The effect of integrated product development on efficiency and innovation

This study tested the effect of integrated product development ( IPD) on the efficiency and innovation displayed in new product development ( NPD) projects. IPD refers to the overlap, parallel execution, and concurrent workflow of activities. More than 600 employees from 62 R& D projects in one large hi- tech electronics organisation participated in the study. The degree to which the projects had actual IPD, innovated and worked efficiently were measured using the organisation's data collection system and questionnaires. Analysis was conducted at the project level. Seven regression models, as well as multiple comparison tests, were applied. The findings suggest that IPD is positively associated with efficiency and negatively with innovation. However, the trade- off. between efficiency and innovation in NPD projects can be balanced, if the IPD level of implementation is tailored to the NPD project stages. Specifically, to successfully complete an NPD project, the emphasis in early stages must be on innovation so that it can assist teams seeking new ideas. Hence, management should implement a low level of IPD at this point. In later stages efficiency must be emphasised so it assists control, and co- ordination, and consequently, IPD should be implemented intensively.