For the aspect of innovative design basis, important driver for business growth and market needs for designer characteristics are the most influential beginning for many firms [3], they have to do the quick actions to the product innovative design. For the aspect of innovative market by innovative thinking and take technical viewpoint design development, the most significant is design process to fulfill the requirements of end customer. thinking model. For the aspect of innovative design capabilities, the most significant is designers’ capabilities training. For the aspect of innovative design barriers, 2. Literature Review innovative known limitations and unknown restrictions are both important. For the aspect of innovative design risks, the 2.1. Design Thinking most significant is product design rick management. For the aspect of effectiveness evaluation, the most significant is Innovative ideas must be achieved by creativity and new product development effectiveness evaluation. execution, however, creativity is a kind of method instead of Therefore, a systemic innovative design model based on six personal abilities. Design creativity can be built by design aspects is constructed to be a criterion of product innovative thinking [4]. Design thinking is to think like a designer, but development of design for domestic industry. Product how to be a designer thinking? Eury [5] explained in further service system is a fully achievement for design service, and design thinking process as three stages: discovery, design design service is a sequence of innovative journey that brings and delivery. Concepts were screening in discovery stage, not only innovation for technology and products on new however, this very messy creativity that drives the design 126 Constructing an Innovative Design Model by Design Thinking to Evaluate New Product Development Effectiveness of Product-service System process. Tim Brown, the president and CEO of IDEO, them are insufficient, it will be known restrictions or affirmed that design thinking has three phases of a circle unknown barriers of innovation to cause a new product process including inspiration, ideation and implementation development into failure [9]. Risks in the business (Fig. 1) by integrative thinking: balancing desirability with environment occur that have a negative impact on the project viability and feasibility [6]. Designers spend time in design objectives when materialized such as cost, quality, schedule, stage prototyping possible solutions, testing and receiving customer satisfaction, etc. Internal risks of a firm can be feedback as they design to come out a feasible solution, classified as operational risks, technology risks, and thereby make it into production in delivery stage. The organizational risks; and external risks of a firm can be elements of design thinking require designers to toggle back classified as market risks and supplier risks [10]. A company and forth between analysis and synthesis, and then to operate should reduce the negative risks while pursuing positive in the concrete and abstract worlds. Designers usually risks and make sure uncertainties and hazards are all under engage in four types of work: observations, frameworks, control [11]. imperatives and solutions that can help to improve design thinking capabilities (Fig.2) [7]. 2.3. New Product Development Effectiveness 'Product' means object or service created and offered by a company to consumer. New product is the complete process of bringing a new product to market started from customers’ needs including planning, design, production, and sales. New product development process can be divided into six phases: product planning, concept development, system design, detail design, testing & refinement and production [12], however, most important of them is product concept selection. The organization needs to identify customer needs, establish target specification, generate product concepts, select a product concept, test product concept, set final specs Figure 1. IDEO design thinking process [6] and plan downstream development. Each flow of concept development stage needs to be inspected, reviewed and revised repeatedly. Jacoby and Rodriguez [13] present a 'ways to grow' model for new product definition attributed by innovation that helps managers assess innovation efforts. Product innovative attributes categorized into four types including extend innovation, create innovation, manage innovation and adapt innovation based on offerings or users. For example, create innovation is new offerings to new users, and adapt innovation is existing offerings for new users.

2.4. Product Service System

Product-service system (PSS) is created in 1990 to deliver a concept whereby services are additionally offered with Figure 2. Design thinking elements [7] products to increase their value for retaining their competitiveness (e.g., [14], [15] & [16]). Since Chase [17] claimed that firms should make the connection among pure 2.2. Restrictions, Barriers and Risk Management of New products and pure service, there were many studies for PSS Product Development regarding economy, production, finance, market, sales, Innovation is built upon good creativity. Creativity is a service, society or environment issues (e.g., [15], [18], [19] function of three components: expertise, creative-thinking & [21]). PSS can fulfill customer’s needs in an integrated skills, and motivation. However, organizations routinely kill and customized way, build unique relationships with creativity with fake deadlines or impossibly tight ones [8]. customers and drive enterprise innovation faster [22]. PSS Innovation or creative mind needs to be encouraged by should be to minimize the environmental impact of companies and leaders and supported by technology, consumption by closed material cycles, reducing meanwhile, adequate resources and sufficient authorization consumption through alternative scenarios of product use, in addition to good relationship corporate with members, increasing overall resource productivity and enough know-how, professional skills, reasonable schedule, dematerialization, and providing system solutions seeking proper equipments and well management plan. If parts of the perfection in integrating system elements along with Universal Journal of Management 2(8): 125-132, 2014 127

improving resource and functional efficiency of each quality of a theory can be evaluated by the process by which element [23]. There are eight types of PSS business models: a theory is constructed [27]. There are three phases coding product-related service and advice and consultancy of implementation for collected data analysis of grounded Product-oriented services; product lease, product renting or theory practice: open coding, axial coding and selective sharing, and product pooling of User-oriented service; coding (Table 1). activity management, pay per service unit and functional result of Result-oriented service [22]. 3.2. Research Tool

2.5. Summarizing The above issue judgment based on non-quantifiable information can be conducted by qualitative analysis with Creativities may usually restricted by a firm due to prompt in-depth interview, and Fig. 3 shows the study concept in this productivity, effectiveness, process control and management paper. There are several new product attributes, and or other important principles in the organization, and innovative concepts will be generated during new product creativities get killed by time pressure [8]. Furthermore, a development process (NPD process). Designers extract systematic design model provides designers more precisely innovative factors and avoid known innovative restrictions design process and reduces faults in selection to enhance or unknown innovative barriers during this process. new product development effectiveness [26]. Innovative factors will affect new product development effectiveness. This study is used semi-structured interview for primary 3. Methods data collecting by open-ended topics with semi-conducted format listed as Table 2. Six experts with working experience 3.1. Grounded Theory in the design industry and education were invited by Grounded theory refers to theory that is developed purposive sampling and proceeded in-depth interview to inductively from a corpus of data. The grounded theory share their insight on how to increase the level of innovation approach consists of a set of steps whose careful execution is and effectiveness in the design process and how to reduce thought to "guarantee" a good theory as the outcome. The any risks in the NPD process.

Table 1. Practical data coding of Grounded theory

Coding phase Description The part of the analysis concerned such as line-by-line analysis with identifying, naming, categorizing and describing phenomena found in the text. The later style is often called “in vivo open coding codes”. In this process, the concepts emerge from the raw data and later grouped into conceptual categories. The goal is to build a descriptive, multi-dimensional preliminary framework for later analysis. As its build directly from the raw data, it process itself ensures the validity of the work. The process of relating codes (categories and properties) to each other, via a combination of inductive and deductive thinking. To simplify this process, rather than look for any and all kind of axial coding relations, grounded theorists emphasize causal relationships, and fit things into a basic frame consists of elements including phenomenon, causal conditions, context, intervening conditions, action strategies and consequences of generic relationships. The last process of choosing one of integrating and refining category to be the core category, and relating all other categories to that category. The essential idea is to develop a single storyline, selective coding diagrams or memos around which all everything else is draped. There is a belief that such a core concept always exists.

Figure 3. Correlation between new product development and innovation 128 Constructing an Innovative Design Model by Design Thinking to Evaluate New Product Development Effectiveness of Product-service System

Table 2. Innovative Topics for in-depth interview

Topics Related issues User Profile Fields / Job Titles / Years of Experience Design mindset Characteristics of creativity Imitation, creativity and innovation Personal characteristic of creativity for a designer Thinking concept of the Design process Emphases during design process Thinking of the Design process Innovative attributes of a new product design Idea creation and built-up experience How to get more creativity and innovative ability Innovative design concept What’s the innovative factors of innovative concepts Current creativity training status of a company Creativity training Points of view for creativity training of a company Experience for innovative restrictions Innovative restrictions and barriers Experience for innovative barriers Current company organization and design team

New product development procedure Current co-work status of design team Current new product development procedure of a company Product innovation differences among other companies Current risk management of new product development Risk management of design and Avoidance or reduction uncertainties during new product development development Risks, and risk management of design process New product development effectiveness evaluation New product development effectiveness The benefits of new product development effectiveness The factors of new product development effectiveness How innovations help to enhance new product development effectiveness Innovation and effectiveness Successful products for new product development effectiveness enhancement

3.3. Interviewee Selection 4. Discussion Table 3. The profile of interviewees 4.1. Coding Phases Years of Interviewee Gender Field / Job Title Experience The qualitative analysis of this study is aimed at requiring empirical results of experts during their design process and Industrial PC / project A Male 18 manager from their specific viewpoints in the industry with different Design Firm / perspective and aspects by in-depth interview to review the B Female 20 Designer (Founder) effectiveness of new product development. The data analysis Cultural and Creative of open coding phase for this research is line-by-line analysis; C Male 3 Industry / Director all items are named or labeled as a01, a02, a03… of any Design Firm / D Male 19 events, things, objects or interactions. To remark from "a" to Designer (CEO) "f" is the sequence of six interviewees, and the serial number Design Firm / E Male 10 01, 02, 03...is the order of coding. Designer (Director) For data analysis, there are 1,045 initial concepts, and then Design Dept. of F Male 14 317 of them are drawn out in open coding phase by University / Professor microanalysis. The similar concepts of 317 codes are grouped into either primary category or secondary category In order to increase validity of this study, a purposive in axial coding phase, and there are divided into 20 codes of sampling is considered to fully understand the topics for them. Eventually six core categories are generated in innovation, product design and development process in selective phase (Table 4). diversified design fields and focuses on the representative works of the interviewees (Table 3).

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Table 4. Correspondents between axial coding and selective coding

Selective coding Core concept Axial coding

Characteristics of creativity The basis to stir up innovation Personalities of designer Innovative design basis or ideas of design. Product innovation category Design thinking Thinking during design process Characteristics of innovation The experience and viewpoints Innovative design Innovative factors of innovative design development Objects of design development process. Brand Team-working Specific capabilities of designer The elements or methods to Innovative design Creativity training for designer build up or increase innovative capability Team management design capability. Training by a company Innovative design The restrictions or barriers of Innovative restrictions obstacles innovative design process. Innovative barriers The risks and its management of Risks of product design Innovative design risk innovative design process. Risks management of product design The worthy of design or The worthy of design Effectiveness evaluation effectiveness of new product Effectiveness evaluation of new product development. design development

Figure 4. Innovative design model for new product development effectiveness concepts

130 Constructing an Innovative Design Model by Design Thinking to Evaluate New Product Development Effectiveness of Product-service System

4.2. Clarify Relationship with Core Categories and Axial creative personality requirement of industry is noted by Concepts education field and good team management of a leader can form an enthusiastic team and members can be inspired with Furthermore, innovative design model and new product specific capabilities. development effectiveness enhancement can be shown the relationship between six core categories and twenty axial 4. Innovative design obstacles concepts (Fig. 4). There are two aspects of innovative design obstacles: innovative restrictions and innovative barriers. Obstacles 1. Innovative design basis may occur at any time in the new product development For innovative design basis aspect shows that a designer process. These obstacles may come from internally of the has to understand what kind of innovation for a new product organization, for example, design proposals are not accepted design, ideas of innovation is not unfailing created by the by leaders, Interviewee A has mentioned about it. Other designer, there must be some characteristics of creativity interviewees have talked about obstacles externally of the before an innovation is generated since innovation could not organization, such as schedule, customers’ requirements, and happen without creativity [9]. Through the designer's market acceptance, etc. Design should turn back to the personality, coupled with design thinking approach, the original purpose of project in known innovative restrictions difference between the properties of the product for conditions, and through well risk management to get the innovation, which is the emphasis on the use who maximum benefit. Furthermore, for unknown innovative experienced product and service concepts for IDEO began barriers, there should be a stop loss point in order to to advocate the spirit of the past decade human-centered minimize the damage. design thinking. The essence of design thinking is 5. Innovative design risk innovation, and all interviewees have mentioned that one of the designer's personalities was to know how to do the Product design risk and risk management are both the observation, it also pointed out the positive first step to aspects of innovative design risk. Interviewee E said that a implement the design thinking: field observations. good way for risks reduction is to catch the clients’ needs precisely and complete the project on time could avoid fine 2. Innovative design development or penalty. The study result shows that risk management of Thinking during design process of innovative design innovative design is also one of the effectiveness evaluations development aspect is the key factor as shown in Fig. 4. The for new product development. All interviewees have respondents agreed that teamwork by key necessity for its emphasized the importance of project on time expected by existence. Thomas Edison is a great inventor owned up to the customers and should be noticed that degree of difficulty 400 patents of his inventions including light bulb, telegraph, of production would have influence on project schedule, telephone and phonograph, etc. However, these inventions therefore, how to reduce risk by effectively improving are accomplished by a group teamed with 14 people, Francis producing technology and controlling cost in the meantime Fehl, an assistant of Edison, said that “Edison” is actually enhance new product development effectiveness are meant to a collection of power from many people. It definitely the first mission of a company. obviously shows the importance and necessary of teamwork. Although interviewee C said the creation by oneself could 6. Effectiveness evaluation clarify responsibilities, but he still agreed that the For the effectiveness evaluation aspect, effectiveness of achievements of innovation by team-working is better than new product development is the most important; however, them by one person. the influence of the worthy of design on specific 3. Innovative design capability personalities of designers and brand are also cannot be Innovative design capability aspect displays specific negligible. To evaluate the effectiveness of new product capability is absolutely an essential condition of a designer development needs to review the original purpose of design. for self-learning and it also shows the worthy of design. Interviewees thought companies or leaders had 4.3. Product-service System Evaluation responsibilities to do the team management as well as pay attention to employees or team members’ creativity training. To evaluate new product development effectiveness of PSS Stanford Graduate School of Business in America added a types [22] with six core categories of innovative design five-day team management class into advanced leader course model developed by grounded theory and four service in order to teach students design strategy. That means design rules, partial results are shown in Table 5.

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Table 5. Partial results of evaluation new product development effectiveness of PSS cases

Service Design Rule Case human-centered co-create touch points keep improving (PSS type) design Evaluation result The team analyzed Considering the security of cart To achieve taking more consumer shopping moving and child sitting, an fun and leisurely during A new shopping cart IDEO-shopping cart behavior and observed opened design for the front frame shopping in the mall, concept created as www.ideo.com shopping routes in the with several baskets of new cart the team collected and sustaining innovation (Product-oriented: product mall to feel their allowed consumers to buy fulfilled four major finished within five related service) inconvenient and different goods separately at the requirements for days in order to This case is less considered requirements, in the same time. Consumers could call consumers to increase understand the usage, about Innovative design meanwhile, the team service center via remote calling better shopping perception and obstacles and Innovative also consulted device embedded with the cart to experience, shopping insufficient status of design risk. For future mass stakeholders viewpoints find the goods quickly. By security, shopping current shopping cart production, there are still regarding shopping cart, integrating with RFID convenience, payment by gathering some difficulties regarding such as cashier, guard, technology, consumers could convenience and feedback from users. processing and cost needed managers of the mall, easily know what they should pay real-time goods (Innovative design to be overcome. and consumers. in advance before going to the searching. basis) (Innovative design cashier by screening the barcode. (Effectiveness development) (Innovative design capability) evaluation)

5. Conclusions and persuade. Then, in the exclusion of the known innovative restrictions carried out the development of Innovation has been a fuzzy and abstract concept in the innovative design by innovative design capabilities and past, the result of this study revealed different innovative factors, but some unknown innovative barriers considerations in new product design and development and the risks of new product development will occur during process for six aspects of innovative design model as rules the process. Those innovative obstacles or risks can be or principles of innovative development on new product eliminated, avoided or reduced uncertain loss by proper risk development of industry: innovative design basis, management. innovative design development, innovative design If companies do not evaluate the relative response for capabilities, innovative design barriers, innovative design innovative risks, it may even threaten the survival of risks and effectiveness evaluation within a product life enterprises throughout the product development process. cycle to construct a innovative design model (Fig. 5). PSS is an achievement for a sequence of innovative journey that brings not only innovation for technology and products on new product development by design thinking but also commercial opportunities for industries with effectiveness.

Acknowledgements The authors gratefully acknowledge the support for this research provided by part of the National Science Council under Grants No. NSC 102-2410-H-130-064.

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