Management innovation made in China: Haier’s Rendanheyi

This article shows how emerging market companies like China’s Haier Group create management innovations that are appropriate for an environment characterized by increased volatility, uncertainty, complexity, and ambiguity (VUCA). Dealing with VUCA effectively requires practices favoring nimble and decentralized responses; the Haier Group developed a platform of management practices under the label Rendanheyi (in Chinese: 人单合一) to transform itself from a conventional hierarchical manufacturing firm into a highly responsive online-based entrepreneurial company with “zero distance to the customer”. We demonstrate how the organizational, competitive, institutional, and technological contexts mattered for the development of Rendanheyi. Our study contributes several insights for practitioners and academics. First, we showcase how context dependent management innovations are created to allow emerging market firms like Haier to deal with a high VUCA world. Second, we draw lessons from Haier’s experimentation process for other firms. Finally, we create an extended process model of management innovation that managers, in both emerging and developed countries, can readily apply

A New Consumerism: The influence of social technologies on product design

Social media has enabled a new style of consumerism. Consumers are no longer passive recipients; instead they are assuming active and participatory roles in product design and production, facilitated by interaction and collaboration in virtual communities. This new participatory culture is blurring the boundaries between the specific roles of designer, consumer and producer, creating entrepreneurial opportunities for designers, and empowering consumers to influence product strategies. Evolving designer-consumer interactions are enabling an enhanced model of co-production, through a value-adding social exchange that is driving changes in consumer behaviour and influencing both product strategies and design practice. The consumer is now a knowledgeable participant, or prosumer, who can contribute to user–centered research through crowd sourcing, collaborate and co-create through open-source or open-innovation platforms, assist creative endeavors by pledging venture capital through crowd funding and advocate the product in blogs and forums. Social media- enabled product implementation strategies working in conjunction with digital production technologies (e.g. additive manufacture), enable consumer-directed adaptive customisation, product personalisation, and self-production, with once passive consumers becoming product produsers. Not only is social media driving unprecedented consumer engagement and significant behavioural change, it is emerging as a major enabler of design entrepreneurship, creating new collaborative opportunities. Innovative processes in design practice are emerging, such as the provision of digital artifacts and customisable product frameworks, rather than standardised manufactured solutions. This paper examines the influence of social media-enabled product strategies on the methodology of the next generation of product designers, and discusses the need for an educational response

Unlocking the power of big data in new product development

This study explores how big data can be used to enable customers to express unrecognised needs. By acquiring this information, managers can gain opportunities to develop customer-centred products. Big data can be defined as multimedia-rich and interactive low-cost information resulting from mass communication. It offers customers a better understanding of new products and provides new, simplified modes of large-scale interaction between customers and firms. Although previous studies have pointed out that firms can better understand customers’ preferences and needs by leveraging different types of available data, the situation is evolving, with increasing application of big data analytics for product development, operations and supply chain management. In order to utilise the customer information available from big data to a larger extent, managers need to identify how to establish a customer-involving environment that encourages customers to share their ideas with managers, contribute their know-how, fiddle around with new products, and express their actual preferences. We investigate a new product development project at an electronics company, STE, and describe how big data is used to connect to, interact with and involve customers in new product development in practice. Our findings reveal that big data can offer customer involvement so as to provide valuable input for developing new products. In this paper, we introduce a customer involvement approach as a new means of coming up with customer-centred new product development

Living Innovation Laboratory Model Design and Implementation

Living Innovation Laboratory (LIL) is an open and recyclable way for multidisciplinary researchers to remote control resources and co-develop user centered projects. In the past few years, there were several papers about LIL published and trying to discuss and define the model and architecture of LIL. People all acknowledge about the three characteristics of LIL: user centered, co-creation, and context aware, which make it distinguished from test platform and other innovation approaches. Its existing model consists of five phases: initialization, preparation, formation, development, and evaluation. Goal Net is a goal-oriented methodology to formularize a progress. In this thesis, Goal Net is adopted to subtract a detailed and systemic methodology for LIL. LIL Goal Net Model breaks the five phases of LIL into more detailed steps. Big data, crowd sourcing, crowd funding and crowd testing take place in suitable steps to realize UUI, MCC and PCA throughout the innovation process in LIL 2.0. It would become a guideline for any company or organization to develop a project in the form of an LIL 2.0 project. To prove the feasibility of LIL Goal Net Model, it was applied to two real cases. One project is a Kinect game and the other one is an Internet product. They were both transformed to LIL 2.0 successfully, based on LIL goal net based methodology. The two projects were evaluated by phenomenography, which was a qualitative research method to study human experiences and their relations in hope of finding the better way to improve human experiences. Through phenomenographic study, the positive evaluation results showed that the new generation of LIL had more advantages in terms of effectiveness and efficiency.Comment: This is a book draf

Crowdsourcing as a way to access external knowledge for innovation

This paper focuses on “crowdsourcing” as a significant trend in the new paradigm of open innovation (Chesbrough 2006; Chesbrough & Appleyard 2007). Crowdsourcing conveys the idea of opening the R&D processes to “the crowd” through a web 2.0 infrastructure. Based on two cases studies of crowdsourcing webstartups (Wilogo and CrowdSpirit), the paper aims to build a framework to characterize and interpret the tension between value creation by a community and value capture by a private economic actor. Contributing to the discussions on “hybrid organizational forms” in organizational studies (Bruce & Jordan 2007), the analysis examines how theses new models combine various forms of relationships and exchanges (market or non market). It describes how crowdsourcing conveys new patterns of control, incentives and co-ordination mechanisms.communauté ; crowdsourcing ; innovation ; formes organisationnelles hybrides ; plateforme ; web 2.0

SMEs and virtual R&D teams: a motive channel for relationship between SMEs

In today?s dynamic marketplace, manufacturing companies are under strong pressure to introduce new products for long-term survival with their competitors. Nevertheless, every company cannot cope up progressively or immediately with the market requirements due to knowledge dynamics being experienced in the competitive milieu. Increased competition and reduced product life cycles put force upon companies to develop new products faster. In response to these pressing needs, there should be some new approach compatible in flexible circumstances. This paper presents a solution based on the popular Stage-Gate system, which is closely linked with virtual team approach. Virtual teams can provide a platform to advance the knowledge-base in a company and thus to reduce time-to-market. This article introduces conceptual product development architecture under a virtual team umbrella. The paper describes all the major aspects of new product development (NPD), NPD process and its relationship with virtual teams, Stage-Gate system finally presents a modified Stage-Gate system to cope up with the changing needs. It also provides the guidelines for the successful implementation of virtual teams in new product development

The Digital Transformation of Automotive Businesses: THREE ARTEFACTS TO SUPPORT DIGITAL SERVICE PROVISION AND INNOVATION

Digitalisation and increasing competitive pressure drive original equipment manufacturers (OEMs) to switch their focus towards the provision of digital services and open-up towards increased collaboration and customer integration. This shift implies a significant transformational change from product to product-service providers, where OEMs realign themselves within strategic, business and procedural dimensions. Thus, OEMs must manage digital transformation (DT) processes in order to stay competitive and remain adaptable to changing customer demands. However, OEMs aspiring to become participants or leaders in their domain, struggle to initiate activities as there is a lack of applicable instruments that can guide and support them during this process. Compared to the practical importance of DT, empirical studies are not comprehensive. This study proposes three artefacts, validated within case companies that intend to support automotive OEMs in digital service provisioning. Artefact one, a layered conceptual model for a digital automotive ecosystem, was developed by means of 26 expert interviews. It can serve as a useful instrument for decision makers to strategically plan and outline digital ecosystems. Artefact two is a conceptual reference framework for automotive service systems. The artefact was developed based on an extensive literature review, and the mapping of the business model canvas to the service system domain. The artefact intends to assist OEMs in the efficient conception of digital services under consideration of relevant stakeholders and the necessary infrastructures. Finally, artefact three proposes a methodology by which to transform software readiness assessment processes to fit into the agile software development approach with consideration of the existing operational infrastructure. Overall, the findings contribute to the empirical body of knowledge about the digital transformation of manufacturing industries. The results suggest value creation for digital automotive services occurs in networks among interdependent stakeholders in which customers play an integral role during the services’ life-cycle. The findings further indicate the artefacts as being useful instruments, however, success is dependent on the integration and collaboration of all contributing departments.:Table of Contents Bibliographic Description II Acknowledgment III Table of Contents IV List of Figures VI List of Tables VII List of Abbreviations VIII 1 Introduction 1 1.1 Motivation and Problem Statement 1 1.2 Objective and Research Questions 6 1.3 Research Methodology 7 1.4 Contributions 10 1.5 Outline 12 2 Background 13 2.1 From Interdependent Value Creation to Digital Ecosystems 13 2.1.1 Digitalisation Drives Collaboration 13 2.1.2 Pursuing an Ecosystem Strategy 13 2.1.3 Research Gaps and Strategy Formulation Obstacles 20 2.2 From Products to Product-Service Solutions 22 2.2.1 Digital Service Fulfilment Requires Co-Creational Networks 22 2.2.2 Enhancing Business Models with Digital Services 28 2.2.3 Research Gaps and Service Conception Obstacles 30 2.3 From Linear Development to Continuous Innovation 32 2.3.1 Digital Innovation Demands Digital Transformation 32 2.3.2 Assessing Digital Products 36 2.3.3 Research Gaps and Implementation Obstacles 38 3 Artefact 1: Digital Automotive Ecosystems 41 3.1 Meta Data 41 3.2 Summary 42 3.3 Designing a Layered Conceptual Model of a Digital Ecosystem 45 4 Artefact 2: Conceptual Reference Framework 79 4.1 Meta Data 79 4.2 Summary 80 4.3 On the Move Towards Customer-Centric Automotive Business Models 83 5 Artefact 3: Agile Software Readiness Assessment Procedures 121 5.1 Meta Data 121 5.2 Meta Data 122 5.3 Summary 123 5.4 Adding Agility to Software Readiness Assessment Procedures 126 5.5 Continuous Software Readiness Assessments for Agile Development 147 6 Conclusion and Future Work 158 6.1 Contributions 158 6.1.1 Strategic Dimension: Artefact 1 158 6.1.2 Business Dimension: Artefact 2 159 6.1.3 Process Dimension: Artefact 3 161 6.1.4 Synthesis of Contributions 163 6.2 Implications 167 6.2.1 Scientific Implications 167 6.2.2 Managerial Implications 168 6.2.3 Intelligent Parking Service Example (ParkSpotHelp) 171 6.3 Concluding Remarks 174 6.3.1 Threats to Validity 174 6.3.2 Outlook and Future Research Recommendations 174 Appendix VII Bibliography XX Wissenschaftlicher Werdegang XXXVII Selbständigkeitserklärung XXXVII

Living Labs as Tools for Open Innovation

This paper presents a Living Lab in Stockholm as a focal point for discussing how the Living Lab concept can be extended and used for engaging in multiorganizational open innovation. Although Living Labs have been found to have potential for driving innovation through collaboration, more research is necessary to find tangible ways of organizing this kind of collaboration. The paper is explorative and empirically induced from an ongoing development and practical implementation of a Living Lab at Stockholm-Arlanda Airport - Sweden's largest airport situated outside Stockholm. This Airport Living Lab involves a number of large industrial and academic stakeholders aiming at ensuring multi-organizational innovation delivery. Of special interest is how the Living Lab concept should evolve to continue creating conditions for user-oriented innovations through multi-organizational collaboration which would not necessarily take place otherwise. Congruent with the explorative aim of the paper it ends up in a discussion about five propositions that should be on the agenda of research and implementation for Living Lab founders in the coming years.Living Labs, Open innovation, Electronic Collaboration Tools

From Open Source to Commercial Software Development - the Community Based Software Development Model

The successful practice of OSS leads to the intuition that integrating online software engineering community into the value chain of software company may be a solution to access qualified workforce and to reduce product cost. The emerging practice of crowdsourcing offers a potential solution for this attempt. Adopting an action research approach, the researchers collaborated with a software company in China and developed a crowdsourcing based software community development model, which consists of three elements: 1. online communities, providing abundant low cost software developers with diverse technical backgrounds; 2. crowdsourcing, providing incentive for developers’ participation and motivating competition; 3. process management and quality control mechanism, borrowed from in-house software development practice, guaranteeing the product quality and fulfillment of project schedule. This crowdsourcing based community development model, as a new business model and a new method of organizing software development, was tested with real-life projects and proved to be effective

Living lab approach for developing massmarket IoT products and services

Internet of Things (IoT) has emerged as a central concept in both the industrial as in the academic world. In this context, Living Lab research has been shown as an effective means for the design, implementation, development, testing and validation of Internet of Things system’s pervasiveness. However, IoT products are not yet designed based on the needs of a larger, non-technical group of end-users. Therefore, in this paper we describe the AllThingsTalk Living Lab research track in which tangible end-user products are defined to be implemented on an online IoT platform. More specifically, by using both qualitative and quantitative methodologies (i.e., desk research, online survey, probe research and co-creation) and by selecting different types of users (i.e., based on Rogers’ adoption profiles) for these interaction moments, we were able to combine the input of these users to define tangible products that meet the needs of a heterogeneous group of end-users