Quick viewing(Text Mode)

New Product Development and Its Applications in Textiles

New Product Development and Its Applications in Textiles

Volume 4, Issue 4, Summer2005

New Product Development and Its Applications in Textiles

Wonseok Choi, Ph. D. Student Nancy B. Powell, Associate Professor Nancy L. Cassill, Professor NCSU College of Textiles North Carolina State University 2401 Drive Raleigh, N.C. 27695-8301

ABSTRACT

New product development is one of the riskiest, but most critical strategies in any competitive (Cooper, 2001). Many companies have built competitiveness and obtained tremendous profits through new product development. Global in the textile and apparel industry has become more intense due, in part, to the changes in regulation of world trade. To compete in the future of textiles and apparel, firms will need to be innovative, while reducing cycle times and cutting costs. New product development methods will contribute or enhance the of innovative products. The purpose of this is to review the nature of new product development (NPD) and explore diverse NPD processes identifie d by previous researchers. This paper will also introduce several examples of new product development process models and strategies of companies and products in the textile and apparel industry. This research will be of interest to academicians and industrial personnel in the textile and apparel field through a review of NPD literature.

Keywords: New product development, , NPD process, textiles and apparel

1. Introduction industry, creating diverse marketplace opportunities and challenges. Today, the world is characterized by macro- and micro-environmental influences. These The following list shows many of the major influences include the rapid evolution of trends currently affecting the global textile socio-cultural patterns and life styles, self- and apparel industry: awareness and decisional autonomy of · China dominates apparel and consumers, a rising significance of mass textiles. production and distribution systems, an incessant introduction of technological and · High-tech and smart fabrics managerial , increasing levels of proliferate. competition and globalization dynamics (Ciappei & Simoni, 2005). These influences · (SCM) are impacting the textile and apparel evolves to serve the global market.

Article Designation: Scholarly 1 JTATM Volume 4, Issue 4,Summer 2005

· The vast majority of shoes sold in 2. Definition of New Product the U.S. are now made in China. Development

· Bricks, clicks, catalogs and living 2.1 New product rooms.* A new product concept, as defined by · Discount clothing retailers see Crawford and Di Benedetto, is “a statement promise in lines. about anticipated product features (form or ) that will yield selected benefits · Haute couture experience conflicts over costs and control. relative to other products or problem solutions already available” (Crawford & Di · Mass designers and retailers speed Benedetto, 2003, p. 184). According to up for fast . Belliveau, Griffin and Somermeyer (2002), a new product is defined as “a product · European strategies force U.S. (either a good or service) new to the firm department stores to rethink their marketing it. It excludes products that are models. only changed in promotion” (p. 450). Cooper (2001) explains that a new product · Specialty retailers look forward, and is defined as new if it has been on the to the past, for new ideas. market for five years or less, and includes Source: Plunkett Research, Ltd. (n.d.). extensions and major improvements. Retrieved June 30, 2005, from According to Cooper (2001), Crawford et al. http://www.plunkettresearch.com. (2003), and Kumar and Phrommathed (2005), a new product can be classified into several different categories. Booz-Allen and ‘Bricks, clicks, catalogs and living rooms’ * Hamilton (1982) have identified refers to a traditional store, home approximate percentages of new product shopping through a TV cable network and types (See Figure 1). mail order catalogs, and electronic The followings are commonly accepted new commerce through the internet. product categories. In order for companies to effectively build and sustain competitiveness in the global 1) New-to-the-world products: Products textile and apparel industry, they are that are innovations implementing several strategies. One key strategy is to develop capabilities in product “New -to-the-world products revolutionize innovation and new product development existing product categories, or define wholly (NPD). It is also evident that companies new ones” (Crawford et al., 2003, p. 12). require a clearly defined and effective new These new products may include an product development process to compete in innovative technology and require consumer the global industry. instruction. Cooper (2001) states that these new products are the first of their kind and create an utterly new market. This category This paper defines new product represents only 10 percent of all new development (NPD), and reviews the key products. For example, new -to-the-world issues in NPD, and several representative products are Polaroid® camera, rayon fiber, NPD process models. In addition, examples and Sony Walkman®. of new product development processes and strategies in the are 2) New category entries (New product presented. lines): Products, not new to the world, that take a firm into a new category

Article Designation: Scholarly 2 JTATM Volume 4, Issue 4,Summer 2005

The new category is an imitation of an 5) Repositioning: Products that are existing product (“me-too”) and provides targeted for a new use or a new application entrance into new markets for a company. Even though the product already exists in Repositioning, a new application for an the market, if a firm introduces the identical existing products, is selecting a new market product into the market, it can be considered place, solving a new problem and/or serving a new product. About 20 percent of all new another market need. Aspirin, for instance, products fit into this category (Cooper, was the standard headache and fever 2001). This category, for instance, includes reliever. However, since a new medical Procter and Gamble’s first shampoo, benefit was discovered for aspirin, aspirin is Hallmark gift items, AT&T Universal card, now positioned as a headache reliever as and Luvs® diapers. well as a preventer of blood clots, strokes and heart attacks (Cooper, 2001). As one 3) Addition to product lines: Products that example in the textile field, the American are line extensions Fiber & Yarns Company applied polypropylene fiber, whose main application According to Cooper (2001), these has been upholstery and industrial textiles, categories are new items to the firm, but into new market segment, the knitted they fit within an existing product line that apparel market. This repositioned category the firm already produces. Kumar and accounts for about 7 percent of all new Phrommathed (2005) report that these products (Cooper, 2001). categories are the new products that supplement the firm’s established product 6) Cost reductions: Products that are lines. Thus, this category contains products designed to replace existing products at that are line extensions or flankers such as lower cost Tide™ liquid detergent, Bud Light™, Apple’s Mac IIsi® (Crawford et al., 2003), New products that provide a cost reduction, and DKNY®. This category is one of the can replace existing products in the line, but largest categories of new products and can offer similar benefits and performance at accounts for approximately 26 percent of all a lower cost. They represent 11 percent of new product launches in 1982 (Cooper, all new product launches in 1982 (Cooper, 2001). 2001). Examples of this category are eMachines® desktop computer, Flying 4) Product Improvements: Current product Tiger® hand knitting , and acrylic. made better For instance, acrylic fiber that approximates the hand of wool can replace wool (Hoechst, Practically, every product on the market 1990) and is offered at a lower cost in the today has been improved. These “not-so- market. new” products can be replacements of existing products in a company’s product line. However, they provide enhanced performance or greater perceived value over the old product (Crawford et al., 2003). These products make up 26 percent of all new products (Cooper, 2001) and examples include Honda Civic Hybrid, Microsoft® Windows® XP, Netzero® high-speed 3G, and Shima Seiki’s First® seamless knitting machine.

Article Designation: Scholarly 3 JTATM Volume 4, Issue 4,Summer 2005

Figure 1. Categories of New Products Source: Cooper R. G. (2001). Winning at New Products (3rd ed.). New York: Addison-Wesley. p. 16.

Recently, Kumar et al. (2005) surveyed five generation, product and new product categories including new -to- creation and evaluation, and the-world, new -to-company, addition to of a new product” (p. existing lines, repositioning, and cost 450). reduction. The study’s results found that 31.68 percent of launched products fall into New product development can be rewarding ‘addition to existing lines’ category (Kumar and is critical to maintain a healthy et al., 2005). The cost reduction category organization. Cooper (2001) indicates, was in second place with 22 percent of all “New product development is one of the new launches, followed by new -to-company, riskiest, yet most important, endeavors of market repositioning, and new -to-the-world the modern corporation” (p. 4). Successful consecutively (Kumar et al., 2005). new product development allows market expansion, increases profits, and enhances 2.2. New Product Development creativity and leadership. But, new products failure rates are considerable, and cost of New product development is essential for failure is high. According to Booz-Allen exceptional corporate performance, and and Hamilton (1982), the failure rate of new research about what leads to new product products introduced into the market success and failure has been carried out for remained in the 33 percent to 35 percent both goods and services (Brentani, 2001). range between 1963 and 1981 (Urban & Ulrich and Eppinger (2004) describe New Hauser, 1993). More recently, Crawford et Product Development (NPD) as “the set of al. (2003) reported that around 40 percent of activities beginning with the perception of new products fail. The foremost reasons for market opportunity and ending in the new product failure is “no need for the production, sale, and delivery of a product” product”, and “there was a need, but the new (p. 2). According to Belliveau et al. (2002), product did not meet that need” (Crawford new product development is “the overall et al., 2003, p. 7). Failures also can be process of strategy, organization, concept linked to poor , poor

Article Designation: Scholarly 4 JTATM Volume 4, Issue 4,Summer 2005

positioning, inadequate support from the planning, screening, and testing through distribution channel, poor timing, launch (Bruce et al., 1995). competitive response, and major changes in technology (Urban et al., 1993). 2)

New product development can also be The design function also plays a pivotal role costly. Enormous investments in research in defining the physical form of the product and development (R&D), , to satisfy customers’ needs. The design market research, marketing development, function includes engineering design such as and testing are made before the product is mechanical, electrical, software, and launched (Urban et al., 1993). These are such as , major investments or major resource ergonomics, and user interfaces (Ulrich et allocations for a company including capital al., 2004). resources and human resources; and with today’s global competitive marketplace, In , industrial design has many companies are closely watching become a key factor in differentiating expenditures. products from their competitors by providing them a coherent identity or higher 2.3. Key NPD Functions and Cross levels of perceived value (Bruce et al., Functional Integration 1995). Engineering design has a critical role in the development of products in the Development of new products is an manufacturing industry, solving technical interdisciplinary activity requiring problems using available technology in the contribution from nearly all the functions of most efficient method, and integrating a company (Ulrich et al., 2004). The product development with the following functions are consistently of effective production (Rothwell & Gariner, essential to new product development 1984). projects: 3) Manufacturing 1) Marketing Manufacturing is responsible for creating The functions of marketing mediate the and operating production systems in order to interactions between the firm and its produce new products. However, broadly customers. Marketing facilitates the defined, the manufacturing function also recognition of product opportunities, the often involves purchasing, distribution, and definition of market segments, and the installation (Ulrich et al., 2004). id entification of customers’ needs (Ulrich et Manufacturing capability can be one al., 2004). Marketing also arranges for technical success factor, and it relates to between the firm and its whether the company has internal or customers, sets target prices, and oversees external capability to manufacture higher the launch and promotion of the product quality products to satisfy the customer (Ulrich et al., 2004). demand (Crawford et al. 2003).

The latest market research has been 4) Finance recognized as important to the success of new product development. It is essential to Another key function that influences the identify early market requirements and to success of the new product development understand the market place. Marketing is process is financial activity. Projects need related to all stages of the new product to be suitably supported; yet checks on cost, development process, from product profit margins and return on investment must be part of the process (Hopkins, 1981).

Article Designation: Scholarly 5 JTATM Volume 4, Issue 4,Summer 2005

Many companies utilize phase reviews to must also design keep a check on the progress of the projects, a product that can be manufactured at high- the budget and the authorization to spend quality levels and low cost. Research and (Bruce et al., 1995). development (R&D) and engineering must work to innovate the process of 2.3.1. Cross-Function Integration manufacturing as well as design new products. Finally, finance interacts with Cagan and Vogel (2002) and Urban and R&D, manufacturing, and marketing when Hauser (1993) comment that a true financial resources are required (Urban et integration of engineering, industrial design, al., 1993). marketing and finance is important as well. Figure 2 depicts cross-functional integration It is necessary to note that boundaries with arrows showing the major interactions. between the functions are not always clear. According to Urban and Hauser (1993), All the functions must work together, and all marketing must offer research and activities share the responsibility to produce development (R&D) correct customer need successful products. inputs, and R&D must design a product to fit customers’ requirements. However,

Figure 2. Cross-Function Integration

Figure 2. Cross-Function Integration

Source: Urban, G. L. & H auser, J. R. (1993). Design and Marketing of New Products (2nd ed,). New Jersey: Prentice-Hall. p. 33.

2.4. Successful New (Bruce et al., 1995). The inputs that contribute to the value of new products tend The main issues of new product to conflict with each other, but there are development relate to the need for synergies (Crawford et al., 2003, See Figure interdisciplinary inputs, for quality input, for 3). cost input and for speed in the process

Article Designation: Scholarly 6 JTATM Volume 4, Issue 4,Summer 2005

Quality

Value

Time Cost

Figure 3. The Conflicting Masters of New Products Management Source: Crawford, M. & Di Benedetto, A. D. (2003). New Products Management (7th ed.). New York: McGraw-Hill. p. 15.

· Product Quality: Successful product required to attain profits (Ulrich et development depends upon how al., 2004). good the product is, whether the · Development Time: How rapidly the product satisfies customers’ needs, team completes the product and whether the product is robust development effort is also an and reliable. Product quality is important issue. “Development ultimately reflected in market share time determines how responsive the and the price that customers are firm can be to competitive forces willing to pay (Ulrich et al., 2004). and to technological development, · Product Cost: Successful product as well as how quickly the firm development also relies on the receives the economic returns from manufacturing cost including the team’s efforts” (Ulrich et al., spending on capital equipment and 2004, p. 2-3). tooling as well as the incremental · Value: The inputs of quality, cost, cost of producing each unit of the and time contribute to the value of product. Product cost determines product. The challenge is to how much profit accrues to the firm optimize the set of relationships in for a particular sales volume at a each new product situation to get particular sales price (Ulrich et al., higher value of the products 2004). (Crawford et al., 2003). · Development Cost : Successful product development also depends 2.4.1. Critical Success Factors for New on how much the firm has to spend Product Development to develop the product. Development cost is usually a The most important issue in the success of critical portion of the investment new product development is to understand the voice of the customer in terms of

Article Designation: Scholarly 7 JTATM Volume 4, Issue 4,Summer 2005

perceived requirements and to set up a segmentation before the significant activity relationship between the customer input and of designing and producing a product. how products are designed, produced, and Sun and Wing (2005) summarized critical managed (Urban et al., 1993). Voice of the success factors for new product customer (VOC) has been examined by development identified by previous several researchers (Cooper, 2001; Crawford researchers as seen in Table 1. In general, et al.; 2003; Ulrich et al., 2004; Urban et al., common factors across the four studies 1993). Products can be sold when include top management support for the customers find them to be superior, of team, long term strategy with innovation higher value, or unique, and when a firm can focus, and a structured new product deliver the perceived benefits more development process. However, the factors effectively than competitors. Success in proposed by the four different studies are new product development also depends on not all exactly the same. For example, whether the target market segment is Cooper (1999) has pointed out the sufficiently large and competition is significance of “go/kill decision point into manageable (Urban et al., 1993). Therefore, the NPD process” as one of the critical it is crucial to identify the target market success factors while others did not.

Table 1. Critical Success Factors for NPD Identified by Previous Researchers Source : Sun, H. & Wing, W. C. (2005). Critical Success Factors for New Product Development in the Hong Kong Toy Industry. Technovation. 25. p. 295.

Article Designation: Scholarly 8 JTATM Volume 4, Issue 4,Summer 2005

Sources used: Cooper, R. G. (1999). From Experience: The invisible Success Factors in Product Innovation. Journal of Product Innovation and Management. 16(2). Lester, D. H. (1998). Critical Success Factors for New Product Development. Research Technology Management. 41(1). Lynn, G. S., Abel. K. D., Valentine, W. S., & Wright, R. C. (1999). Key Factors in increasing speed to market and improving New Product Development Rates. Industrial . 28. Poolton, J. & Barclay, I. (1998). New Product Development from Past Research to Future Application. Industrial Marketing Management. 27.

2.5. Key Research Issues in New Product and interfunctional coordination (Tyler et al, Development 2002).

New Product Development researchers have 1) Customer Orientation and Competitor examined key research issues such as market Orientation orientation, , , project risk According to Tyler et al. (2002), customer management, globalization, alliances, time- orientation and competitor orientation to-market management, and cost analysis. include all of the activities involved in Three main research issues (market acquiring information about the customers orientation, innovation management, and and competitors in the target market and time-to-market management) recognized as disseminating it throughout the business. most important new product success factors Whereas proactive firms identify and will be discussed. respond to long-term customer needs and thus become more customer-oriented, 2.5.1. Market Orientation reactive firms identify and respond to competitor’s actions and thus are more Researchers (Langerak, Hultink & Robben, competitor-oriented (Frambach, Prabhu & 2004; Tyler & Gnyawali, 2002; Wren, Verhallen, 2003). However, Naver, Slater, Souder & Berkowitz, 2000) have explored and MacLachlan (2000) point out, “A the role of market orientation in determining market orientation, whether reactive or new product success. According to Wren et proactive, is the foundation for a firm’s al. (2000), “Market orientation is the set of innovation effort” (p. 11). cross-functional processes and activities directed at creating and satisfying customers 2) Interfunctional Coordination through continuous needs assessment” (p. 602). Tyler et al. (2002) defined market Interfunctional coordination, positively orientation as “the organization-wide related to market orientation and new generation of pertaining product success, is a structural aspect of an to current and future customer needs, organization facilitating communication and dissemination of the intelligence across coordination between firm’s differ ent departments, and organization wide functions (Tyler et al., 2002). responsiveness to it” (p. 260). Through proper market orientation, the firms can gain 2.5.2. Innovation Management a better understanding of customer needs and wants, and a great knowledge of Brentani (2001) states, “Innovation involves competitor activities and market trends the creation of a new product, service or (Wren et al., 2000). Naver and Slater (1990) process” (p. 170). Although innovation is have conceptualized market orientation as a very risky and uncertain, and requires composite of three behavior components: expensive endeavors (Cormican & customer orientation, competitor orientation, O’Sullivan, 2004), it plays a vital role in

Article Designation: Scholarly 9 JTATM Volume 4, Issue 4,Summer 2005

increasing organization’s competitive communication an essential necessity for power. Many researchers (Astebro & product innovation especially when team Michela, 2005; Cormican et al., 2004; De members are geographically distributed Brentani, 2001; McDermott & O’Connor, (Cormican et al., 2004). 2002) have identified the need for innovation management in new product 3) Planning and Selection development. Key factors that were found to facilitate innovation management consist A rational planned innovation effort is also of strategy and leadership, information and important for company’s success. It is communication, and planning and selection. necessary to effectively plan and select projects, which are customer focused and 1) Strategy and Leadership linked to the new product strategy and goals (Cormican et al., 2004). Because Strategy and leadership have been identified contemporary organizations must be as the first critical success factors to enable customer driven (Cooper, 1999), it is critical effective innovation management. to clearly understand user needs, and all According to Cormican and O’Sullivan plans and selections should fit with the (2004), a product strategy should define the customer needs or projected future needs. aims and objectives of the product innovation effort related to the company’s 2.5.3. Time-to-Market overall business strategy. A product strategy should also focus and integrate team Researchers (Bayus, 1997; Cooper & effort and permit delegation (Cormican et Kleinschmidt, 1994; Skerlj & Prasnikar, al., 2004). While every member in the 2005; Smith, 1999) also have documented project team has an input into product the importance of time-to-market in new innovation, leaders appear to have an product development. According to the imperative impact on product innovation researchers, how fast a new product can be initiatives. A leader’s role is to create a developed and brought to market determines vision and effectively communicate it by its ultimate success or failure. McGrath setting obvious objectives (Cormican et al., (2004) comments that decreased time-to- 2004). market provides numerous benefits such as gaining higher productivity, reducing the 2) Information and Communication costs of many projects, and enabling time- based competition. Another key factor identified for successful innovation management is organizational 1) NPD Cycle Time information and communication process (Van Riel, Lemmink, & Ouwersloot, 2004). Reducing new product development (NPD) Scholars (Allen, 1985; Clark & Fujimoto, cycle time can create relative advantages in 1991; Souder, 1992) in the field of market share, profit, and long-term innovation have traditionally viewed competitiveness (Sanchez & Perez, 2003). innovation as an information processing How then do companies reduce NPD cycle activity (Moenaert, Caeldries, Lievens, & time in product innovation? According to Wauters, 2000). The innovation team Griffith (1993), “Decreasing product/project attains information on markets, complexity and the introduction of a , competitors, and resources, systematic new product process significantly and translates the information into a product reduce cycle times” (Cooper et al., 1994, p. design and strategy (Moenaert et al, 2000). 382). Smith (1999) comments that skipping Thus, innovation success is related to how steps can be one of the tools of rapid well companies gather and diffuse development. In the fashion apparel information (Van Riel et al., 2004), making industry, firms that concentrate on

Article Designation: Scholarly 10 JTATM Volume 4, Issue 4,Summer 2005

producing copies referred to as knockoffs, or Table 2 is a summary of the previously adaptations of products already on the presented new product development market, can reduce the amount of time processes. For organizational purposes as required to complete the process (Keiser & well as illustrating how complex new Garner, 2003) because they skip some of product development process have become, NPD processes (steps) including opportunity Urban and Hauser’s process was selected as identification and design and development the first product development process in processes. Table 2, and each of the activity categories of other new product development processes 2) First-to-Market are aligned vertically.

Companies with ‘first to market’ products However, it is important to note that “in capture the market, enjoy a high market practice many of activities of the phases will share, create barriers to entry for the be going on simultaneously, and interaction competition and create awareness for will be common” (Urban et al., 1993, p. 50). their product (Prasnikar et al., 2005). Compared to the sequential process, Carrillo and Richard (2004) state, “An simultaneous (overlapping) phases of innovating first entrant gains a monopoly development reduce time to market and that yields premium price until a smooth the transition between phases. competitor’s eventual entry drives prices Therefore, it is critical to be aware that the down. Conversely, delays in bringing product development process is a multi- products to market can be devastating” (p. cross-functional program, where all 2). functions work together to accomplish the required task (Crawford et al., 2003). 3) Quick Changes in both Technology and Customer Needs Each new product development process model in Table 2 consists of the different How quickly the product can be changed to process arrangements. For example, Urban fit with technology and customer needs is and Hauser (1993) describes a five step also an important issue in new product decision process model while Trott’s (2002) development (Cooper et al., 1994). NPD process is composed of eight-steps. Especially, in the textile and apparel Nevertheless, all new product development industry, it is critical to effectively recognize process (NPD) models have similarities in and adapt to quickly changing trends in the the key activities and functions. Even market (Keiser et al., 2003). though all new product development process models use the different step terminologies, 3. New Product Development Processes the process begins with perception of market opportunities and typically involves A new product development process (NPD identification of customers’ needs, design Process) is defined as “a disciplined and development process, product and market defined set of tasks and steps that describe testing, and market launch. In addition, all the normal means by which a company the processes or activities are repetitively converts embryonic ideas into multidisciplinary within different company salable products or services” (Belliveau et organizations. al., 2002). Ulrich et al. (2004) state, “A new product development process is the Many other researchers (Barclay, Holroyd & sequence of steps or activities that an Poolton, 1995; Cooper & Kleinschmidt, enterprise employs to conceive, design, and 1986; Erhorn & Stark, 1994; Gruenwald, commercialize a product” (p.12). Several 1992; Hart & Baker, 1994; Himmelfarb, researchers have developed new product 1992; Rosenthal, 1992; Saren, 1994) also processes for use with assorted products. have developed new product processes

Article Designation: Scholarly 11 JTATM Volume 4, Issue 4,Summer 2005

which are reviewed in May-Plumlee (1999). similarities to those detailed here. These NPD process models also have

1 2 3 4 5

Urban and Life Cycle Opportunity Identification Design Testing Introduction Hauser Management

Ulrich and Concept System- Testing and Planning Detail Design Production Ramp-up Eppinger Development Design Refinement

Crawford Opportunity Concept/ Concept and Di Identification & Project Development Launch Generation Benedetto Selection Evaluation

Testing and Post Launch Cooper Discovery Scoping Build Business Case Development Launch validation Review

Concept Idea Marketing Business Product Bruce and Screening Develop Market Testing Commercialization Biemans Generation ment Strategy Analysis Development

Idea Idea Concept Product Monitoring and Trott Business Analysis Test Marketing Commercialization Generation Screening Testing Development Evaluation

Table 2. New Product Development Processes

Author : Choi, W. (2005).

Sources used : Urban, G. L. & Hauser, J. R. (1993). Design and Marketing of New Products (2nd ed.). New Jersey: Prentice-Hall. Ulrich, K. T. & Eppinger, S. D. (2004). and Development (3rd ed.). New York: McGraw- Hill. Crawford, M. & Benedetto, A. D. (2003). New Products Management (7th ed.). New York: McGraw-Hill. Cooper R. G. (2001). Winning at New Products (3rd ed.). New York: Addison-Wesley. Bruce, M. & Biemans, W. G. (1995). Product Development – Meeting the Challenge of the Design- Marketing Interface. New York: John Willey & Sons. Trott, P. (2002). Innovation Management and New Product Development (2nd ed.). London: FT Prentice Hall.

Article Designation: Scholarly 12 JTATM Volume 4, Issue 4,Summer 2005

4. New Product Development in Textiles luxury yachts (Glen Raven Inc., 2005, See and Apparel Figure 4). Currently, Glen Raven is organized with divisions including Examples of new product development in Technical Textiles, the Filament Fabric textiles and apparel exist with several group, Sunbrella® and International companies and products with diverse textile (through Dickson® acquisition). end uses. Research and trade literature identified various new product development Glen Raven, Inc., recently, has earned the processes and strategies. The following 2005 Textile World Innovation Award are examples of new product through empowering its associates to be development processes in the global innovators, developing a culture of market- marketplace. driven innovation and carefully building a global approach to business (Borneman, 4.1. Glen Raven, Inc. 2005). The Sunbrella® brand of performance fabrics focuses on innovation Glen Raven, Inc., a North Carolina – based for awnings, furniture, marine and company, is one of the world’s largest convertible car tops. Glen Raven Technical technical textile specialists. Glen Raven is Fabrics markets performance fabrics for privately held with continuous family automotive, protective apparel, military and ownership over 125 years in the textile marine applications (Glen Raven, 2005). industry (McCurry, 2004). Since its Glen Raven’s success depends on a founding in 1880, the company has proactive strategy including aggressive successfully developed numerous new investment for and textile products including 100% solution- innovation as well as global expansion. dyed acrylic fabric and the first pantyhose Sections 4.1.1 to 4.1.4 present how the (tights). The company also has produced company has repeatedly retooled and products for diverse end use such as realigned itself to maintain its profitability awnings, automotive textiles, patio furniture and viability for over 100 years in the textile seat covers, graphics or sails on industry.

Figure 4. Numerous Glen Raven’s Applications

Source: Glen Raven Inc. (n.d.). Retrieved June 22, 2005, from http://www.gleraven.com

4.1.1. Innovation (McCurry, 2004). In recent years, the company implemented a program called Allen Gant Jr., President of the company “GlenOvation” (Rivas, 2005). According to points out, “The key to innovation is lack of Rivas (2005), the “GlenOvation” program, fear” (Rivas, 2005, p. A1). The company an internal program designed to involve has heavily invested the latest technology every associate in the innovation process, and has a penchant for innovation rewards workers for any innovative ideas Article Designation: Scholarly 13 JTATM Volume 4, Issue 4,Summer 2005

that they offer. John Coates (2005), marketing strategy programs (Borneman, Director of Research and Development at 2005). Glen Raven Inc., comments, “We have seen tremendous commitment from our associates The company learned how to expand around the world, and we are now funding globally when they acquired Dickson S.A., several new ideas that have great potential in , and recently embarked on building a their intended markets. As we continue to plant in China (Borneman, 2005). From a nurture these ideas and have market success, global perspective, it was the action that we feel the momentum will continue to gave the company a more global emphasis grow in support of GlenOvation” than anything else it had ever done. Now, (Borneman, 2005, www.textileworld.com). the company has about 40 percent of their Glen Raven is aware of the importance of operations outside the United States within creative ideas for new product development. different cultures (Borneman, 2005).

4.1.2. Marketing Strategy 4.1.4. Voice of the Customer

Marketing strategy plays a critical role at In particular, Glen Raven considers the Glen Raven, not just in supporting significance of the voice of the customer successful , but in understanding (VOC) for their products. The company markets and guiding Glen Raven’s endeavors to identify customers’ investment direction (Borneman, 2005). requirements and to develop the high quality Borneman (2005) explains, “Few textile product that exceeds customer expectations companies understand and act on market (Glen Raven, 2005). To satisfy customers’ data the way Glen Raven does to continually expectations, the R&D team at Glen Raven reposition assets and make tough decisions spends time with sales force, attends trade on entering and exiting markets” (p. 20). shows, and interacts with customers. The company has the capability to adjust to change that has kept it alive through good 4.2. Freudenberg Nonwovens times and bad (Rivas, 2005). Glen Raven Inc., as recently as six years ago, was 50 Freudenberg Nonwoven Group, a wholly percent apparel, and today it is less than 3 owned family enterprise headquartered in percent apparel. It shows that the company , is the world’s largest does not get bound up in tradition or past manufacturer of nonwoven goods. The successes (Borneman, 2005). company retained number one world ranking in annual sales of nonwoven The company’s aggressive investment in industry in 2003, at an estimated 1.4 billion supporting its marketing strategy is reflected dollars (Bitz, 2004). Freudenberg Group in various examples including research and consists of 17 production facilities located in development, and testing. A few years ago, 12 different countries including Argentina, the company invested one million dollars in Brazil, China, Germany, Italy, Japan, South improving its testing facilities to become Africa, South Korea, Spain, Taiwan, the fully certified to test fabrics (McCurry, UK, and the USA (Bitz, 2004). The 2004). company employs the five core divisions – interlinings, filtration, hygiene/medical, 4.1.3. Globalization technical nonwovens and tuft (Nonwovens Industry, 2003), and its divisions involve Currently, Glen Raven, Inc. has expanded to numerous markets from apparel interlinings, 127 countries around the world (Borneman, automotive interior trims, hygiene products, 2005). The company searches for healthy to carpet backings. Freudenberg’s five and growing markets with room for Glen divisions are now independently responsible Raven to succeed. It builds brands and for product development, marketing, sales barriers to entry by competitors, and and services as well as for its own thoroughly defends those markets with production, plants and production lines Article Designation: Scholarly 14 JTATM Volume 4, Issue 4,Summer 2005

(Nonwovens Industry, 2004). Thus, each our customers” (Nonwovens Industry, division is capable of operating 2004). independently while they still profit from the advantages of a large company such as 4.2.2. Global Alliances and Partnership technology, purchasing power, financial aid, and human resources (Nonwovens Industry, Freudenberg has a long successful tradition 2003). of global cooperation, alliances and partnership which enable better serve 4.2.1. Value for customers and Innovation customers as well as strength its competitive position (Freudenberg, 2005). According to Freudenberg’s key focus is to anticipate, Deeds and Rothaermel (2003), successful understand and meet customers' needs and management of strategic alliances and expectations (Freudenberg, 2005). In order partnership has become vital to firms’ new to satisfy customers’ demands, the company product development and eventually to firm concentrated on modernizing the product performance. Freudenberg has experienced line and a corporate restructuring program numerous alliances and joint ventures with (Bitz, 2004). The restructuring program was international partners. For instance, in the designed to enable the company to react interlining division, Freudenberg has more quickly to customers’ requirements achieved a long term relationship with the and market trends (Bitz, 2004). The Japan Vilene Company. This relationship company believes that it is essential to has allowed Freudenberg to match its provide innovative products and a high level capacity in Asia to the market needs, and to of value added service to customers to maintain a production cost structure remain competitive in the market comparable with local producers (Freudenberg, 2005). (Nonwovens Industry, 2004).

Freudenberg is also aware of the importance In July 2001, Freudenberg and Frisby of supplying innovative products. They Technologies formed a joint venture. Under consider that constant innovation in the joint venture agreement, Freudenberg everything they do is critical for their long created nonwoven material whereas Frisby term financial success (Freudenberg, 2005). was responsible for product manufacturing For example, in the filtration division, the and marketing (Bitz, 2004). In June 2003, company identified demands for fine Freudenberg acquired a 100% share of filtration products that help to improve the ComfortTemp® products from Frisby environment and public health. They then Technologies based in Winston-Salem, developed and expanded filters North Carolina, USA (Bitz, 2004). In May (MicronAir™ cabin air filters) for the 2004, in order to enhance competitiveness in removal of odors available for household, the filtration market in China, there was automotive and industrial end use (Bitz, another joint venture between Freudenberg, 2004). Freudenberg plans to invest in the Japan Vilene, and local Chinese partners. construction of a new line for making The joint venture supplies motor and cabin MicronAir™ cabin air filters in Germany air filter housing as well as filter elements to (Bitz, 2004). Freudenberg invested 40 leading automotive manufacturers in North million dollars to build new product and Western China (Nonwovens Industry, development lines for total five different 2004). The international joint venture divisions (Bitz, 2004). Stephan Tanda, a provides numerous benefits to the company president and CEO, states, “Success for us and its partners such as sharing relevant will come through differentiated technology technologies, increasing companies’ and tremendous diversity both when it capacity of their industry and enhancing the comes to roll good production, finishing, bargaining power (Nakamura, 2005). and converting. We use our broad set of industry expertise to follow the growth of

Article Designation: Scholarly 15 JTATM Volume 4, Issue 4,Summer 2005

4.3. Herman Miller Aeron Chair

Herman Miller, Inc., founded in 1923, is a leading provider of office furniture and services worldwide. The company headquarters is located in Zeeland, Michigan, and Herman Miller operates U.S. subsidiaries in Atlanta, Georgia, and Lake Mills, Wisconsin. The company enhances the working environment through the design, manufacture and distribution of furnishings, interior products, and related services (Herman Miller, 2005). Net sales of $262,000 in 1923 grew to $1.34 billion in fiscal year 2004 (Herman Miller, 2005).

The Herman Miller Aeron Chair is a unique Figure 5. Herman Miller Aeron Chair product combining ergonomics, aesthetics, material and manufacturing innovation, and Source : Herman Miller Inc. (n.d.). Retrieved mechanical invention (Herman Miller, June 27, 2005, from http://www.hermanmiller.com 2005). It was a main departure from the competing solutions to office seating. While 4.3.1. Opportunity Identification Aeron Chair was a significant change, it was quickly accepted as a suitable solution to the The two designers began the product needs of current office workers (Cagan & development process without any Vogel, 2002). Although the retail price of assumption about form or material, but with the Aeron chair is expensive (approximately some strong convictions about what a chair 800 US dollars), the Aeron has witnessed a is required to do for a person (Herman high degree of success in the market (Cole, Miller, 2005). They recognized new areas 2003). The next section illustrates what Bill of stress on the body from the effects of Stumpf and Don Chadwick, designers of the spending long periods of time seated in the Aeron Chair, saw that no one else did, and same position. They looked at issues of why Herman Miller was willing to invest in body temperature, blood circulation, and such an untested seating concept. spinal compression (Cagan et al., 2002). They also recognized that the light and open aesthetic trend had not been applied to seating design. Office seating had been traditionally used as a way to denote the class structure of the office (Cagan et al., 2002). The Aeron endeavored to shift the emphasis from hierarchy to comfort.

Herman Miller was aware that economic issues associated with the kinds of illness and reduced performance was also important (Cagan et al., 2002). Nowadays, keeping employees healthy and functioning has become a big challenge in business. Thus, Herman Miller saw that retaining employees and helping them function at their fullest is more profitable and stable for companies than constantly replacing with new people (Cagan et al., 2002). Article Designation: Scholarly 16 JTATM Volume 4, Issue 4,Summer 2005

negative effects that most workers face 4.3.2. Process (Cagan et al., 2002).

The project was initiated by a team In design, the Aeron chair is the type of (including marketers, designers, an design that no one would have predicted and ergonomic research group, and ), yet when it debuted everyone responded to it who began a potential seat design to replace in a positive way. It anticipated the shift the existing recliners used by senior away from the need to make people feel executives. An early emphasis on important by rank to the need to make them ergonomic research of anthropometrics, and feel comfortable by design. The Aeron chair issues related to sitting down and getting out was developed to fit equally well in a of chair was studied (Cagan et al., 2002). renewed loft and in new action- oriented open office . It also looks The team focused on new research studies elegant in combination with other furnishing that identified issues related to long-term in high-end office decor and meeting rooms. seating in weight distribution and heat As a result, the aesthetic and technical transference. This focus led to the proposal uniqueness does not allow competitors to for breathable seating surface design that imitate the chair without looking like they allows people to retain an even heat are making a direct rip-off (Cagan et al., distribution in the front and back of chair. 2002). Randy Brown, a Herman Miller After the concept proposal, the team tried to product manger, (2003) states, “The Aeron develop the material that prevents heat build success story required an exhaustive up from the body. However, the team collaboration among several individuals recognized that they had to find the right with diverse talents, as well as more supplier to make the fabric (Cole, 2003). patentable ideas than any previous Herman Herman Miller found the Quantum Group Miller undertaking” (Cole, 2003, p. 14). Inc. who was able to create a material to meet Herman Miller requirements. 4.4. American Fibers and Yarns Quantum Group, however, overcame Company manufacturing obstacles in the fabric development through special extrusion American Fibers and Yarns Company methods and other manufacturing methods (AF&Y) was established in 1965 as Phillips not typically used in most textile Fibers Corporation, developing and manufacturing plants (Cloe, 2003). Finally, producing polypropylene filament yarn for this fabric supplier successfully developed home furnishings and other products. an engineered form-fitting material, which is American Fibers and Yarns Company has a weave of elastomeric -based specialty now become the largest supplier of fibers. polypropylene filament yarns in the United States (Rodie, 2004). Headquartered in The open weave that was developed has the Chapel Hill, North Carolina, AF&Y capability to meet the performance demands maintains a technology center that of a breathable interface between the body specializes in engineering filament yarn in and the chair. It also provides ergonomic innovative combinations not available from solutions and unique aesthetics (Cagan et al., other suppliers (AF&Y Co., 2005). Based 2002). The Aeron Chair offers people a on its success in the core residential contract sense of security and safety from a health and industrial fabric markets, AF&Y is now view point. Office workers feel that they are setting its sights on other applications and sitting in a chair designed to fit their body markets which include repositioning and one which will support them in the products towards knit apparel applications variety of tasks they must perform. (Gross, 2005). Therefore, it provides less chance of injury and diminishes potential for the long term- American Fibers and Yarns Company has had success in the home furnishing market Article Designation: Scholarly 17 JTATM Volume 4, Issue 4,Summer 2005

by emphasizing the inherent performance products giving the consumer easy care properties of polypropylene fiber. Innova®, characteristics such as stain resistance and developed by AF&Y, is a fiber with washability. We are also looking at characteristics such as light weight, quick sweaters and dress socks with all the same drying, durability, resistance to bacteria, the characteristics” (Gross, 2005, p. 58). In lowest thermal conductivity, abrasion order to easily identify gaps between what resistance, and low cost (AF&Y, 2005). customers want and what the characteristics Recently, the company penetrated the knit of products are, the company has utilized a apparel market by promoting the benefits of matrix described as a radar chart (Apperson, polypropylene (Gross, 2005). 2004). The radar chart effectively demonstrates what benef its or properties James T. Morelli, an executive vice have been found to be important to the home president at AF&Y, says, “What we have furnishing customer. It also illustrates got there is the exact same technology with benchmarking of the home furnishing the same characteristics adapted for the competition, as well as the opportunities for apparel market. We looked at how to improvement (See Figure 6). replace cotton, rayon, polyester with these

Figure 6. Radar Chart Source: Apperson, M. (February 12, 2004). Interviewed at headquarter of American Fibers and Yarns Company in Chapel Hill, NC. Promotional material AF&Y

In 1999, AF&Y established the Technology technology” (Rodie, 2004, p. 24). He Center in Bainbridge, Georgia., where a continues, “Our technology includes team of engineers and technicians perform proprietary chemistry as well as proprietary research and development using state-of-the- texturing techniques and processes. We rely art equipment (Rodie, 2004). Morelli states, on our supplier relationships to continue to “Technology development has been an develop new technologies for our product active process for the past three years. lines, and enlist suppliers to help us bring Moving forward, it is the foundation of the new technologies to market” (Rodie, 2004, future of our business” (Rodie, 2004, p. 23). p. 24).

In the last three years, the company has invested about 3 million dollars in research and development (Gross, 2005). Morelli mentions, “American Fibers & Yarns is one of the few yarn producers investing in Article Designation: Scholarly 18 JTATM Volume 4, Issue 4,Summer 2005

4.5. Bandage Group 4.5.1. New Product Development Process

Barnes and Bruce (2000) introduced the Figure 7 illustrates the procedure flowchart Bandage case study, which mainly provides for NPD at Bandage. However, in reality a study of capture and new their NPD process does not follow formal product development within an organization. stages. For example, in theory, the project The Bandage Group was founded by an teams have responsibility for preparing entrepreneur in the 1950s, when he business plans, forecasts, and design stages developed ideas to market tubular bandage as part of the NPD process. The information (Barnes et al., 2000). Since the 1970s, the fed into the NPD committee from the project group has developed its international teams should then allow the committee to network and their product has been make go/kill decisions at the each stage- expanded, with acquisition and development gate. In realty, the stage-gate process is not of associated healthcare products, covering followed at Bandage. Rather, it is viewed as several major therapy fields, and continence largely subjective and emotive process care (Barnes et al., 2000). However, the (Barnes et al., 2000). new product development at Bandage is not formal. This case study shows how different the theory and reality of new product development may be.

Figure 7. NPD Procedure Flow Chart at Bandage Source: Bruce, M. & Cooper, R. (2000). Creative Product Design. New York: Wiley. p. 143.

Article Designation: Scholarly 19 JTATM Volume 4, Issue 4,Summer 2005

4.5.2. Requirement Capture for Bandage made by the North Carolina manufacturing specialist, as the “Rolls Royce” of the sector “Although there is a form of a phase review (McCurry, 2003). Section 4.6.1 illustrates system in the NPD process at Bandage how Thorlo wrote a success story in the sock (Figure 7), in reality this system does not market. work” (Barnes et al., 2000, p. 150). In the idea generation stage, although anybody at 4.6.1. Opportunity Identification Bandage can generate an idea for new products, there is no formalized way of Twenty-five years ago, Jim Throneburg, a establishing idea generation. Anybody who chairman of Thorlo, Inc., was in his early has an idea for a new product approaches an 40s, overweight and having trouble with the NPD manager, who will assess the idea exercise routine he had begun. He informally (Barnes et al., 2000). Formalized recognized that the problem was caused by idea generation techniques include his feet which hurt from miles of walking sessions, market needs and jogging. He and a design established through market research, and developed a new kind of extra-cushiony technical focus meeting. However, there sock that had padding placed to absorb may be numerous ideas from these processes shock and prevent friction (Wireback, 2005, that never make it into a formal procedure See Figure 8). This story shows the (Barnes et al., 2000). Because of the fact successful start of a new industry, the sport- that requirement capture is not recognized as specific sock. Throneburg (2005) states, a process in itself, there is no information “We take it to a level nobody else does. The gathering that is specific to this process at rules of hosiery industry and the rules we Bandage. play by are totally different” (Wireback, 2005, p. A1). Any requirement capture activities at Bandage are informal, dependent on the Throneburg’s rules are related to the design project concerned, and carried out on an ad and development of special products for hoc basis. Although there have been many every activity where comfort and successful new products launched by performance are important. The Bandage, they have been designed primarily merchandising campaign for these towards a short-term market. Barnes and engineered socks reflects the matching of Bruce (2000) point out, “In order to improve product features to the demands of the sport long-term growth through new product or other activities (Wireback, 2005). launches, reduce time to market, decrease cost of development and improve the chances of new products, they need to implement a tighter NPD process and develop a model of requirement capture” (P. 151).

4.6. Thorlo, Inc.

Thorlo, the initiator of the activity specific sock, is a family owned company that manufactures sock products for hiking, hunting, snow sports to tennis (Thorlo, 2005). For the past twenty-three years, the company has dedicated itself to Figure 8. Throlo Hiking Socks understanding customer needs and designing Source: Campmore.com. (n.d.). Retrieved comfortable and protectable sock products July 20, 2005, from fit with its user benefits (Thorlo, 2005). http://www.campmor.com. Many customers today regard Thorlo socks, Article Designation: Scholarly 20 JTATM Volume 4, Issue 4,Summer 2005

4.6.2. Product Benefits and the mean number of company employees was 87.6 (Ciappei & Christian, Thorlo started out producing socks designed 2005). for running, golf and hiking. They now have expanded production of socks for five 4.7.1. Proposition for New Product Success competitive sports, four outdoor pursuits, such as hunting, two snow sports, four First, they proposed that new product phases of military life and three levels of success of the companies located in civilian lifestyle (Wireback, 2005). They Montebelluna depends upon the following sell from $10.99 to $12.99 per pair. four main areas: However, many customers have been (1) Networking: The development of willing to pay for it because the Thorlo sock relationships with external offers numerous core benefits to the individuals or companies, both customers such as comfort, breathability, customers and suppliers, that a firm added protection against blistering and involves in product innovation; abrasion, firm fit and reinforced heel (2) Organization: The way a company (Wireback, 2005). In practice, blister is organized for new product prevention and moisture control are development (NPD) (i.e. NPD team, common goals throughout the highly cross-functional integration vs competitive outdoor sock supply chain functional approach, senior (McCurry, 2003). Throneburg finds out management support and what works not by asking researchers, but commitment, characteristics of the by staying in close contact with the team leader); customers who buy his product. He says (3) Information and communication that he only enters a market if he can design technologies: The use of advanced a sock with a combination of cushioning, technologies (computer-aided and wicking and other factors that the consumer rapid prototyping technologies) to considers benefits (Wireback, 2005). To support and increase the achieve the core product benefits, the effectiveness of the NPD process; company has invested millions of dollars in and medical and sports performance research (4) Time-reducing efforts: The set of (Thorlo, 2005). initiatives a company undertakes to reduce the time-to-market (Ciappei 4.7. Italian Sport Shoe Cluster & Christian, 2005, p. 23).

Although many companies individually 4.7.2. Major Success Factors for NPD undertake new product development, companies can group together to enhance Based on the four main factors, Ciappei and competition. Montebelluna is located in Christian (2005) proposed 17 hypotheses Northeast in Italy and has the largest cluster and attained three major results that provide of sport shoe companies in the world. This a positive influence on new product success region is known for privately held small in the sport shoe industry: sport shoe companies, who are innovative in design and styling. (1) Team approach: A systematic use of NPD teams is required, but not Ciappei and Christian (2005) researched enough to differentiate between the main success factors engrained in the new top performers and the other product development practices of Italian companies. Although companies sport shoe companies in the Montebelluna need to adopt a team approach for cluster. They surveyed 20 companies out of NPD to survive, it alone does not 420 companies located in the Montebelluna lead to success (Ciappei & cluster in Italy. Mean annual sales for the Christian, 2005). However, in surveyed companies were 28 million Euros order to accomplish high levels of Article Designation: Scholarly 21 JTATM Volume 4, Issue 4,Summer 2005

new product success, the NPD team related to use of technical sport must not be simply multi-functional. shoes, and to closely contact one of The most effective NPD teams the main sources of product include representatives of many innovation (Ciappei et al., 2005). functions and also customers or lead users. According to PDMA, “Lead (3) Technology: It is very critical for users are users for whom finding a sport shoe manufacturers to use solution to one of their consumer advanced information and needs is so important that they have communication technologies modified a current product or including computer-aided invented a new product to solve the technologies because the need themselves because they have technologies reduce costs and time not found a supplier who can solve for new product development it for them” (PDMA, 2005). The (Ciappei et al., 2005). NPD team must then be wide open to put together the valuable Ciappei and Christian (2005) finally contribution of external sources of suggested, “Sports shoe (and other clothing innovation and knowledge (Ciappei and apparatus) manufacturers that want to et al., 2005). improve their NPD capability should proactively develop close relationships with (2) Customer Orientation: The their customers, not just for pushing their involvement of customers at diverse sales, or for communicating their brand stages of new product development image, but most of all to better understand process encourages sport shoe the customer needs, to absorb their manufacturers to directly bring in knowledge and combine it with that of their their preferences, limiting employees, to be ready to catch early and distortions and filtering effects weak signs of new sports, emerging needs related to market research and data and trends, and to monitor innovating ideas analysis (Ciappei et al., 2005). In that lead users might be developing” (p. 36). order to effectively enhance new product success, a company should 5. Future of New Product Development integrate lead users into the process, as it contributes to the anticipation Urban et al. (1993) have introduced the of requirements that will eventually critical success factors that have be shared by the mass market, to characterized the new -product development more easily recognize the problems changes in emphasis over time (Table 3).

Article Designation: Scholarly 22 JTATM Volume 4, Issue 4,Summer 2005

1970s 1980s 1990s

Market and benefit Portfolio theory Total quality segmentation Premarket forecasting and Customer satisfaction Product proposition and conjoint analysis perceptual mapping Time to market Decision support systems Critical Success Stochastic forecasting and UPC scanner data Manufacturing integration Factors model with R&D and marketing Technology/marketing Creative group model integration and lead users Worldwide strategy and alliances Idea Screening Competitive strategy and sustainable competitive advantage

Table 3. Critical Success Factors for NPD

Source: Urban, G. L. & Hauser, J. R. (1993). Design and Marketing of New Products (2nd ed.). New Jersey: Prentice-Hall. p. 664.

According to Urban et al. (1993), in the productivity-based competition” (McGrath, future, the challenges will be greater as 2004, p. 20). technology advances more quickly, global competition becomes fiercer, customer Figure 9 depicts the four generations of needs become more refined and subject to product development management. change, and as amazing social, political and According to McGrath (2004), in the R&D organizational changes occur. New Productivity Generation, the new product approaches and new techniques will be development process will be transformed continuously developed and existing into a highly efficient, highly automated, concepts will be incessantly improved. The and highly integrated enterprise-wide environment also will be changing rapidly, process that will operate at an extraordinary so the firm must learn to effectively adapt performance level. The next generation and evolve to succeed under new challenges goes beyond the primary focus on project and new goals (Urban et al., 1993). management of the previous generation to involve comprehensive resource McGrath (2004) describes the next management, an integrated portfolio, and generation of new product development as product strategy; and introduce more the Research and Development (R&D) management practices than the previous Productivity Generation. “Just as the Time- generation (McGrath, 2004). However, the to-Market (TTM) Generation of the 1990’s next generation of productivity-based gains gave rise to strategies for time-based needs integrated systems to allow the new competition, the R&D Productivity practices (McGrath, 2004). Generation will give rise to development-

Article Designation: Scholarly 23 JTATM Volume 4, Issue 4,Summer 2005

Figure 9. Four Generations of Product Development Management Source: McGrath, M. E. (2004). Newt Generation Product Development: How to Increase Productivity, Cut Cost and Reduce Cycle Times. New York: McGraw-Hill. p. 4.

5.1. Future of NPD in Textile and Apparel Another issue is the development of Industry innovative technology and the effective adoption of technical changes to be Global competition in the textile and apparel competitive in the global textile and apparel industry has become more intense due, in industry. The product development part, to the changes in regulation of world structure has been improved through the trade. To compete and survive in the future adoption of integrated computer systems, of textiles and apparel, firms will need to be where all functions are capable of being innovative in new product development, accessed and using all data on a real time while reducing cycle times and cutting costs. basis (Senanayake & Little, 2001). The new Indeed, in a time competitive environment, technology and technical advances will companies will be most successful if their enable retailers and consumers to take a development times are shorter and if their proactive role in the product development products are generated faster than its process. Additionally, the improved competitors (Filippini, Salmaso, & technologies including CAD/CAM Tessarolo, 2004). More textile and apparel technologies are expected to allow faster companies have been forming strategic response to the customers’ requirements at a alliances in order to reduce the time and lower cost. improve flexibility and responsiveness (Senanayake & Little, 2001). These Governments are taking an active role in strategic alliances also relate to the supporting new product development effectiveness of innovation strategies initiatives. For examples, the government of (Faems, Looy, & Debackere, 2005). Hong Kong has challenged its industries to American Fibers and Yarns Company, for implement innovative product development example, have had the strategic alliances efforts with the following foci: with their suppliers to develop innovative technology for the product lines and join 1) materials technology to produce suppliers to help them bring new innovative and novel fibers, fabrics, technologies to market (Rodie, 2004). and related product treatment and

Article Designation: Scholarly 24 JTATM Volume 4, Issue 4,Summer 2005

finishing processes such as nano- materials is increasing. The use of technical technology; textiles such as three dimensional 2) product design including feature construction, nano-technology, and design and for the electronic integration, is expected to bring textile, clothing and footwear high added value to product application in industry; and apparel, medical, automotive, and other 3) prototyping technology to produce markets. samples in a quick and responsive manner with the use of CAD/CAM To strengthen competitiveness in the global technology and advanced textile and apparel industry, new product manufacturing system (Hong Kong development has become a key strategy. Government, 2001). Yet this strategy requires a detailed process, which takes into account market, design, In future markets, the growth potential for technology, and finance. textiles as components in composite

6. References Bitz, K. (2nd Quarter, 2004). The World Nonwovens Industry: Part 1- The Leading American Fibers and Yarns Co. (n.d.). Ten Producers. Technical Textile Markets. Retrieved June 24, 2005, from Issue 57. p. 31-41. http://www.afyarns.com. Borneman, J. M. (June, 2005). Glen Raven – Apperson, M. (February 12, 2004). Market-Driven To the Core. Textile World. Interviewed at headquarter of American 155(6). p. 20. Fibers and Yarns Company in Chapel Hill, NC. Borneman, J. M. (June, 2005). Letting Markets Lead the Way. Retrieved June 22, Astebro, T. & Michela, J. L. (2005). 2005, from http://www.textileworld.com Predictors of the Survival of Innovations. Journal of Product Innovation Management. Borneman, J. M. (June, 2005). Recognizing 22. p. 322-335. the Power of the Resilience. Retrieved June 22, 2005, from Barclay, I., Holroyd, P. & Poolton, J. http://www.textileworld.com. (1995). The New Product Development Process: A Sphenomorphic Management Brentani, U. (2001). Innovative versus Model. International Journal of Incremental New Business Services: Design: The Journal of the International Different Keys for Achieving Success. Association for Vehicle Design. 16(4/5). p. Journal of Product Innovation Management. 365-374. 18. p. 169-187.

Bayus, B. L., (1997). Speed-to-Market and Bruce, M. & Biemans, W. G. (1995). New Product Performance Trade-offs. Product Development – Meeting the Journal of Product Innovation Management. Challenge of the Design-Marketing 14. p. 485-497. Interface. New York: John Willey & Sons. p. 13, p. 16, p. 17, p. 84-86. Belliveau, P, Griffin, A & Somermeyer, S. (2002). The PDMA Toolbook for New Bruce, M. & Cooper, R. (2000). Creative Product Development. New York: Product Product Design. New York: Wiley. p. 133- Development & Management Association. 155.

Article Designation: Scholarly 25 JTATM Volume 4, Issue 4,Summer 2005

Cagan, J & Vogel, C. M. (2002). Creating Crawford, M. & Benedetto, A. D. (2003). Breakthrough Products – Innovation from New Products Management (7th ed.). New Product Planning to Program Approval. York: McGraw -Hill. p. 5, p. 8, p. 11-13, p. New Jersey: Prentice Hall. p. 7-8, p. 242- 24, p. 27, p. 29-31, p. 210, p. 271. 248. De Brentani, U. (2001). Innovative versus Campmore.com. (n.d.). Retrieved July 20, Incremental New Business Services: 2005, from http://www.campmor.com. Different Keys for Achieving Success. Journal of Product Innovation Management. Carrillo, J. E. & Franza, R. M. (2004). 18. p. 169-187. Investing in Product Development and Production Capabilities: The Crucial Deeds D. L. & Rothaermel, F. T. (2003). Linkage between Time-to-Market and Honeymoons and Liabilities: The Ramp-up Time. European Journal of relationship between Age and Performance Operational Research. Retrieved July 9, in Research and Development Alliances. 2005, from http://www.sciencedirect.com. Journal of Product Innovation Management. 20. p. 468-484. Ciappei, C. & Simoni, C (2005). Drivers of New Product Success in the Italian Sports Erhorn, C. & Stark, J. (1994). Competing by Shoe Cluster of Montebelluna. Journal of Design: Creating Value and Market Fashion Marketing and Management. 9(1). Advantage in New Product Development, p. 20-42. Vermont: Essex Junction.

Cole, M. (December, 2003). High-Tech Faems, D., Looy, B. V., & Debackere, K. Performance Fabrics Give Aeron Chair A (2005). Interorganizational Collaboration Leg Up. International Fiber Journal. 18(6). and Innovation: Toward a Portfolio p. 14-15. Approach. Journal of Product Innovation Management. 22. Cooper, R. G. & Kleinschmidt, E. J. (1986). p. 238-250. An Investigation into the New Product Process: Steps, Deficiencies, and Impact. Filippini, R., Salmaso, L., & Tessarolo, P. Journal of Product Innovation Management. (2004). Product Development Time 3(2). p. 77-85. Performance: Investing the Effect of Interactions between Drivers. Journal of Cooper, R. G. & Kleinschmidt, E. J. (1994). Product Innovation Management. 21. p. Determinants of Timeliness in Product 199-214. Development. Journal of Product innovation Management. 11. p. 381-396. Frambach, R. T., Prabhu, J. & Verhallen, T. M. M. (2003). The Influence of Business Cooper, R. G. (1999). From Experience: The Strategy on New Product Activity: The Role Invisible Success Factors in Product of Market Orientation. International Journal Innovation. Journal of Product Innovation of Research in Marketing. 20. p. 377-397. Management. 16. p. 115-133. Freudenberg Nonwovens. (n.d.). Retrieved Cooper R. G. (2001). Winning at New July 24, 2005, from http://www.nonwovens- Products (3rd ed.). New York: Addison- group.com. Wesley. p. 8, p. 14-15, p. 130-141. Glen Raven Inc. (n.d.). Retrieved June 22, Cormican, K. & O’Sullivan, D. (2004). 2005, from http://www.gleraven.com. Auditing Best Practice for Effective Product Innovation Management. Technovation. 24. Gross, D. (Spring, 2005). Yarn Specialist p. 819-829. Targets Knits. Knit Americas. p. 58.

Article Designation: Scholarly 26 JTATM Volume 4, Issue 4,Summer 2005

Gruenwald, G. (1992). New Product Consumer Purchase Criteria. A dissertation Development (2nd ed.). NTC Business submitted to North Carolina State Books. Illinois: Lincolnwood. University. Raleigh.

Hart, S. & Baker, M. (1994). The Multiple McCurry, J. W. (Fall, 2003). Take a Hike in Convergent Processing Model of New Comfort. Knit Americas. p. 51-53. Product Development. International Marketing Review. 11(1). p. 77-92. McCurry, J. W. (May, 2004). Glen Raven’s History Proves the Power of Herman Miller Inc. (n.d.). Retrieved June Metamorphosis. Technical Textiles 27, 2005, from International. 13(3). p. 9. http://www.hermanmiller.com. McDermott, C. M. & O’Connor, G. C. Hoechst Celanese. (1990). Dictionary of (2002). Managing Radical Innovation: An Fiber & Textile Technology. North Carolina: Overview of Emergent Strategy Issues. Hoechst Celanese. p. 3. Journal of Product Innovation Management. 19. p. 424-438. Hong Kong Government. (2001). Innovative and Technology Fund (ITF) Project McGrath, M. E. (2004). Newt Generation Solicitation. Retrieved July 15, 2005, from Product Development: How to Increase http://www.itf.gov.hk. Productivity, Cut Cost and Reduce Cycle Times. New York: McGraw -Hill. p. 3-22. Himmelfarb, P. (1992). Survival of the First: New Product Development in the 90’s. New Monczka, R. M. et al. (2000). New Product Jersey: Prentice Hall. Development – Strategies for Supplier Integration. Wisconsin: American Society Keiser, S. J. & Garner, M. B. (2003). for Quality. p. 5. Beyond Design - The Synergy of Apparel Product Development. New York: Fairchild Nakamura, M. (2005). Joint Venture Publication Inc. p. 76. Instabilit y, Learning and the Relative Kotler, P. (1980). Principles of Marketing. Bargaining Power of the Parent Firms. New Jersey: Prentice Hall. Review. 14. p. 465- 493. Kotler, P. (1997). Marketing Management – Analysis, Planning, Implementation, and Naver, J. C., Slater, S. F. and MacLachlan, Control (9th ed.). New Jersey: Prentice Hall. D. (2000). Total Market Orientation, Business Performance and Innovation. Kumar, S. & Phrommathed, P. (2005). New Marketing Institute. Working Paper Product Development – An Empirical Study Series, Report No. 00-116. of the Effects of Innovation Strategy, Organization Learning, and Market Nonwovens Industry. (September, 2003). Conditions. New York: Springer. p. 55-57. Freudenberg & Co. 34(9). p. 38-42.

Langerak, F., Hultink, E. J. & Robben, H. S. Nonwovens Industry. (September, 2004). J. (2004). The Impact of Market Orientation, Freudenberg Nonwovens. 35(9). p. 36-40. Product Advantage, and Launch Proficiency on New Product Performance and PDMA (n.d.). Retrieved June 26, 2005, from Organizational Performance. Journal of http://www.pdma.org. Product Innovation Management. 21. p. 79- 94. Plunkett Research, Ltd. (n.d.). Retrieved June 30, 2005, from May-Plumlee, T. A. (1999). Modeling http://www.plunkettresearch.com. Apparel Product Development Using Article Designation: Scholarly 27 JTATM Volume 4, Issue 4,Summer 2005

Rivas, K. (June 19, 2005). For Glen Raven Textile World. (2005). Retrieved June 27, Inc., It’s All in the Family. Times-News. p. 2005, from http://www.textileworld.com. A1. Thorlo. (June 6, 2005). Making a Greener Rodie, J. B. (November, 2004). From Fiber Sock - Thorlos® Practices Earth-friendly to Market. Textile World. 154(11). p. 22. Manufacturing. Retrieved July 19, 2005, from http://www.thorlo.com. Rosenthal, S. (1992). Effective Product Design and Development: How to Cut and Thorlo. (n.d.). Retrieved July 19, 2005, from Lead Time and Increase Customer http://www.thorlo.com. Satisfaction. Illinois: Homewood. Trott, P. (2002). Innovation Management Rothwell, R. & Gardiner, P. (1984). Design and New Product Development (2nd ed.). and Competition in Engineering, Long London: FT Prentice Hall. p. 212. Range Planning. 17(3). p. 78-91. Tyler, B. B. & Gnyaw ali, D. R. (2002). Sanchez, A. M. & Perez, M. P. (2003). Mapping Managers’ Market Orientations Cooperation and Ability to Minimize the regarding New Product Success. Journal of Time and Cost of New Product Product Innovation Management. 19. p. Development within Automotive Supplier 259-276. Industry. Journal of Product Innovation Management. 20. p. 57-69. Ulrich, K. T. & Eppinger, S. D. (2004). Product Design and Development (3rd ed.). Saren, M. (1994).Reframing the Process of New York: McGraw -Hill. p. 3, p. 12-15, p. New Product Development: From a 50, p. 120, p. 184. “Stages” Model to a “Blocks” Framework. Journal of Marketing Management. 10(7). p. Urban, G. L. & Hauser, J. R. (1993). Design 633-643. and Marketing of New Products (2nd ed.). New Jersey: Prentice-Hall. p. 3-6, p. 14, p. Senanayakw, M. M. & Little, T. J. (Spring, 33-34, p. 38-39, p. 55-56, p. 164-167, p. 2000). “Measures” for New Product 447, p. 597. Development. Journal of Textile and Apparel, Technology and Management. Van Riel, A.C. R., Lemmink, J. & 1(3). Ouwersloot, H. (2004). High Technology Service Innovation Success: A Decision- Skerlj, T. & Prasnikar, T. (2005). New Making Perspective. Journal of Product Product Development Process and Time-to- Innovation Management. 21. Market in the Generic Pharmaceutical p. 348-359. Industry. Industrial Marketing Management. p. 1-13. Wireback, T. (July 18, 2005). Socking It to Import; Thorlo’s Niche-Market Approach Smith, P. G. (1999). From Experience: Makes Big Tracks in U.S. Textiles. News & Reaping Benefit from Speed to Market. Record (GreensBoro, NC). p. A1, p. A6. Journal of Product Innovation Management. 16. p. 222-230. Wren, B. M., Souder, W. E. & Berkowitz, D. (2000). Market Orientation and New Sun, H. & Wing, W. C. (2005). Critical Product Development in Global Industrial Success Factors for New Product Firms. Industrial Marketing Management. Development in the Hong Kong Toy 29. p. 601-611. Industry. Technovation. 25. p. 293-303.

Article Designation: Scholarly 28 JTATM Volume 4, Issue 4,Summer 2005

Top View