The impact of uncertainty on product introduction in dispersed environments

Abstract

This research addresses product introduction dispersed across locations and companies. A semiconductor design licensor that introduces products in a range of environments was studied: in some environments the subcomponent architectures of competitor products differ widely, while in others all competitor products have the same subcomponents. The approach adopted involved multiple detailed interviews covering the full range of participants in the product development processes from designers through project managers to directors. Reporting from these multiple informants was captured using a novel mapping approach that allowed participants to develop interactively their understanding of informal as well as formal processes at work within the company. It was found that the degree of architectural uncertainty is a major determinant of feasible organization structures for product introduction. It was also found that ‘microproduct’ architecture offers considerable freedom in the opportunities for dispersion of project activities. The degree of formality and structure in design technologies and their link to highly characterized production processes was identified as a key factor of this industry sector. The implications of these findings include the probability that (a) where design technologies can simulate product performance, dispersed teams with high priority can resolve architectural uncertainties; (b) a cross-functional team may not resolve architectural uncertainty as well as autonomous teams focused on subproducts (microproducts); (c) early entrants may benefit by allowing business units to adopt diverse approaches to product introduction, since architectural uncertainty may vary between products at different stages of their lives. This suggests that small high-technology companies may find it easier to expand into new geographies and product lines than was previously believed. Further work is necessary to make more confident statements about the linkage between product environment and team organization, but the ideas of architectural uncertainty and microproduct team organization may be of immediate interest to companies of all sizes when seeking to select appropriate product introduction processes and organization.

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