Managing Experimentation in the Design of New Products
AbstractExperimentation, a form of problem-solving, is a fundamental innovation activity and accounts for a significant part of total innovation cost and time. In many fields, the economics of experimentation are being radically affected by the use of new and greatly improved versions of methods such as computer simulation, mass screening, and rapid prototyping. This paper shows that a given experiment (and the related trial and error learning) can be conducted in different "modes" (e.g., computer simulation and rapid prototyping) and that users will find it economical to optimize the switching between these modes as to reduce total product development cost and time. The findings are confirmed by a large-scale empirical study of the experimentation process in the design of integrated circuits containing either (1) electrically programmable logic devices (EPLDs); or (2) application-specific integrated circuits (ASICs). In comparing their different experimentation strategies for analogous design projects, I found that the former (EPLD)---an approach that utilizes many prototype iterations---outperformed the latter (ASIC) by factor of 2.2 (in person-months) and over 43 percent of that difference can be attributed to differences in experimentation strategies. The implications for managerial practice and theory are discussed and suggestions for further research undertakings are provided.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 44 (1998)
Issue (Month): 6 (June)
Experimentation Economics; Product Design and Development; Computer Simulation; Prototyping; Mode Switching; Iterative Learning;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Schmickl, Christina & Kieser, Alfred, 2008. "How much do specialists have to learn from each other when they jointly develop radical product innovations?," Research Policy, Elsevier, vol. 37(3), pages 473-491, April.
- Cacciatori, Eugenia, 2008. "Memory objects in project environments: Storing, retrieving and adapting learning in project-based firms," Research Policy, Elsevier, vol. 37(9), pages 1591-1601, October.
- Thomas Gillier & Gérald Piat, 2011. "Exploring over the Presumed Identity of Emerging Technology," Grenoble Ecole de Management (Post-Print) hal-00641765, HAL.
- Steven Callander, 2011. "Searching and Learning by Trial and Error," American Economic Review, American Economic Association, vol. 101(6), pages 2277-2308, October.
- Pascal Le Masson & Patrick Cogez & Yacine Felk & Benoît Weil, 2012. "Revisiting Absorptive Capacity with a Design Perspective," Post-Print hal-00870353, HAL.
- D'Adderio, Luciana, 2001. "Crafting the virtual prototype: how firms integrate knowledge and capabilities across organisational boundaries," Research Policy, Elsevier, vol. 30(9), pages 1409-1424, December.
- Von Hippel, Eric A. & Katz, Ralph, 2002. "Shifting Innovation to Users Via Toolkits," Working papers 4232-02, Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Becker, Markus C. & Salvatore, Pasquale & Zirpoli, Francesco, 2005. "The impact of virtual simulation tools on problem-solving and new product development organization," Research Policy, Elsevier, vol. 34(9), pages 1305-1321, November.
- Crossan, Mary & Cunha, Joao Vieira da & Cunha, Miguel Pina e & Vera, Dusya, 2002. "Time and Organizational Improvisation," FEUNL Working Paper Series wp410, Universidade Nova de Lisboa, Faculdade de Economia.
- Cartier, Manuel, 2003. "Entre innovation radicale et innovation tirée par le marché : simulation de l’évolution d’une population de projets," Economics Papers from University Paris Dauphine 123456789/1132, Paris Dauphine University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.