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FuRTHER REAding 307
How should the effectiveness of the product and service development process be
judged in terms of fulfilling market requirements?
The market effectiveness of any product or service development process can be judged
in the same way as the day-to-day operations processes that produce the products and
services themselves. That is, the development process can be judged in terms of its
quality, speed, availability, flexibility and cost. Development projects must be error free,
be fast to market, be delivered on time, retain sufficient flexibility to change as late as
possible in the process and not consume excessive development resources.

What operations resource–based decisions define a company’s product and service
development strategy?
Again, we can classify the decisions around the product or service development process
in the same way as we can classify the decisions that specify the resources for day-to-
day operations process. The overall development capacity of an organisation needs to
be managed to reflect fluctuating demand for development activities, decisions must
be made regarding the outsourcing of some, or all, of the development activity as well
as the nature of the relationships with development ‘suppliers’, technologies such as
computer-aided design and simulation may be required to aid the development pro-
cess, and the resources used for development need to be clustered into some form of
organisational structure.

Further reading
Bangle, C. (2001) ‘The Ultimate Creativity Machine: How BMW Turns Art into Profit’, Har-
vard Business Review, Jan, pp. 47–55.
Bettencourt, L. (2010) Service Innovation: How to Go from Customer Needs to Breakthrough
Services. New York: McGraw-Hill Professional.
Clark, K. B. and Fujimoto, T. (1991) Product Development Performance: Strategy, Organisation
and Management in World Auto Industry. Boston: Harvard Business Review Press.
Cross, R. and Baird, L. (2000) ‘Technology is not enough: Improving performance by build-
ing organisational memory’, Sloan Management Review, Spring.
Goffin, K. and Mitchell, R. (2010) Innovation Management, Strategy and Implementation Using
the Pentathlon Framework, 2nd Edition. Basingstoke, UK: Palgrave Macmillan.
Jurgens-Kowal, T. (2013) Product Development Innovation Teams: Organising for Success in New
Product Development. Dallas, TX: Get to the Point Books.
Rose, D. (2015) Enchanted Objects: Innovation, Design, and the Future of Technology. New York:
Scribner Book Company.
Steiber, A. (2014) The Google Model: Managing Continuous Innovation in a Rapidly Changing
World. New York: Springer.
Tidd, J. and Bessant, J. (2013) Managing Innovation: Integrating Technological, Market and Organ-
isational Change, 5th Edition. New York: John Wiley & Sons.
Trott, P. (2011) Innovation Management and New Product Development, 5th Edition. Harlow,
UK: Financial Times/Prentice Hall.
Ulrich, K. and Eppinger, S. (2007) Product Design and Development, 4th Edition. New York:
McGraw-Hill.
Voudouris, C., Owusu, G., Dorne, R. and Lesaint, D. (2007) Service Chain Management: Tech-
nology Innovation for the Service Business. New York: Springer.

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