New Product as an Impetus to Science and Technology Advancement

New Product as an Impetus to Science and Technology Advancement

By

M.R.Muhamad, N. Mohamad, and S.Ariyanti

ABSTRACT

The ability of firms to undertaken technical innovations is considered as the necessary effort to maintain or improve their competitiveness. In fact innovativeness is identified as one of the competitive strategies of manufacturing firms to follow. Although innovation may come in different forms, but basically it involves creating new knowledge, generating technical ideas aimed into working prototypes and transferring them into manufacturing, distribution and use. New product development is a form of technical innovation popularly pursuit may successful companies. Studies on new product development (NPD) activities have largely focused on dynamic of new product development process. This includes determining the ingredients for the NPD success as well as management of the NPD activities. It is generally accepted that there is a strong link between a firm’s technical innovation effort and successfully NPD process. The paper elaborates on the nature and characteristic of this link. Its further argues that technical innovation requires a balanced knowledge about the product technology as well as the managerial competencies. Science and technology serve as basis for NPD process from the idea generation phase to the design development of the product meets customer requirement. In some new product development effort new material and process technology need to be development simultaneously and in conjunction with new product technologies. The question in how can the development of new product elevate science and technology advancement, with in turn can create conducive environment for further innovations. The paper present evidence of the role of science and technology on new product development activities using and new product development study on a sample of Malaysia manufacturing companies.

1.INTRODUCTION

Challenges such as increase domestic and global competition continuos development of new technologies that quickly obsolete existing and changing customer requirement can be both threat an opportunities to companies. Research studies undertaken into new product success and failure have emphasized the importance of understanding customer needs. The quality and value of the product it self are central to its success. Improvement in existing technology lead to a better product or process changes, process changes or improvement of manufacturing process.

Successful firms with an industry are likely to focus a certain essential NPD activities that allow them to achieve the best possible result within the constrain of market. NPD process involves the activities and decisions from the time when an idea is generated until the product is commercialized. Cooper (1983) suggest firm must posses the technological to develop a superior product: the product may be better because it uses newer technology or is better designed and engineered than competing product. But in order that the product deliver significant advantage to the customer, a clear understanding of the customers needs, wants, and preferences must be identified. The new product process must marry the technical side of product design and engineering to the needs of market place to ensure that the product does indeed deliver unique to customer.

Sciences advancement is essential to success in NPD primarily on market research. A market orientation includes a through understanding of customer’ need and what the competitive situation and the nature of the market. Innovation in science also making good management new products process, creating and innovation atmosphere that will lead to success. Management needs to take a professional approach and plan carefully, using appropriate system and effective management techniques, especially new product process.

This paper present of role science and technology on new product development activities using new product development study on a sample of Malaysian manufacturing companies.

2. INTEGRATED SCIENCE AND TECHNOLOGY ADVACEMENT WITH NEW PRODUCT DEVELOPMENT

Technology is a determinant factor in the process of development and an important variable influencing the pattern of the trade and financial flow among countries. Technologies thus include machine, tools, equipment, devices and processing.

The impetus to develop a new product or to make a fundamental change of an existing product may come either from threat or promise on the demand side of from introduction of new technological solution, i.e. an innovation an the supply side (Karlsson, 1997). The adoption of new technology and the development of system and method are essential to efficient NPD (Barclay, 1990). Success with the new product innovation usually requires the following seven condition (Souder, 1987):

1.      A high degree of understanding of emerging worldwide technologies

2.      A climate in which creative idea can flourish

3.      The spontaneous team work and collaboration of many specials.

4.      Systemic decision making and risk taking

5.      An in depth knowledge of technologies

6.      An understanding of how to transform technologies into want-satisfying product, and

7.      An intimate understanding of changing customer needs.

Even when an organization understands important of integrating the technology and overall strategy, the problem of developing new commercial product is a doubting task. Technology transfer can occur from one unit in a firm to another unit. Transfer can occur from government, academic and research organization to private industry in a product and process improvement, improvement in existing technology lead to a better product or process that meet customer need.

One a concept using technology has proven it self in market, competition shifts to quality, price, performance and features. In today’s rapidly changing competitive environment, cost effectiveness and consistently high output quality are not longer enough to ensure corporate success. A company’s business processes must also be more responsive and flexible than those of its competitor must. Innovative ways must be sought continuously to provide technology to support motivated adaptable work groups dedicated to meeting or exceeding customers’ requirement in the shortest possible time. A Scenario of the environment for new product development in many technologically advanced industries can be characterized by such factor as (Ashok, 1990)

-          Increased domestic and global competition

-          Continuous development of new technologies that quickly obsolete existing products.

-          Changing customer needs and requirement, which truncate product life cycles.

-          Higher new product development cost; and

-          Increased need for involvement of external organization in the new product development process e.g., customers, vendor, strategic partner, and government.

These scenarios suggest that the difficulties and uncertainties associated with NPD are increasing along with the pressure to develop more new product. To succeed, companies are finding that key need to develop better new product and the need to do faster.

A good fit between the new product being developed an the company in the area of technology and production combined with strong proficiency in undertaken technical and product development activities, are both attribute strongly associated with new product success (Barclay, 1990). The product success is higher if new product builds on present technological and market strengths. Enter into new market or technologies generally requires the establishment of new customers – company connection and if new personnel are brought in, new pattern of coordination between the stages of the NPD process or both (Maidique, 1984)

The NPD process must be managed through a comprehensive product development methodology that systematically delineates the total process of product development and integrates the managerial model, design techniques and management strategy (Shipley, 1993). Whit scientific research expected yield NPD methodology and new management model guides the product development team to develop a product, which will meet customer’ expectation.

Sciences advancement is essential to process improvement in NPD, performance enhancement is achieved via improving out come of the product itself (e.g. through improved performance, meeting customer demands) and improvement in the process it self………….

New product is a fundamental condition for a well functioning market economy. Hence, product development must be looked upon as one of the most basic activities in market. Product development as a fundamental activity involving either the introduction of totality new product or major changes of existing product (Karlsson, 1997).. The impetus to develop a new product or to make a fundamental change of a existing product may come either from some threat or promise on the demand side or from the introduction of a new technological solution, i.e. an innovation on the supply side (Karlsson, 1997). The former typified the view that technology and technologists would drive change in the market place (Harvey, 2001). Entry into markets or technologies generally requires the establishment of new customer company connection, and if new personnel are brought in, new pattern of coordination between the stages of the product development process or both (Maidique, 1984). Technology and marketing strategies, those which promote a proactive approach to innovation, those which emphasize product differentiation, those which promote synergy with existing business and those which encourage the company to accept risk (Angie, 1992)

Technological research is the process by which such knowledge is acquired and applied to produce tangible demonstration of the feasibility of new technology concepts. Technology development, radically different from technological research, is concerned with translating such technology demonstration whether a materials phenomenon processes or software. Into defined, integrated specification required for product conceptualization, definition and manufacturability (Mort, 1994). Scientific and technology research in the search for industrial competitiveness from the perspective of the evolutionary model of economic innovation offer two significant advantages (Mort, 1994).

The technological progress and technological option is particularity relevant considering the massive amount of new technologies, as well as new product and process adaptation and innovation currently. A strategies element of all product development is the matching of customers’ willingness to pay for different combination of product characteristic and existing technical opportunities (Karlsson, 1997). Production technology involves the mastery of a least three levels of expertise: the skill necessary to produce the given good, the skill to introduce improvement in the production process, even if only incrementally, and ability to participate in, (or actively influence, in an informed manner). The manufacture requires a well educated and technically trained work force (Narayan, 2000) Scientists and engineers are involved in the R&D process that will create a the new product

Barcaly (1990) concluded, firms considered the current and future product, then decided on the best available system that would meet these manufacturing requirement. A change in thinking required as, besides considering these two factor, the company should know the requirements. The appraisal should also include consideration of technological capability within the company; a company must posses the necessary technological knowledge and skill to able to operate the technology efficiently.

Product development is an interdisciplinary activity requiring contribution from nearly all the function of management system (Myun, 2001). Barclay (1990) suggests, the new product development process in focus all aspect and function of management, who need to draw them all together to ensure together success.  The process is made up of a series of activities, usually led by different department or team each with different structure skill, culture people and resources. The introduction of major system of technology into an organization is likely to alter the working practice of many department related directly or indirectly to the department in witch the technology was introduced. The process is structured around well-defined phases, each phase end with a decision–making meeting where management decides about the future project (Davila, 2000). The product development process must be managed through a comprehensive product development methodology, which systematically delineates total process of product development and integrates the managerial model, design techniques and management strategy (Shipley, 1993). Great caution therefore to be exercised in strategic decision making and in day today management of the technology variable as part of over all development process. The more successful are balanced strategies, which seek to marry technological sophistication with the need of market place (Barclay, 1990). For almost any technological change to be successful the support of top management is a necessity as: it is top level management that may need to provide the support to ensure that the crossfunctional approach for the new technology is actually followed: without top management support resources not only money put, more importantly people and time can diminish rapidly. It is also the responsibility of top management to develop a flexible organization that always growth and development of communication and changes owing the introduction of new technology. The appraisal process needs to cover all the factor associated with each of these stages, which fall into three main categories: Finance, technology and management (Barclay, 1990).

3.RESEARCH METHODOLOGY

The study was conducted in three distinct phases: literature search and review, questionnaire survey and case study. The literature search and review about science and technology advancement in new product development. A questionnaire survey of the new product development practices among the small and medium scale-manufacturing firm is conducted. This was posted to selected Malaysian companies. Senior manager from 16 companies participated in the survey. The companies cover a broad section of engineering industry. Product varieties include plastic and telecommunication.

The Objective of the survey is to identify how the developments of new product elevate science and technology advancement.

4. RESULT AND DISCUSSION

All companies in the survey carried out new product development activities, 14 companies did start new product development actively for more than three years ago. To maintain a position in the market places, corporations mutinously develop new product and business processes. (Christophe, 2000).

 As product life cycle decrease and manufacturers are faced with increasing global competition, engineering design plays an increasingly important role in the successful manufacture of product. Of key importance is that new products be designed to support efficient production design phase of the product development process is critical to the success of the product, because is here that robust product with high customer value are created (Clement, 1996). The technology are helping to design: CAD (computer-aided design), CAM (computer-aided manufacturing), CAE ( computer-aided engineering), DFM (design for manufacturing, sometime called DFA, design for assembly) and variation . These technologies offer lots of advantages people have to work together to understand and use them, they force the integration of all need into one analytical set, they are fast, and they are do more than  the human can do alone even if there were ample time.

From the survey the respondent appear methods used by companies in design and manufacturing. Table 1 shows 75 % companies all design and prototype manufacturing carried out in houses. This shows companies have knowledge and technology to create a product superior to competition and meet the customers value expectation

             Table.1, Method Used in Design and Prototype Manufacturing

x

Method	%
All design and prototype manufacturing carried out in – house	75
All design activities carried out in houses prototype manufacturing operations subcontracted to other companies	37.5
All design activities and all prototype manufacturing operations subcontracted to specialist external companies	25

Lack of expertise if any, may also be solved by the collaboration with other bodies. As shows in table 2 collaboration with other organization such as other local companies, multinational companies and government agencies had also been identified. Collaboration was either in the form of exchange of information, technology acquisition, and researches. Collaboration between the MNCs with other local companies in a step in the right direction. Table. 2 shows all companies in survey active in information sharing, where they are more caution in term technology. Technological expertise and available evidence suggests that MNCs have been an important source of the transfer of technology in manufacturing primarily in areas related to production and processes (Narayanan, 2000).

Table.2. Form of Collaboration for new product development

Organization involved	Types of collaboration
	Latest technology (%)	Information (%)	Researches (%)
MNCs Local Companies Government agencies	100 93.75 37.5	100 75 31.25	43.75 43.75 18.75

But collaboration in research less likely because local companies has in house R&D and bought research. Clement (1994) summarized marketing engineering and manufacturing information is absolutely essential to effective concurrency in the development process. The product market opportunity must be reflected in the product design specification, which must in turn be supported by approriarity manufacturing process technologies.

Angie (1992) concluded, Information is a base currency of the new product development process, evaluative information is crucial and all information must be efficiently disseminated to facilitate communication. However, far less is know about how the information is generated, and what contingencies might affect this.

Since product characteristics vary widely, measurement criteria and technique also differ. To improve product performance can be done by (Gervirtz, 1994);

(i)                 Adding new features

(ii)                Improving quality and reliability

(iii)             Reducing manufacturing cost

(iv)             Selecting new and less expensive material

(v)               Looking at new application for emerging technologies.

Table.3 shows how obtain the necessary information before new product developments begin.

          Table.3. Types of Information

Types of information	%
Academic literature	25
Trade  publication	62.5
Internet	18.7
Government agencies	6.25
Potential customer	56.25

Table 3 shows trade publication more likely respondents to obtain information where they more suppose with other companies experiences. Information from government agencies less likely. Information technology will be a key factor in delivering health care solution. Strategic application of information technology is helping business in a wide range of industries gain competitive advantage through better knowledge of customer wants.

5. CONCLUSION

Improvement in existing technology lead to a better product of process that meets customer need. The technological progress and technological option is particularly relevant consider the massive amount of new technologies, as well as new product and process adaptation and innovation currently. Scientist and engineer are involved in new product development process that will create the new product. Local companies had been all design and prototype manufacturing in house, they have knowledge and technology to create a product superior to competition and meet the customer’s value expectation. Collaboration with MNCs and other local companies most active in information sharing and lattes technology. An information technology is essential to improve development product and process.

REFERENCES

1.      ANGIE, CRAIG and SUSAN HART (1992) Where to Now in New Product Development Research ?. European Journal of Marketing. 26 ; 11.

2.      ASHOK, K. GUPTAN and DAVID, L. WILEMON. (1990) accelerating the Development of Technology - Based New Product. California Management Review. 32; pp 24-44.

3.      CHRISTOPHE, VAN DEN BULTE AND RUDY K. MOENAERT (1998) The Effect of R&D Team Co-location on Communication Pattern among R&D, Marketing and Manufacturing. Management Science; 31; 235-285

4.      CLEMENT, C. WILSON, MICHAEL, E. KENNEDY, CARMEN, J. TRAMMELL (1996) Superior Product Development Managing the Process for Innovation Product. Basil Blackwell Ltd. Oxford

5.      COOPER, R. G. (1983) A Process Model for Industrial, New Product Development. IEEE Transaction on Engineering Management. EM-30; No. 1.

6.      GEVIRTZ, CHARLES D. (1994) Developing New Product with TQM. McGraw-Hill, Inc. Printed and Bound by RR. Donnelley & Sons Company

7.      KARLSON, CHARLIE (1997). Product Development, Innovation Networks, Infrastructure and Agglomeration Economies. The Annal of Regional Science. 31; pp 235-258.

8.      MADIQUE, MODESTO.A and ZIRGER, BILLIE JO (1984). A Study of Success and Failure in Product Innovation the Case of the U.S Electronic Industry. IEEE Transaction on Engineering Management. EM-31; pp 192- 203.

9.      MORT, JOE (1994). Science, Technology Innovation: An Evolutionary Perspective. International Journal Technology Management. 9; pp 30-42.

10.  MYUN, W.LEE. MYUN, HWAN YUN. SUN, H.HAN (2001). High Touch - An Innovative Scheme for New Product Development: Case Studies 1994-1998. International Journal of Industrial Ergonomic. 27; pp 271-283.

11.  NARAYANAN, SURESH AND LAI YEW WAH (2000) Technological Maturity and Development without Research. The Challenging for Malaysia Manufacturing

12.  NORIZAH, MOHAMAD & MOH, RAZALI MUHAMAD (1999). Organizational Issues of New Product Development in Malaysia Manufacturing Industries. Proceeding World Engineering Congress 1999. Toward the engineering Vision: Global Challenges & Issues. Kuala Lumpur-Malaysia.

13.  SHIPLE, THOMAS A. & ARMACOST ROBERT L (1993) Systematic Approach to New Product Development. Computer and Industrial Engineering. 25; 1-4; pp. 333-336.

14.  SOUDER, E. WILLAM (1987). Managing New Product Innovation, Lexington Books. D.C Heath and Company/ Lesingtong. Massachusetts/Toronto.

.