Visualising Strategy: A method to support the product innovation process in manufacturing Small and Medium Sized Enterprises

Abstract

The aim of this research is to help manufacturing Small and Medium Sized Enterprises (SMEs) develop new proprietary products. Manufacturing SMEs in New Zealand are facing a range of pressures from an increasingly globalised manufacturing economy. Developing proprietary products is seen by some of these companies as a strategic response to the pressures. Proprietary products are typically developed through a Product Innovation Process (PIP). However, these processes are complex, and SMEs are known to encounter issues. This research identifies these issues and develops a method to mitigate them. The research focuses on the case of ALtd, a manufacturing SME that is trying to develop proprietary products. The diagnosis phase of the research seeks to understand the issues that ALtd experience in the PIP. It finds that ALtd has particular issues in the front end of the PIP. Best practice suggests that the front end of the PIP should be driven by an explicit company strategy. ALtd's strategy is found to be held tacitly by the OM and only communicated emergently through his day-to-day decisions. This creates a significant barrier to the PIP at ALtd, and it is found to be a barrier common in other SMEs. The solution phase of the research, therefore, aims to support the communication of the company strategy, which will in turn support the PIP. Visualisation is identified as a suitable approach to support communication, and a new visualisation method, called the Strategic Product Innovation Process (SPIP) Wheel is developed. This method, once applied to ALtd, is found to effectively communicate the company strategy, and have a positive impact on the front end of the PIP. Application of the method to a range of other companies validates that the method achieves the goal of the research, to support the innovation process in manufacturing SMEs. The central academic contribution presented in this thesis is the development of the SPIP Wheel method. Several supporting academic contributions are also presented. These contributions were generated during the development of the SPIP Wheel method. The diagnosis framework, for instance, presents a unique method of assessing the PIP in manufacturing SMEs. The solution framework is also novel, and can be used in future research to develop alternative solutions to the identified issue.