THE INNOVATION PROCESS: SUGGESTIONS FOR IMPROVEMENT IN A RESEARCH AND DEVELOPMENT ENVIRONMENT Friedrich Wilhelm Hein Kruger B.Sc. (Physical sciences) RAU B.Sc. Hons. (Chemistry) RAU M.Sc. (Chemistry) RAU Ph. D. (Polymer science) UPE Dissertation submitted in partial fulfilment of the requirements for the degree Master of Business Administration in the Graduate School of Management at the Potchefstroomse Universiteit vir Christelike Hogr Ondetwys. Supervisor: Mr. S.P. van der Meme POTCHEFSTROOM 1998
168
Embed
THE INNOVATION PROCESS: SUGGESTIONS FOR IMPROVEMENT …
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
THE INNOVATION PROCESS:
SUGGESTIONS FOR IMPROVEMENT IN A
RESEARCH AND DEVELOPMENT ENVIRONMENT
Friedrich Wilhelm Hein Kruger
B.Sc. (Physical sciences) RAU B.Sc. Hons. (Chemistry) RAU M.Sc. (Chemistry) RAU Ph. D. (Polymer science) UPE
Dissertation submitted in partial fulfilment of the
requirements for the degree
Master of Business Administration
in the
Graduate School of Management
at the
Potchefstroomse Universiteit vir Christeli ke Hogr Ondetwys.
Supervisor: Mr. S.P. van der Meme
POTCHEFSTROOM
1998
In Hartlike woord van dank aan alle persone wat in hul onderskeie hoedanighede
bygedra het tot die voltooiing van hierdie skripsie.
In besonder dankie aan:
Mnr. Stephan van der Meme van die Nagraadse Skool vir Bestuurswese aan
die PU vir CHO, vir sy geesdriftige leiding en goeie raad tyde~is die aanloop tot
en skrywe van die skripsie.
Dr. Chris Reinecke, die Hoofbestuurder van Sasol Tegnologie Navorsing en
Ontwikkeling, wat toegelaat het dat ek 'n ondersoek rakende die innovasie-
proses binne die divisie kon doen.
Die personeel van Sasol Tegnologie Navorsing en Ontwikkeling wat betrokke
was by die invul van die vraelyste, deelgeneem het aan onderhoude, en die
uiteindelike resultaat van die studie geproeflees het.
Die bestuur van Sasol Tegnologie Navorsing en Ontwikkeling wat my M.B.A.
kursus aan die PU vir CHO geborg het.
My vrou Enid, vir haar onbaatsugtige bystand, opofferinge en aanmoediging in
die algemeen, maar in besonder tydens die duur van die kursus.
My ouers, mnr. en mev. ti. Kruger, vir hul altyd gewaardeerde ondersteuning.
Sasol Bpk word beskou as die wgreldleier in Fischer-Tropsch tegnologie en streef
daarna om die mededingende voordeel, wat nie noodwendig volhoubaar is nie, deur
internasionalisering te rugsteun. Hierdie strategie weerspieel die maatskappy se
verbondenheid tot volhoubare groei deur die ontwikkeling, produksie, en bemarking
van nuwe produkte en prosesse. Sasol Tegnologie (Edms) Bpk is duidelik 'n vername
rolspeler in die realisering van die visie, en het ten doel om optimum waarde tot die
skatkis van Fischer-Tropsch produkte en prosesse toe te voeg. In der waarheid word
die vermoe om nuwe produkte en prosesse meer doelmatig en doeltreffend as
mededingers te kan ontwikkel, deur kenners op die gebied van Bestuur van
Tegnologie, as 'n vername bron van 'n moontlike volhoubare mededingende voordeel
beskou. Gevolglik is dit noodsaaklik om Sasol se nuweprodukontwi kkelingsvermoe van
tyd-tot-tyd met die van mededingers te vergelyk, wat hierdie loodsstudie by Sasol
Tegnologie Navorsing en Ontwikkeling gei'nduseer het.
'n Nuweprodukontwikkelingsgroep is vyf jaar gelede by Sasol Tegnologie Navorsing
en Ontwikkeling gestig. lndirekte observasie het getoon dat 40 nuweprodukidees
formeel tussen Februarie 1995 en Januarie 1997 in 11 Nuwe ldees Vergaderings van
die Nuweprodukontwikkelingsgroep voorgestel is. Slegs 10% van die idees het voldoen
aan die siftingskriteria om vanaf stadium een (voorlopige evaluasie) na stadil-~m twee
(gedetaileerde evaluasie) in die innovasieproses te promoveer - 'n internasionale
gemiddeld van 40% word in die literatuur as norm gestel. Hierdie resultaat, wat
gemanifesteer het in 'n suksestempo van sowat twee voorstelle uit die groep per jaar,
is beskou as 'n aanduiding van moontlike swakhede in die innovasieproses by die
Nuweprodukontwikkelingsgroep. Sulke swakhede moet ondersoek word, aangesien
foutiewe prosesse die waarde van die maatskappy negatief mag bei'nvloed. Die
mikpuntdoelwit van hierdie ondersoek was gevolglik om op die kwaliteit van nuwe-
produkontwikkelingspogings by die Nuweprodukontwikkelingsgroep te verbeter.
Verskeie diagnostiese tegnieke is gebruik om die mees belangrike tekortkominge in die
vroee fases van die innovasieproses te identifiseer, naamlik: indirekte observasie,
vraelyste, en onderhoude. 'n Oop-einde vraelys het die tegniese personeel getoets
rakende hul kennis van die verskillende stappe in die nuweprodukontwikkelingsproses,
en die strategie wat gevolg is om idees in die Nuwe ldees Vergadering te verkoop. Die
bestuurspersoneel is getoets met betrekking tot hul kennis van die verskillende stappe
in die innovasieproses, en die kriteria wat gebruik is in die siftingsproses in die Nuwe
ldees Vergaderings.
Die empiriese resultate is met literatuur rakende die kritiese sukses faktore in
nuweprodukontwikkeling gei'ntegreer, wat tot die identifikasie van verskeie swakhede
in die nuweprodukontwikkelingsproses gelei het:
Gebrek aan kennis met betrekking tot die verloop van die innovasieproses.
Swak interne belyning rakende die uitvoering van die innovasieproses.
Tekortkominge met betrekking tot die inhoud van die N&O Projekbestuurkursus.
Swak kommunikasie rakende die projeksiftingskriteria van Sasol Tegnologie
Navorsing en Ontwikkeling.
Lae motivering by personeel om aan die Nuwe ldees Vergadering deel te neem.
Tekortkominge rakende die struktuur en die inhoud van die Nuwe ldees
Vergadering.
Hierdie gebreke is geanaliseer, en bespreek in terme van bewese navorsingresultate
wat in die openbare literatuur gepubliseer is. Potensiele aksieplanne is geformuleer ten
einde op die kwaliteit van die innovasieproses by die Nuweprodukontwikkelingsgroep
(sowel as by Sasol Tegnologie Navorsing en Ontwikkeling) te verbeter, naamlik:
Brei hierdie ondersoek uit na Sasol Tegnologie Navorsing en Ontwikkeling.
Verskaf tydige opleiding rakende die nuweprodukontwikkelingsproses.
Hersien die N&O Projekbestuurkursus.
Kultiveer produktiewe kommunikasie.
Skep 'n meer innoverende klimaat.
Herorganiseer die Nuwe ldees Vergadering.
Etlike positiewe resultate is reeds verkry in reaksie op die potensiele aksieplanne wat
in die skripsie vervat is:
Die topbestuur van Sasol Tegnologie Navorsing en Ontwikkeling het besluit om
die inhoud van die N&O Projekbestuurkursus te hersien. Die hersiene inhoud
van die kursus sal uiteindelik met bestaande projekbestuurspraktyke in die
grotere Sasol gei'ntegreer word.
Die Nuwe ldees Vergadering is geherorganiseer. Die kreatiwiteitsessies is,
byvoorbeeld, geskei van besprekings wat sentreer rondom nuwe besigheids-
geleenthede vir Sasol. Weeklikse kreatiwiteitsessies word sedert September
1997 gehou in die Nuweprodukontwikkelingsgroep, met die klem op die
generering van nuwe wetenskaplike idees. Sulke idees mag voorlopers tot
besigheidsidees wees.
In die Nuwe ldees Vergadering van 27 Februarie 1998 is vier nuwe besigheids-
idees deur verskillende lede van die Nuweprodukontwikkelingsgroep voorgestel.
Een voorstel is gesirkuleer, aangesien die bemarkingsinformasie afwesig was.
Die oorblywende voorstelle is, in teenstelling met vorige voorleggings,
geformuleer en verdedig in terme van die kriteria in die projeksiftingslys van
Sasol Tegnologie Navorsing en Ontwikkeling. Al drie hierdie idees is vanaf
stadium een (voorlopige evaluasie) na stadium twee (gedetaileerde evaluasie)
gepromoveer, wat impliseer dat die jaarlikse tempo van idees wat hek een
geslaag het reeds met 50% vermeerder het. Die resultate van vyf verdere Nuwe
ldees Vergaderings, geskeduleer deur die loop van 1998, moet nog
verdiskonteer word.
Sasol Ltd is regarded as the world leader in Fischer-Tropsch technology and
endeavours to reinforce this, not necessarily sustainable, competitive advantage by
globalisation. This globalisation strategy reflects the company's commitment to
sustainable growth through the development, production, and marketing of new
products and processes. Sasol Technology (Pty) Ltd is clearly an important role player
in the realisation of this vision, and strives to add optimum value to the treasure-chest
of Fischer-Tropsch products and processes. In fact, practitioners in the field of
Management of Technology regard the capability to develop new products and
processes more effectively and efficiently compared with one's competitors, as a
powerful source of a possible sustainable competitive advantage. It is therefore
essential to bench-mark our new product development capability against those of our
rivals, which induced this pilot study at Sasol Technology Research and Development.
A New Product Development Group was established five years ago at Sasol
Technology Research and Development. Indirect observation showed that 40 new
product ideas had formally been suggested between February 1995 and January 1997
in 11 New Ideas Meetings at the New Product Development Group. Only 10% of these
complied with the screening criteria to pass from stage one (preliminary assessment)
to stage two (detailed assessment) in the innovation process - the literature suggests
an international average of 40% as the bench-mark. This result, which manifested in
a success rate of roughly two suggestions from the group per year, was regarded as
an early indication of possible weaknesses in the new product process at the New
Product Development Group. Such weaknesses need to be investigated as faulty
processes may influence the value of the company negatively. The purpose objective
of this investigation was consequently to improve on the quality of the execution of
development efforts at the New Product Development Group.
Several diagnostic techniques were employed to determine the most important
underlying causes of the shortcomings in the early stages of the innovation process,
namely: indirect observation, survey questionnaires, and interviews. An open-ended
questionnaire tested the technical staff on their knowledge regarding the various steps
in the new product development process, and on the strategies being followed to
market ideas in the New ldeas Meetings. The managerial staff were tested on their
knowledge concerning the various steps in the new product development process, and
on the screening criteria being used in the New ldeas Meetings.
The empirical results were integrated with the literature on critical success factors in
new product development, which resulted in the identification of several defects in the
execution of the new product development process:
Lack of knowledge on the course of the innovation process.
Poor internal alignment concerning the execution of the innovation process.
Deficiencies in the content of the R&D Project Management course.
Poor communication on the project screening criteria at Sasol Technology
Research and Development.
Low motivation of respondents to participate in the New Ideas Meeting.
Imperfections in the structure and content of the New Ideas Meeting.
These deficiencies were analysed, and discussed in terms of appropriate research
evidence in the open literature. Potential action plans were subsequently formulated
to improve the on quality of the innovation process at the New Product Development
Group (as well as at Sasol Technology Research and Development), namely to:
Expand the investigation to Sasol Technology Research and Development.
Provide timeous education on the new product development process.
Revise the R&D Project Management course.
Cultivate productive communication.
Create a more innovative climate.
Reorgar~ise the New Ideas Meeting.
Some positive results have already been obtained in response to the potential action
plans that resulted from this dissertation:
The top management of Sasol Technology Research and Development has
decided to review the content of the R&D Project Management course. The
revised content will eventually be integrated with existing project management
practices in the bigger Sasol.
'The New Ideas Meeting was reorganised. The creativity sessions were, for
example, separated from discussions on new business opportunities for Sasol.
Weekly creativity sessions are being held in the New Product Development
Group since September 1997, focusing on the generation of new scientific ideas.
These ideas may be precursors to new business ideas.
Four new business ideas were suggested by different members of the New
Product Development Group in the New ldeas Meeting on 27 February 1998.
One proposal was recycled, as the marketing information was absent. The
remaining ideas were, in contrast with earlier proposals, formulated and
defended in terms of the Sasol Technology Research and Development project
screening list. Al three of these complied with the criteria to pass from stage one
(preliminary assessment) to stage two (detailed assessment) in the innovation
process, implying that the yearly rate of ideas that passed gate one has already
increased by 50%. The results of five additional New ldeas Meetings, scheduled
for the remainder of 1998, are still to be discounted.
i
CONTENTS
CHAPTER 1 NATURE AND SCOPE OF STUDY
1.1 INTRODUCTION
1.2 PROBLEM STATEMENT
1.3 OBJECTIVES
1.4 SCOPE OF STUDY
1.5 RESEARCH METHODOLOGY
1.6 LIMITATIONS OF STUDY
1.7 LAYOUT OF STUDY
CHAPTER 2 ORGANISATION PROFILE AND CAUSAL FACTORS 11
2.1 IN'TRODUCTION 11
2.2 PROFILE: SASOL LTD 11
2.3 PROFILE: SASOL TECHNOLOGY (PTY) LTD 17
2.4 CAUSAL FACTORS TO 'THE STUDY 19
2.5 SUMMARY 2 1
CHAPTER 3 THE INNOVATION PROCESS: A LITERATURE SURVEY 23
3.1 INTRODUCTION 23
3.2 LITERATURE SELECTION: FACTS AND FALLACIES 23
3.3 THE ESSENCE OF INNOVATION MANAGEMENT 24
3.4 COMPREHENSIVE DEVELOPMENT STRATEGY 26
3.5 INDEPENDENT STUDIES ON NEW PRODUCT DEVELOPMENT 41
3.6 COMPARATIVE STUDIES ON NEW PRODUCT DEVELOPMENT 44
ii
3.7 ONE SOLUTION - A FORMAL GAME PLAN
3.8 SUMMARY
CHAPTER 4 EMPIRICAL RESEARCH
INTRODUCTION
INDIRECT OBSERVATION
SURVEY QLlESTlONNAlRES
RESULTS OF BIOGRAPHICAL PARTICULARS
INNOVKI'ION PROCESS: FEEDBACK FROM MANAGERIAL STAFF
INNOVATION PROCESS: FEEDBACK FROM TECHNICAL STAFF
IDEA PROPOSAL: FEEDBACK FROM MANAGERIAL STAFF
IDEA PROPOSAL: FEEDBACK FROM TECHNICAL STAFF
SENSING
SUMMARY
CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 93
INTRODUCTION
CONCLUSIONS
INDIRECT OBSERVATION
SURVEY QUESTIONNAIRES
GROUP INTERVIEW
RECOMMENDATIONS
EXPAND THE INVESTIGATION
EDUCATION ON THE NEW PRODUCT DEVELOPMENT PROCESS
REVISION OF THE R&D PROJECT MANAGEMENT COURSE
CULTIVATE PRODUCTIVE COMMUNICA'I'ION
. . . Ill
5.1 1 CREATE AN INNOVATIVE CLIMATE
5.12 REORGANISE THE NEW IDEAS MEETING
5.13 IMPLEMENTATION OF ACTION PLANS
5.14 SUM MARY
EPILOGUE ACHIEVEMENT OF OBJECTIVES
REFERENCES
APPENDIXES
A - QLIESTIONNAIRE: MANAGERIAL STAFF 132
B - QUESTIONNAIRE: 'TECHNICAL STAFF 138
C - SASOL TECHNOLOGY RESEARCH AND DEVELOPMENT:
PROJECT SCREENING CRITERIA 1 44
D - SASOLTECHNOLOGYRESEARCHANDDEVELOPMENT:
PROJECT MANAGEMENT 1 45
E - MEMORANDUM TO MANAGER: NEW PRODUCT DEVELOPMENT 153
CHAPTER I
NATURE AND SCOPE OF STUDY
I .1 INTRODUCTION
Companies all over the globe are caught up in a product war, and the majority rely
heavily on new product development for growth and profitability. A strong driver of
profitability is the existence of a rigorous new product development process that
emphasises the quality of execution of the consecutive activities. The ability to improve
on the innovation process, that is to drive new products from idea to market faster and
with fewer mistakes, is therefore an important strategic weapon to win this war. This
dissertation focuses primarily on improving the quality of execution of the early stages
in the new product development process. The study was conducted at Sasol Ltd, an
important player in the world of synthetic fuels and chemicals.
1.2 PROBLEM STATEMENT
ldeas for prospective new products and processes at Sasol t td are persistently being
generated on the strategic level at Sasol Synthetic Fuels (Pty) Ltd, Sasol Chemical
applied and basic catalysis, separation processes, product development, process
development, biotechnology, and environmental protection). The division employed 307
permanent and 30 temporary workers in June 1997. The study is more probably an
important pilot study, and may provoke similar investigations in other sectionslgroups
of Sasol Technology Research and Development.
1.6.2 Bench-mark
The understanding of the new product development success curves (number of ideas
versus stage in the new product development process) is important for at least one
reason: to bench-mark one's own new product development process against other
companies in the industry. There is a great deal of confusion and debate in the
literature about the "true" shape of success curves for industrial innovation. Two
examples will be presented below:
Example 1.
Research on the attrition rate of new product projects in the USA (Booz Allen &
Hamilton, 1981 :I 3) revealed that seven new product ideas were on average considered
for every substantially new commercially successful product in 1981 (Figure 1.1 ). There
are, however, variations by industry in that manufacturers of consumer non-durable
goods considered more than 14 new product ideas whereas the manufacturers of
industrial goods considered seven new product ideas to generate one successful new
product.
Example 2.
In contrast, research on the attrition rate of new product projects in the USA (Stevens
& Burley, 1997:16) revealed that 3 000 raw ideas were considered on average for every
substantially new commercially successful industrial product in 1997. The logarithmic
plot of the number of new product ideas that advance to the next stage of development
(Figure I .2) was presented as a so-called Universal Success Curve, which ostensibly
applies to most industries including industrial chemicals.
The question then arises which one of these studies are correct, and should be used
as the bench-mark. The answer is that both of the studies are correct, as the results
depend on the stage of the success curve one starts counting. Hence, the "Significant
Development" stage in the study by Stevens and Burley (1 997), probably corresponds
Figure 1 .I: The attrition rate of new product projects in the general industry.
Legend
4 Screening and evaluation: 1968
Business analysis
Development
Screening and evaluation: 1981
Business analysis
Development
Testing
Commercialization
40 50 60 70 Percentage of time
Source: Booz Allen and Hamilton (1 981 : 13)
Figure 1.2: The Universal Success Curve of new product projects in the general industry.
r -- Legend
1 Unwrltlen raw ideas (3 000) ' Ideas submitted (300)
Small projects (1 25)
I Significant developments (9) I Major developments (4)
I Launches (1.7)
I Cornrnercial success (1) I
3 4 5 Stage of development process
Source: Stevens and Burley (1 997: -I 7 )
to the "Screening and Evaluation" stage in the study by Booz Allen and Hamilton
(1 981). The Universal Success Curve covers the entire range of project activity from
ideation to commercialisation, and was therefore used as the bench-mark in the current
study. The Universal Success Curve is, however, undoubtedly an approximation as:
Absolute numbers on the attrition rate of products in the new product
development process are not kept by industry.
b The attrition rate of new products in the new product process changes
over ti me.
b The attrition rate of new products in the new product process is
dependent on the type of industry.
1.6.3 Questionnaire validation
The open-ended survey questionnaires in the study were not validated. The questions
were compiled by integrating literature on the key success factors that affects then new
product development process, with standard practices being followed in the New
Product Development Group until June 1997. The questions were therefore tailor-made
for the situation, which can result in illogical judgments and conclusions. No
discrepancies were, however, observed.
1.7 LAYOUT OF STUDY
A schematic layout of the investigation is presented in Figure I .3, and entails the
following:
Chapter 2 presents a brief overview on the organisation in which the
investigation was undertaken, namely Sasol Ltd, and deals with the causal
factors that induced the study. This information, in coherence with that in
Chapter I , highlights the present situation.
Chapter 3 deals with the most relevant literature in previous research efforts on
new product development. The critical success factors that were identified by
practitioners in the field of Management of Technology for establishing an
9
outstanding innovation process, are reviewed. The literature survey gave the
necessary background to formulate realistic goals for achieving the purpose
objective.
Chapter 4 presents the results that were obtained with the indirect observation,
the open-ended survey questionnaires, and the unstructured group interview.
The diagnostic questionnaires were compiled by employing the information in
Chapter 2 (causal factors) and Chapter 3 (literature survey).
Chapter 5 deals with the conclusions and recommendations. The information in
Chapter 4 (empirical results) are integrated with those in Chapters 1 and 2
(current situation) and Chapter 3 (literature survey). Potential action plans to fill
the gap between the current situation and the purpose objective are presented.
Early results stemming from some recommendations are discussed.
The Epilogue deals with the achievement of the objectives and future actions.
10
Figure 1.3: Schematic layout of the dissertation.
RECOMMENDA TlONS
" "r-7. . - r ' . ' " " ' ' ' " ' " ' ' ' '
' EPILOGUE ACHlEVEMENT
OF
OBJECTIVES
CHAPTER 2
ORGANISATION PROFILE AND CAUSAL FACTORS
2.1 INTRODUCTION
The investigation was conducted at Sasol Technology Research and Development, a
division of Sasol Technology (Pty) Ltd, which is in turn a wholly owned subsidiary of
Sasol Ltd in South Africa. The discussion in this chapter focus on the profile of Sasol,
and the distinctive role of Sasol Technology Research and Development in maximising
the wealth of our shareholders. The causal factors that induced the study are
subsequently presented.
2.2 PROFILE: SASOL LTD
2.2.1 General overview
From a small start in the 1950s, Sasol Ltd has become a giant in the world of synthetic
fuels and chemicals. Sasol represents the realisation of the visions and dreams of
scientists and industry leaders (SCC, 1997b:2-15), culminating in the establishment of
the world's only proven oil-fromaal operations in the world. The Sasol process (based
originally on a combination of the German fixed-bed and the American fluid-bed
Fischer-Tropsch process) has become a blueprint for synthetic fuel projects. The
successful commercial application of Sasol's technology, backed by continued research
for more than 40 years, has established Sasol as a world leader in this field.
Sasol became a private sector company in 1979 when Sasol Ltd, the Group's holding
company, was listed on the Johannesburg Stock Exchange. Sasol bought the State's
50% share in Sasol Two in 1983, and Sasol Three's 50% share was acquired in July
1991. The company had a market capitalisation of more than R30-billion in 1997.
Sasot's ability to manufacture synthetic fuels contributes significantly to South Africa's
energy supply, in that the company fulfilled in 44% of the country's liquid fuel
requirements in 1997. Through the utilisation of indigenous raw materials, Sasol
currently provides 160 000 jobs (directly and indirectly) and savestearns foreign
exchange of some R6 000-million per annum. The South African economy hence
benefits substantially from these petrochemical operations.
2.2.2 Corporate structure
The development of the Sasol Group over the years eventually led to the rationalisation
of the corporate structures in 1993 (SCC, 1993:4) to align the divisions more closely
with the various business activities of the Group. The restructuring places:
the chemical activities at Sasol Chemical Industries (Pty) Ltd,
the synthetic fuel activities at Sasol Synthetic Fuels (Pty) Ltd,
the mining activities at Sasol Mining (Pty) Ltd, and
the oil refining and fuels marketing activities at Sasol Oil (Pty) Ltd.
The main operating companies and divisions within the Sasol Group, as published in
our Annual Report of 1997 (SCC, 1997c:14-15), are shown in Figure 2.1. Sasol
Synthetic Fuels initiated a comprehensive transformation process in 1995 (SCC,
1997c:23), to counter the impact of reduced tariff protection on synthetic fuels and to
enhance our competitive edge. The transformation, called Vulamehlo, started with the
r~rganisat ion of Sasol Two and Sasol Three into a gas production division (Syngas)
and a synthesis division (Synref). This new structure should optimise the use of
facilities, raw materials and human resources.
2.2.3 Downstream thrust
Sasol's unique synfuel technology, which produces both fuel and chemical components
in a single synthesis step, provides a significant cost advantage in the production of
petrochemical feed-stock. The recovery of high value chemical components, many of
which are currently marketed as petrol, and placing them in high value chemical
markets is thus an ongoing priority. Chemicals represented 20% (per volume) of
Sasol's production in 1997 (Cox, 1997), but technically chemicals could represent 44%
of our production. The coal gasification process, and the large number of commercially
successful products stemming from the downstream processes are depicted in Figure
2.2. Several feasibility studies are under way to identify additional new opportunities
in global markets, in agreement with the new Sasol vision launched in January 1997:
Figure 2.2: The coal gasification process, and the large number of commercially successful products stemming from the Fischer- Tropsch and other downstream processes.
Goal water A :..
Perraffins Hard waxes Medium waxes Speciatty waxes Pipeline gas
Low temperature F ischer-Tro~sch
Ammonia Tars Pitches Green coke Carburislng coke Phsnol cl.efa#s
markets, and conipetitors. Utterback et a/. (1 976) examined the relationships between
these environmental influences, and the sources and outcomes of a sample of
research and development projects undertaken in Western Europe and Japan. The
projects spanned the computer, consumer electronic, textile, industrial chemicals, and
automotive industry; with the purpose of identifying systematic differences amongst
industries with regard to the innovation process. Field interviews were conducted in one
division of 54 companies and in two divisions of five companies, yielding a total of 64
geographically and organisationally separate sites. The researchers identified 66
successful, 51 unsuccessful, and 47 on-going cases which were spread in roughly
equal proportions across the five industries. The most striking differences between
successful and unsuccessful products (p-value < 0.03 in the hypothesis testing) were
in line with previous studies:
+ Ease in commercialisation.
The majority (80%) of successful projects experienced no initial difficulty in
entering the market, while the larger majority of unsuccessful cases (90%) had
difficulty in the initial marketing attempts. Hence, successful innovations have
fewer unwanted surprises in production, less after-sales problems, and need
less adaptation by users.
+ Technical necessity.
All of the projects sampled as successful in commercial terms were judged either
moderate or outstanding technical successes, while this was also true for 36%
of the unsuccessful cases. Technical success is therefore seen to be a
necessary but not sufficient condition for commercial success.
+ Patent protection.
Interestingly, the results concurred with the research of Rubenstein et al. (1 974)
in the United States, in that a negative relationship between adequacy of patent
protection and commercial success was found. The respondents considered it
difficult to obtain an easily defensible patent in 59% of commercially successful
projects, while the figure was 41% for unsuccessful projects. This amply
illustrates that a relationship found between variables such as adequacy of
patent protection and commercial success does not imply a causal connection.
One could speculate that the innovations in successful projects may be more
difficult to patent, since the products or processes face more competition.
Salient differences were found concerning the impact of environmental influences on
the outcome of the innovation process in the different industries that were spanned in
the investigation. The major differences pertained to the type of stimulus that initiated
the project, the level of competition in the industry, the ease of patent protection, and
regulatory constraints. Regulatory constraints were in 1976 perceived to be of
moderate or great significance in only 10% of computer projects, 13% of consumer
electronics projects, 17% of textile projects, 32% of industrial chemical projects, and
in 57% of automotive projects. It will be interesting to compare these figures with
today's figures on regulatory constraints.
3.6.3 Studies by Teece and coworkers: (1 986)
One of the biggest myths in new product development is the notion: First info the
market wins! For example, the beverage company RC Cola was the first to introduce
cola in a can, and the first to introduce diet cola. Although these new products were in
strong demand, RC Cola failed to reap the financial advantages of their innovations
(Teece, 1986285-287) as both Coca Cola and Pepsi followed immediately to scoop the
market. Hence, being first in should not be the ultimate goal but rather being best in. For example, Du Pont was the first to introduce polytetrafluoroethylene or Teflonm in
1941, after the accidental discovery of the polymer in 1938. Du Pont remained the
leader in the field with the introduction of two other commercially important
fluoropolymers in 1956 (Teflon FEP@) and in 1972 (TefzelB). Understanding the causal
factors to such failures and successes are indispensable for taking proactive measures
in the course of the new product development process. While technological leadership
or followership is often thought of in terms of product or process technology, the issue
is much broader and concerns any activity in the value chain. Porter (1 985: 182-1 91 )
base the choice of being a technological leader or follower in an important technology
on three mutually dependent factors. The interaction between these yields the best
balance between offensive and defensive innovation strategies, and include:
b The success with which the first mover can defend and sustain the
technological leadership.
The possible advantages an organisation may reap from being first to
adopt a new technology.
F The possible disadvantages an organisation faces by moving first rather
than deliberately following other players.
Teece (1 986:285-297) elaborated on the factors above, and regards appropriability
regimes in conjunction with the control of complementary assets as important
determinants of success in offensive strategies. A regime of appropriability refers to the
environmental considerations, excluding organisation and market structure, that govern
an innovator's ability to capture the profits expected from an innovation. Proprietary
technological advantage are usually protected through the nature of the technology
(product, process, tacit) and the efficacy of legal mechanisms of protection (patents,
copyrights, trade secrets). Complementary assets include generic or specialised
capabilities such as manufacturing facilities, distribution channels, marketing abilities,
and after-sales support. Generic assets are general-purpose capabilities which are
readily available on the open market at competitive terms. Specialised complementary
assets are normally scares, and require irreversible investments to accommodate the
uniqueness of the invention.
An innovator could, in the extremes, either integrate into all of the complementary
assets needed for the application of an invention or access these assets through
straightforward contractual relationships. Contracting is most probably the best strategy
when the innovator's appropriability regime is tight and the complementary assets are
available in competitive supply. Both these conditions apply, for example, to the
petrochemical industry with reference to process innovations. Union Carbide realised
in the 1980s that the protection of process technologies through patents are readily
enforced in petrochemicals, and that there exists no incentive in owning production
facilities which are not highly specialised to the innovation. The company's Engineering
and Hydrocarbons Service subsidiary therefore typically engages in licensing and
offers erlgineering, construction, and management services to customers that are
interested in converting hydrocarbons to petrochemicals. Integration is, on the other
hand, probably the best strategy strategy when the innovator's appropriability regime
is weak and the complementary assets are available in competitive supply. Both these
conditions apply, once again, to the petrochemical industry with reference to product
innovations. However, the innovator may not have the time or resources to build the
complementary assets that would provide the ideal control. The alternative is to gain
access through strategic alliances, which may absorb a large part of the innovator's
rightful income.
3.6.4 Studies by Cooper and coworkers: (1 979)
Two critical aspects in new product development focus on the selection of the best
business opportunities, and on the effective management of the innovation process
from idea to launch. Cooper (1979:93-1,03) addressed these issues in a major
investigation, called Project NewProd, by determining the most important differences
between commercially successful and unsuccessful industrial new products in Canada.
The study differed from the SAPPHO investigation by Rothwell et a/. (1 974) in the
United Kingdom, in that the industry as well as the organisation was kept constant for
each product pair. Cooper's approach hence allowed researchers to identify, in
addition, differences centering on the characteristics of the organisation and the project
team.
The NewProd data was acquired in 1977, by sending questionnaires to 1 03 companies
in Ontario and Quebec. A designated manager in each firm was requested to select
one commercial success that had been introduced by his company, and one failure.
The final sample constituted 102 successess and 93 failures. The respondents were
asked to rate these 195 new product projects along 77 dimensions that described the
environment, organisation, and characteristics of the development process. The results
of the 77 variables were reduced to 18 factors that describe new product innovation.
Factor and multiple regression analysis were employed to identify and prioritise those
factors which separate the successes from the failures. Three factors were strongly
related to product outcome, namely:
+ Product superiority.
The most important single success factor was having a superior new product
that delivered significant and unique benefits in the eyes of the end user. The
odds of success with a superior product were over 80%, while the me too
products achieved a success rate of only 28% (Cooper: 1981 :72). Superior
products have a real differential advantage in the market and typically meet
customer needs better than competitive products, perform unique tasks, have
unique features for the customer, lower the customers' costs, and are of higher
quality than competing products. Such understanding often requires significant
market analysis, and subsequent mariage of technological design and
development to customer needs.
+ Strong market orientation.
The second key to success was market knowledge and marketing proficiency.
Cooper (1981:74) showed that strongly market-orientated projects were
successful 79% of the time, while the odds of success for projects rated weak
in terms of market orientation was but 28%. Market information of successful
projects was superb with regard to understanding the customer needs, product
performance criteria, price sensitivity of the buyers, size of the market, and
trends of the market. Market-orientated projects were carried out proficiently in
terms of activities such as preliminary market assessment, detailed market
research/study, business analysis, prototype trials, trial selling, and market
launch.
+ Technological proficiency.
The third major success factor was competent technological and production
activities, combined with a high degree of synergy between the technological
needs of the project and the resource base of the company. The technical and
production activities in successful projects were conducted proficiently with
reference to the preliminary technical assessment, product development,
prototype testing, pilot production, and production start-up. Companies that
selected new product projects in accord with their technological and production
strengths, acheived higher success rates in new product development. A stick
to the knitting strategy is therefore often desirable in developing new products,
at least in terms of technlogy and production.
3.6.5 Studies by Cooper and coworkers: (1 987)
In a renewed attempt to identify the success versus failure discriminants in new product
development, Cooper and Kleinschmidt (1 987: 169-1 84) repeated the NewProd study
of the mid 1970s. The NewProd Phase II study took a broader perspective of new
product success relative to the NewProd Phase I study, as financial return is but one
measure of success. Different, but not necessarily mutually exclusive, new product
performance measures were considered in the NewProd Phase II evaluation, namely:
Separating the stages are gates, which act as quality control check-points in the
process to ensure that all the critical activities have been conducted in a
proficient manner. Each gate is characterised by a set of inputs, a set of exit
criteria, and an output (Cooper, 1993b:78-79). The inputs are the deliverables
that the project leader take responsibility for, and must bring to the gate. The
criteria in the screening list are used, by a multidisciplinary team of gatekeepers,
to evaluate the quality of the project from a business standpoint. Environmental
variables such as the market potential, competitive situation, market synergy,
and technological synergy are critical success factors which should be included
in the screening list. However, projects should also be screened in terms of the
number one success factor in new product development, namely: product
advantage. The outputs are the decisions taken at the gate, which is typically a
Go/Kill/HoldlRecycle verdict. In the event of a Go decision, senior managers will
consider the action plan for the next stage, and allocate the necessary
resources accordingly.
Stagegate processes present a systematic way of building best practices and critical
success factors into an organisation's new product methodology (Cooper, 1994:5-7),
which an important reason why stage-gate systems work in practice. This second-
generation game plan offers several advantages, in that it:
b facilitates much better cross-functional teamwork,
b puts discipline into an ad hoc or somewhat chaotic process,
t provides a road-map for the project leader and team,
b is a visible process known and understood by all in the company,
b forces more attention to quality of execution via the checkpoint gates,
b makes for a complete process, and
t is faster by parallel processing of activities.
3.7.4 Third-generation process
There are several reasons as to why development systems fail in practice, one being
that organisations follow poor implementation procedures. Innovation processes may
also be less effectivelefficient, or fail completely, due to the inherent weaknesses of the
process itself. Cooper (1 994:7-8) has identified the following flaws concerning second-
generation new product development processes:
b Project prioritisation. The system does not provide for the prioritisation of
projects, and the focusing of scares resources on top-priority projects.
While gates introduce tough GoIKill criteria which cull out bad projects,
these criteria tend to be absolute standards.
t Force bureaucracy. While following the stage-gate process in a religious
fashion may be appropriate for large, higher-risk projects, this may not be
true for all projects. For smaller projects or lower-risk initiatives, this blind
adherence to the system could create unnecessary bureaucracy.
b Restrain projects. As a control measure, stage-gate systems require the
successful completion of one stage prior to embarking on the next, to
ensure the quality execution of critical tasks. In dealing with quality-of-
execution problems, however, stage-gate methods can restrain the
progress of a project for the sake of one minor uncompleted activity.
Cooper (1 994:8-14) forecasts fundamental changes concerning the stage-gate systems
of the 1990s. Third-generation innovation processes are already evolving with the
emphasis on speedirlg up today's effective second-generation process, and on the
more efficient allocation of development resources. The new stage-gate systems will
provide for much sharper focus of resources through portfolio management (see
Section 3.4), will be flexible and adaptable, and will incorporate fuzzy gates which are
both situational and conditional.
3.8 SUMMARY
The literature survey revealed that successful new products programs are a balanced
mixture of good planning, good management, appealing concepts, research well
employed but used with discretion, good timing, appropriate risk-taking, and a pinch of
just plain good luck. Success cannot be guaranteed by conducting certain activities
particularly well, although a single miscue can spell disaster.
The development strategy framework provides an important instrument for managing
development portfolios. In applying this model, the development funnel is embedded
in overarching technology and product/market strategies, playing a key role in focusing
development efforts on those projects that collectively will accomplish a clear set of
development goals and objectives. The aggregate project plan ensures that the right
number and mix of product/process development projects are included in the
development portfolio. Individual projects are undertaken as part of a stream of projects
that accomplish overarching strategic goals and objectives, and contributes to
systematic learning and improvement. Through this instrument, development resources
are applied in a way that is pre-emptive, proactive, and strategic.
The most important critical success factors in new product development on micro level
centres on product superiority, stronger market orientation, up-front homework, sharp
product definition, cross-functional teams, and technological proficiency. These
variables are controllable, implying that the way the new product process is managed
and executed largely decide project outcomes. This points to the need for an effective
64
multi-stage game plan of activities at research and development. Such game plans
have found international acceptance, and are employed by leading innovators such as
Du Pont. Non-controllable variables such as market potential, market competitiveness,
marketing synergy, and technological synergy were also identified as drivers of
success. However, although these factors present important screening criteria, they are
not the most important correlates of success.
65
CHAPTER 4
EMPIRICAL RESEARCH
4.1 INTRODUCTION
The purpose of the empirical research was to decide if too few new product ideas pass
the first screening gate in the new product development process and, if so, determine
the underlying causes of this phenomenon. The information was acquired by employing
techniques such as indirect observation, survey questionnaires and grouplpersonal
discussions.
4.2 INDIRECT OBSERVATION
4.2.1 New ldeas Meeting
The employees of the New Product Development Group participate in two types of
important professional meetings viz. the New Product Development Meeting and the
New ldeas Meeting. Each of these take place six times per year but in alternate
months. The characteristics of each meeting are described below:
New Product Development Meeting.
The purpose of the meeting is to update employees in detail on the status of
each development project, specify the short and long-term direction of each
project, and describe the strategy on how to achieve the set goals. The
allocation of resources is part and parcel of these discussions. A formal
document containing the information stemming from the meeting is subsequently
issued to relevant role-players within the Sasol Group.
New Ideas Meeting.
The purpose of the meeting is to update employees briefly on the status of each
development project. The employees subsequently partake in discussions on
new ideas which are suggested in a formal document beforehand. This
document is not distributed outside the New Product Development Group. The
viability of these ideas is screened according to certain criteria, which will be
dealt with in Section 4.7.2. This study concerns the New ldeas Meeting only.
4.2.2 Collection of data and results
The strategy was to evaluate each of the new idea suggestions in the monthly reports
of the New Ideas Meetings since the inception of the meeting in February 1995. The
evaluation was conducted in collaboration with the Manager: New Product
Development of the New Product Development Group to ensure that the evaluation was
objective. 'The ideas were evaluated in terms of criteria such as technological feasibility,
market feasibility, availability of raw materials, and the strategic fit with the core
competence of the company. The outcome of the new idea suggestions resulted in
either "go" or "no go" decisions, which were used to compile the statistical results in
Table 4.1. The results form such unobtrusive measurements are normally viewed as
being highly reliable, since the possibility of misleading feedback is eliminated.
Table 4.1: Statistical analysis on the outcome of the new ideas that was suggested
between February 1995 and January 1997 in the New Product Development Group.
DATE OF NEW IDEAS MEETING
27 February 1995
21 April 1995
6 July 1995
25 August 1995
26 October 1995
26 February 1996
29 April 1996
24 June 1996
26 August 1996
21 October 1996
27 January 1997
TOTAL
NUMBER OF NEW IDEAS
NUMBER OF NEW IDEAS GIVEN "GO"
6 0
4 1
5 1
3 0
4 1
3 0
2 I
5 0
3 I 0 -
3
2
40
0
0
4
67
4.2.3 Interpretation of results
The information in Table 4.1 shows that only 10% of the new ideas complied with the
criteria to pass from stage one (preliminary assessment) to stage two (detailed
assessment) in then new product development process. The Universal Success Curve
of Stevens and Burley (1 997:17) recommends a bench-mark of 40%, which could point
possible weaknesses in the new product development process at the New Product
Development Group.
4.3 SURVEY QUESTIONNAIRES
4.3.1 Population
The population under discussion in this study refers to the total number of employees
in the New Product Development Group, and one senior manager that acts as the
sponsor of this and other groups at Sasol Technology Research and Development. The
population hence comprised of two managers, nine graduated scientists and two
graduated resident engineers. The whole population was used for the purpose of the
study to present meaningful results.
4.3.2 Collection of data and feedback
The questionnaires were distributed during the New ldeas Meeting on 30 June 1997,
with the purpose of identifying possible weaknesses in the innovation process at the
New Product Development Group. The purpose of the investigation was orally
communicated to the participants, with reference to the results of the indirect
observation which showed that only 10% of the proposals in the New ldeas Meetings
pass the first gate in the new product development process. The participants were
subsequently asked to complete the respective questionnaires (technical, managerial)
without conversation, and the results were handed in just after completion. These
measures were necessary as some questions tested the individuals' knowledge with
regard to the new product development process. The distribution of the questionnaires
that were issued and analysed is shown in Table 4.2.
68
Table 4.2: Distribution of questionnaires that were issued and analysed.
Legend: The levels 3 and 4 were asked to complete the questionnaires for managerial staff (see Appendix A). The levels 5 ,6 and 7 were asked to complete the questionnaires for technical staff (see Appendix B).
POSITION AT SASOL
MANAGER: Product Research
MANAGER: New Product Development
SCIENTISTS
ENGINEERS
TOTAL
4.3.2 Questionnaire design
The questionnaires were compiled by integrating literature on the key success factors
affecting the new product development process (Chapter 3) with practices followed in
the New ldeas Meetings before June 1997. The interpretation of the questions and the
answers may have resulted in illogical judgments since the questionnaires were not
validated.
The overall purpose was to identify those elements which needed attention to improve
on the preliminary assessment stage in the new product development process, and to
establish the relevance of the screening process in the New ldeas Meetings. Open-
ended survey questionnaires were preferred to closed-ended questionnaires to
encourage freedom of expression. The questionnaires are attached in Appendices A
(managerial staff) and B (technical staff). The elements of the questionnaires are
discussed below and included:
LEVEL IN 'OMPAN'
3
4
5,6, 7
6
Section A: Biographical Particulars.
ISSUED AND ANALYSED
NUMBER
1
I
9
2
13
%
7.7
7.7
69.2
15.4
100.0
Section B: New Product Development Process.
Section C: Idea Proposal.
4.4 RESULTS OF BIOGRAPHICAL PARTICULARS
The biographical data is summarised in Table 4.3, and served as the base for the
results which are discussed in Section 4.4.
4.4.1 Employment term
I. Purpose of questions one, two and five
The employment term of each individual at Sasol or other companies/institutions is
relevant, as the results may be affected by the experience rather than the education of
an individual.
11 . Results
The data in Table 4.3 reveals that three individuals have been employed outside Sasol
for more than five years before joining the company. The Manager: Product Research
was employed at several South African Universities (I965 to 1979), and worked for
Karbochem, Delta G and Sasol respectively. None of the other respondents has had
industrial experience before joining Sasol. The Manager: New Product Development
worked at the University of the Orange Free State for 10 years before being employed
at Sasol. All the respondents started working at Sasol Technology Research and
Development on joining Sasol, and none have worked at other Sasol-related strategic
business units before.
The distribution of the respondents with reference to the number of years employed at
Sasol Technology Research and Development is shown in Figure 4.1. The vast majority
(77%) of the employees in the New Product Development Group have been employed
for less than five years at Sasol Technology Research and Development. In June 1997,
four of these respondents worked at Sasol for less than one year.
Table 4.3: Summary of the academic qualifications and professional achievements of the employees in the New Product Development
Group. The information was recorded in June 1997.
POSITION EXPERIENCE QUALIFICATIONS
MANAGER:
Product Research
MANAGER:
New Product Development
INSTITUTE
B.Sc. (1960)
B.Sc. Hons. (1 961)
M.Sc. (1 962)
DSC. (1964)
B.Sc. (1 978)
B.Sc. Hons. (I 979)
MSC. (1981)
Ph.D. (1984)
MANAGEMENT (LEVEL 3,4)
University of the Orange Free State
(Bloemfontein)
University of the Orange Free State
(Bloemfontein)
University of Fort Hare
(1 965)
University of Pretoria
(1 966 - 1 968)
University of the Orange Free State
(1 969 - 1979)
Karbochem
(1 980 - 1982)
Delta G
( I 983 - 1986)
Sasol Technology Research and Development
(1987 - )
Universrty of the Orange Free State
(1980 - 1989)
Sasol Technology Research and Development
(1 990 - )
POSITION QUALIFICATIONS INSTlTUTE EXPERIENCE
ENGINEER
ENGINEER
SCIENTIST
SCIENTIST
SC1ENT1ST
SClENT1ST
TECHNICAL (LEVEL 5,6,7)
Potchefstroorn University for Christian
Higher Education
(Potchefstroom)
Universrty of Groningen
(Groningen, The Netherlands)
Universrty of Natal
(Pietermariiburg)
Potchefstroom University for Christian
Higher Education
(Potchefstroom)
University of Cape Town
(Cape Town)
University of Stellenbosch
(Stellenbosch)
B. Ing. Chem. (1992)
M. Ing. Chem. (1994)
B.Sc. (1994)
B.Sc. Hons. (I 995)
M.Sc. (1 997)
B.Sc. (1995)
B.Sc. Hons. (1 996)
B.Sc. (1 995)
B.Sc. (1 990)
B.Sc. Hons. (1991)
M.Sc. (1 993)
Vaal Triangle Technikon
(1 993)
Sasol Technology Research and Development
(Jan 1994 - )
Universrty of Twente
(Twente, The Netherlands)
(1 994 - 1 996)
Sasal Technology Research and Development
(Jan 1997 - )
Sasol Technology Research and Development
(Feb 1997 - )
Sasol Technology Research and Development
(Feb 1997 - )
Sasol Technology Research and Development
(Feb 1996 - )
Sasol Technology Research and Development
(Jan 1994 - )
POSITION
SCIENTIST
SCIENTIST
SCIENTIST
SCIENTIST
SCIENTIST
QUALIFICATIONS
B.Sc. (1 989)
B.Sc. Hons. (1989)
M.Sc. (1991)
Ph.D. (1 995)
B.Sc. (1980)
B.Sc. Hons. (1 981)
M.Sc. (1 984)
Ph.D. (1989)
B.Sc. (1991)
B.Sc. Hons. (1992)
M.Sc. (1 993)
B.Sc. (1 988)
B.Sc. Hons. (1989)
M.Sc. (1991)
B.Sc. (1990)
INSTITUTE
Rand Afrikaans University
(Aucklandpark)
University of the Orange Free State
(Bloemfontein)
Potchefstroom University for Christian
Higher Education
(Potchefstroom)
University of Natal
(Durban)
Universrty of Natal
(Durban)
EXPERIENCE
Sasol Technology Research and Development
(Jan 1995 - )
University of the Orange Free State
(1981 - 1994)
Sasol Technology Research and Development
(Jan 1995 - ) Sasol Technology Research and Development
(Jan 1994 - )
Doctoral studies - Universrty of Natal
(Jan 1992 - Jun 1997)
Sasol Technology Research and Development
(Jul1997 - ) Sasol Technology Research and Development
(Sept 1990 - )
Figure 4.1: The distribution of the respondents with reference to the number of
years employed at Sasol Technology Research and Development.
I~etween 1 and 3 year& A
- - I ~ e t w e e n 3 and 5 years]
Above 5 year T-7
4.4.2 Hierarchial Position
I. Purpose of question three
The question relates to the hierarchial level of each individual at New Product
Development. Such knowledge is important, as the outcome of the results may depend
on the content of internal courses aimed at satisfying the needs of various hierarchical
levels at Sasol.
I I. Results
The levels on which the employees in the New Product Development Group function
and report to are depicted in Figure 4.2. These hierarchical levels correspond to the
strategic, tactical and operational classifications.
The Manager: Product Research functions on the strategic level at Sasol
Technology Research and Development. Three groups report to this individual
namely New Product Development, Instrumental Techniques, and Product
Beneficiation. The level three manager is part of top management, and reports
directly to the General Manager of Sasol Technology Research and
Development.
The Manager: New Product Development functions on the strategic] tactical
level at Sasol Technology Research and Development. The scientists and
engineers in New Product Development report to this level four.
The scientists and engineers in New Product Development functions on the
tacticalloperational level at Sasol Technology Research and Development.
Sasol Technology Research and Development strives towards flatter structures
which should enhance the culture of intrapreneurship and innovation. The
reporting relationships amongst the levels five, six and seven scientists are
consequently not fixed, and depend on the types of development p~ojeds at a
given stage.
Figure 4.2: Organisational chart of the New Product Development Group. Lower
level numbers correspond to more senior positions in the hierarchy.
LEVEL 3
LEVEL 4
LEVELS 5, 6, 7
4.4.3 Academic qualifications
I. Purpose of question four
The question relates to the academic qualifications of each individual. This information
is important as the results of the study may depend on the curricula of scientific
degrees offered at the various universities.
Manager: Products Research
Manager: New Product Development
Manager: Instrumental Techniques
Manager: Product Beneficiation
Scientists (9) Engineers (2)
Scientists Scientists Engineer
Interestingly, none of the respondents have switched universities in moving towards
higher degrees. This phenomenon is inherent to the South African milieu, and has
specific drawbacks such as stifling scientific cross-pollination.
4.5 INNOVATION PROCESS: FEEDBACK FROM MANAGERIAL STAFF
The response of the managers concerning their new product development process is
summarised in Table 4.4, and served as the base for the results which are discussed
in Section 4.5. The questionnaire in Appendix A (Section B) is used for the discussion
below.
Table 4.4: Summary of the feedback from the managerial respondents regarding the
new product development process.
4.5.1 Theoretical Evaluation
i. Purpose of questions six and nine
The responses to basic theoretical questions will help to identify the underlying causes
of deficiencies in the innovation process. Questions were designed to test the
respondents' general knowledge on aspects such as the concept of a new product and
MANAGERlAL STAFF
New Product Development Process
QUESTION
6
7
8
9
GIST OF QUESTION
The definition of a new product in Sasol context
Received training on new product development
Presented a course on new product development
Knowledge on the steps in the innovation process
RESULT
Positive
2
2
Negative
2
2
Neutral Spoiled
the steps in the new product development process.
11 . Results
Typical correct answers are presented in Section 4.6.2. The managers furnished
correct answers which were expected considering their respective employment terms,
work experience, positions in the company, and academic qualifications as a whole.
These results show that employees in the higher echelons of Sasol Technology
Research and Development are probably experienced with the broader issues of the
new product development process. It will be shown in Section 4.6 that knowledge on
the innovation process is not necessarily related to employment terms or academic
qualifications.
4.5.2 Education in new product development
i. Purpose of questions seven and eight
Cooper and Kleinschmidt (1996:21) showed convincingly that a highquality new
product process is one of the strongest drivers of profitability. Well-designed courses
on the new product development process should make attendants aware of the critical
success factors that affect the innovation process, which could influence the results of
the study.
11. Results
Neither of the managers has ever received formal training on the broader issues of the
new product development process. They have also never presented a course on the
said topic in industry or academia.
4.6 INNOVATION PROCESS: FEEDBACK FROM TECHNICAL STAFF
The feedback of the technical staff pertaining to the new product development process
is summarised in Table 4.5, and served as the base for the results which are discussed
in Section 4.6. The questionnaire in Appendix B (Section B) is relevant to the
discussion below.
Table 4.5: Summary of the feedback from the respondents in technical positions on the
new product development process.
Legend: 1 . One engineer received training in project management, one scientist received training in project leadership, and one engineer received training in both these Sasol courses.
4.6.1 Education in new product development
I. Purpose of question seven
Cooper and Kleinschmidt (1996:21) showed convincingly that a high-quality new
product process is one of the strongest drivers of profitability. Well-designed courses
on the new product development process should make attendants aware of the critical
success factors that affect the innovation process, which could influence the results of
the study.
TECHNICAL STAFF
New Product Development Process
11. Results
The engineers or scientists have never attended formal training courses on the broader
issues of the new product development process in their respective careers. Related in-
house courses on project management are presented in Sasol namely the Sastech
Project Execution Model course (presented by Sasol Technology Engineering Services
at Secunda) and the Project Leadership in R&D course (presented by Sasol
Technology Research and Development at Sasolburg), the latter of which was
QUESTION
6
7
8
GET OF QUESTION
The definition of a new product in Sasol context
Received training on new product development
Knowledge on the steps in the innovation process
RESULT
Positive
9
3'
5
Neutral Negative
2
8
6
Spoiled
presented for the first time in 1997. The two engineers have attended the Sastech
Project Execution Model course, whilst one engineer and one scientist have attended
the Project Leadership in R&D course.
4.6.2 Theoretical evaluation
I. Purpose of questions six and eight
Answers to basic theoretical questions will help to identify the underlying causes of
deficiencies in the innovation process. Questions were asked to test the respondents'
general knowledge on aspects such as the concept of a new product in the Sasol
context, and the chronological order of the steps in the new product development
process.
11 . Results
The results in Table 4.5 reveal that 18% of the technical respondents do not
understand the concept of a new product. The two resident engineers scored full
marks. The correct answers contained elements of the model answer (Gruenwaldt,
198560) below:
New products are defined as those which are not currently marketed or
manufactured by a company, or products which are viewed as new by a
client.
The results in Table 4.5 show furthermore that 55% of the respondents in technical
positions do not have an adequate understanding of the new product development
process. The exact nomenclature that was used in the answers of the respondents to
describe the steps in the innovation process was not regarded as serious. The
inclusion of the most important steps and the chronological order of these was,
however, considered as important. The correct answers contained elements of the
innovation blueprint (Cooper & Kleinschmidt, 1993b:79) below in proper order:
Idea generation
-> Preliminary assessment Inexpensive, quick quabtative scope of project.
b Preliminary market, technical, financial, legal assessments
-> Detailed assessment Builds business case: product definition, project justification.
b Detailed market, technical, legal appraisal. Detailed compebYive analysis. . Detailed financial analysis and project plan.
-> Development . Product is developed and subjected to laboratory tests. . Pmtotype development. b Development of test plans, manufacturing plans. + Development of maheling plans. b Update financial calculations.
-> Validation Validates the product.
r Validate the marketing and the manufacturing of the product.
b Extended in-house tests and customer field trials. b Pilot runs. . Test market or trial sell.
-> Commercialisation b Market launch and development. . Production.
Knowledge on the new product developnient process is deductively related to the
attendance of Sasol courses in project management or project leadership, since the two
engineers and the one scientist who attended one or both courses scored full marks
in questions six and eight. Interestingly, the combination of the outcomes in Sections
4.4, 4.6.1 and 4.6.2 showed that knowledge on the process is not related to the number
or types of degrees conferred, nor to university attendance, nor to the number of
service years at Sasol. Too little information was available to establish relationships
between knowledge on the innovation process and the curricula of various South
African universities.
4.7 IDEA PROPOSAL: FEEDBACK FROM MANAGERIAL STAFF
The opinions of the managers about the idea proposal practices in the New Ideas
Meeting are outlined in Table 4.6, and served as the base for the results discussed in
Section 4.7. The questionnaire in Appendix A (Section C) is used for the discussion
below.
Table 4.6: Summary of the feedback from the managerial respondents regarding the
idea proposal practices New Product Development Group until June 1997.
4.7.1 Manager present proposal
I. Purpose of question 10
A positive organisational culture is one of the most important elements to enhance
effectiveness, and flourishes in a positive climate. The actions of senior management
could be instrumental in cultivating a positive climate of innovation, such as submitting
at least one written new idea proposal per year.
MANAGERIAL STAFF
Idea
QUESTION
10
11
Proposal
RESULT GIST OF QUESTION
Managers should present at least one written new idea per year
Adequacy of the official project screening criteria
Positive
1
Negative
1
1
I list
12 Conceptual
Neutral
1
Alignment of the proposal and corporate strategy
1
Spoiled
1
Conceptual
Conceptual
13 I
14
15
Are the discussions in the New Ideas Meeting stimulating
Challenge employees with important problems facing the company
Proposals on how to improve the pass-rate of suggestions
82
. . 1 1 . Results
The Manager: Product Research (level three) was satisfied with the presentation of new
idea proposals by levels four and five reporting directly to him, and therefore did not
agree. The Manager: New Product Development (level four) acknowledged that such
an approach could be useful, but should not become compulsory. The latter respondent
has indeed made several written proposals in the New Ideas Meeting since February
1995, which were all scientific in nature.
4.7.2 Adequacy of screening list
i. Purpose of question 11
The official Sasol Technology Research and Development project screening criteria list
was compiled in 1994 (Pearcy & Potgieter, 1994), with the purpose of selecting those
research concepts with enough potential and advance them to project status. A concern
is that such an advanced screening list (see Appendix C) could terminate proposals
prematurely, and should therefore not be used in evaluating potential opportunities at
gate one in the new product development process. Following Cooper and Kleinschmidt
(1 993b:79), gate one corresponds to the screening after the preliminary assessment
stage.
11 . Results
The Manager: New Product Development regarded the criteria in the list as too
restrictive for evaluating potential opportunities at an early stage, which could stifle
creativity. The Manager: Products Research thought the list is adequate for screening
potential business opportunities at an early stage since the list takes in consideration
all the elements for a preliminary evaluation.
4.7.3 Elements of screening list
i. Purpose of question 12
The criteria that need to be considered in project evaluation differ with the
circumstances of the individual company and the concerned industry. The value of the
Sasol Technology Research and Development checklist will be lirr~ited should people
have different perceptions or even misconceptions on what each of the sub-criteria and
the elements thereof entails. The purpose of the question was to test the uniformity in
the application of the screening list.
1 1 . Results
One important consideration in the Sasol Technology Research and Development
project screening list is the alignment of a prospective project and the Sasol corporate
strategy (see Appendix C). Twiss (1 995:131) considers the aspects printed in italics
below as relevant in considering the alignment of the project proposal and corporate
strategy:
b Strategic planning.
The compatibility with the company's current strategy and long-
range plan. These may include an increase of market share of
existing products, market extension by expanding the product
range, entering international markets, reducing manufacturing
costs, enlargement through vertical integration, and growth by
acquisition or merger.
The respondents presented acceptable descriptions on the elements of the sub-
criterium "compatibility with long term plans". Their answers were, however, entirely
different with reference to specific details, which was expected.
b Corporate image.
The corporate image evolves with the value system of the
organisation, and may refer to how the company's products or
services are perceived by the customers. This perception is difficult
to change over a short period.
The respondents gave satisfactory descriptions on the elements of the sub-criterium
"company image". Both regarded the minimisation of the effluent in Sasol's processes
as important, pointing to uniformity in the application of the screening list.
• Risk aversion and innovation attitude.
Selection of a high risk project that could result in a substantial
investment of corporate funds would generally be undesirable in
a company where the top management has a high aversion to risk.
This applies mainly to commercial risks. Top management's
attitude towards innovation is closely related to their risk a version.
Innovators are in general risk-takers.
The respondent's responses concerning the elements of the sub-criterium "fit
riswinnovation culture" were omitted in one case, and incorrect in the other. In this case
there definitely exists lack of ur~iformity in the application of the screening list.
4.7.4 Non-inspiring discussions
I. Purpose of question 13
The discussions in the New ldeas Meetings should be stimulating and inspiring, as the
employees have the opportunity to address the heart and soul of the parent's strategic
requirements. Managerial interventions may be necessary should these discussions
be non-stimulating.
11 . Results
The Manager: Product Research said that the discussions are often non-stimulating as
the project proposals are poorly defined, and the proposers do not follow up with new
information in subsequent meetings. The Manager: New Product Development
believed that those participants who lack the bigger picture regarding product
availability and market opportunities may find the New ldeas Meetings non-stimulating.
4.7.5 Challenging problems
I. Purpose of question 14
The Sasol Group consists of 13 registered companies and 12 divisions (see Figure 2.1
in Chapter 2), which present difficulties for employees to understand the business and
hence to identify opportunities. The problem is exacerbated with dynamic changes in
the company to address changes in a highly competitive environment, which gained
momentum with Sasol's globalisation drive. The quality of the contributions to the New
ldeas Meetings may be enhanced by challenging employees periodically with the most
important product/process problems of the strategic business units and divisions, but
such an approach is neglected. The question is why?
I I. Results
The respondents agreed with the suggestion in principle but raised concerns. The first
concern was that too much information could stifle creativity in the early stages of the
new product development process. The second was that Sasol Technology Research
and Development could become too reactive should the business units and divisions
place more emphasis on those projects which assist in obtaining their yearly purpose
objectives. The objective of Research and Development is to ensure that new products
will be available when required, and that these will make adequate profit to attain the
profit objectives of the parent company. Sasol Technology Research and Development
should therefore place strong emphasis on balancing short, medium and long term
projects.
4.7.6 Proposals for improvement
I. Purpose of question 15
The managers of the New Products Development Group were asked for suggestions
on how to improve the percentage of ideas that pass the first screening stage in the
new product development process. Such advice should be accommodated in possible
future interventions, as each individual has unique needs and aspirations.
11. Results
The suggestions will be integrated with the recommendations in Chapter 5.
4.8 IDEA PROPOSAL: FEEDBACK FROM TECHNICAL STAFF
The feedback of the technical staff with reference to the idea proposal practices in the
New ldeas Meeting is condensed in Table 4.7, and served as the base for the results
which are discussed in Section 4.8. The questionnaire in Appendix B (Section C) is
relevant to the discussion below.
Table 4.7: Summary of the feedback from the respondents in technical positions on the
idea proposal practices in the New ldeas Meeting until June 1997.
TECHNICAL STAFF
Idea Proposal
QUESTION
9
10
11
12
GIST OF QUESTION
Number of ideas proposed
Ego response on rejection of proposal
Scientific ideas (with a remote chance of being a commercial success) have better personal pay- off potential
Business ideas (with a good chance of being a commercial success) have inferior personal pay-off potential
t
RESULT
Positive
-- -
Negative
Conceptual
9
2
7
2
8
2
13 Use of official project screening criteria list
Neutral
10
3
2
1
2
14
Spoiled
Conceptual
Is the official project screening criteria list adequate
16 Proposals on how to improve the pass-rate of suggestions
1
1
1
6
6
15
1
2
Are the discussions in the New ldeas Meeting stimulating
4.8.1 Number of proposals
i. Purpose of question nine
The employees of the New Product Development Group should, as part of their job
description, continuously generate new ideas which are formally screened in the New
ldeas Meetings. The formulation and proposal of ideas on new products or processes
are, however, not enforced and employees may contribute whenever they wish. The
number of ideas suggested per employee may reveal the perceived importance of the
New ldeas Meetings.
I I. Results
The responses of the five employees with less than one year of service at the New
Product Development Group in June 1997 were ignored, since these people have as
yet not made formal contributions to the New ldeas Meetings. The average rate of the
ideas that were suggested between February 1995 and January 1997 was as follows:
two members made no suggestions at all, five members made less than one suggestion
per year, and three members made more than one suggestion per year. The term
"members" is used instead of respondents, since the contributions of those scientists
that left the group before June 1997 or did not participate in the survey analysis were
also allowed for. The rate of suggestions is hence regarded as extremely low,
especially since more than 90% of these ideas were purely scientific in nature and
therefore easier to formulate. The New ldeas Meeting evidently has lower priority than
other obligations, which was also confirmed directly by some employees.
4.8.2 Psyche response on rejection
I. Purpose of question 10
The psychological reaction on rejection of a proposal during a New ldeas Meeting ties
in with Skinner's (1969: Contingencies of reinforcement as reviewed by Szilagyi &
Wallace, 1990: 134-1 42) operant conditioning approach to motivation. The principle
feature of the operant conditior~ing approach to motivation is the connection between
organisational stimuli, performance and consequences. The strengthening (weakening)
of the connection above through rewards (punishment) can result in the desired
behaviour pattern. Similarly, sensitive employees in the New ldeas Meeting may
experience the screening procedure as punishment, which could restrain further
proposals. The purpose of the question was therefore to test the ego response on the
rejection of a proposal.
1 1 . Results
The result in Table 4.7 reveals that none of the respondents thought that the screening
sessions in the New ldeas Meetings were too harsh. The screening session is an
important instrument for uplifting the quality of the proposals, and should not stifle the
number of proposals in the New ldeas Meeting.
4.8.3 Rewards on scientific/business ideas
I. Purpose of questions 1 1 and 12
The expectancy theory of Porter and Lawler (1968) assumes, in contrast with the
content theories, that behaviour is determined by a combination of forces within an
individual which are interacting continuously with a combination of forces in the
environment. The theory assumes that individuals place certain values on work-related
rewards and make conscious estimates of effort -> performance -> reward
relationships. The purpose of these questions was to estimate the instrumentality
parameter in the Vroom's (1964) simplified performance equation: that is the
respondents' perception of the extent to which a positive outcome is associated with
a specific level of performance in formulating scientific or business proposals.
Effort to perform = Expectancy x Instrumentality x Valence
I I. Results
The results in Table 4.7 show that 55% of the respondents perceived that many
excellent scientific proposals (with remote chance of having commercial success) will
not result in valued rewards, while 27% gathered such proposals will result in valued
rewards, and 9% remained neutral. Roughly 90% of the proposals in the New ldeas
Meetings between February 1995 and January 1997 belongs to this class of
suggestions. Some respondents conceded that any new scientific idea is good since
the gross list of ideas could result in one or two breakthroughs. The suggestion of new
ideas should therefore not be connected to merit appraisals as creative thinking would
be hampered.
Furthermore, 55% of the respondents perceived that business ideas (with good chance
of having commercial success) will result in valued rewards, while 1 8% believed such
proposals will not result in valued rewards, and 18% remained neutral.
4.8.4 Use of screening list
I. Purpose of question 13
The official Sasol Technology Research and Development project screening criteria list
was constructed in 1 994 (Pearcy & Potgieter, 1 994), with the purpose of focusing the
efforts of our resources on the most promising ideas. The criteria in the screening list
therefore direct the proposer on how to formulate a proper proposal, and should
increase the likelihood of success in defending the proposal. If people decide not to
use the checklist in formulating their respective proposals, corrective actions may be
necessary.
ii. Results
The figures in Table 4.7 show 82% of the respondents have never considered using the
screening list to formulate their respective proposals in the New ldeas Meeting. The
major reason was that the respondents were not aware of the existence of the checklist.
Two employees with service records longer than three years at Sasol Technology
Research and Development had never seen the list. Inspection revealed that more than
90% of the formal suggestions in the New ldeas Meetings were purely scientific in
nature and neglected to address the criteria in the official screening list, which ties with
the outcome of survey question number 13.
4.8.5 Adequacy of screening list
I. Purpose of question 14
A main purpose of the official Sasol Technology Research and Development project
screening list is to identify those research concepts with enough potential and advance
them to project status. A concern is that such an advanced screening list (see Appendix
C) could terminate proposals prematurely, and should therefore not be used in
screening potential opportunities after the preliminary assessment stage in the new
product development process.
. . 11 . Results
The results are shown in Table 4.7. The individuals were requested to study the Sasol
Technology Research and Development project screening list, and 72% came to the
conclusion that the list contains criteria suitable for an early evaluation. One
respondent remarked that the application of the list was very subjective, while another
regarded the criteria in the list as too restrictive in preliminary assessments.
4.8.6 Non-inspiring discussions
I. Purpose of question 15
The discussions in the New ldeas Meetings should be really challenging and
stimulating, since the scientists and engineers have the opportunity to address the
heart and soul of the parent's strategic requirements. If the discussions are not
stimulating it may indicate that some regard the New ldeas Meeting as a "snoozing
session" upon which intervention should be considered.
ii. Results
The figures in Table 4.7 reveal 63% of the respondents found the discussions in the
New ldeas Meeting tedious. The main reasons for their opinions were the poor quality
of the presentations, the lack of information, and the perception that certain individuals
always seem to dominate the discussion. Merely 18% of the respondents thought the
discussions were stimulating, while 18% remained neutral.
4.8.7 Proposals for improvement
I. Purpose of question 16
The employees of the New Products Development Group were asked for suggestions
on how to improve the percentage of ideas that pass the first screening stage in the
new product development process. Such intelligence should be accommodated in
possible future interventions, as each individual has unique needs and aspirations.
11. Results
The suggestions will be integrated with the recommendations in Chapter 5.
4.9 SENSING
4.9.1 Group interview
An unstructured group interview was conducted during the New ldeas Meeting on 25
August 1997, which was attended by all those who participated in the survey on 30
June 1997. The most relevant results of the questionnaires (Section 4.3 - 4.8) were
presented, which revealed several defects with respect to the execution of the new
product development process. The discussion centred on the question: "What is the
purpose of the New ldeas Meeting?"
4.9.2 Results
The discussion confirmed the observation of the questionnaires, in that nearly all the
scientists and the engineers were convinced that the purpose of the meeting was
similar to an idea generation session. This statement concurs with the fact that more
than 90% of the formal suggestions in the New ldeas Meetings were purely scientific
in nature and neglected to address the criteria in the official screening list (see Section
4.8.4). However, the Manager: Products Research said in a personal interview on 23
July 1997 that the purpose of the meeting was the suggestion and screening of the
most promising business ideas. This statement concurs with his views that the
screening list is adequate for screening potential business opportunities at an early
stage (see Section 4.7.2), and that the discussions in the New ldeas Meeting are often
non-stimulating as the project proposals are poorly defined (see Section 4.7.4).
4.10 SUMMARY
The indirect observation confirmed the suspicion that the number of new suggestions
that passes from the preliminary assessment stage to the detailed assessment stage
in the New ldeas Meeting, was well below international standards. Underlying causes
of the phenomenon were determined by retrieving information from the employees in
the New Product Development Group. Information on the biographical particulars of the
respondents, their intrinsic knowledge on the new product development process, their
strategies in formulating proposals, and the screening mechanism were collected. The
results of the diagnoses were discussed in sufficient detail to formulate aggregate
conclusions to be discussed in Chapter 5.
93
CHAPTER 5
CONCLUSIONS AND RECOMMENDATIONS
5.1 INTRODUCTION
The diagnoses in Chapter 4 attempted to identify possible deficiencies in execution of
the innovation process at the New Product Development Group. The major conclusions
of the diagnoses are consolidated in Chapter 5, after which the recommendations of the
study follow.
5.2 CONCLUSIONS
The concl~~sions below are discussed in accordance with the analytical techniques
employed in the study, namely:
Indirect Observation.
a Survey Questionnaires.
Group Discussion.
5.3 INDIRECT OBSERVATION
5.3.1 Attrition rate at gate one
I. Comment
The Universal Success Curve (Stevens & Burley, 1997:17) suggests 40% of potential
new projects should pass the first screening gate in the new product development
process. Unobtrusive measurements showed that only 10% of the new ideas complied
with the criteria to pass from the preliminary assessment stage to the detailed
assessment stage in the New Ideas Meeting.
11. Discussion
Though this deviation is regarded as a symptom of deficiencies in the execution of the
earlier stages of the innovation process, such defects may also be very relevant in
impeding the later stages of the process. The ensuing recommendations therefore
cover some broader concerns on the management of the new product development
process as well.
... 1 1 1 . Action
Expand the study to include other sections/groups at Sasol Technology Research and
Development, and perhaps other divisions and companies within Sasol.
5.4 SURVEY QUESTIONNAIRES
5.4.1 Knowledge on the new product development process
I. Comment
The results on the respective stages in the new product development process and the
sequential order thereof, showed 54% of the total population (managerial and technical
employees) has an adequate understanding of the process. The exact nomenclature
employed in describing the various sequential stages of the innovation process was not
regarded as important in the evaluation of the individual answers.
ii. Discussion
Although the size of the population that was investigated limits the validity of some of
the conclusions, one may deduct the following:
t Knowledge on the new product development process is related to the
hierarchy in the organisation. Workers on the higher organisational levels
(four, three and higher) at Sasol Technology Research and Development
are probably familiar with the broader concepts of the innovation process.
Those on the lower organisational levels (five, six, seven and lower) are
not necessarily familiar with the broader innovation process.
b Knowledge on the fundamentals of the new product development process
is related to the attendance of Sasol courses on project management or
project leadership. The attendants of the Sastech Project Execution
Model course (presented by Sasol Technology Engineering Services)
and/or the Project Leadership in R&D course (presented by Sasol
Technology Research and Development) were familiar with the broader
aspects of the innovation process.
t Knowledge on the innovation process is interestingly not related to
university attendance, nor to the type or number of degrees conferred,
nor to the number of service years at Sasol. More information will be
needed to establish the relationship between the awareness on the new
product development process and the curricula of the various universities
and technicons in South Africa.
iii. Action
The continued education of engineers and scientists on the innovation process should
receive much higher priority at Sasol Technology Research and Development. The
national education system of scientists and engineers in South Africa should, in
collaboration with the Government's initiatives, be examined.
5.4.2 Alignment in new product development
I. Comment
A more comprehensive analysis of the respondents' knowledge on the sequential
stages in the new product development process presented another important finding
of the study. The answers of seven respondents (named A, 6 ... G ) on the
understanding of the said topic were considered correct, and the discussion below
therefore focuses on their contributions only. Inspection showed that although the
individual contributions of Respondents A to G were correct, there was virtually no
internal alignment concerning the sequential stages of the innovation process.
. . 11. Discussion
In considering the descriptions of Respondents A to G holistically with respect to the
sequential stages in the new product development process (Table 5.1 ) the following
observations were inferred:
b 'There exists no uniformity with respect to the terminology that is used in
the description of the various stages in the innovation process. For
Table 5.1: Summary of the responses regarding the sequential stages in the new product development process. The particulars in
the shaded areas were provided by the respondents. (Although these answers were considered correct as individual contributions,