IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v270y2018i1d10.1007_s10479-016-2379-x.html
   My bibliography  Save this article

Unlocking the power of big data in new product development

Author

Listed:
  • Yuanzhu Zhan

    (Nottingham University Business School)

  • Kim Hua Tan

    (Nottingham University Business School)

  • Yina Li

    (South China University of Technology)

  • Ying Kei Tse

    (University of York)

Abstract

This study explores how big data can be used to enable customers to express unrecognised needs. By acquiring this information, managers can gain opportunities to develop customer-centred products. Big data can be defined as multimedia-rich and interactive low-cost information resulting from mass communication. It offers customers a better understanding of new products and provides new, simplified modes of large-scale interaction between customers and firms. Although previous studies have pointed out that firms can better understand customers’ preferences and needs by leveraging different types of available data, the situation is evolving, with increasing application of big data analytics for product development, operations and supply chain management. In order to utilise the customer information available from big data to a larger extent, managers need to identify how to establish a customer-involving environment that encourages customers to share their ideas with managers, contribute their know-how, fiddle around with new products, and express their actual preferences. We investigate a new product development project at an electronics company, STE, and describe how big data is used to connect to, interact with and involve customers in new product development in practice. Our findings reveal that big data can offer customer involvement so as to provide valuable input for developing new products. In this paper, we introduce a customer involvement approach as a new means of coming up with customer-centred new product development.

Suggested Citation

  • Yuanzhu Zhan & Kim Hua Tan & Yina Li & Ying Kei Tse, 2018. "Unlocking the power of big data in new product development," Annals of Operations Research, Springer, vol. 270(1), pages 577-595, November.
    • Handle: RePEc:spr:annopr:v:270:y:2018:i:1:d:10.1007_s10479-016-2379-x
    DOI: 10.1007/s10479-016-2379-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-016-2379-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-016-2379-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Milé Terziovski, 2010. "Innovation practice and its performance implications in small and medium enterprises (SMEs) in the manufacturing sector: a resource‐based view," Strategic Management Journal, Wiley Blackwell, vol. 31(8), pages 892-902, August.
    2. Eric von Hippel & Ralph Katz, 2002. "Shifting Innovation to Users via Toolkits," Management Science, INFORMS, vol. 48(7), pages 821-833, July.
    3. Pengzhong Li (ed.), 2011. "Supply Chain Management," Books, IntechOpen, number 957.
    4. Erik Brynjolfsson & Kristina McElheran, 2016. "The Rapid Adoption of Data-Driven Decision-Making," American Economic Review, American Economic Association, vol. 106(5), pages 133-139, May.
    5. Schaarschmidt, Mario & Kilian, Thomas, 2014. "Impediments to customer integration into the innovation process: A case study in the telecommunications industry," European Management Journal, Elsevier, vol. 32(2), pages 350-361.
    6. Fosso Wamba, Samuel & Akter, Shahriar & Edwards, Andrew & Chopin, Geoffrey & Gnanzou, Denis, 2015. "How ‘big data’ can make big impact: Findings from a systematic review and a longitudinal case study," International Journal of Production Economics, Elsevier, vol. 165(C), pages 234-246.
    7. Von Hippel, Eric A. & Katz, Ralph, 2002. "Shifting Innovation to Users Via Toolkits," Working papers 4232-02, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    8. Noble, Charles H. & Noble, Stephanie M. & Adjei, Mavis T., 2012. "Let them talk! Managing primary and extended online brand communities for success," Business Horizons, Elsevier, vol. 55(5), pages 475-483.
    9. Andrew M. Pettigrew, 1990. "Longitudinal Field Research on Change: Theory and Practice," Organization Science, INFORMS, vol. 1(3), pages 267-292, August.
    10. Tan, Kim Hua & Zhan, YuanZhu & Ji, Guojun & Ye, Fei & Chang, Chingter, 2015. "Harvesting big data to enhance supply chain innovation capabilities: An analytic infrastructure based on deduction graph," International Journal of Production Economics, Elsevier, vol. 165(C), pages 223-233.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jason Kobina Arku & Yunfei Shao & Shadrach Twumasi Ankrah, 2024. "Building a Hierarchical Enablers Framework for Service Business Model Innovation for Sustainable Performance: Evidence from Ghana’s Electricity Sector," Sustainability, MDPI, vol. 16(8), pages 1-23, April.
    2. Brea, Edgar & Ford, Jerad A., 2023. "No silver bullet: Cognitive technology does not lead to novelty in all firms," Technovation, Elsevier, vol. 122(C).
    3. Fredrick Betuel Sawe & Anil Kumar & Jose Arturo Garza‐Reyes & Rohit Agrawal, 2021. "Assessing people‐driven factors for circular economy practices in small and medium‐sized enterprise supply chains: Business strategies and environmental perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 2951-2965, November.
    4. Taiwen Feng & Hongyan Sheng, 2023. "Identifying the equifinal configurations of prompting green supply chain integration and subsequent performance outcome," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5234-5251, December.
    5. Pablo Martínez de Miguel & Carmen De-Pablos-Heredero & Jose Luis Montes & Antón García, 2022. "Impact of Dynamic Capabilities on Customer Satisfaction through Digital Transformation in the Automotive Sector," Sustainability, MDPI, vol. 14(8), pages 1-19, April.
    6. Chiara Bartoli, 2022. "Consumer self-concept and digitalization: what does this mean for brands?," Italian Journal of Marketing, Springer, vol. 2022(4), pages 419-437, December.
    7. Park, Jaehun & Lee, Byung Kwon, 2021. "An opinion-driven decision-support framework for benchmarking hotel service," Omega, Elsevier, vol. 103(C).
    8. Tomohiko Sakao & Abhijna Neramballi, 2020. "A Product/Service System Design Schema: Application to Big Data Analytics," Sustainability, MDPI, vol. 12(8), pages 1-22, April.
    9. Liu, Haoyu & Tan, Kim Hua & Pawar, Kulwant, 2022. "Predicting viewer gifting behavior in sports live streaming platforms: The impact of viewer perception and satisfaction," Journal of Business Research, Elsevier, vol. 144(C), pages 599-613.
    10. Russell Tatenda Munodawafa & Satirenjit Kaur Johl, 2019. "Big Data Analytics Capabilities and Eco-Innovation: A Study of Energy Companies," Sustainability, MDPI, vol. 11(15), pages 1-21, August.
    11. Muhammad Zafar Yaqub & Abdullah Alsabban, 2023. "Industry-4.0-Enabled Digital Transformation: Prospects, Instruments, Challenges, and Implications for Business Strategies," Sustainability, MDPI, vol. 15(11), pages 1-33, May.
    12. Haiyun, Cui & Zhixiong, Huang & Yüksel, Serhat & Dinçer, Hasan, 2021. "Analysis of the innovation strategies for green supply chain management in the energy industry using the QFD-based hybrid interval valued intuitionistic fuzzy decision approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    13. Wilkin, Carla & Ferreira, Aldónio & Rotaru, Kristian & Gaerlan, Luigi Red, 2020. "Big data prioritization in SCM decision-making: Its role and performance implications," International Journal of Accounting Information Systems, Elsevier, vol. 38(C).
    14. Mihalis Giannakis & Rameshwar Dubey & Shishi Yan & Konstantina Spanaki & Thanos Papadopoulos, 2022. "Social media and sensemaking patterns in new product development: demystifying the customer sentiment," Annals of Operations Research, Springer, vol. 308(1), pages 145-175, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ghasemzadeh, Khatereh & Bortoluzzi, Guido & Yordanova, Zornitsa, 2022. "Collaborating with users to innovate: A systematic literature review," Technovation, Elsevier, vol. 116(C).
    2. Deepa Mishra & Angappa Gunasekaran & Thanos Papadopoulos & Stephen J. Childe, 2018. "Big Data and supply chain management: a review and bibliometric analysis," Annals of Operations Research, Springer, vol. 270(1), pages 313-336, November.
    3. Habicht, Hagen & Oliveira, Pedro & Shcherbatiuk, Viktoriia, 2012. "User Innovators: When Patients Set Out to Help Themselves and End Up Helping Many," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 66(3), pages 277-295.
    4. Pan Liu & Shu-ping Yi, 2018. "Investment decision-making and coordination of a three-stage supply chain considering Data Company in the Big Data era," Annals of Operations Research, Springer, vol. 270(1), pages 255-271, November.
    5. Spencer H. Harrison & Kevin G. Corley, 2011. "Clean Climbing, Carabiners, and Cultural Cultivation: Developing an Open-Systems Perspective of Culture," Organization Science, INFORMS, vol. 22(2), pages 391-412, April.
    6. Alexandros D. Tsangaridis, 2014. "Strategic Financial Analysis Of The Merger Of New Tt Hellenic Postbank S.A. With Eurobank - Ergasias Bank S.A," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 8(1), pages 354-372.
    7. Maria Antonietta Raimondo & Gaetano Nino Miceli & Stefania Farace, 2013. "Self o mass branding? La relazione tra personalizzazione e marca," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2013(4), pages 149-171.
    8. Nikolaus Franke & Martin Schreier & Ulrike Kaiser, 2010. "The "I Designed It Myself" Effect in Mass Customization," Management Science, INFORMS, vol. 56(1), pages 125-140, January.
    9. Zhang, De-Peng & Yang, Chen-hui & Zhang, Feng-Hua, 2014. "Analysis of the equity preference influence in customer participation incentives," Economic Modelling, Elsevier, vol. 41(C), pages 1-8.
    10. Shenja van der GRAAF, 2014. "Smarten Up! Open Data, Toolkits and Participation in the Social City," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(96), pages 35-52, 4th quart.
    11. Borner, Kathrin & Berends, Hans & Deken, Fleur & Feldberg, Frans, 2023. "Another pathway to complementarity: How users and intermediaries identify and create new combinations in innovation ecosystems," Research Policy, Elsevier, vol. 52(7).
    12. Roßmann, Bernhard & Canzaniello, Angelo & von der Gracht, Heiko & Hartmann, Evi, 2018. "The future and social impact of Big Data Analytics in Supply Chain Management: Results from a Delphi study," Technological Forecasting and Social Change, Elsevier, vol. 130(C), pages 135-149.
    13. Eisenbeiss, Maik & Blechschmidt, Boris & Backhaus, Klaus & Freund, Philipp Alexander, 2012. "“The (Real) World Is Not Enough:” Motivational Drivers and User Behavior in Virtual Worlds," Journal of Interactive Marketing, Elsevier, vol. 26(1), pages 4-20.
    14. Frédéric Marty & Julien Pillot, 2019. "Cooperation, Dependence and Eviction - How Platform-To-Business Relationships in Mobile Telephony Ecosystems Should Be Addressed in A Competition Law Perspective?," CIRANO Working Papers 2019s-01, CIRANO.
    15. Anna S. Cui & Fang Wu, 2016. "Utilizing customer knowledge in innovation: antecedents and impact of customer involvement on new product performance," Journal of the Academy of Marketing Science, Springer, vol. 44(4), pages 516-538, July.
    16. Felix Homfeldt & Alexandra Rese & Hanno Brenner & Daniel Baier & Til Fabio Schäfer, 2017. "Identification And Generation Of Innovative Ideas In The Procurement Of The Automotive Industry: The Case Of Audi Ag," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(07), pages 1-31, October.
    17. Nikolaus Franke & Martin Schreier, 2008. "Product uniqueness as a driver of customer utility in mass customization," Marketing Letters, Springer, vol. 19(2), pages 93-107, June.
    18. Kozjek, Dominik & Vrabič, Rok & Eržen, Gregor & Butala, Peter, 2018. "Identifying the business and social networks in the domain of production by merging the data from heterogeneous internet sources," International Journal of Production Economics, Elsevier, vol. 200(C), pages 181-191.
    19. Adrián Kovács & Bart Looy & Bruno Cassiman, 2015. "Exploring the scope of open innovation: a bibliometric review of a decade of research," Scientometrics, Springer;Akadémiai Kiadó, vol. 104(3), pages 951-983, September.
    20. Alfonso Gambardella & Christina Raasch & Eric von Hippel, 2017. "The User Innovation Paradigm: Impacts on Markets and Welfare," Management Science, INFORMS, vol. 63(5), pages 1450-1468, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:270:y:2018:i:1:d:10.1007_s10479-016-2379-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.