I t is not surprising to learn that companies

which have a proactive and innovative

approach towards the design and develop-
ment of new products are likely to achieve a
better performance than those which do not.
There is also a logic in the notion that better
performing companies follow their own
particular strengths, and adopt a blend of
approaches towards innovation, using
ingredients such as marketing, product
expertise, strong management and trained
personnel.
However, the concept of company
performance becomes intensified in the
light of increased global competition which
may drive industrial firms to focus on
short-term financial results, often at the
expense of a considered, long-term strategy.
But Johne and Snelson[1] observe that:
Excellent product development forces a
business to stay in touch with its customers
and markets, and forces it to look to the
future.
Clearly there is a strong relationship
between the approach taken by companies
towards new products and how those compa-
nies perform, but how much are they aware
that their attitudes at the outset or front end
of a new project can be related to different
aspects of company performance ? Hard-
pressed companies may find it increasingly
difficult keep up to date with changes in
consumer demand, competitors, new
technology and materials development
and, at the same time, plan to accommodate
possible future trends. Much also depends
on what is meant by company performance
and how that performance is measured.
Craig and Hart[2] suggest that a failure
rate of new products in the order of 30 or
40 per cent is not unusual (some put this as
low as 1 per cent[3]).They also warn that
much previous research has relied on a
narrow interpretation of successful
products by adopting only one or two
measures of product or company perfor-
mance.
17
Worl d Cl ass Desi gn t o Manuf act ure
Vol ume 2 Number 1 1995 pp. 1724
MCB Uni versi t y Press ISSN 1352-3074
Designing t he f ront
end: how at t it udes
t owards new product s
are relat ed t o company
perf ormance
Myfanwy Trueman and
David J obber
The aut hors
M yf anwy Trueman l ect ures on Desi gni ng Organi zat i ons
at t he Uni versi t y of Leeds School of Busi ness and Economi c
St udi es and Bradf ord Uni versi t y Management Cent re. She
i s part of t he Redmi l l Management Servi ces group of
consul t ant s and has recent l y compl et ed research i nt o new
product devel opment i n t he heal t h-care i ndust ry. Her
research i nt erest s i ncl ude corporat e at t i t udes and deci si on
maki ng at t he f ront end of t he i nnovat i on process, compa-
ny perf ormance measures, and t he rol e of desi gn i n new
product devel opment .
David Jobber i s Reader i n Market i ng at Bradf ord
Uni versi t y Management Cent re. Hi s research i nt erest s
i ncl ude provi si on of i nf ormat i on f or market i ng, deci si on
maki ng, market i ng st rat egy and sal es management . He
has publ i shed ext ensi vel y i n t hese areas. He has consi der-
abl e experi ence of management t rai ni ng i ncl udi ng w ork
w i t h Al l i ed Lyons, Rol l s Royce, Rhne Poul enc, Bass and
t he BBC.
Dr Trueman and Dr Jobber can be cont act ed at Bradf ord
Uni versi t y Management Cent re, Emm Lane, Bradf ord,
BD9 4JL. Tel : 01274 733466.
Abst ract
A survey of 108 UK i ndust ri al compani es compares
at t i t udes t owards new product s w i t h company perf or-
mance. The research, carri ed out at Bradf ord Uni versi t y
Management Cent re, uses a range of perf ormance mea-
sures t o exami ne t he product devel opment process and
f act ors t hat i n uence t he success and f ai l ure of proj ect s.
The ndi ngs i ndi cat e w here a change of at t i t ude can
reduce t i me t o market , i ncrease t he number of product s
l aunched and i mprove sal es grow t h. Di scusses pro l es of
t w o compani es, Edward Macbean and On Demand
Inf ormat i on, t oget her w i t h a new map of t he product
devel opment envi ronment .
Copies of the Trueman and Jobber report, Design
time: new product design and corporatesuccess, (ISBN
1-851 43-093-8, costing 15 plus p&p), can be
obtained from Bradford University Management
Centre, FAO Myfanwy Trueman, Emm Lane,
Bradford BD9 4JL .
Survey approach and perf ormance
measures
Research at Bradford University Management
Centre[4] adopts a holistic approach and sets
out to re-examine the relationships between
attitudes towards the development of new
products and company performance. It
employs a range of performance measures in
order to build up a more complete picture of
these relationships.
These are made up of nancial performance,
(measures based on an average percentage of
company nancial returns over a period of
four years), operational performance(a record
of the time it takes to develop new products,
how many are developed and launched), and
perceptual measures(perceived sales and prot
growth compared with competitors, and
contribution to turnover made by new prod-
ucts). Each measure has been selected to
reect some aspect of product performance
rather than those such as company assets,
acquisitions and mergers, which do not.
By using this range of measures it is possi-
ble to show where attitudes, gleaned from a
survey by postal questionnaire of 108 British
companies, are associated with different
aspects of performance. The results of a
statistical analysis also suggest that a change
of attitude may lead to a more objective,
innovative and proactive approach towards
new product development which, in turn,
may represent an improvement in perfor-
mance. Consequently, the overall aim of this
research is to throw new light on our under-
standing of the relationships between
attitudes and performance as well as to
examine differences and similarities across
the industrial spectrum.
Survey result s
The results of this survey are revealing and
encourage a focus on attitudes at the front end
of new projects. They also form the structure
of a new map of the product development
environment, which can be used by compa-
nies to view their approach towards new
product development in a more objective way
(Figure 1). This map is divided into control-
lable factors associated with internal company
matters such as production constraints and
technical accuracy and quality; and uncon-
trollable factors that arise from the global
business environment and world affairs,
which may be considered as external company
factors such as fashion trends and consumer
demand. Both internal and external factors
may have a profound effect on product and
company performance. The most signicant
ndings relate to time to market, number of
products developed, sales growth and return
on capital investment (Table I).
Time to market
A combination of factors arising from consumer
demand for quality products will result in
companies spending more time in the
development of new products to meet this
demand in the face of increased global
competition.
However, a reduction in development time
can be achieved by using professional trade
contacts as information sources in new product
development, and increasing corporate commit-
ment to design including the use of external
design consultants at the front end of new
projects. Lead time can also be reduced by
reviewing the development process and over-
coming production constraints by using the
latest technology.
Many factors conspire to extend rather than
reduce time to market. For example, a strong
emphasis on technical accuracy and quality is
associated with an increase in development
time because companies will need to spend
more time at the planning and testing stage to
ensure a quality product that is able to with-
stand strong competition in the marketplace.
But these factors can be offset by building in
strategies that are likely to reduce overall time
to market. According to this research, one
such strategy is to promote an awareness of
design inside the organization and top this up
by introducing external design consultants,
since both factors are associated with a
reduction in development time.
In a similar vein, a review of the develop-
ment process itself can reduce time to market,
something which embraces current notions
such as adopting a rugby team approach
towards new projects, simultaneous or
concurrent engineering and/or assigning
multidisciplinary teams to each new project.
A constant reassessment of the process itself
will ensure that companies keep abreast with
and are able to respond to changes at all levels
from world affairs and the latest technology to
market, supplier and consumer.
Also associated with a reduced lead time
are the networks of professional and trade
contacts which are likely to provide sensitive
18
Desi gni ng t he f ront end
Myf anw y Trueman and Davi d Jobber
Worl d Cl ass Desi gn t o Manuf act ure
Vol ume 2 Number 1 1995 1724
information at market level about such mat-
ters as competitors products, technological or
materials developments and changing con-
sumer demand. All these factors could be
interpreted as providing an insight into the
timeliness and appropriateness aspects of
building up what Professor Fujimoto[5], of
Tokyo University, describes as product
integrity.
However, a constant review of the develop-
ment process touches on the classic produc-
tivity versus technology or innovation dilem-
ma rst identied by Abernathy[6]. Put
simply, if companies do not innovate they may
go out of business, but innovation by deni-
tion represents change and upheaval in the
efciency and smooth running of production.
Concurrent engineering can play a large part
in resolving the complexities of tooling up for
a new production run, particularly if new
technology or materials are to be used. But
preparation work for something new is bound
to take longer. Once more the focus returns to
the front end of new projects where many
problems can be ironed out before they reach
todays potential for an increasingly speedy
production.
Number of products developed and
launched
In order to compete on a global scale and
respond to consumer demand, companies are
having to develop more ideas for new products,
but be more selective about those which are
nally launched. However, a trained workforce
will be more productive in creating design ideas,
yet more discerning in selecting those products
which are likely to meet consumer demand for
quality.
The survey results showed that attitudes
towards changing cultural and fashion trends
are associated with an increase in the number
of products developed, and indicate that these
changes provide new opportunities. This
19
Desi gni ng t he f ront end
Myf anw y Trueman and Davi d Jobber
Worl d Cl ass Desi gn t o Manuf act ure
Vol ume 2 Number 1 1995 1724
Int ernal company envi ronment
Proj ect l evel Corporat e l evel
Ext ernal company envi ronment
Market l evel Worl d af f ai rs
Gl obal
busi ness
envi ronment
Company i mage
Company and compet i t i ve i ssues
Fashi on t rends
Product
perf ormance
f eedback
Techni cal
accuracy
qual i t y
Suppl y and
demand
NPPD
process
revi ew
Market i ng-
ori ent at ed
bri ef
Macro
envi ronment
(soci o-pol i t i cal )
Ext ernal prof essi onal
t rade cont act s
Cust omer
servi ce
Product promot i on
Product perf ormance
Rel i abi l i t y
Durabi l i t y
Depreci at i on
Int ernal and ext ernal desi gn i nf l uence
Product i on const rai nt s
Product det ai l s
Int ernal company
experi ence
Int ernal and ext ernal net w orks and dat abases
Qual i t y
Product i on
(f i ni shed product )
Trai ni ng
IT i n
manuf act ure
IT i n product ,
prot ot ype
devel opment
IT i n
i nf ormat i on
management
Maj or i nf l uences
Key i ssues
Inf ormat i on
i mport ance
Inf ormat i on
access
Pri ori t i es
and
probl ems
Inf ormat i on
t echnol ogy
i n NPPD
Consumer
demand
Cycl i c Rel at i onshi p bet w een Fact ors and t he Int ernal /Ext ernal Company Envi ronment
Figure 1 Map of t he new product devel opment
envi ronment
trend is also likely to be enhanced by new
materials and technology, since the range and
scope for new products can be extended. But
product development is not synonymous with
launch, and development time is costly. Com-
panies can ill-afford to adopt new products
that will not sell.
Another dimension is evident in the nding
that shows a relationship between overcoming
problems in durability and an increase in the
number of products developed. Here the
focus on durability may stem from a paradigm
shift in consumer demand away from instant,
disposable products towards those which are
reliable and durable, in the light of public
concern about matters to do with the global
environment (green design), recycling and
dwindling world resources. Similarly, if com-
panies put a priority on quality products
(which are reliable and durable), they will
20
Desi gni ng t he f ront end
Myf anw y Trueman and Davi d Jobber
Worl d Cl ass Desi gn t o Manuf act ure
Vol ume 2 Number 1 1995 1724
Table I Abri dged research ndi ngs
Perf ormance measure At t it ude Result I nt erpret at ion
New product development t ime Devel opment process revi ew Negat i ve Reduces devel opment t i me
Techni cal accuracy, qual i t y Posi t i ve Increases devel opment t i me
Ext ernal /i nt ernal desi gn i n uence Negat i ve Reduces devel opment t i me
Gl obal busi ness envi ronment pressures Posi t i ve Increases devel opment t i me
Overcomi ng product i on const rai nt s Negat i ve Reduces devel opment t i me
More product det ai l s Posi t i ve Increases devel opment t i me
Prof essi onal t rade cont act i nf ormat i on Negat i ve Reduces devel opment t i me
Product perf ormance pri ori t y Posi t i ve Increases devel opment t i me
Trai ni ng pri ori t y Posi t i ve Increases devel opment t i me
Qual i t y st andard of ni sh pri ori t y Posi t i ve Increases devel opment t i me
Inf ormat i on t echnol ogy i n manuf act ure Posi t i ve Increases devel opment t i me
Number of product s developed Number of new product s devel oped
and launched Company i mage pri ori t y Posi t i ve More product s devel oped
In uence of f ashi on t rends Posi t i ve More product s devel oped
Product perf ormance pri ori t y Negat i ve Few er product s devel oped
Trai ni ng pri ori t y Posi t i ve More product s devel oped
Qual i t y pri ori t y Posi t i ve More product s devel oped
Product promot i on pri ori t y Posi t i ve More product s devel oped
Overcomi ng durabi l i t y probl ems Posi t i ve More product s devel oped
Overcomi ng rel i abi l i t y probl ems Posi t i ve More product s devel oped
Number of product s l aunched compared w i t h t hose devel oped
Product i on const rai nt s i nf ormat i on Negat i ve Few er product s devel oped
Market i ng i nf ormat i on Negat i ve Few er product s devel oped
Trai ni ng pri ori t y Negat i ve Few er product s devel oped
Qual i t y pri ori t y Negat i ve Few er product s devel oped
Product promot i on pri ori t y Negat i ve Few er product s devel oped
Sales growt h In uence of f ashi on t rends Negat i ve Reduces sal es grow t h
In uence of company/compet i t i ve i ssues Negat i ve Reduces sal es grow t h
Int ernal company experi ence i nf ormat i on Negat i ve Reduces sal es grow t h
Product i on pri ori t y Negat i ve Reduces sal es grow t h
Trai ni ng pri ori t y Posi t i ve Increases sal es grow t h
IT (CAD) i n f ront -end desi gn Posi t i ve Increases sal es grow t h
Ret urn on capit al In uence of f ashi on t rends Negat i ve Reduces ret urn on capi t al
Product perf ormance pri ori t y Posi t i ve Increases ret urn on capi t al
Overcomi ng product i on ef ci ency Posi t i ve Increases ret urn on capi t al
probl ems
Overcomi ng cust omer servi ce probl ems Posi t i ve Increases ret urn on capi t al
develop more but launch fewer products
because they will be more selective about
those which are nally launched.
Company image and priority given to
training are also related to the number of
products developed and launched. The
results showed that if a company focuses on its
image it is likely to be in the process of devel-
oping more products, which will in turn
enhance its image. At the same time, compa-
nies using leading edge technology are more
likely to enjoy a high prole. This interpreta-
tion ties in with the link between training and
the launch of more products since companies
which match training to an investment in new
technology are in a position to launch more
new products.
Sales growth
Increased competition is associated with a
reduction in sales. This may reect the difculty
companies have in competing in the world
marketplace without an effective mechanism for
obtaining information about cultural changes
and the nature of consumer demand. However,
training in new technology, particularly at the
early stages of new projects, and the develop-
ment of knowledge about consumer demand is
likely to result in successful products which will
improve sales.
Most of the sales growth measures show a
negative relationship with company attitudes.
This may be associated with the difculties
that companies face in keeping up to date with
the nature of changes in consumer demand in
the face of increased competition. It is illus-
trated by the results which show that if com-
panies are inwardly, focused and rely too
much on internal company experience to
obtain information for new projects, then
sales growth will fall. This is evidence that
many industrial companies do not have an
effective mechanism in place for acquiring
information about world affairs, changing
markets or competitors. It is also consistent
with the results which show a gap between the
importance attached to consumer demand
and a means of obtaining information about
that demand.
However, a negative association between
sales growth and priority given to production
in the information design sector is thought to
relate to the cost of production, particularly if
this includes investment in the latest informa-
tion technology (IT). But this expense may be
countered by training since the ndings indi-
cate that an increase in training in design,
customer awareness, and technology is associ-
ated with an increase in sales. Training in
CAD (computer aided design) at the early
stages of new projects is also related to an
increase in sales and suggests that investment
in IT should be focused around training and
updating company personnel as much as the
technology itself.
Return on capital
Changes in consumer demand, linked to cultur-
al and fashion trends, provide opportunities for
new products. But investment in new products
and the associated technology is expensive so
that companies may experience a reduced
return on capital investment in the short term.
However, return on capital can be improved by
overcoming problems in customer service,
product performance and production efciency
since all are associated with condence in the
company and product.
The ndings show a number of attitudes
which are related to an improved return on
capital (ROC). This measure reects compa-
ny performance in the short term, and may be
more consistent than the other indicators
since companies need to maintain their invest-
ments in order to stay in business. However,
there are some expectations of a reduced
ROC if prot margins are cut. Adverse effects
may also result from expensive investment in
new technology, since the benets from such
investments may take some time to realize.
The survey found that companies which
prioritize customer service, production ef-
ciency and product performance increase
their ROC. All point to the importance of
consumer demand for quality and reliability
in products, and reect the focus on gaining
detailed information about consumer needs,
as well as the concept of after-sales service,
practised by the most successful companies.
In other words they are customer rather than
product focused. This notion is described by
Woodhuysen[7] as user pull rather than tech-
nology push, and reinforces the view of much
previous research which suggests that UK
companies have focused too narrowly on
production and product, paying insufcient
regard to the needs of the consumer.
On the other hand, fashion trends has a nega-
tive relationship with ROC. This suggests that
although changes in consumer demand,
linked to cultural and fashion trends, provide
opportunities for new products, the develop-
ment of those products may be costly, espe-
cially if this means an investment in new
21
Desi gni ng t he f ront end
Myf anw y Trueman and Davi d Jobber
Worl d Cl ass Desi gn t o Manuf act ure
Vol ume 2 Number 1 1995 1724
technology. Companies may take some time
to recoup these investment costs, so that there
is likely to be a reduction in ROC in the short
term.
A prole of t wo companies
A number of the 108 UK companies in this
sample appear to be getting it right since
they perform well on the key performance
measures used by this survey. Examples of
these are Edward Macbean (Glasgow) and
On Demand I nformation (Leeds). Each has
a different development strategy but both
have a proactive, long-term approach
towards new products, invest heavily in new
technology, prioritize quality and customer
service, and above all are responsive to
changes in customer needs and in the global
environment.
Macbeans foul weather clothing
Edward Macbean is a long established com-
pany which produces foul weather protective
clothing. It has diversied and gained a new
direction following a management buyout in
1987, extending its markets from eld sports
and the shing industry to equipping person-
nel in the water industry, the police force, re
service, telecommunications, port authorities
and oil rigs.
The company now trades in Europe as
well as the UK and is building up its customer
base overseas through its principal agent,
A. Mauritz en Zn B.V. in Holland, GmbH in
Germany and a new base in Switzerland.
It has recently merged with the Hollas Group
plc (June 1994) and its most recent contract is
with a Japanese company.
Quality, design and reliability are central
to company policy with the carefully selected
slogan: Anyone can make it cheaper
No-one can make it better. To this end
stringent quality control and materials test-
ing is made possible by investment in the
latest technology and Macbean was the first
company in Europe to gain BS 5750, I SO
9001 and EN29001 quality accreditation in
this field. The emphasis on quality is evident
in their product brochure and also in their
prompt and efficient response to enquiries,
which demonstrates attention to detail and
elicits confidence in the company.
22
Desi gni ng t he f ront end
Myf anw y Trueman and Davi d Jobber
Worl d Cl ass Desi gn t o Manuf act ure
Vol ume 2 Number 1 1995 1724
Macbean f oul w eat her prot ect i ve cl ot hi ng
At the same time, the company carries out
materials research with its suppliers such as
Gor Tex, Talon Textiles Ltd and 3M. New
products are developed by working alongside
clients since this is a bespoke service. The
sales director explains: We are not interest-
ed in manufacturing a garment and then
trying to sell it. I nstead, we would rather
look closely into what the client really
needs.
He also stresses the value of design,
particularly at the front end of the new prod-
uct development process, which helped the
company break into the fashion conscious
German market. Here a CAD system allows
a speedy response to customer requirements
from clear and precise garment illustrations.
From a practical viewpoint, design has also
enabled Macbean to reduce production time.
For example, the redesign of a pocket reduced
one aspect of production from 33 to three
minutes!
On Demand Information: multimedia in
a changing world
On Demand Information plc (ODI) was
oated on the Stock Exchange in December
1993. It has grown out of the parent compa-
nys, Graham Poulter Advertising and Com-
23
Desi gni ng t he f ront end
Myf anw y Trueman and Davi d Jobber
Worl d Cl ass Desi gn t o Manuf act ure
Vol ume 2 Number 1 1995 1724
Source material held digitally in
centrally administered computer-based system
FINANCIAL
INFORMATION
NEWSLETTERS
& MAGAZINES
TRAINING
MATERIALS
ADVERTISING TRAINING BROCHURES
PHOTOS
REFERENCE &
MAINTENANCE
MANUALS
SOUND
TRACKS
VIDEOS
On Demand Inf ormat i on s i nt eract i ve medi a syst em
munications, and is the brainchild of this
company chairman and CEO. He saw the
potential for new technology and interactive
media for accessing information at the front
end of new product design. This product is a
multmedia on demand information system
which calls up high quality images as well as
text from the latest product literature, legal
documents and technical information in the
form of a product reference library and
encyclopaedia.
In fact it represents the comprehensive
information needed at the outset of a new
project. Images are integrated and cross
referenced with the text so that the
user can switch and browse from one to the
other, building up an annotated le of each
key document selected. Further information
requests to companies can be organized,
mailed out, and retrieved by the system.
Hard copies of information can be down
loaded as and when necessary.
Initial research has focused on providing a
service for the construction industry, and has
been developed in alliance with the Building
Centre, information from HMSO, British
Standards and other relevant technical infor-
mation providers. Extensive tests were carried
out by supplying users with workstations that
utilized a CD-ROM based system which was
updated at regular intervals by the company.
However, as the product matured the advan-
tages of on demand information outweighed
the more cumbersome CD-ROM so that it
has been superseded, utilizing British Tele-
coms ISDN (integrated services digital net-
work) to access digitized information, stored
on a central (host) computer.
At the same time, by building up joint
ventures with content providers, ODI has now
developed a service for marketing in collabo-
ration with Haymarket Publishing, and for the
packaging industry with PIRA. Future devel-
opments include products for various indus-
tries including training, nancial services,
wholesale and retail, medical, legal and a
number of civil sectors.
A survey carried out by Barclays de Zoette
Wedd Research[8], describes ODI as at the
forefront of a trend towards multimedia
products. It observes that by building up close
contacts and joint ventures with the content
suppliers the company is in a strong position
for long-term growth since this secure source
base makes it more difcult for other compa-
nies to get established in the eld. In a similar
way the source material is relatively inexpen-
sive since it represents advertising for those
suppliers featured in the database, and the
dissemination of government legislation or
regulations and standards.
However the whole enterprise has meant
an enormous investment approximately 2
million for the parent company, which has
been established since 1969. Research and
development has been ongoing, with a par-
ticular focus on multimedia systems since
1989, leading to the company flotation in
1993. Future developments are likely to
include videoconferencing while viewing
documents, user-sender communications,
integral video film and printing where the
recipient rather than the publisher could be
in control. I n fact Barclays de Zoette
Wedd[8] consider that the companys core
asset is the vision to see new applications of
I SDN technology. Although they recognize
that all such ventures represent a high risk,
they give ODI a star recommendation for
potential investors, based on their view of
industry evolution.
Ref erences
1 Johne, A. and Snel son, P., Successf ul Product Devel op-
ment , Bl ackw el l , Oxf ord, 1990.
2 Crai g, A. and Hart , S., Di mensi ons of success i n new
product devel opment , i n Market i ng f or Europe
Market i ng f or t he Fut ure, 21st Annual Conf erence of
t he European Market i ng Academy Conf erence
Proceedi ngs, Grunert , K.G. and Fugl ede, D. (Eds),
Aarhus School of Busi ness, Denmark, 26-29 May
1992.
3 Hol l i ns, B. and Pugh, S., Successf ul Product Desi gn,
But t erw ort h, London, 1990.
4 Trueman, M. and Jobber, D., Desi gn t i me: new
product desi gn and corporat e success: how corporat e
at t i t udes t owards new product desi gn rel at e t o
company perf ormance and pro t abi l i t y , Report of
research sponsored by ESRC, Bradf ord Uni versi t y
Bradf ord, 1993.
5 Fuj i mot o, T., Grow t h of i nt ernat i onal compet i t i on
and t he i mport ance of ef f ect i ve product devel opment
management and t he rol e of desi gn , i n Product
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Desi gni ng t he f ront end
Myf anw y Trueman and Davi d Jobber
Worl d Cl ass Desi gn t o Manuf act ure
Vol ume 2 Number 1 1995 1724