Managing the Innovation Process Cross-Functionality Overview • Take-Away • Required Readings • Supplemental Readings • Caveats 2 Take-Away • Innovation can be fostered by heavyweights • Innovation can be hindered by thought worlds • Innovation relies on team functional diversity • Innovation requires organizational adaptation 3 (Clark & Wheelwright, 1992) • “Organizing and leading "heavyweight" development teams” • Types of Development Project Teams (functional, lightweight, heavyweight, tiger/autonomous) • Heavy-Weight Structures Are Most Effective (example – Motorola’s Bandit line of pagers) • Change Required in Fundamental Behavior (example – Fred / Team A vs Jim / Team B) 4 (Dougherty, 1992) • “Interpretive barriers to successful product innovation in large firms” • Linking Technology/Market With Product Design (contribute to innovation and new product success) • Departmental Thought Worlds (technical, field, manufacturing, planning) • Organizational Routines (interdepartmental relations, market definition, product standards) 5 (Ancona & Caldwell, 1992) • “Demography and design: Predictors of new product team performance” • High-Technology Industry (increasing reliance on new product teams – e.g., photo) • Designing Cross-Functional Teams (should there be more or less diversity– of which types?) • Functional Diversity Related to External Communication (external communication related to manager performance) 6 (Eisenhardt & Tabrizi, 1995) • “Accelerating adaptive processes: Product innovation in the global computer industry” • Global Computer Industry (product innovation facilitates adaptation) • Inertial Organizations vs Malleable Organizations (slow shifts vs punctuated equilibrium and fast change) • Compression Model vs Experiential Model (squeezing well-known vs improvising uncertain process) 7 (Griffin & Hauser, 1992) • “Patterns of communication among marketing, engineering, and manufacturing” • Automobile Industry (parallel component projects, e.g., headlight and taillight) • Marketing, Engineering, Manufacturing (new product development in two different teams) • Phase-Review vs. Quality Function Deployment (QFD) (traditional vs. Japanese development process) 8 Caveats • What if you don’t have access to heavyweights? • When do thought worlds help knowledge acquisition? • Is too much functional diversity harmful? • How does time pressure affect functional integration? 9