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Creating Products in the Absence of Markets: A Robust Design Approach

Author

Listed:
  • Christophe Midler

    (CRG - Centre de recherche en gestion - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique)

  • Philippe Silberzahn

    (CRG - Centre de recherche en gestion - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique)

Abstract

Purpose - The purpose of this study is to examine how firms deal with a situation of true uncertainty about their potential markets and technologies. Specifically, we ask how firms can create products when the corresponding market does not exist. Design/methodology/approach – This paper is based on a longitudinal study of a high-tech firm, combined with analysis of existing theory in Product Design and Entrepreneurship. Findings – Markets and products are usually a defining choice made early on by firms in their strategic process. Such a choice guides their development by providing a ‘stable concept' to which decisions can be related to. When markets do not exist yet, however, this approach is not effective: Early choice of products and markets limits firms' flexibility by constraining their ability and willingness to adapt, while fundamental new technical and market information is likely to emerge during the project that will prove the initial assumptions wrong. We show an alternative approach where products and markets actually result from a generic process of products and markets exploration driven by the firm. We suggest that this approach forms a robust design in that it allows the firm to deal with the uncertainty by simultaneously developing its products and exploring markets, while preserving the flexibility to adapt to the changing environment. Practical implications – The practical implication of this paper is to suggest an alternative approach to deliberate planning in high-tech ventures. With this approach, rather than markets and products, strategy defines a market and technology exploration process. Originality/value – The paper is original in three ways: 1) It links the product design and market exploration processes in high-tech firm development; 2) It is based on an in-depth longitudinal study; and 3) It results from an academic-practitioner collaborative work.

Suggested Citation

  • Christophe Midler & Philippe Silberzahn, 2008. "Creating Products in the Absence of Markets: A Robust Design Approach," Post-Print hal-00404187, HAL.
    • Handle: RePEc:hal:journl:hal-00404187
    DOI: 10.1108/17410380810853812
    Note: View the original document on HAL open archive server: https://hal.science/hal-00404187
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    References listed on IDEAS

    as
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    Cited by:

    1. Armand Hatchuel & Pascal Le Masson & Benoit Weil & Marine Agogué & Akin Kazakçi & Sophie Hooge, 2015. "Multiple forms of applications and impacts of a design theory -ten years of industrial applications of C-K theory," Post-Print hal-01200460, HAL.
    2. Thomas Gillier & Gérald Piat & Benoît Roussel & Patrick Truchot, 2009. "Portfolio Management Of Innovation Fields : Applying Ck Design Theory In Cross Industry Exploratory Partnership," Post-Print hal-00416790, HAL.
    3. Armand Hatchuel & Pascal Le Masson & Benoit Weil & Marine Agogué & Akin Kazakçi & Sophie Hooge, 2016. "Multiple forms of applications and impacts of a design theory -ten years of industrial applications of C-K theory," Post-Print hal-01184426, HAL.

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