Integration efforts in radical and incremental projects of new product development based on biodiversity: case study in a biotechnology company

Araújo, Tiago Ribeiro de; Jugend, Daniel

doi:10.1590/0104-530X2438-15

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Articles • Gest. Prod. 23 (04) • Oct-Dec 2016 • https://doi.org/10.1590/0104-530X2438-15 copy

Integration efforts in radical and incremental projects of new product development based on biodiversity: case study in a biotechnology company

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

Recent research on new product development (NPD) has presented divergent results on the need for interfunctional integration efforts. Studies have shown that contingent ascpects and the level of innovation incorporated into product projects are elements that should be considered in these integration efforts. This study aimed to analyze how integration efforts occur in incremental and radical NPD projects. A case study was conducted in a company that continuously develops technologies and products based on Brazilian biodiversity. Among the main results, we noted that due to their greater technological complexity, the radical innovation projects require more intense integration. The physical distance from the R&D department was also shown to be a situation that generates positive results for the development of these types of projects. On the other hand, we observed that co-location is beneficial for interaction between the teams in the case of incremental innovation projects. The application of information technologies, such as Customer Relationship Management Systems as formal support mechanisms for integration in radical and incremental innovation projects was also observed.

Keywords:
Innovation management; New product development; Inter-departamental integration; Innovation; Case study; Biotechnology company

Mechanisms	Definition	Potential Benefits	Source
Relocation and physical facilities design	Allocation of teams from different departments in the same place.	- Supports interaction and promotes the exchange of ideas among the teams. - Increases face-to-face interaction. - Intensifies interaction among different specialists.	Pinto et al. (1993)Pinto, M. B., Pinto, J. K., & Prescott, J. E. (1993). Antecedents and consequences of Project Team Cross-Functional Cooperation. Management Science, 39(10), 1281-1297., Griffin et al. (1996)Griffin, A., Hauser, J. R., & Integrating, R. (1996). D and marketing: a review and analysis of the literature. Journal of Product Innovation Management, 13(3), 191-215. http://dx.doi.org/10.1111/1540-5885.1330191. http://dx.doi.org/10.1111/1540-5885.1330... , Kahn & McDonough (1997)Kahn, K. B., & Mcdonough, E. F. 3rd (1997). An empirical study of the relationships among co-location, integration, performance, and satisfaction. Journal of Product Innovation, 14(3), 161-178. http://dx.doi.org/10.1111/1540-5885.1430161. http://dx.doi.org/10.1111/1540-5885.1430... , Maltz et al. (2001)Maltz, E., Souder, W. E., Kumar, A., & Influencing, R. (2001). D/marketing integration and the use of market information by R&D managers: intended and unintended effects of managerial actions. Journal of Business Research, 52(1), 69-82. http://dx.doi.org/10.1016/S0148-2963(99)00096-X. http://dx.doi.org/10.1016/S0148-2963(99)... , Leenders & Wierenga (2002)Leenders, M. A. A. M., & Wierenga, B. (2002). The effectiveness of different mechanisms for integrating marketing and R&D. Journal of Product Innovation Management, 19(4), 305-317. http://dx.doi.org/10.1016/S0737-6782(02)00147-9. http://dx.doi.org/10.1016/S0737-6782(02)... , Jugend & Silva (2014)Jugend, D., & Silva, S. L. (2014). Integration of R&D and New product development: case studies of Brazilian high-tech firms. International Journal Business Innovation and Research, 8(4), 422-439. http://dx.doi.org/10.1504/IJBIR.2014.063071. http://dx.doi.org/10.1504/IJBIR.2014.063... .
Personnel movement	Movement of employees among different departments.	- Intensifies the sharing of information among specialists. - Disseminates skills among different specialty areas or departments. - Reduces the probability of department isolation. - Allows for a common understanding about customer needs and for NPD characteristics.	Griffin et al. (1996)Griffin, A., Hauser, J. R., & Integrating, R. (1996). D and marketing: a review and analysis of the literature. Journal of Product Innovation Management, 13(3), 191-215. http://dx.doi.org/10.1111/1540-5885.1330191. http://dx.doi.org/10.1111/1540-5885.1330... , Leenders & Wierenga (2002)Leenders, M. A. A. M., & Wierenga, B. (2002). The effectiveness of different mechanisms for integrating marketing and R&D. Journal of Product Innovation Management, 19(4), 305-317. http://dx.doi.org/10.1016/S0737-6782(02)00147-9. http://dx.doi.org/10.1016/S0737-6782(02)... , Brem & Voigt (2009)Brem, A., & Voigt, K. I. (2009). Integration of market pull and technology push in the corporate front end and innovation management-Insights from the German software industry. Technovation, 29(5), 351-367. http://dx.doi.org/10.1016/j.technovation.2008.06.003. http://dx.doi.org/10.1016/j.technovation... , Brettel et al. (2011)Brettel, M., Heinemann, F., Engelen, A., & Neubauer, S. (2011). Cross-functional integration of R&D, marketing, and manufacturing in radical and incremental product innovations and its effects on project effectiveness and efficiency. Journal of Product Innovation Management, 28(2), 251-269. http://dx.doi.org/10.1111/j.1540-5885.2011.00795.x. http://dx.doi.org/10.1111/j.1540-5885.20... .
Informal social systems	Informal meetings with the objective to strengthen the interpersonal relationships among employees in different departments or areas.	- Increases the friendship between employees - Increases face-to-face interaction. - Intensifies interaction among different specialists.	Leenders & Wierenga (2002)Leenders, M. A. A. M., & Wierenga, B. (2002). The effectiveness of different mechanisms for integrating marketing and R&D. Journal of Product Innovation Management, 19(4), 305-317. http://dx.doi.org/10.1016/S0737-6782(02)00147-9. http://dx.doi.org/10.1016/S0737-6782(02)... , Jugend & Silva (2014)Jugend, D., & Silva, S. L. (2014). Integration of R&D and New product development: case studies of Brazilian high-tech firms. International Journal Business Innovation and Research, 8(4), 422-439. http://dx.doi.org/10.1504/IJBIR.2014.063071. http://dx.doi.org/10.1504/IJBIR.2014.063... .
Organizational structure	Use of the cross-functional teams and adequate organizational structures, for example, for project and matrix.	- Institutionalizes the joint work between different functions and specialties.	Leenders & Wierenga (2002)Leenders, M. A. A. M., & Wierenga, B. (2002). The effectiveness of different mechanisms for integrating marketing and R&D. Journal of Product Innovation Management, 19(4), 305-317. http://dx.doi.org/10.1016/S0737-6782(02)00147-9. http://dx.doi.org/10.1016/S0737-6782(02)... , Dietrich et al. (2010)Dietrich, P., Eskerod, P., Dalcher, D., & Sandhawalia, B. (2010). The dynamics of collaboration in multipartner projects. Project Management Journal, 41(4), 59-78. http://dx.doi.org/10.1002/pmj.20194. http://dx.doi.org/10.1002/pmj.20194... , Slater et al. (2014)Slater, S. F., Mohr, J. J., & Sengupta, S. (2014). Radical product innovation capability: literature review, synthesis, and illustrative research propositions. Journal of Product Innovation Management, 31(3), 552-566. http://dx.doi.org/10.1111/jpim.12113. http://dx.doi.org/10.1111/jpim.12113... .
Formal integrative management processes	Application of formal methods with a logical sequence of activities and resources to achieve certain organizational objectives (e.g. Quality Function Deployment, Stages, and T-Plan for technology roadmap).	- Institutionalizes formalization for integration. - Facilitates communication among the areas involved in NPD. - Allows for a common understanding about customer needs and for NPD characteristics.	Drejer (2002)Drejer, A. (2002). Integrating product and technology development. International Journal of Technology Management, 24(2-3), 124-142. http://dx.doi.org/10.1504/IJTM.2002.003048. http://dx.doi.org/10.1504/IJTM.2002.0030... , Phaal et al. (2001)Phaal, R., Farrukh, C., & Probert, D. T. (2001). Plan: fast start to technology roadmapping: planning your route to success. Cambridge: University of Cambridge., Leenders & Wierenga (2002)Leenders, M. A. A. M., & Wierenga, B. (2002). The effectiveness of different mechanisms for integrating marketing and R&D. Journal of Product Innovation Management, 19(4), 305-317. http://dx.doi.org/10.1016/S0737-6782(02)00147-9. http://dx.doi.org/10.1016/S0737-6782(02)... , Cooper (2007)Cooper, R. G. (2007). Managing technology development projects. IEEE Engineering Management Review, 35(1), 67-76. http://dx.doi.org/10.1109/EMR.2007.329141. http://dx.doi.org/10.1109/EMR.2007.32914... , Laugen & Boer (2008)Laugen, B. T., & Boer, H. (2008). Modes of integration of new product development and manufacturing – the effects of innovativeness, production volume and organization size. In Proceedings of the 15th International Product Development Management Conference. Hamburg., Jugend & Silva (2013Jugend, D., & Silva, S. L. (2013). Inovação e desenvolvimento de produtos: práticas de gestão e casos brasileiros (1 ed.). Rio de Janeiro: LTC., 2014)Jugend, D., & Silva, S. L. (2014). Integration of R&D and New product development: case studies of Brazilian high-tech firms. International Journal Business Innovation and Research, 8(4), 422-439. http://dx.doi.org/10.1504/IJBIR.2014.063071. http://dx.doi.org/10.1504/IJBIR.2014.063... .
Incentives and rewards	Adoption of rewards practices (career plan and salary) to encourage greater collaboration and interaction among teams and departments.	-Stimulates collaborative behavior.	Leenders & Wierenga (2002)Leenders, M. A. A. M., & Wierenga, B. (2002). The effectiveness of different mechanisms for integrating marketing and R&D. Journal of Product Innovation Management, 19(4), 305-317. http://dx.doi.org/10.1016/S0737-6782(02)00147-9. http://dx.doi.org/10.1016/S0737-6782(02)... , Stock et al. (2013)Stock, R. M., Totzauer, F., & Zacharias, N. A. (2013). A closer look at cross-functional R&D cooperation for innovativeness: innovation-oriented leadership and human resource practices as driving forces. Journal of Product Innovation Management, 31(5), 924-938..
Information technology	Use of computer tools to facilitate the exchange of information and interaction among departments and teams (e.g. e-mail, video conferencing, intranet, etc.).	- Facilitates the communication among the areas involved in the NPD. - Facilitates the flow of knowledge and information.	Leenders & Wierenga (2002)Leenders, M. A. A. M., & Wierenga, B. (2002). The effectiveness of different mechanisms for integrating marketing and R&D. Journal of Product Innovation Management, 19(4), 305-317. http://dx.doi.org/10.1016/S0737-6782(02)00147-9. http://dx.doi.org/10.1016/S0737-6782(02)... , Dietrich et al. (2010)Dietrich, P., Eskerod, P., Dalcher, D., & Sandhawalia, B. (2010). The dynamics of collaboration in multipartner projects. Project Management Journal, 41(4), 59-78. http://dx.doi.org/10.1002/pmj.20194. http://dx.doi.org/10.1002/pmj.20194... .

Analyzed Items	Radical Innovation	Incremental Innovation
Departments	Innovation Unit (external R&D).	Internal R&D.
Size of the teams	Independent team with high cooperation of employees.	Each analyst is responsible for one project only.
Department that coordinates the NPD project	Innovation Unit (external R&D).	Internal R&D with support of external R&D.
R&D involvement in the development of the project	Intense involvement of external R&D with little interaction with the company (independent structure).	Internal R&D with support of external R&D.
Formal integrative management processes	Cross-functional teams, stages, quality function deployment (QFD) and customer relationship management.	Cross-functional teams, stages, quality function deployment (QFD) and customer relationship management.
Job rotation	Not applicable.	Not applicable.
Informal social systems	External relations to the company as a guideline and orientation (e.g. research groups at universities).	Team meetings, thematic lunches and walks.
Relocation and physical facilities design	External R&D is a small factory where everyone knows each other and shares information, but it is separated from the manufacturing plant.	The R&D and industrial departments are neighbors.
Incentives and rewards	Participation in profits and results. Performance goals for each product development project increases the value of the reward.	Participation in profits and results. Performance goals for each product development project increases the value of the reward.
Tools of information communication technology	Whatsapp (commonly used), Skype, customer relationship management (CRM), internal chat and shared database.	Whatsapp (commonly used), Skype, CRM, internal chat and shared database.
Conflict mediation	Focus on meeting the costs of products. There are meetings to resolve conflicts.	Focus on meeting the costs of products. There are meetings to resolve conflicts.
Financing source	Financing search in government agencies.	From the company itself or a client.
Methods for integration of teams	Informal processes and small teams assist to keep everyone engaged.	Integration needs diagnosed with methods such as SWOT and 5W2H.
Sharing of performance objectives	External R&D reports to the company board.	Management Group (supervisors, managers, and directors) and Internal Project Commission.

Management practices for integration (radical and incremental)
Type of Innovation	Management practices for integration and NPD	Literature classification (integration and NPD)	Case study
Radical	Radical projects unit (independent of the production area)	Relocation and physical facilities design	- Improvement upon the planned deadlines.
			- Elimination of R&D hours spent on trivial activities.
			- Improvement of the communication during the NPD process.
			- Demand for results is external (R&D is characterized as a company supplier).
			- The company performs incremental innovations from radicals developed by the external unit, reducing the effort required for NPD.
	Stages	Formal integrative management processes	- It permits all departments involved to make evaluations in order to solve problems.
	Stages	Formal integrative management processes	- More frequent face-to-face contact among the teams.
	Greater involvement of the technical departments (R&D and engineering)	Organizational structure	- It allows commercial areas to be invited to interact only at specific points, which avoids overloading these teams with unnecessary meetings.
	Project coordination under the R&D responsibility
	Uses larger teams for NPD		- Better design of teams, preventing teams from getting overloaded by projects that require more employees.
	R&D supervises and operates the entire NPD process		- Allows the R&D team to focus its efforts on projects that require more attention.
	Use management tools like spreadsheets “to do” lists outlining the tasks and responsibilities of each team and team member	Formal integrative management processes	- It inhibits excessive informality that can lead to a lack of focus on the objectives and consequent low team performance.

Incremental	Departments of engineering, production, marketing and sales located in the same building	Relocation and physical facilities design	- Improvement in the communication among departments.
	Stages	Formal integrative management processes	- Allows for all areas involved to make evaluations for troubleshooting, but only in phases when it is necessary in order to avoid overloading the teams with unnecessary meetings.
	Stages	Formal integrative management processes	- Reduced need for face-to-face contact among the departments.
	Greater involvement in the commercial areas (marketing and sales)	Organizational structure	- Enables greater involvement of commercial areas in projects considered to be more straightforward, freeing up technical teams to develop projects that require radical technological development.
	Use of small teams in NPD		- Better design of the teams, preventing teams from being idle due to having too many members for projects that require fewer employees.
	R&D provides support for the other departments involved in NPD		- Allows R&D to focus its efforts on projects that require more attention.
			- Assisted in conflict resolution.
			- Sharing of knowledge, technologies and skills from the radical projects with the incremental ones.

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E-mail: gp@dep.ufscar.br

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