Developing product development in times of brutal change

Abstract: Developing Product Development that’s what it’s about, developing our capability to do what we need to do. Ericsson Executive Product development in times of brutal change requires capabilities beyond normal product development capabilities. In order to meet the challenges of brutal change, an ability to change and improve how products are developed, and how product development is organized and managed is required. This thesis looks inside an industrial firm subjected to brutal market changes, forcing it to respond promptly and strongly, to reduce cost yet retain and improve the ability to develop, market, sell, deliver and support its products and services. The firm uses externalization of product development to cut fixed costs and reduce headcount quickly. To cut operating costs, it uses offshoring. Transformational structural changes destroy both capabilities and rigidities. The increasingly competitive situation calls for even higher efficiency. Product development capabilities have to be recreated to support even higher efficiency while retaining and improving innovativeness. Participative organizational development is performed to rebuild and improve product development capabilities at the workgroup level. Software developers use self-assessment and group reflection to augment their conceptions of efficiency and concurrently improve their efficiency. This thesis provides a typology of modes of organizing, and of transitions between different modes of organizing. It highlights the role of capabilities in supporting efficiency in the transfer of product development from one mode of organizing to another. In doing so, it aims to contribute to a dynamic perspective of product development organizing, and at the same time provide actionable advice to product development managers in times of brutal change. This thesis also illustrates the potential in group self-improvement, building on collective knowledge creation and use, with direct coupling to action. It argues that augmentation of conceptions through concept elaboration and reflection may be more efficient and effective than traditional training programs. Developing Product Development is both about improving the practice of product development and about improving the understanding of- and knowledge about product development.