VISIONS Insights into Innovation

Hyundai’s
“Touch the Market”

ALSO INSIDE:
• UK/Ireland
• Launch Architects
• Chinese Auto Industry
• Lean Product Development

June 2007 VOL. XXXI NO. 2

Henry Chesbrough discusses Open Business Models


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 VISIONS Insights into Innovation
™
JUNE 2007 VOL. XXXI NO. 2
Cover story: Hyundai uses Overview of Lean Product
“Touch the Market” p. 16 Development p. 11
Chesbrough on Open Business China automotive conference
Models p. 20 in Wuhan p. 24
Up Front
4 From the Editor of Visions April Klimley
5 Letter from the PDMA President and Chairman Hamsa Thota
5 News from the PDMA Executive Director’s Office Robin Karol
6 LAUNCH PAD: Who will you designate as “Launch Architect”?
Mark A. Hart
To increase the effectiveness of future launches, Visions Launch
Editor Mark Hart introduces the concept of a “launch architect.”
8 IN FOCUS: Comprehending innovation tools Gregory Githens
Greg Githens explains how innovators can make three tools more ef-
fective; they are SWIFT, RAID, and FAME.
10 VIEWPOINT: One more word on ethnography Gerry Katz
Gerry Katz replies to Anne Orban’s March 2007 rebuttal—continuing
the debate over the proper use of ethnographic research techniques.
Visions is published four times a year, in March, June, September, and December, by the
Product Development and Management Association (PDMA), 15000 Commerce Parkway,
Suite C, Mount Laurel, NJ 08054. Each article reflects the expertise of the individual author,
not PDMA itself. To become a member, contact us at 1-800-232-5241 or by E-mail at pdma@
pdma.org. Copyright 2007 © PDMA. All rights reserved. No part of this publication may
be reproduced by any means, or transmitted, or translated into machine language without
the written permission of the publisher, PDMA.
PDMA Visions Magazine
NPD Trends/Practices
11 What is “lean” about product development? Katherine Radeka and
Tricia Sutton
This article by Katherine Radeka and Tricia Sutton describes the variety
of approaches to Lean Product Development and explains how these
principles place customer value at the center of product development.
16 COVER STORY: Hyundai uses “Touch the Market” to create clarity
in product concepts Heather Kluter and Doug Mottram
In this article, Heather Kluter explains how Hyundai has used its own
customer-centric research process, called “Touch the Market” to
develop the second generation Santa Fe, launched in 2007
19 PDMA Conference Calendar
20 From Open Innovation to Open Business Models: An interview with
Chesbrough Henry Chesbrough interviewed by Michael Docherty
Visions Open Innovation Editor Michael Docherty interviews Henry
Chesbrough, the leading authority on Open Innovation, about the
ideas in his new book, Open Business Models: How to Thrive in the
New Innovation Landscape (Harvard Business School Press, 2006)
22 Arizona Chapter conference focuses on sustainability
Don Hardenbrook
In this Arizona Chapter report, Don Hardenbrook provides the high-
lights of a regional conference on green product development.
Global News
24 Report from China: Wuhan Conference examines the need for
innovation in China’s automotive industry Raja Irfan Sabir
Raja Irfan Sabir reports on the December 2006 conference on the
automotive industry held in Wuhan, China.
26 Spotlight on UK/Ireland: PDMA affiliate holds workshop on
creativity in product development Pammi Sinha and Tricia Sutton
Pammi Sinha and Visions Chapter Spotlight Editor Tricia Sutton review
the findings of recent research on creativity presented at a creativity
workshop held by PDMA’s UK/Ireland affiliate.
PDMA News
28 PDMA Global Innovation Thought Leader Panel presents
recommendations Brian Christian and Hamsa Thota
PDMA has created a special panel of thought leaders to help it in its
objective of “Connecting Innovators Worldwide.”
31 From Blogs to Books: Two resources for NPD Professionals Adam
Hansen
33 From the Editor of JPIM: A restropecitve of The Journal of Product
Innovation Management (JPIM) Anthony Di Benedetto
33 Classifieds
34 Visions Information
34 2007-2008 Visions Editorial Calendar
35 Listing of PDMA Chapters and Affiliates
JUNE 2007 

VISIONS
JUNE 2007 VOL. XXXI NO. 2
Insights into Innovation™
Editor-in-Chief
April W. Klimley
Phone: 732-530-1639
VisionsEd@pdma.org
Contributing Senior Editors
Greg Githens, GDG@catalystPM.com
Gerry Katz, gkatz@ams-inc.com
Specialty Editors
Certification
Ken Westray, ken@nplearning.com
Chapters and Affiliates
Tricia Sutton, pasutton@suttonenterprises.com
From Blogs to Books
Adam Hansen, ahansen@ideastogo.com
Launch Pad
Mark Hart, mark.hart@oplaunch.com
Open Innovation
Michael Docherty, mdocherty@venture2.net
Technology
Ed Crowley, eacrowley@photizogroup.com
Copyeditor
Andrea Herbert
Visions Advisory Board
Mark Deck / Bob Gill / Michael Menke
Chris Miller / Steve Uban
Advertising
Roger Stevens
Phone: 1-317-926-6272
rstevens@ind.com
Ms. Henry Van, PDMA
Phone: 1-800-232-5241 x1
hvan@ahint.com
Subscriptions
Bob Fogle, bobfogle@earthlink.net
$85/year U.S., $125 abroad;
Information on page 34
Online Visions
Available through the PDMA Web site,
www.pdma.org
Visions magazine keeps members on top of
trends and developments in the New Product
Development world and the latest thinking
of product development and innovation lead-
ers. It is published quarterly by the Product
Development and Management Association
(PDMA). Subscriptions included in PDMA
membership package; or available at $85 per
year in the United States or $125 abroad.
Visions welcomes articles on Product Devel-
opment and Management. Articles for the next
issue of Visions (September 2007) are due
July 16, 2007. Please submit queries to the
Editor, April W. Klimley, by E-mail or phone.
 JUNE
JUNE2007
2007
Up Front
From the Editor of Visions
April W. Klimley, Editor-in-Chief, Visions (VisionsEd@pdma.org)
April W. Klimley
T
he term “innovation” seems to be every-
where. You can’t pick up a copy of Business
Week or change televisions stations without
seeing companies like Accenture or even British
Petroleum touting “innovation” as the answer to
everything.
From the practitioner point of view, these
broad references can be very irritating. They are
confusing, too. They do not hinge on one agreed-
upon definition. We all know that innovation
is certainly not simply creativity, invention, or
process; nor is it synonymous with New Product
Development (NPD), although some people use
it that way these days.
You’ll find two definitions of innovation in the
box on this page. On Focus editor Greg Githens
helped me find them, but I’d like to know your
thoughts on the subject. Please email me your
thinking on this term or a discussion of this
debate. After all, that’s part of what the Product
Development and Management Association
(PDMA) is all about: developing consensus on a
body of knowledge on emerging and/or changing
concepts. Maybe we can solve this challenge, or
at least clarify it. (VisionsEd@pdma.org).
The popularity of this term innovation—what-
ever it really means—has reminded us at Visions
that we should be pushing the envelope—that is,
broadening our own “vision” of the NPD field. So
in this issue, you’ll see us focusing on several new
areas. One of these is lean product development,
a technique being used in many companies now,
at times with a lot of confusion. This technique is
very critical for innovators today, since many are
under a double whammy. They are being asked
to innovate continuously, but at the same time to
spend less money at that activity than before. This
article may help you as a practitioner to achieve
both goals, or at least to reach for an approach
that can help you do that.
We also offer you an informative interview
with open innovation guru Henry Chesbrough,
from our Open Innovation Editor Mike Docherty.
And we bring you an excellent overview of
what’s going on in green product development, a
write-up of the Arizona Chapter’s spring sustain-
ability conference from Don Hardenbrook. Since
green product development has moved to center
stage very quickly, we will continue to bring you
more and deeper coverage of this subject.
What is “Innovation?”
“A new idea, method, or device. The act of creat-
ing a new product or process. The act includes
invention as well, as the work required to bring
an idea or concept into final form.”
—Glossary
PDMA Toolbook 11
“An idea, practice, or object that is perceived as
new by an individual or other unit of adoption.”
—Everett M. Rogers2
You’ll also find another installment of the
Katz–Orban debate over ethnography research
in this issue. And coincidentally we have an
excellent complementary case history on this
technique: How Hyundai created a process
called Touch the Market (TTM) that used this
type of research to develop the concept for its
second generation 2007 Santa Fe. TTM was so
successful that it is now being used at Hyundai
to develop other product concepts.
You will also find several articles on new
directions at PDMA itself: reports from both
the Executive Director and the President and
Chairman of PDMA, as well as an article on
recommendations from the new PDMA Global
Innovation Thought Leader Panel. These ar-
ticles may spur your own thinking on how you
can participate more fully in PDMA chapter or
national activities.
Of course, one way to take part is by writing
articles for Visions; or volunteering to be one of
our sub-editors. Please feel free to give me a call
about this at any time. We are always looking for
more talent to help us stay on top of the product
development field.
April Klimley, Visions Editor-in-Chief
28 Riverside Ave. Ste. 6H
Red Bank, N.J. 07701
May 3, 2007
Endnotes
1. Belliveau, Paul, Abbie Griffin and Steve
Somermeyer, Editors, PDMA Toolbook 1, (Wiley &
Sons, 2002)
2. Rogers, Everett M., Diffusion of Innovation, 4th
Ed. (The Free Press , 1995)
PDMA Visions Magazine

Letter from the PDMA President and Chairman
Leading the way toward creation of a 2012 strategic
roadmap for PDMA
Hamsa Thota, PDMA President and Chairman and President of Innovation Business Development
(hthota@pdma.org)
During the past two years I have
written to you about how the Board of
Hamsa Thota
the Product Development and Manage-
ment Association (PDMA), and our staff, have been reorganizing
the structure of the association and planning for the future—a
more global, proactive PDMA. In this letter, I’d like to describe
the results of our work.
But first, let me recognize some of the volunteer leaders who
made this transformation possible. They include Past President
Bob Gill and Board Member Bob Johnston, who initiated PDMA’s
journey with work on strategic frontiers in 2003; K.T. Connor for
her leadership on the Governance Committee; and the members of
our Global Innovation Thought Leader Panel, who have continued
this tradition. (See pages 28 and 29 for details.)
Reaffirmation of volunteer leadership
So, what have we achieved? We are successfully navigating a
major organizational and administrative transition in support of
creation of a more global PDMA; we have reaffirmed the primacy
of our volunteer leadership; and, in our maiden voyage under the
new bylaws and governance, we have created three new commit-
tees: Strategic, Operations, and Executive.
With this new structure in place, we have been able to link
our Board-set strategy and priorities much more successfully
with day-to-day operations and activities. For instance, we have
expanded our number of international affiliates through an ini-
tiative spearheaded by PDMA Executive Director Robin Karol;
we refreshed our brand with a new logo and tagline under the
leadership of Mark Adkins, VP Marketing; and we approved a
new technology platform for the entire organization, through an
initiative led by Chicago Chapter President Scott Miller.
These examples confirm the primacy of our volunteer Board
in setting strategy and the ability we now have to achieve results
based on that strategy. Looking ahead, we plan to get even closer
to the needs of our members and others in the field of New Product
Development through a new Voice of the Customer Study. We
will use that information to help us set the next generation of our
strategy through 2012.
I am very proud of these achievements, as well as the countless
volunteer leaders who contributed to them. Let me thank each and
every one of you; your leadership has ensured a bright future for
a much more global PDMA.
Hamsa Thota
PDMA President and Chairman
April 14, 2007
PDMA Visions Magazine
PDMA Update
News from the Executive Director’s
Office
In this letter, I’d like to report to you on
two important initiatives that have paral-
leled PDMA’s recent global and domestic
growth. In March, we launched a new co-
sponsored conference on “Service Innova-
tion.” It was held in San Diego, Calif., and
Robin Karol
co-sponsored with the IIR. The conference
was well attended and very exciting; and it spurred the creation
of a new Service Innovation Network. We all should keep an eye
on this exciting new area of growth.
Over the past year, we also expanded our administrative capa-
bilities substantially. PDMA has been built on the work of our
dedicated volunteers, and it thrives on a culture of volunteerism.
However, we needed additional professional support behind the
leadership of our volunteers in order to implement their ideas
and strategy. We have built a strong, energetic team to support
our incredible volunteer community at our headquarters location
in Mount Laurel, N.J., just a short ride from the Philadelphia
airport.
We have added full-time marketing support, plus a specialist in
conferences. And we are working on a new information technol-
ogy system for the organization. All this has enabled us to have
a stronger presence at each of our co-sponsored conferences, as
well as additional marketing materials to display there and at the
meetings held by our Chapters. I look forward to reporting to you
on further advances in the interests of implementing the strategy
set by our volunteer leadership and community.
Robin Karol
PDMA Executive Director
rkarol@dpma.org
April 19, 2007
PDMA Governance Committee
• K.T. Connor, Center for Applied AxioMetrics (Chair)
• Cecil Chappelow, PolyOne
• Tom Hustad, Indiana University
• Bob Johnston, Visterra Group
• Rich Notargiacomo, Kodak
• Cheryl Perkins, Innovation Edge, LLC
• Ira Uslander, Northwestern University
• Robin Karol, PDMA Executive Director (Ex-officio)
JUNE 2007 
Up Front
Launch Pad
Who will you designate
as “Launch Architect”?

Mark A. Hart, NPDP, Visions Launch Editor, Founder, OpLaunch

(mark_hart@oplaunch.com)
Mark A. Hart

In a large percentage of new product efforts, most of the engineering development is finished before the launch plan is assembled.
Typically, the launch plan is built by a cut-and-paste method with a predisposition for popular components. To increase the effective-
ness of future launches, Visions Launch Editor Mark Hart introduces the concept of a “Launch Architect.”

F
rank Lloyd Wright was one of the most influential construc-
tion industry architects of the 20th century. He is noted for
designing structures such as Fallingwater (originally a private
residence) and the Guggenheim Museum. A talented architect
like Wright functions to transform the client’s generic desire
of “I want a nice building” into a marvelous result that creates
specific user experiences and provides the high-level view of the
builder’s requirements.
To arrive at an approved design, Wright’s team engaged in
many discussions with the client before construction began. Dur-
ing construction, contractors made enhancements; but Wright’s
skillful design provided guidance for everyone contributing to the
effort. In contrast, imagine building a house without the services
of an architect. The resulting house would include the items on
a standard checklist such as walls, windows, and doors, but the
house would be inferior.
Launch plan development
Analogous to someone like Wright, a “Launch Architect” is
the primary designer of a product launch. After understanding
the potential of a new product idea, a launch architect combines
his or her extensive knowledge from disciplines that range from
engineering sciences to social sciences to create an innovative
launch design. The initial design should be developed following
the ideation phase or in parallel with the very early traditional en-
Exhibit 1: The Role of the Launch Architect Is to Refine Design
gineering activities. This early-on approach ensures that the proper
resources are enlisted and that the components can be produced
and orchestrated for maximum impact. Throughout development,
the launch architect refines the design and the appropriate high-
level schedules, milestones, and checklists as illustrated in Exhibit
1 on this page. These are documented in the launch plan.
Without a comprehensive launch design, a launch plan is likely
to feature only a list of critical marketing-related deadlines. With-
out a designated launch architect, a launch is likely to be a collec-
tion of a few isolated examples of innovation mixed with whatever
is popular as illustrated in the comic strip on page 7. Besides core
development activities, it is common for team members to specu-
late about selecting and integrating contributions from disciplines
such as interaction design, industrial design, packaging, brand
management, search engine optimization, distribution channel
management, partner management, public relations, advertising,
documentation, post-sales support, tradeshow management, Web
2.0, or the next-big-thing to create a successful launch.
In the absence of a launch architect, reductionism prevails.
Suboptimization occurs when team members emphasize certain
popular components while ignoring other components to the point
of reducing the potential for launch success.
“Launch architecture” is the interdisciplinary design of new
product launches. It provides a robust, system-level plan to
complete all of the development within the project constraints. It

SOURCE: The Author

 JUNE 2007 PDMA Visions Magazine

 SOURCE: The Author
When companies plan the launch of a new product piecemeal,
they may select conventional solutions. That could mean missing out on
an opportunity to be creative.

includes the entire launch environment from the macro level of as an alternative to the “build it, then learn how to sell it” sequence
prioritizing product features to the micro level of developing the common in many development environments. This concept advo-
search engine optimization strategy. cates a new “launch design drives development” method.

Launch Architecture Creating a solution

Launch architecture is a development activity that naturally
follows the front end of innovation. New product development
begins when one idea is selected from many potential product
ideas. Launch architecture provides the design to combine many
development ideas from multiple disciplines to create a synergistic
launch. Launch syn-
A masterful launch architect transforms the product champion’s
desire of “I want a fantastic product” into a marvelous solution
that addresses the key customer insights and provides the high-
level view of the development requirements. Great launch archi-
tecture has an “I’ll know it when I see it” quality. Great launch
architectures produce pleasant customer experiences such as “The

“
ergy is the positive in- product solved my problem. It was easy to purchase and learn. It
Without a designated cremental performance
gain of the team that
is a delight to use.” Or “Wow!”

Launch Architect, a launch is is greater than the pre- Mark A. Hart, NPDP, Visions Launch Editor, is the founder of OpLaunch,
likely to be a collection of… dicted performance of
the individuals working
Finleyville, Pa.

whatever is popular.” together.

Initially, the charac-
teristics of the budget,
product, company, or the market influence the decisions about the
type of launch architecture that should be developed. For example,
the launch architecture for a radically new, globally distributed
product will be different than the launch architecture for a mature,
commodity product.
Details of the launch architecture include activities such as
selecting, developing, and communicating product specifications,
features, and benefits. Ultimately, launch architecture influences
product reviews, including consumer generated media, the first-
person commentary shared about the experience catalyzed by
the product.

Launch innovation
Opportunities for innovation are enhanced when a creative and
valuable launch design is shared with the entire multidisciplinary,
networked development team and improved by the feedback
process shown in Exhibit 1. The launch design guides decisions
regarding team composition and highlights opportunities for col-
laboration. A launch architect expands the development team’s
vision of how a diverse set of contributions will fit together to
fulfill the needs of end users, buyers, distributors, and retailers.
Under these conditions, implementation is efficient and cost-ben-
efit analyses are representative of system objectives.
I coined the phrases launch architect and launch architecture
while preparing a proposal for a potential client in November 2006
PDMA Visions Magazine JUNE 2007 
 Up Front
In Focus: Tools Part 1
Comprehending innovation tools–
Understanding functions and form to get
better results,
Gregory D. Githens, Managing Partner, Catalyst Management Consulting,
LLC, Findlay, OH (GDG@CatalystPM.com)
Gregory D. Githens

When innovators connect with each other, the first topic for discussion is often, “What tools are you using?” Success in product
development and management is largely an approach to find new tools and to implement the effective ones. This article gives the
innovator three tools—SWIFT, RAID, and FAME—and pinpoints the factors that make each tool effective. The article concludes with
four suggestions on how to become a better tool developer and user.

W
orkers—be they manual laborers or managers—want
better and more tools because tools can make their work
easier and the results of higher quality. Most people
intuitively regard a tool as something that helps with work, so I
define a tool as an “object” that people perceive as contributing
to results. The Exhibit 1 formula suggests two questions. The first
is, “What is the result you want to achieve?” While it seems to be
commonsense, I observe
enced in my January 2005, Visions article.3 FAME represents the
Frequency of reporting metrics, the Audience for the metric, the
Mechanism of communication, and the Expectations of behaviors
resulting from the information. The FAME tool helps the user
overcome the misperception that metrics are a “data dump” from
the accounting department, or a “silver bullet.” Metrics are a form
of communication that managers use to gain insights for taking
proactive action. FAME helps to answer the questions, “Who

“
that many people spend
Tools might make your work so much time in motion
that they have lost sight of
easier, but they might require their goals. A tool cannot
more thinking than you are help them much until they
decide what they want.
willing to invest.” The second question is,
“How much force are you
willing to apply?” Tools
might make your work easier, but they might require more thinking
than you are willing to invest. Even if the individual is willing to
apply effort, some tools require the cooperation of others—and
they may be unwilling. My readers who have some knowledge of
physics might recall the definition of work as “the scalar product
of the force applied and the distance moved by the object.” One
can see the parallel in Exhibit 1 on page 9 with the definition.1
Three examples of a managerial tool
To set the stage for a conceptual look at tools, I want to describe
three examples of managerial tools used in innovation. These tools
may be familiar to those individuals who are well-read in Product
Development and Management Association (PDMA) literature,
but they could be new to many readers. They are simple, yet serve
to illustrate the theory.
The first is RAID, as described by me in Chapter 8 of PMDA
ToolBook 1.2 An initial risk management activity is for the team to
generate a list of “concerns” that could affect the project’s success.
RAID is a classification strategy and stands for the Risks, Assump-
tions, Issues, and Dependencies that New Product Development
(NPD) managers must manage in projects. The team will get
improved results by using techniques specific to each classifica-
tion. For example, one uses assumptions analysis to understand
uncertainties in assumptions, issues management for issues, risk
management for risks, and schedules for dependencies.
The second acronym is FAME, a metrics communication tool
that I learned from Mary Wojtas of Abbott Laboratories and refer-
 JUNE 2007
needs to see the metric? How often do they need to see it? How
will they receive the information? What is the expected use?”
As an aside, the FAME and RAID acronyms suggest a sequen-
tial ordering that might be unnatural. For me, it makes the most
sense to sequence communications by Audience then Expectation
then Frequency then Mechanism. However, the resulting AEMF
order is not memorable. Nor is AIDR, which is probably the most
logical sequence for addressing the anxieties of a project. One
important difference in the analogy of hand tools and managerial
tools is that managerial tools are largely stored in an individual’s
memory; so, an individual’s skill starts with the ability to remem-
ber the tool at the needed time. See the endnotes for more on the
use of acronyms as a business tool.4
The third acronym is SWIFT, which stands for Strengths,
Weakness, Individuality, Fixes, and Transformation. Product in-
novators use this tool in NPD concept development as described
in Chapter 10 of PMDA ToolBook 2.5 The SWIFT tool helps to
overcome the problem that people unintentionally filter out novel
product ideas, giving the ideas too little assessment and evaluation.
As I pointed out in the RAID discussion earlier, people tend to
avoid ambiguity. Consequently, the organization tends to develop
safe-but-uninspired product ideas. With the SWIFT tool, the team
identifies the strengths and weaknesses of the concept. The team
then clarifies the individuality of the concept, meaning, “What
makes the concept novel or different?” The “fixes” step is intended
to shore up the weaknesses that could cause decision-makers to
kill the idea, and the “transformation” step results in a revised
product concept statement that incorporates the fixes.
Function and form of a managerial tool
One similarity in the analogy of hand tools to managerial tools
is that we can use the common framework of Function, Form, and
Fit (the 3Fs) of an item for evaluating a tool. When we describe
the behavior of a tool with regard to the intended outcome, we are
describing its function. When we characterize the item to others,
we are usually describing its form. Last, our evaluation of the
PDMA Visions Magazine
interfaces of components of the item, or with other items, or with
the user is the fit. This article explores the hand tools–managerial
tools analogy for just the categories of function and form, and
leaves the discussion of fit for a future article addressing the is-
sues of managing innovation with relatively more sophisticated
and complex tools.
Starting with the concept of function, suppose you need to have
a surface covered with paint. Many people would jump quickly
and intuitively to a solution: use a paintbrush or roller. Surely,
there are alternative solutions, and some of those alternatives
are improvements. We can look to the common NPD practice of
functional analysis for help with the requirements for the tool.
Functional analysis starts
Exhibit 1: People Use Tools to Achieve Results
with developing a state-
ment of functions (written
as a verb + noun = the activ-
ity that yields the desired Tool + Applied Force = Result
result). In the surface-cov-
ered-with-paint example,
the primary function is this:
apply paint. Given the function of apply paint, it should be easier
to see that there are numerous techniques for applying paint—for
example, dipping, spraying, and brushing.
Managerial tools—the concern of NPD practitioners—are
similarly amenable to functional analysis. Let’s return to the three
tools of RAID, FAME, and SWIFT and express the functions of
each tool using the verb + noun format. The basic function of
the RAID tool is that it helps the user categorize concerns. This
further implies that the analyst may choose to quantify risk, man-
age issues, and so forth. The basic function of the FAME tool is
that it helps the user structure communications. Thus, we design
the metric strategy in terms of how the audience uses the metric
information. Finally, the SWIFT tool is more sophisticated. Its
basic function is that it helps the user increase the robustness of
the product concept statement. SWIFT helps the user to recog-
nize novelty, recognize potential flaws, develop mitigation, and
rearticulate product concepts.
Recall that the form relates to how we would describe an item
to another person; for a hand tool, you describe the materials. I
own an old hammer with a wooden handle, a steel head, and a
small steel wedge to enable the handle to join to the head. One can
improve a hand tool by using different materials. On a recent trip
to the hardware store, I notice that there are a lot of wood-replac-
ing “improved materials” in tools—for example, a composite,
designed to make them lighter, stronger, cheaper, etc.
It is more difficult for us to describe the components that make
up a managerial tool. My own experience is that tool development
is serendipitous. I find that I subconsciously invent or modify a
tool, and then afterwards recognize the accomplishment. The
starting point for making tool development more purposeful and
systematic is describing the basic components of managerial tools.
Fortunately, I was able to find some research from a team of in-
novators at the multinational company Philips, one of the largest
electronics companies in the world, founded and headquartered in
The Netherlands. I cannot tell you whether the managerial tools
6
program continues, but I found the work logical and consistent
with my experience. Here is how I interpret their answers to the
question, “What are the components of a managerial tool?” The
components of a managerial tool use or blend three core mental
elements: concept organization, logic, and ingenuity. The mind
PDMA Visions Magazine
applies the element of concept organization to clarify and catego-
rize perceptions and data. The element logic involves the mental
operations to reach a conclusion. The ingredient ingenuity is the
pragmatic application of imagination to solve a problem. I think
that RAID is mostly a tool of concept organization. FAME uses
concept organization but adds an element of deductive logic.
SWIFT embraces concept organization and logic, and adds the
element of ingenuity.
Outstanding versus mediocre innovation
In my experience, the difference between outstanding innova-
tion and mediocre innovation is one of decision making—indi-
vidually and collectively.
Tools simply facilitate de-
cision making, sometimes
by sparking analytical
insights and sometimes
by improving communica-
tions between people. You
should dedicate yourself
to making better (and faster) decisions to get your organization
to improve its innovation performance.
Managerial tools help a person think better. They make the user
more conscious of his or her thinking and data. A good manage-
rial tool sparks questions that lead to insights. In the examples
provided here, the tools foster innovation by helping us reframe.
RAID helps us reframe anxieties into categories that can be ad-
dressed systematically and consistently. FAME helps us reframe
metrics in terms of communicating for improvement, rather than
as a scorecard for blaming. SWIFT helps us reframe product
concept weaknesses into novel, competitive offerings.
Where might you go from here in your use of tools? I have four
suggestions. First, you might work to develop mastery-level skill
with your existing tools. Second, search for better tools to increase
performance of existing functions. Third, search for more tools,
matching problems and needed functions with capabilities. And,
finally, start a structured analysis of the individual and organiza-
tional “toolbox.” Implementing these recommendations will help
you maximize the tools you select and improve your New Product
Development process.
Greg Githens is a Senior Contributing Editor to Visions, and Managing
Partner, Catalyst Management Consulting, LLC, Worthington, Ohio.
Endnotes
1. See http://library.thinkquest.org/20331/physics/pwork.html.
2. Gregory D. Githens, “How to Assess and Manage Risk in NPD
Programs: A Team Based Approach,” chap. 8 in The PDMA Toolbook
for New Product Development (Volume 1), eds. Paul Belliveau, Abbie
Griffin, and Stephen M. Somermeyer (Hoboken, N.J.: John Wiley &
Sons, 2002).
3. Gregory D. Githens, “Advice from PDMA’s annual ‘Metrics That
Matter in NPD’ Workshop,” Visions (January 2005) [online edition];
available from http://www.pdma.org/visions/jan05/metrics.html.
4. See http://www.businessballs.com/acronyms.htm.
5. K. Brian Dorval and Kenneth J. Jauer, “The Birth of Novelty:
Ensuring New Ideas Get a Fighting Chance,” chap. 10 in The PDMA
Toolbook for New Product Development (Volume 2), eds. Paul
Belliveau, Abbie Griffin, and Stephen M. Somermeyer (Hoboken, N.J.:
John Wiley & Sons, 2004).
6. Jerry Rhodes, Conceptual Toolmaking, Expert Systems of the Mind
(Oxford, U.K.: Basil Blackwell Ltd., 1991).
JUNE 2007 
 Up Front
Viewpoint
One more word on ethnography
Gerry Katz, Executive Vice President, Applied Marketing Science, Inc.
(gkatz@ams-inc.com)
Gerry Katz
Gerry Katz’s contrarian article in September 2006 Visions expressed skepticism about the appropriateness of this very popular research
technique in certain situations. In the March issue of Visions, Anne Orban wrote a rebuttal to that article; here is Gerry’s response.
I
’d like to thank Anne Orban for her thoughtful rebuttal to my
Viewpoint article in the September 2006 issue of Visions. I
firmly believe that this kind of healthy debate can only help
to better inform New Product Development theory and practice
and further the cause of our profession. Even so, I would like to
address some of her concerns directly.
The tone and essence of Anne’s article suggests that she feels a
need to defend ethnography against an unwarranted attack by me,
as if I were saying that ethnography is not all it’s cracked up to be.
Nothing could be further from the truth! As I wrote in my original
article, I’ve now used ethnography on more than 30 cases over
the past few years; and in nearly all, it has been highly beneficial,
even essential, in gathering a complete understanding of customer
needs. To be sure, we were not the first to arrive at this party. I
give Anne and her colleagues immense credit for their numerous
articles and presentations, which have had a major impact on my
own understanding and application of ethnographic research.
Identifying a disturbing trend
The intent of my article was not to discredit observational
research, but rather to call attention to a disturbing trend I have
noticed among a large percentage of product developers. Many,
it seems, have embraced ethnography as the universal cure for all
their qualitative research ills, and seem blithely content to ignore
most other data collection methods—techniques that have been
tested and proven by marketing scientists and successfully applied
by industry practitioners for decades. In my view, this approach is
a mistake. As a compromise, I suggested that ethnography should
be treated as one of several complementary tools in the product
“
developer’s toolbox.
Anne is right to em-
Ethnography should be phasize the importance
treated as one of several of clearly articulating re-
search objectives before
complementary tools in the any discussion of research
product developer’s toolbox.” method or sample size,
but eventually research-
ers must get down to the
brass tacks of execution.
And from what I’ve seen, it doesn’t always happen this way. Far
too many prospective clients approach us with ethnography as a
precondition, making our first task as consultants to explore with
them both the underlying objectives behind their prospective re-
search and the practical realities of all the available techniques for
their market. Only then are we able to recommend for or against
using observational techniques. Yet because ethnography has now
become “the new black” in Voice of the Customer (VOC), it is
10 JUNE 2007
sometimes difficult to persuade against its use despite the potential
realities of the market under study.
The value of onsite interviews
I also fear that Anne has missed my point when she asks “Why
would it not be of value to talk with corporate risk managers in
their offices?” It is not that onsite, observational interviews would
not be of value, but rather that they would not add any apparent
value over interviews conducted in some other venue. Conversely,
if the study in question concerned copying machines or fitness
equipment, the exact opposite would be true. One must keep in
mind that onsite interviews take longer and cost more per inter-
view, both in professional time and in out-of-pocket expenses,
than other methods—hardly a trivial concern given today’s tight
product development schedules and budgets. As in all things,
compromise is often necessary to ensure that the VOC is captured
accurately, quickly, and affordably.
The experience can be eye-opening
Paradoxically, Anne’s rebuttal cites a number of the most pro-
lific and successful users of ethnography in the world. One of the
companies she cites has conducted nearly a dozen needs-finding
studies over the past three years in which my own firm has been
involved. In many of these studies, they used their own highly
talented staff ethnographers, while in others they contracted with
several outside vendors (including my firm). This company’s
experience has been eye-opening, to say the least. Their conclu-
sion? For certain kinds of studies, ethnography has proven to be
far and away the most valuable approach. But in others, it has
added relatively little. This company has actually now expressed
its intent to move more toward central-location data collection for
these latter types of studies. Precisely my point!
I’ve seen countless new market research tools come and go
in New Product Development. Some are clearly fads, while oth-
ers—like ethnography—have deservedly earned their place in
the product developer’s toolkit. But never have I seen a single
tool render obsolete decades of established marketing science. In
the October, 2001 issue of Visions, I published an article entitled
“The One Right Way to Gather the Voice of the Customer,” the
point of which was that there is no “one right way.” I still stand
by that conclusion!
Gerry Katz is Executive Vice President at Applied Marketing Science,
Inc., in Waltham, Mass.
PDMA Visions Magazine
 NPD Trends/Practices

What is “lean” about product

development?
An overview of Lean Product Development

Katherine Radeka Tricia Sutton Katherine Radeka, NPDP, President, Whittier Consulting Group, Inc.
(Katherine.radeka@whittierconsulting.com) and Tricia Sutton, PMP, NPDP,
President, Sutton Enterprises, Inc. (pasutton@suttonenterprises.com)

What is Lean Product Development? The term has many different meanings. This article describes the varieties of approaches that call
themselves Lean Product Development and explains how lean principles and practices place customer value at the center of product
development.

L
ean Product Development can mean many different things.
In some companies, lean product development simply stands
for “doing more with less.” In others, it has become a euphe-
mism for downsizing, off-shoring, and de-investing in product
development. Companies with “Lean” or “Six Sigma” corporate
initiatives often use lean product development to describe how
they apply their toolkit
raw materials, inventory, and labor—and did it significantly faster
and cheaper than traditional mass-production techniques.2 Since
then, “lean” has leapt into the corporate lexicon: Lean Manufac-
turing, Lean Office, Lean Enterprise, Lean Supply Chain, Lean
Six Sigma, and now Lean Product Development.
In 1996, James Womack and Daniel Jones published Lean
Thinking,3 which outlined five principles that they believed a lean

“
in the product develop- organization embodied throughout the enterprise: (1) value, (2)
Consultants and authors ment function. But very identifying the value stream, (3) flow, (4) pull, and (5) perfec-
few of these definitions tion. A lean organization understands what value means—for
who tout Lean Product describe how a lean ap- a specific customer at a specific point in time, knows how the
Development talk about a proach can help a prod- value stream creates that value, improves the flow of value to the
uct development team customer, leverages the power of pull systems, and relentlessly
wide variety of different deliver products better, pursues perfection.
things.” faster, and cheaper than Lean manufacturing has evolved a number of specific tools
they have been able to for improving production productivity. These tools include value
do in the past. stream mapping, a tool for visualizing flow in a factory process;
To add to the confusion, the consultants and authors who tout 5S, which cleans up and organizes a physical space; and kanbans,
lean product development talk about a wide variety of different which control the flow of work-in-progress inventory through the
things. Some emphasize waste elimination. Others talk about how factory. It seemed natural to the proponents of these tools to move
to improve flow in product development. Visiting
the experts’ Web sites leads to more confusion as
the lean jargon proliferates: kanban systems, value
stream maps, 5S, A3, obeya, etc. (See the PDMA
Glossary at www.pdma.org for a definition of some
of these terms.)
We are writing this article to clear up some of
the confusion about lean product development
and to show how some of the ideas can help any
team develop products more effectively, whether
or not “lean” is the right label for your improve-
ment efforts.

Whence comes Lean Product Development?

In our experience, it helps to introduce people
to lean product development with a short history
lesson.
In 1990, the researchers of the MIT International
Motor Vehicle Program (IMVP) published The Ma-
chine that Changed the World: The Story of Lean
Production.1 John Krafcik coined the term “Lean Toyota’s product development system is considered a model of “lean” product development.
Production” to describe an approach that used less Shown here is the company’s 2007 RAV 4.
of everything—less manufacturing space, tooling,

PDMA Visions Magazine JUNE 2007 11

 NPD Trends/Practices
Top Five Questions to Help Start
Your Lean Journey
1. What is value to your customers—both end users and
intermediate customers?
2. How can you transcend tradeoffs between delivering value to
intermediate customers and end users?
3. What required process deliverables create waste?
4. What process deliverables (required or optional) directly
contribute to customer value?
5. What activities in your process add needless waste?
them upstream into product development, especially when teams
began running into issues that only a design change could fix. That
led to attempts to translate the tools into product development,
especially value stream mapping.
There now are numerous publications, workshops, conferences,
and so on to help translate lean from production to other parts of
organizations; yet the adoption in product development has been
slow and in some cases problematic. We believe the reason is
that lean product development as practiced by most companies
has been driven too much by tools (particularly those of lean
manufacturing) and has not focused enough on how Toyota and
other lean companies create more value from their investments
in product development.
Creating value in product development
“Value” in the lean world is “a capability provided to a customer
at the right time at an appropriate price, as defined in each case
by the customer.”4 This strict definition forces a business first to
understand customer value deeply and second to focus relent-
lessly on delivering that value. This laser focus on value is the
key differentiator between Toyota and Honda, the two prototypical
lean companies in the automotive industry, from General Motors,
Ford, and the rest.
Such strict definitions challenge conventional thinking about
how to run a business. For example, companies spend inordinate
amounts of resources on documentation and reporting. Product
developers report on project status, write detailed specifications
and technical briefs, conduct extensive market analysis, etc., all
of which contribute absolutely nothing to customer value. In the
lean world, these activities are all waste.
The lean enterprise differentiates between waste that is com-
pletely unnecessary (such as rework to fix a mistake) and waste
that is necessary (such as regulatory requirements and some man-
agement activities). All unnecessary waste should be eliminated
and the necessary waste should be minimized. For status reporting,
this directive means replacing fancy PowerPoint® presentations
with simple one-page status summaries.
Since customer value is at the center of lean thinking, Toyota
has gone to great lengths to put direct understanding of customer
value in the hands of the people who need it most. At Toyota, chief
engineers lead development projects and are chosen for their abil-
12 JUNE 2007
ity to integrate customer, technical, and process knowledge into a
vision for a superb automobile. The company charges them with
delivering a car that will exceed the customer’s expectations and
meet cost targets and hit a specific delivery date.
Toyota expects its chief engineers to obtain a firsthand under-
standing of customer value. The chief engineer for a Lexus may
travel to Germany to drive the top-of-the-line Mercedes on the
Autobahn. The chief engineer for the Sienna minivan spent a
month living with the typical soccer mom in the United States.
U.S. companies often dismiss such activities as too “fuzzy” and
too expensive. Lean companies know that this direct experience of
customer value is too important to do on the cheap. Toyota values
the judgment and experience of its chief engineers as much as
hard data, such as marketing research.5
We create more value in product development by doing things
better, faster, and/or cheaper than we have been able to do things
in the past. In other words, we shorten time-to-market, we decrease
product costs over the entire life cycle of a product, we better align
our product’s feature set with the things our customers value, and
we produce a higher quality product. Every product development
organization tries to achieve these objectives, usually with one or
two that take priority over the others.
These objectives make sense for our customers and for our
businesses. Faster time-to-market gets innovation into the hands
of our customers more quickly—and it increases our sales and
market leadership. Delivering a product with lower costs directly
benefits the bottom line while it makes products less expensive
to purchase.
We decide which of the dimensions of value to optimize and
how to allocate that value between ourselves and our customers.
As our organization improves, we eventually gain the ability to
deliver products better and faster and cheaper than our competi-
tors. Once we have achieved that level of mastery, we will be very
difficult for our competitors to catch.
Major approaches to Lean Product Development
There are five major schools of thought on how to implement
lean product development, as shown in Exhibit 1 on page 13. Of
those, we believe that three have the greatest potential to maxi-
mize value in product
“
development, one has
limited usefulness,
and one is simply Some of the (lean) ideas
“lean” in name alone.
Each approach has
can help any team develop
some elements that products more effectively.”
are unique and some
areas of overlap. Ex-
hibit 1 presents a visual model of the lean product development
landscape and how these approaches relate to each other. Exhibit
3 on page 14 compares the approaches, including summarizing the
benefits to be gained to help you determine which approach(es) to
lean will fit your organization and your most pressing needs.
(1) Toyota Product Development System
This approach to lean product development is grounded in re-
search that describes how Toyota develops its own products better,
faster, and cheaper than U.S. automakers. This research shows that
Toyota’s product development system developed alongside the
famous Toyota Production System, and the two support each other.
PDMA Visions Magazine
 While they share the relentless pursuit of perfection and a “kaizen” Exhibit 1: The Landscape of Lean Development
mindset that makes every member of every team responsible for
finding ways to do things better, they are not the same.
The hallmarks of Toyota’s product development process include
frontloading the effort into the early stages of development to
ensure a smooth transition to production at the end of develop-
ment, the chief engineer, set-based concurrent engineering, true
partnerships with suppliers, and a deep understanding of the role
that knowledge plays in

“
product development.
The University of
The hallmarks of Toyota’s Michigan began re-
product development process s e a r c h i n g Toy o t a ’s
product development
include frontloading the in 1995. The findings
effort into the early stages are best documented in
two books published in
of development.” the last 18 months. The
Toyota Product Devel-
opment System by James
SOURCE: The Author
P. Morgan and Jeffrey K. Liker describes the elements of Toyota’s
product development in detail.6 Dr. Allen C. Ward’s book, Lean
Product and Process Development was just published in Febru- Exhibit 2: Lean Approaches with the Most Potential
ary 2007.7 It describes the concepts and practices that Dr. Ward
observed in his early attempts to translate the ideas into U.S.
companies. Unfortunately, Dr. Ward died in a plane crash in 2004
before he could see his ideas translated into reality.
This version of lean product development is the one that we
have seen achieve the most dramatic results. The practices that
Toyota uses internally to grow and share knowledge—its lean
system—are readily transferable to other organizations, which
can begin to see results quickly. Unlike other forms of lean
product development, these practices help the entire product
development team spend more time directly creating customer
value immediately.

(2) Lean principles in product development

Some of the most interesting work in lean product development
has taken a value-centric approach. These authors apply the lean
principles to New Product Development and let the tools and SOURCE: The Author

methods emerge from their observations.
The most frequently cited sources for this work are Don
Reinertsen’s Managing the Design Factory8 and Mary and Tom
Poppendieck’s Lean Software Development.9 Reinertsen and the
Poppendiecks use the original principles behind lean—value, the
value stream, flow, pull, and perfection—as their point of depar-
ture. They then ask, “What do these principles mean in a product
development organization?” While the authors end up in very
different places, the advice they have for product development
teams is highly insightful and relevant.
Reinertsen integrates the concept of flow with queuing theory,
information theory, and the theory of constraints to develop an
approach to managing flow in a product development organiza-
tion. The Poppendiecks begin with the concept of value and the
value stream in a software development project. They synthesize
lean concepts of waste elimination, pull, and perfection with best
practices from agile software development to gain some insights
that apply to any product development team—not just software
teams.
Both sets of authors have suggestions for improving resource
The authors explain that there are five primary approaches to lean (Exhibit 1).
They believe that of these three have the greatest potential to maximize value
of product development (Exhibit 2).
utilization to improve flow—which gets more products out the
door faster with the same resources.
(3) Design for lean production
This approach optimizes product designs so that they are easier
to make in a lean production environment, including the manu-
facturing, assembly, supply chain, and distribution. Much of the
impetus for applying this approach has been from the manufactur-
ing functions, particularly as companies make increasing efforts
to move lean tools and practices through the enterprise. Although
some teams have focused exclusively here, most have combined
this approach with one or more of the other approaches to lean.
This approach consists of a set of tools for reducing the down-
stream costs of the product in manufacturing, service, and support.
The tools draw from methods used inside Toyota and elsewhere
to make products easier to manufacture and assemble. The best

PDMA Visions Magazine JUNE 2007 13

 book on this subject is Design for Six Sigma by Dr. Kai Yang and
Basem EI-Haik.10
Design for lean production does not attempt to change the
product development system at all and says nothing about how to
help a product development organization work more effectively, so
changes in time-to-market or engineering capacity will be small.
The techniques, however, can dramatically lower total product
costs and improve prod-
elimination tools so that engineers obtain what they need more
quickly and departments can run less expensively.
However, such actions will never result in the kind of change
that leads to a major improvement. These tools are simply unable
to show a development team that they need a product platform
strategy or that the high number of engineering change orders at
release-to-production can only be eliminated with more thorough
investigation during the feasibility phase of development. They do

“
uct reliability.
If a practice is not centered (4) Lean toolbox
on delivering a lot more value This approach at-
tempts to apply tech-
from product development, it’s niques from lean manu-
not lean.” facturing in product de-
velopment. Most often,
a team will try to put
together a value stream map for the product development process.
Less frequently, they will use other tools from lean manufacturing,
such as 5S, work cells, and kanban systems in the engineering
environment.
We are skeptical about how much this approach increases ac-
tual value creation in product development. Engineers, scientists,
and marketing analysts are not production workers; and product
development takes place over months and years, not hours and
days. These tools have the potential to do more harm than good,
especially if trying to force information and knowledge creation
processes into a linear flow. As stated earlier, these tools are not the
ones that Toyota uses in its own product development process.
There are areas within product development that look more like
manufacturing, and these areas do benefit from lean manufacturing
tools. Prototype and model shops, procurement teams, and testing
departments often do repetitive tasks on short cycle times. These
micro-processes are natural candidates for transactional waste
not address the knowledge sharing or the early problem-solving
and technical learning through experimentation that is inherent
in the Toyota Product Development System.
(5) Relabeled lean
Unfortunately, “lean” is considered a hot word right now; and it
has been co-opted inappropriately by tools and methods that have
little to no actual connection with lean thinking or lean principles.
Some use “lean product development” to describe a kit of tools
that improve product development performance but without the
overall theme of increasing value or eliminating waste.
Others take ideas that have been around for a long time in
product development, such as phase-gate life cycles, and apply a
lean label to them. If one looks below the surface, it’s essentially
the same tool with a “lean” label on it.
Lean is more than just a toolbox or a label. If a practice is not
centered on delivering a lot more value from product develop-
ment, it’s not lean.
Recommended approach
Exhibit 2 on page 13 visually depicts what we believe is the best
combination of approaches. We have found that the best approach
to lean product development integrates the Toyota Product Devel-
opment System with the lean-principles-centered approaches of
Reinertsen and the Poppendiecks, and supplements with design for
lean production tools. This synergistic combination helps product

Exhibit 3: Comparison of Lean Product Development Approaches

Lean NPD Approach Description and Tools
Toyota Product Development System Grounded in research about Toyota’s
(TPDS) product development system: A3
reports, set-based concurrent engi-
neering, chief engineers.
Lean Principles Lean principles applied to product
development: value, the value
stream, flow, pull, and perfection.
Design for Lean Production Improves product designs so that
they cost less, have more reliabil-
ity and are easier to manufacture:
TRIZ, DFMA, Poka-Yoke (Mistake-
proofing)
Lean Toolbox Lean Manufacturing tools applied in
product development: value stream
maps, 5S, work cells.
Relabeled Lean Best/Good NPD practices given
a lean label to make them more
marketable. No real connection
to lean.
Major Benefits Example Proponents
Time-to-market, productivity, qual- Durward K. Sobek II, Ph.D.
ity, rapid learning, fewer changes at Allen C. Ward, Ph.D.
the end of development. James Morgan and Jeffrey K. Liker
(Description of TPDS)
Michael N. Kennedy
Time-to-market, quality, produc- Don Reinertsen
tivity Mary Poppendieck
Product cost, quality Kai Yang, Ph.D.
Bart Huthwaite
R&D capacity James Morgan and Jeffrey K. Liker
(Implementation approach)
Cliff Fiore
Pascal Dennis
None in terms of Lean and not Robert Cooper
breakthrough improvements. Some Lean tool vendors
are useful for incremental improve-
ment.

14 JUNE 2007 PDMA Visions Magazine

 development fill in the gaps between the explicit elements of the
Toyota Product Development System and the things that Toyota
takes for granted, several of which are not routine practices in other
organizational cultures. Teams that use lean product development
in this way achieve significantly more value from New Product
Development in a reasonable timeframe.
Getting more value from product development
How can any product development team use these ideas to
improve its product development? We believe the five questions
shown in the box on page 14 are particularly important.
First, get a good han-
dle on customer value.
Katherine Radeka, NPDP, is President of Whittier Consulting Group
Inc., located in Camas, Wash. Tricia Sutton, PMP, NPDP, is President of
Sutton Enterprises Inc,. in Waukegan, Ill.
Endnotes
1. James P. Womack, Daniel T. Jones, and Daniel Roos, The Machine
that Changed the World: The Story of Lean Production (New York:
Harper Perennial, 1990).
2. Ibid., 13.
3. James P. Womack and Daniel T. Jones, Lean Thinking: Banish
Waste and Create Wealth in Your Corporation (New York: Free Press,
2003 edition). (First published in 1996.)
4. Ibid., 353.

“
5. Durward K. Sobek II, “Principles that Shape Product Development
How well do you know Systems: A Toyota-Chrysler Comparison” (Ph.D. dissertation,
The practices that Toyota your end users? What University of Michigan, 1997) 88.
constitutes value for end 6. James P. Morgan and Jeffrey K. Liker, The Toyota Product
uses internally to grow and users? How well do you Development System: Integrating People, Process, and Technology,
(New York, N.Y.: Productivity Press, 2006).
share knowledge—its lean know your intermedi-
7. Allen C. Ward, Lean Product and Process Development
ate customers (channel
system—are readily partners, resellers, cor-
(Cambridge, Mass.: Lean Enterprise Institute, 2007).
8. Donald G. Reinertsen, Managing the Design Factory (New York:
transferable to other porate buyers)? What Free Press, 1997).
constitutes value for in- 9. Mary Poppendieck and Tom Poppendieck, Lean Software
organizations.” termediate customers? Development: An Agile Toolkit for Software Development Managers
What are the inherent (New York: Addison-Wesley Professional, 2003).
tradeoffs between delivering value to intermediate customers and 10. Kai Yang and Basem S. EI-Haik, Design for Six Sigma: A
Roadmap for Product Development (New York: McGraw-Hill
end users? How can you transcend those tradeoffs?
Professional, 2003).
Next, take a good, hard look at your product development pro-
cess. Some consultants advocate creating a value stream map of
your process, but we do not believe that’s necessary. It is usually
easy enough to find the low-hanging fruit. Where do you produce
documentation that is always out-of-date because no one both-
ers to read it or no one cares if it’s obsolete? Where does your
product development process require creating “sales pitches” for
internal customers? What deliverables does your process require?
Which ones directly contribute to customer value? Which ones
just get stuck in a file drawer? Which meetings engage all of the

IV`ZVC:L
participants and in which ones do participants read E-mail while
waiting for the few minutes that are valuable to them?

9^gZXi^dc ^c
Think about program leadership: Who in your organization
makes the major decisions about product development? How
well-integrated are marketing and engineering? Do they have the

?DDEL7J?ED
ability to speak the same language? Do you have anyone like a
Toyota chief engineer who has the ability to see the whole picture:
customer, market, and technology?
Take a hard look at how much effort you exert in the end of
Drive growth through
the process versus how much you spend in the beginning, when
innovation with Innovare’s
exploration is relatively cheap. How difficult are your transitions
to production? What can you do to “move the mountain” for- customer-centered research
ward—to put more efforts in the early stages of development so and front-end process.
that you use fewer resources later and avoid unplanned loopbacks
due to failures?
Finally, what organizational barriers foster the waste of rein-
vention? How easy is it for teams to share information with each
other? How easy is it for one product team to benefit from what
another product team has learned?
These areas tend to be low-hanging fruit in product develop- 617-479-3818
ment, where putting on a “lean hat” for just a few minutes can
help identify new ways of working to achieve better, faster, and
www.innovare-inc.com
cheaper—all at the same time. Innovare is a registered trademark of Innovare, Inc.
©2007 Innovare, Inc. All rights reserved.

PDMA Visions Magazine JUNE 2007 15

 Cover Story

Hyundai uses “Touch the Market”

to create clarity in product concepts
The result: The new 2007 Santa Fe

Heather Kluter, Manager, Consumer Insights and Product Strategy (Hkluter@

hmausa.com) and Doug Mottram, National Manager, Brand Development
Heather Kluter Doug Mottram (Dmottram@hmausa.com), Hyundai Motor America

Customer-centric innovation is a mantra in product development right now. But there are so many approaches to it: How does a company
select one—especially at the concept stage? Or know that the process it has developed will really bring it the right customer input?
In this article, the authors explain how Hyundai did this, and is now incorporating its new customer-central process called “Touch the
Market” into product development efforts throughout the company. Their article focuses on the first use of the process: development of
Hyundai’s second generation Santa Fe, launched in 2007.

T
he second generation of the Santa Fe, which Hyundai in-
troduced in 2007, represented an entirely new design direc-
tion for our company. It is a sleek, car-like, sophisticated,
crossover vehicle tailored to consumers in the United States,
very different from its predecessors, as shown in the photo on
this page. Within the company, the car was the result of a major
challenge—to create a vehicle that would be considered “asser-
tive yet graceful.”
In order to meet that challenge, Hyundai Motor America
(HMA) took an entirely
organization, the Consumer Insights and Advanced Product
Development teams at HMA had to convince the rest of the
organization that this would be an effective way to develop and
communicate new product concepts. Typically the bulk of inno-
vation work is done within the research and development (R&D)
department. However, many of the ideas and opportunities to
please the customer fall outside of R&D. Consequently, HMA
had to develop a plan to involve “innovators” from a cross-section
of the company, both in the United States and South Korea, from
not only Design and Engineering but also from Product Planning,

“
new approach. In fact, Market Research, Marketing, and Public Relations. Developing a
Touch the Market began as... at the start our product consensus was essential for us to obtain a buy-in to improving the
development, design product innovation process—a very encompassing structure.
an unsanctioned event...that and engineering teams
eventually became an approach actually headed for a Developing better vehicles
skating rink rather than Our challenge was clear: How can we develop better vehicles,
that critically influences new the office. The idea was vehicles that better fulfill the needs of the customer? These are
vehicle programs.” to scoot around the ice formidable challenges and it takes a lot to achieve them. But we
with the kind of “grace knew that companies that learn to manage the overall product
and speed” we were aiming at. We watched while Olympic medal- development process, internally and across all the groups in a
ist Rusty Smith raced around the rink at top speeds, bringing to very large and often disjointed company, are in the best position
life the Santa Fe’s design objective. to achieve this. The competitive landscape of the automotive
Smith put on a skating demonstration and talked about aspects industry is changing fast and dramatically. Best-in-class product
of his sport that convey graceful assertiveness. You can do Power- developers and manufacturers are better able to coordinate the
Point slides all day long, but we wanted a real-life design metaphor. vehicle development process internally and on a global basis.
The research and product development teams were charged with One way to become an agent of change is to combine data with
communicating “assertive grace” so that Hyundai could design its creativity. This melding can act as a change agent to transform a
second generation 2007 Santa Fe. So began a weeklong series of company into a consumer-centric enterprise. Our thought was to
events that we called “Touch the Market” attended by cross-func- create a new approach that combines team building and consumer
tional teams from research (and lat-
Hyundai around er, product inno-
the globe. In this vation) to educate,
article, we want to excite, and create
guide you through cross-functional
the process we and extended
used to come up, project team man-
at long last, with agement. We were
our second genera- looking to go be-
tion Santa Fe. yond information
In order to ad- exchange in order
vance the state of to achieve two pri-
product develop- mary goals. We
ment within the Hyundai used “Touch the Market” to develop the concept for its second generation Santa Fe, launched in 2007 wanted to build

16 JUNE 2007 PDMA Visions Magazine

 NPD Trends/Practices
desire, excitement, and commitment among key individuals and
groups to implement significant change or strengthen the com-
pany culture. In addition, we wanted to manage the company
strategically to increase operational performance and competitive
advantage, and to better satisfy customer values.
The brainchild: Touch the Market
In other words, we wanted to get out of the boardroom, away
from PowerPoint®, and into the real world. We created a process
called Touch the Market (TTM) to do this. It is a process that
includes senior management-focused project phase reviews,
development process metrics and process improvement actions,
continuous product and manufacturing process improvement, stra-
tegic cross-generational product and platform management, and
technical, team-based concept evaluation. Actually, TTM began
as an innovative experience—an unsanctioned event conducted
by HMA that eventually became an approach that critically influ-
ences new vehicle programs.
With concept development studies and consumer segmenta-
tion acting as the connecting bonds, we wove actionable insights
into the TTM activities and dimensionalized the Santa Fe design
concept in a way never before done at Hyundai. TTM was a
multi-day experience that brought together a cross-functional and
cross-cultural team in the U.S. market to learn about the product
concept. It also involved direct contact with consumers. The selec-
tion of activities allowed a deeper understanding of the product
concept, and the discussion led to innovative ideas appropriate
for the concept. There were numerous objectives for our event as
shown in the box to the right.
Hyundai Motor America: In Brief
Hyundai Motor America, headquartered in Fountain Valley, Calif.,
is a subsidiary of Hyundai Motor Company of Korea. Hyundai cars
and sport utility vehicles are distributed throughout the United
States by Hyundai Motor America and are sold and serviced by
more than 665 Hyundai dealerships nationwide.
Incorporating Voice of the Customer
TTM events such as the one we ran come at the Voice of the
Customer (VOC) from a different angle. Stemming from tradi-
tional VOC, TTM events are inspired by target consumers and
give event attendees the chance to interact directly with this target
consumer. In this case, we chose image target consumers—a
much narrower consumer base than the ultimate consumption
target for the product—so that product development would be
tightly focused.
The process for the Santa Fe development began almost five
years ago with a segmentation study conducted by Hyundai to
identify consumers’ unmet needs to help shape the concept. The
study uncovered some key design aspects not yet present in SUVs
on the market at the time. These included glamorous design
(as opposed to the boxy shapes then on the market)—a vehicle
designed to generate attention and one that makes its drivers
and passengers feel pampered and confident. The R&D teams
at Hyundai synthesized the data and developed an interpretive
translation of the research to create the Santa Fe concept: Asser-
PDMA Visions Magazine
Touch the Market: How It Work
Hyundai wanted to develop a new design concept for its second
generation Santa Fe. To do that, it developed a technique called
“Touch the Market.” By using that technique, the company wanted
to:
• Clarify and communicate the meaning of the product concept
(for the second generation Santa Fe),
• Go beyond the PowerPoint to generate a memorable
experience,
• Expose the team to the target consumer,
• Facilitate a healthy team discussion and establish team
relationships,
• Create “advocates” for the U.S. concept in cross-functional areas,
and
• Inspire creativity that leads to market-driven ideas for the
concept.
tive Grace: Seemingly effortless expression of confident beauty,
form, and proportion.
By interpreting attributes identified in the segmentation study,
we used imagery comparisons to help designers and marketers
understand the concept. Based on the segmentation study, we also
created an image target consumer to help communicate the type
of driver for whom this product was being developed as shown in
the slides in the box on page 18. We called this target “Glamour
Mom” and screened numerous women to find a handful of true
glamour moms who fit the demographic and lifestyle description
of this target.
Inspiring the team through ethnography
In order to help the team gain a deeper understanding of the
glamour mom, we ventured out into where these women lived:
their homes, hearts, and world. We got to know what mattered
to them, so that we could make the Santa Fe more meaningful to
them. This type of ethnographic research takes into account that
what people say does not always jive with what they think and
feel. So we watched, listened, asked questions, and let people
speak freely about their lives. Ethnographic research allowed
us to approach consumers as whole individuals in order to cre-
ate products that connect them to the Hyundai brand. Working
closely together as a cross-functional team, we were able to bring
the lives of our image target into every aspect of the product
development process.
During TTM, the group met a number of carefully selected
target customers in their homes to get a better direct, hands-on
understanding of their lifestyle and typical activities. Our members
also spent the day shopping with the glamour moms in order to
gain a better understanding of what motivates their purchases.
We uncovered numerous insights; some of these are listed in the
box on page 19.
Aiding non-American participants
The team also explored model homes in a community-style
development favored by the target consumer. This activity was
especially helpful in aiding the non-American participants in un-
JUNE 2007 17
 Planning for the Second Generation Sante Fe

SOURCE: Hyundai
Hyundai screened numerous women to identify those who fit the demographic and lifestyle description of Glamour Moms, their target customer
for the second generation Santa Fe. Here are some of the slides they used showing this research.
derstanding the typical American suburban home and lifestyle. The result of all this TTM work was profound; it is the Z-shape
The team also experienced driving in the United States. We took profile for our second generation Santa Fe that emulates a speed
rides through Southern California to experience different vehicles. skater’s race stance and profile and gives the vehicle a sense of
We drove from Orange County to Palm Springs and back again in speed. The interior combines a high-tech look with the warmth
order to do the same type of driving our target customer would do. of wood, much like the design feelings inspired from the model
We wanted to experience various aspects of the vehicles—styl- homes visited and homes of the glamour moms.
ing, interior appointments, Through TTM, the team was able to lay out the basics of a

“
performance attributes. successful product development and communication experience
Touch the Market is We decided not to include to develop our second generation Santa Fe. The success of this
now a formal part of the current direct competitors experience has led to additional TTM events for other projects
to the Santa Fe, opting with even greater attendance and corporate attention. Attendance
development schedule.” instead for inspiration ve- has grown from 12 participants to nearly 20 per event, and the
hicles in order to reinforce number of functional groups attending has grown from four to
the need to look outside the segment to achieve leadership in the eight divisions. The output has become more sophisticated and
segment. permanent, and focus target consumers are now a recurring part of
Finally, an overnight stay in Palm Springs at the Estrella Hotel, a the four-year product development cycle, with the same consumers
complex that is modern yet glamorous, inspired the team to come providing feedback as the concept evolves.
up with key design imagery intended to inspire the designers of
the new Santa Fe. Improving the TTM structure
The TTM experience has since been significantly enhanced
The result of Touch the Market research by the addition of a competitive activity, with the group split
Participant feedback to the TTM events has been overwhelming. into small teams intended to energize the participants and lead
Consider the quote below, received from a Korean designer: to deeper understanding of the concept. On the final day of the
“The Santa Fe TTM was such a refreshing opportunity for me event, teams gather for concept ideation—a creative burst applied
in building the Santa Fe marketing strategy. Though the ways to the now clearly understood concept that results in an impres-
you chose to execute the event were actually so strange for a sive list of new ideas for the vehicle. Through team challenges
typical Korean like me because all I knew about TTM (Touch the and brainstorming sessions, the participants explore the concept
Market) was that it’s just a kind of market research. I really want in spirited discussions, which will ultimately lead to new innova-
to show my appreciation for your efforts for Santa Fe TTM and tions. Creative ideation yields numerous innovative features that
your kindness to me.” enhance the framework of the concept.

18 JUNE 2007 PDMA Visions Magazine

 Since that first event four years ago, HMA has initiated TTM
immersions for other vehicles, such as the future concepts of our
Sonata sedan and Tucson SUV. We continued the evolution built
upon team-building and introduced customized ideation sessions,
which yielded many enhancements to the overall vehicle concept.
Our designers and engineers have been able to incorporate these
ideas into the entire product development process. With the
Tucson, we went even deeper. Our TTM teams created concept
Web sites that we uploaded into our Intranet for all to see and
learn from.
At this point in time, TTM is now a formal part of the develop-
ment schedule. Additionally and most importantly, the company
now continually seeks ways to attain superior performance through
frame-breaking ideas that make the competition irrelevant. We
focus attention on factors that deliver the highest value to the
customer, lead to discovery and understanding of new ideas, and
break out of unquestioned industry traditions. Finally, we seek
to identify aggressive, yet achievable, future performance targets
most relevant to customer needs and values.
Today, TTM has legs within Hyundai, and it is spreading into
other phases of the vehicle development and launch process. Now
that the original TTM experience is well understood and integrated
throughout the company, HMA plans to build upon its success and
bring it to other parts of the company—and repeat it later in the
development and marketing process. After all, it takes five long
years to make a car; so it is a great challenge to keep the various
groups focused on the concept and to inspire the effective execu-
tion of the consumer-derived innovations started so long ago!
Motivators of Glamour Moms
Through ethnographic research, Hyundai was able to get a
closer look at the values of Glamour Moms—the target market for
Hyundai’s second generation Santa Fe. When they shop, these
women are looking for:
• Durability A Coach purse was selected because the leather lasts
and wears well, even after three or four years, important for a
working mother
• Versatility A lot of black, because it mixes and matches with the
balance of her wardrobe
• Unique accent pieces A red cell phone case was purchased
because it stands out amongst the clutter of her purse
• Good customer service/knowledgeable salespeople A preference
for shopping higher-end stores and willingness to spend more for
good service/treatment
• Unique product advantages in function and/or style Brand is not
as important as these elements
• Child-friendly shopping locations Areas where kids can play (toys,
fountains, etc.), and shopkeepers who are friendly to parents
shopping with children.
Heather Kluter is Manager, Consumer Insights and Product Strategy, at
Hyundai Motor America; and Doug Mottram is National Manager, Brand
Development, Hyundai Motor America.

PDMA Conference Calendar—2007 and 2008
2007 2008
Sept. 29– Oct. 3 PDMA 2007 International Conference Jan. 21-23 7th Annual Co-Development/Open Innovation
The Product Innovation Connection Conference
Information. Education. Experience. (PDMA/Management Roundtable)
Venue: Disney’s Contemporary Resort, Orlando, Fla. Doubletree Paradise Valley Resort, Scottsdale, Ariz.
www.globalexec.com/pdma2007/index.php www.roundtable.com/codev/
Dec. 3–5 10th Annual Voice of the Customer Jan. 28-30 2nd Annual Front End of Innovation in Europe
(PDMA & IIR) (PDMA &IIR)
The CALEO Resort & Spa in Scottsdale, Ariz. Vienna, Austria
www.iirusa.com/voc
Dec. 17–19 3rd International Conference on Innovation & NPD PDMA February 13th Annual Strategic & Operational Portfolio
India Conference 2007 Management
Product Development for Developing Country Markets: (PDMA & IIR)
Scope, Challenges and Management Date and location TBD. Usually in Florida.
(PDMA & PDMA-India)
March Service Innovation Design & Development
Indian Institute of Management, Bangalore, India (PDMA & IIR)
Dec 17-18 PDMA India Conference www.iirusa.com/service
Product Development for Developing Country Markets:
May 19-21 6th Annual Front End of Innovation
Scope, Challenges,and Management (PDMA & IIR)
(PDMA & PDMA-India) Boston Seaport Hotel, Boston, Mass.
Indian Institute of Management, Bangalore, India www.frontendofinnovation.com

PDMA’s conferences offer expertise and information on virtually every aspect of innovation and New Product Development (NPD). Details
and updates can be found at the PDMA Web site, www.pdma.org.

PDMA Visions Magazine JUNE 2007 19

 NPD Trends/Practices NPD Trends/Practices

From Open Innovation to Open

Business Models—
An Interview with Henry Chesbrough

Henry Chesbrough, Executive Director, Center for Open Innovation, Haas

Michael Docherty Henry Chesbrough School of Business, University of California Berkeley (Henry@Chesbrough.com);
interviewed by Michael Docherty, Visions Open Innovation Editor and President,
Venture2 Inc. (mdocherty@venture2.net)

As the leading writer on Open Innovation, Henry Chesbrough provides insights into this field that are well-respected throughout the
corporate world. Chesbrough has just published his second book, Open Business Models: How to Thrive in the New Innovation Land-
scape (Harvard Business School Press, 2006). His new book discusses creation of a business model for Open Innovation. Interviewed
by Visions Open Innovation Editor Michael Docherty, Chesbrough offers observations that are sure to be useful to active practitioners
in the New Product Development field.

M
ichael Docherty: What do you think is behind the interest
in and popularity of Open Innovation?
Henry Chesbrough: I think that many people in many
companies felt that the earlier model of internal R&D [research
and d evelopment] was no longer effective. Too little productivity,
too many spillovers, too long a timeframe to go from inception
to market—these were longstanding complaints. Two additional
factors that have compounded the problem are the rising cost of
R&D and the ever-shorter product life cycles in the market, should
one be so fortunate as to get a project through to the market.
What was missing was any alternative way to address these
problems. Open innovation increases R&D productivity, captures
or leverages spillovers in other markets, shortens the time to get
to market, and shares the rising R&D costs with others.
Docherty: With the
for open innovation, that we would need to engage the business
side of organizations in the innovation process in order to reap the
full potential benefits of a more open business. More particularly,
the business model is itself something that companies need to
innovate, in order to get the most out of their innovation efforts.
And very few companies have any clear processes that seek to
innovate their business models. So I wrote this book in hopes of
inspiring business model innovation.
Another important idea in the second book is the idea of emerg-
ing secondary markets for intellectual property (IP). While this
trend is at a very early stage, the presence of a secondary market
will have powerful influences over how we organize innovation in
the future. You see companies now like Qualcomm with IP-centric
business models. You see intermediary companies like Ocean
Tomo trying to facilitate trade in IP. This will enable new ways

“
great successes that com- to innovation profitably, and it may also imperil some traditional
panies like P&G and Kim- ways to innovate profitably.
We have many stories berly-Clark are claiming Docherty: Do you see companies looking more globally for
about R&D success, but still with open innovation, why technologies and partners? Is this a trend that we can expect to
aren’t we seeing more see accelerating?
lack any large sample data companies adopt open Chesbrough: Yes and yes. Useful knowledge is now very
on bottom line return on in- innovation models even widely distributed in most industries. If you’re in the cellular or
faster? wireless telephony business and you’re only tracking the research
vestment from adopting Open Chesbrough: That is a and development activities of companies and universities in the
Innovation.” very good question. I see United States, you’re missing a great deal of what’s available. In
two primary factors that countries like Finland, Taiwan, South Korea, and Israel, smaller
—Henry Chesbrough are inhibiting the spread societies are well ahead of the United States in technology de-
of open innovation. First, velopment and especially deployment. This means that many of
we have many stories about R&D success, but still lack any large the value-added services that sit on top of wireless are emerging
sample data on bottom line return on investment from adopting there first.
open innovation. Second, moving toward open innovation requires But it should be pointed out that not all industries are opening
a number of changes to many organizational processes. These up their innovation process. I don’t think that the nuclear power
changes are costly and time-consuming themselves, so many industry is seeing much startup activity, or university research
companies are playing “wait and see.” activity. The same is true for military weapons systems. Even in
Docherty: What is the main concept behind your new book, the defense area, though, some portions of the sector are opening
Open Business Models? What was your motivation in writing up. The CIA [Central Intelligence Agency] has created its own
it? venture capital fund, for example, called In-Q-Tel. This fund
Chesbrough: Open Innovation was well received, but it was helps startup companies pitch new software and cryptographic
received mainly by the technology and R&D community. I be- technologies to the intelligence and defense communities.
came increasingly convinced, as I talked about the opportunities Docherty: Some companies appear to equate open innovation

20 JUNE 2007 PDMA Visions Magazine

 with technology scouting. Do you see the same thing? How would
you recommend that companies position and utilize technology
scouting within their open innovation efforts?
Chesbrough: Scouting is a part of open innovation, but there is
much more to open innovation than scouting. This misconception
is due to P&G, I think. That company has done a tremendous job
educating people about its “Connect and Develop” approach to in-
novation. Connect refers to linking to external technology sources,
which is pretty much like scouting. To position and utilize scouting
effectively, one tip from P&G is to locate the function within your
R&D organization, rath-
“
er than in purchasing or
The companies…who have business development.
This means staffing the
embraced Open Innovation tell function with former
me that their first such deals R&D executives, who
understand the compa-
are very painful to negotiate. ny’s technologies and
But…it gets better the second processes. They will
know what will work
and third time around.” and what won’t work
—Henry Chesbrough with the internal part of
the company.
What else is there to
open innovation beyond scouting? One whole area omitted in
the P&G conception is letting unused internal ideas flow to the
outside, through licensing, joint ventures, spin-offs, and increas-
ingly, spin-ins, where a technology is allowed to go outside into
a new venture, but is later brought back into the company.
Docherty: Do you see any other trends toward companies de-
veloping more formal networks of external development partners,
beyond technology scouting?
Chesbrough: Very much so. One trend is so pronounced that
the government is now collecting data on it. The National Science
Foundation [NSF] reported data on extramural R&D (where the
company paid for it, but the work was conducted outside of the
company) and on collaborative R&D (where a company worked
with another organization on an R&D project). In the year 2004,
the NSF found that three to four percent of R&D spending was
spent on extramural R&D, and another three to four percent was
spent on collaborative R&D. These are not huge percentages, but
they add up to $9 or $10 billion in R&D for that year. And the
fact that the government has started to collect these data is itself
significant, in that it must see this trend developing, or else it would
not have bothered to ask these questions on the survey.
Docherty: You talk about the role of out-licensing in your new
book. Do you see this simply as a tool for leveraging unused
intellectual property, or also as a way to leverage others’ busi-
ness models?
Chesbrough: The way companies manage out-licensing var-
ies with the company and its strategy. Most companies early on
are trying to make a little extra money for their unused IP. Over
time, however, as companies gain experience and confidence,
they see more strategic ways to employ licensing. One of them is
suggested in your question: to leverage other companies’ business
models. This means that the company watches what the other
companies are doing with their technologies, and learning from
that experience. In many cases, the licensees have developed a
different business model that finds value in a technology that the
licensor did not perceive. In other cases, a licensee sees the market
PDMA Visions Magazine
and technology trends differently. In either case, companies have
begun to figure out that having a number of interested licensees for
one of your technologies is a powerful signal that this technology
may be more valuable than you realize.
There are other ways to manage licensing though, beyond
leveraging another firm’s business model. One is to use licens-
ing to set a standard for your technology and get others to build
upon it. Another is to donate it to a commons, so that others will
innovate with it. We will see more innovative ways to manage
licensing going forward.
Docherty: I hear a lot of companies talking about the issues
they have in managing intellectual property issues within their
partnering and co-development activities. What issues are you
seeing and do you have any advice on how companies should
approach this within their co-development efforts?
Chesbrough: There was an article in Business Week just re-
cently on this very topic. IP management is a critical skill that must
be mastered to prosper with open innovation, because whether you
are bringing external technology inside or taking unused internal
technology outside, IP figures prominently. The problem is that
the traditional processes used to manage IP are anchored in a
closed innovation approach, where control is everything. Very
few technology partners will give you complete control over all
of their IP in a development arrangement. Instead, you’ll need to
discuss who has what rights and what access to each other’s IP,
both during the partnership and after its termination. These require
new legal and negotiating skills.
The companies I know who have embraced open innovation tell
me that their first such deals are very painful to negotiate. But they
also tell me that it gets better the second and third time around.
The very best companies have developed processes and tools that
take the lawyers out of the day-to-day loop and let the business
parties negotiate within well-defined parameters.
Docherty: In your new book, you talk about the growing role of
intermediaries in the open innovation marketplace. As companies
become more proficient at both scouting and co-development, will
this need for intermediaries decline or increase and why?
Chesbrough: The function of the intermediary is here to stay,
I think. While it is good for companies to develop their own
processes and skills, intermediaries will be able to serve a much
broader market than most companies. They will be more active
participants in the market and will have better knowledge on
what deals are being done with what arrangements. Only the very
biggest companies can replicate this internally. The rest will be
well-advised to team up with intermediaries. And some of the very
largest organizations, like P&G, have taken equity positions in
some of the leading intermediaries, like NineSigma, InnoCentive,
Yet2.com, and YourEncore.
Henry Chesbrough is Executive Director of the Center for Open Innova-
tion at the Haas School of Business, University of California Berkeley. He
was named as one of the Scientific American Top 50 Business and Tech-
nology leaders for 2003. Michael Docherty is Visions Open Innovation
Editor and President of Venture2 Inc., located in Delray Beach, Fla.
JUNE 2007 21
 NPD Trends/Practices NPD Trends/Practices

Arizona Chapter conference

focuses on sustainability—
Speakers stress the “greening”
of product development

Donovan Ray Hardenbrook, Senior Internal Consultant

Donovan Ray Hardenbrook
Intel Corporation (don.r.hardenbrook@intel.com)

As corporate interest in sustainability has mushroomed in the United States, more and more companies are figuring out how to “go
green” in their product development efforts, not just their facilities. The author describes the Arizona Chapter’s recent conference on
sustainability.

O
n March 9, 2007, the Arizona chapter hosted its third an-
nual Product Development and Management Association
(PDMA) conference. Attended by over 50 registered par-
ticipants, this year’s conference focused on a topic that is now
catching the attention of businesses and the media alike; its theme
was Innovate through Sustainable Technologies. The intent of this
year’s conference was to showcase some of the emerging trends in
sustainability across several industries. In addition, we looked at
what was driving voluntary compliance in the personal computer
(PC) industry and the efforts in China to address sustainability in
the world’s fastest-growing manufacturing economy.
Conference planning
Planning for the 2007 Annual Conference started immediately
after the 2006 Annual Conference. The convergence of several
thought-provoking books, particularly China, Inc. by Ted Fish-
man, The World is Flat by Thomas L. Friedman, and most visibly
An Inconvenient Truth by
Al Gore, highlighted the
State University, was the moderator for the panel. Some very lively
interaction took place between the audience and the panelists as
different views on sustainability and industry trends were shared.
One very important theme was the need for more awareness by
senior management on making sustainability an important part of
business strategy and senior management commitment.
The U.S. Center for Sustainable Development
The first presenter for the conference was John Potts, CTO for
the China-U.S. Center for Sustainable Development (CUSD).
China has become the global source for manufacturing. Unfor-
tunately, this designation also places China as the second-largest
contributor to the global warming problem (behind the United
States), he pointed out. Statistics such as 10,000 new towns and
300 million homes to be built in China in the next 15 years put
into perspective the costs to the environment caused by economic
growth. Whatever solutions are developed for sustainability will
need to be embraced by the People’s Republic of China in order
to have any significant effect.

“
fact that not only is the The CUSD has been designated by the United States govern-
[There is a]… need for world getting flatter but it ment to be the official agency to work with China on sustainability.
is also getting environmen- The CUSD not only has government representatives from the
more awareness by senior tally dirtier. A conference People’s Republic of China but also Chinese industry associations
management on making showcasing companies in and universities (Beijing, Tongji, and Tsinghua Universities). Last
various industries that are but most important, an elite list of multinational corporations such
sustainability an important making a more conscious as Ford, HP, Intel, British Petroleum, and Philips hold invited
part of business strategy.” effort corporately to im- positions on the board and are recognized as global leaders in
prove their environmental environmental and social responsibility. Through the CUSD,
footprint through product said Potts, the Chinese government has been open to best prac-
innovation was something worth pursuing. tices and thought leadership from industry leaders on defining a
We formed a conference planning committee consisting of “cradle to cradle” approach to its economic and environmental
individuals from Arizona PDMA (Chapter Board members Asit development.
Goel, Peter Miller, Pete He, Glenn Grossman, David Zuckerman, The growth engine of the past century was the corporate en-
and Don Hardenbrook), Arizona State University (Dan Shunk, terprise. This same growth engine will be essential to our future
Braden Allenby, Jay Golden, Jim Hershauer, and Prasad Bora- for well-designed, sustainable solutions. Technology, and its
kar), and the China-U.S. Center for Sustainability (John Potts). application to sustainability challenges, is a major component
Several sessions spent discussing sustainability started drawing of China’s plan to address the country’s challenges. Potts also
out the vastness of the subject. We agreed that the focus would theorized that sustainability will mimic the quality revolution.
be on product development and what companies are doing in the The lessons learned in quality need to be applied to accelerate
area of sustainability. sustainability efforts.
This year’s event was kicked off by an invitation-only pre-con- Doug Kunneman and Robert Green of NatureWorks LLC, a
ference panel discussion consisting of the conference speakers and subsidiary of Cargill, presented a session on the NatureWorks
hosted by Dial Corporation, along with its parent company, Henkel Polymer (PLA). One of many new biopolymers on the market,
Corporation. Jay Golden, Director, National Center of Excellence PLA is used to create packaging products that are 100 percent
on SMART Innovations for Urban Climate and Energy at Arizona biodegradable. In fact, PLA will completely decompose in 47
22 JUNE 2007 PDMA Visions Magazine

PDMA Arizona Chapter board members are shown here (left to right): Don
Hardenbrook, Past Chapter President; Asit Goel, Chapter President; Peter
Miller, VP Conferences; Pete He, VP Membership; David Zuckerman, VP
Marketing; Glenn Grossman, President Elect.
days. Over 114 million product containers have been created with
PLA so far. With the raw material for PLA found in corn, the
solution is 100 percent renewable, with many end-of-life options.
The conclusion was that PLA, a renewable carbon-based solution,
is a better environmental alternative to petroleum-based plastics.
Kunneman gave away a copy of Al Gore’s An Inconvenient Truth
DVD that used PLA in its packaging.
Philips, a company with a long history of sustainability
From the company’s formation, Royal Philips Electronics has
always been concerned about sustainability. The concept of “do-
ing well by doing good” was a core virtue of Anton and Gerad
Philips, the founders of Philips back in 1891. Philips takes the
approach of embedding sustainable practices in its business units.
It is more than a semiconductor company with businesses in light-
ing, health, and lifestyle.
Govi Rao, Vice President & General Manager, Philips Solid
State Lighting, North America, stated that 19 percent of an elec-
tric bill is related to lighting. Individuals can do a lot today with
improved choices for lighting to reduce energy consumption,
including use of compact fluorescent and LED bulbs. Unfortu-
nately, consumers in the United States are reluctant to switch
from incandescent bulbs due to their “warm, golden glow”; ac-
cording to Rao, they are essentially “ceiling heaters.” He was
proud of the fact that Philips recently announced that it is getting
completely out of the incandescent light bulb business. There
will be a transition over time so as not to impact the economies
of countries that manufacture incandescent light bulbs for Philips.
Rao also pointed out that compact fluorescent lamps, while a better
alternative to incandescent ones, are still not the best solution due
to the chemical mercury contained in the bulbs. For that reason,
Philips is investing in white LED bulbs and other more ecologi-
cally friendly alternatives.
Wayne Rifer from the Electronic Product Environmental As-
sessment Tool (EPEAT) organization shared information about
the role of EPEAT in helping institutional purchasers of PCs and
displays who want to ensure that they were designed with energy
efficiency and environmental ecology in mind. The design of
EPEAT was based on collaboration with PC original equipment
manufacturers (OEMs) and is a voluntary compliance with respect
to the certification standards. A PC product can be certified as
bronze, silver, or gold depending on the number of the EPEAT
required and voluntary criteria it meets. The power behind EPEAT
is that all U.S. government purchasing departments are required
PDMA Visions Magazine
to meet environmental standards as part of their selection process,
and EPEAT allows them an efficient and credible means of verify-
ing that equipment meets criteria. Given that there was over $21
billion in total federal and state IT budgets as of March 31, 2006,
PC OEMs can not ignore making sure their equipment meets
EPEAT standards. There are now over 300 PC and computer
display products listed on the EPEAT Web site (www.greenelec-
tronicscouncil.org/epeat/index.htm). EPEAT has proven to be so
successful that the Green Electronics Council has been asked to
expand EPEAT to more consumer products.
Applying green thinking to manufacturing
From Intel Corporation, Todd Brady, Corporate Environmen-
tal Manager, presented on the concept of green manufacturing
by sharing how Intel approached reducing the environmental
footprint of its manufacturing facilities as it transitioned from
200mm to 300mm wafer factories. Using a holistic design for
environment approach, Intel was able to reduce its chemical and
utility consumption and its environmental emissions significantly
for the 300mm wafer manufacturing facilities compared to the
200mm factories. Much of this success was attributed to the envi-
ronmental, health, and safety organization getting involved early
in the technology research associated with wafer manufacturing
and influencing the facility construction and manufacturing pro-
cesses to be more environmentally friendly. An interesting note:
Because Intel’s factories are designed the same regardless of the
country of location—an Intel practice commonly known as “Copy
Exactly”—all factories comply to the strictest environmental
requirements of the most stringent countries, even though not
required by the local government.
A growing sustainability community in Arizona
Our major sponsors, Arizona Public Service, Arizona State
University, and Henkel Corporation, have made significant
investments in sustainability. Arizona State University recently
opened the Global Institute of Sustainability (GIOS). Henkel
was this year’s major corporate sponsor. Dial also sponsored the
pre-conference panel discussion on sustainability moderated by
Jay Golden of Arizona State University, held at the Scottsdale
Princess Hotel.
In summary, we hope that the 2007 Conference provides ad-
ditional momentum to sustainability efforts and encourages other
companies to understand that sustainability is no longer for “tree
huggers” but has become a platform that companies will need to
compete on in today’s flatter world.
Donovan Ray Hardenbrook is a Senior Consultant at the Intel
Corporation in Arizona and also the former president and a founding
member of the PDMA Arizona Chapter.
Endnotes
1. Ted C. Fishman, China Inc.: How the Rise of the Next Superpower
Challenges America and the World (New York: Scribner, 2005).
2. Thomas L. Friedman, The World is Flat: A Brief History of the
Twenty-first Century (New York: Farrar, Straus and Giroux, 2005.
3. Al Gore, An Inconvenient Truth: The Planetary Emergency of Global
Warming and What We Can Do About It (New York: Rodale, 2006).
4. An Inconvenient Truth, dir. Davis Guggenheim, 96 min., Paramount,
2006, DVD.
JUNE 2007 23
 Global News

Report from China

Wuhan Conference examines
the need for innovation in
China’s automotive industry
Raja Irfan Sabir, Ph.D. Candidate, Wuhan University of Technology, Wuhan,
Raja Irfan Sabir
Hubei, People’s Republic of China (irfan@whut.edu.cn)

Today, automobile makers in the People’s Republic of China face a crisis in innovation as they try to move past their dependence on
outside technology and ramp up to compete in a vast and rapidly growing market. To address this challenge, PDMA-China and Wuhan
University of Technology, with other sponsors, held a conference in December 2006 on New Product Development (NPD) in the automo-
tive industry. Here are some highlights.

C
hina’s automotive industry represents an extraordinary case
study of the development of an emerging market. Its central
lesson underscores the need for innovation to sustain the
Chinese economy. China is fast transitioning to a full market
economy. A number of key forces are now playing out in China,
among them the high potential the Chinese market represents for
global companies, a large number of economic and industrial
reforms implemented by the government, and the growing reli-
to mature growth through innovation. The conference was a joint
effort of the Product Development and Management Association
(PDMA), PDMA-China, and Wuhan University of Technology.
The conference was co-chaired by Hu Shuhua, Chair Professor,
Wuhan University of Technology, and Hamsa Thota, President
and Chairman, PDMA.
Attendees included executives from local and foreign compa-
nies, researchers, news reporters, and students of management and

“
ance of Chinese industry the engineering sciences. Speeches were delivered on the first and
on imported technology to second days, with two sessions on each day, while the last day
China may become the ‘mini maintain its manufactur- was filled with open forums and discussions in which experts,
vehicle kingdom’ of the world in ing edge. With this sce- researchers, and scholars exchanged their views and ideas.
nario unfolding, the First
10 years.” International Conference Envisioning the move toward innovation
on Automotive Industry The conference started with welcoming remarks from Hu
Innovation was held in the historic city of Wuhan in the People’s Shuhua in which he gave an overview of the conference theme. He
Republic of China on December 1-3, 2006. also invited all of the guests to what proved to be an inspirational
The of the conference was China’s Automotive Innovation and exhibition of some of the new vehicles (including mini cars and
Independent Development. Its goal was to create China’s premiere electric cars and vans) being manufactured in China.
forum for discussion on how to guide China’s automotive industry The formal morning session started with Hamsa Thota’s speech,

The People’s Republic of China Automotive Industry

Nearly seven million automobiles were sold in China in 2006, making it the second-largest market in the world.
One projection puts the number of automobiles on Chinese roads by 2020 at
140 million—more automobiles than the United States has today.

That prediction may not be surprising, given the size of China’s

present population of 1.3 billion. Major Chinese auto manu-
facturers have set up joint ventures with foreign companies
to take advantage of this large market. Some say that this
foreign direct investment has reduced the incentive for in-
digenous Chinese technological innovation in the automobile
industry. Today, however, the government and others are trying
to reverse that trend, and the conference held in Wuhan last
December is part of that effort.

Although most of the models produced by China’s domestic car produc-

ers have come from joint ventures with foreign manufacturers, two of China’s
local independent brands, Anhui-based Geely and Zhejiang-based Chery, are starting to
have an impact.
—Andrea Herbert, Staff Writer

24 JUNE 2007 PDMA Visions Magazine

in which he, as PDMA’s President and Chairman, congratulated all
those who participated in organizing such a successful conference.
Briefing the attendees about the automobile industry, he said that
it “has tremendous opportunity to innovate across all three dimen-
sions of innovation to deliver superior customer experiences.” He
went on to suggest that the Chinese automotive industry should
direct its course toward innovation in two steps. The first step is
to differentiate by investing in the four stages of process innova-
tion— discovery, development, commercialization, and lifecycle
management. The second step is to differentiate across the seven
types of business innovation—customer segment, distribution
channel, core capability, customer relationship, partner network
(ecosystem), cost structure, and revenue model.
The importance of hybrid vehicles
Keynote speeches were delivered by researchers, scholars, and
executives from local and foreign companies. Kelvin Wang, Direc-
tor GE Global Research, Shanghai, commented about automobile
industry trends. He noted that the industry is facing overcapac-
ity and fierce global competition, along with the requirement to
meet customer needs that are becoming ever more personalized.
Also having an impact are rising costs for raw materials and fuel.
Based on these circumstances, he believes that the only companies
that can win will be those that use technology to produce new
energy/hybrid electric vehicles (HEVs), plug-in HEVs, and new
materials of less weight and lower cost.
One academic presented basic facts about the Chinese automo-
tive industry, highlighting its general situation, its deficiencies
and problems, and the current status of Chinese independent
automotive innovation. He had the following advice for enhancing
the innovation capabilities of the Chinese automotive industry:
“The Chinese auto industry should: (1) Set up a scientific evalu-
ation system of independent innovation ability, (2) Strengthen
auto talent training, (3) Improve the core competition ability of
independent automotive brands, (4) Construct innovation systems
and public platforms, and (5) Improve the core competition ability
of key parts manufacturers.”
Several other speakers followed, giving their points of view
about Intellectual Property (IP) management, the current status
and development of an independent and innovative Chinese
automotive industry, development of the electric automobile
industry, and more.
Innovation in auto electronics key to growth
The second day’s sessions began with a speech on “Auto Elec-
tronics and Innovation” by Dr. Ronald Busch, President and CEO,
Siemens VDO Automotive, Asia-Pacific & China, who stated that
“today, auto electronics is one of the most important factors in
the auto industry. Automotive-specific trends include sustainable
mobilizing, increasing safety and comfort, and seamless con-
nectivity.” He referred to the following as the important elements
of innovation for the near future: invention and idea generation,
development, industrialization, sales and marketing, profitable
turnover, and better quality of life/harmonious society.
Another scholar presented his research on Mini Vehicle and
Indigenous Innovation of SGMW (SAIC-GM-Wuling Automobile
Co., Ltd.), describing the market opportunities and challenges for
the development of mini vehicles in China. He concluded with
the prognostication that “China may become the ‘mini vehicle
kingdom’ of the world in 10 years.”
PDMA Visions Magazine
Hu Shuhua of Wuhan University of Technology highlighted
the following facts about the Chinese automotive industry in his
speech: The number of cars sold per annum increased from 2 mil-
lion in the year 2000, to 5 million in the year 2004; and the exports
of the Chinese automotive industry have also increased, from
2,000 cars in the year 2000, to 140,000 cars in the year 2004.
According to the views of experts and researchers from all
over the world, he said, China is now entering a new stage, that
of an “innovation-driven” country. China has all that is required
for a country to develop its automotive industry and become in-
dependent. To make use of this potential, the Chinese automotive
industry requires “Indigenous Innovation.” “Experience shows,”
he added, “that all of the developed countries had adopted the fol-
lowing three stages of development.” This is how he outlined that
development: First, countries import finished/ready-to-use goods;
secondly, they produce those goods internally by importing foreign
technology; finally, they develop those goods internally within
“
the country itself
through their own
development ef-
To make use of this potential,
forts. “And if the the Chinese automotive industry
same pattern is
followed appro-
requires ‘Indigenous Innovation’.”
priately,” he said,
“China would be able to develop its independent automotive
industry efficiently and effectively.”
Concluding his speech, Hu Shuhua proposed that the Chinese
government build a National Automotive and Innovation Project
(NAIP) to help in the development of the Chinese automotive
industry through independence and technical innovation. To
implement the NAIP, he suggested the following three-stage
framework: (1) Government support—The Chinese government
should focus more on the automotive industry, as compared to
other industries, and establish a separate department to work on
NAIP; (2) Development of two necessary platforms—a Manage-
ment Innovation Platform and a Technology Innovation Platform;
and (3) Development of new-generation vehicles.
Food for brainstorming
At the evening session, held in the School of Management Sci-
ences, Wuhan University of Technology, academics and students
of management gave some interesting presentations, which also
showed the students’ enthusiasm toward innovation, its tools,
and its effective management in today’s rapidly changing and
highly concentrated markets. Because the conference theme was
a new concept to most of the attendees, they were anxious to
learn about innovation and its implications for the automotive
industry in China.
The conference ended on the third day with open discussions
and visits to some of the beautiful locales in Wuhan. Overall,
the conference proved a success, giving the attendees new ideas
regarding automotive industry innovation in China and provid-
ing a forum to brainstorm about them. It also left participants
still wrestling with some core questions about how China should
develop its automotive industry in the future. These questions will
form a good basis for discussion in future conferences.
Raja IrfanSabir is a Ph.D. candidate at Wuhan University of Technology,
Wuhan, Hubei, People’s Republic of China.
JUNE 2007 25
 Global News

Spotlight on UK/Ireland
PDMA affiliate holds workshop on
creativity in product development
Attendees discuss a variety of challenges

Pammi Sinha Tricia Sutton Pammi Sinha, Ph.D., Newsletter and Membership Coordinator for the UK/
Ireland Chapter and Program Director for BSc Hons Fashion and Textile
Retailing, University of Manchester, Manchester, England (pammi.sinha@
manchester.ac.uk) and Tricia Sutton, PMP, NPDP, Visions Chapter Spotlight
Editor and President, Sutton Enterprises Inc. (pasutton@suttonenterprises.com)

Creativity is assumed to be critical to the field of New Product Development (NPD). However, few understand its role well enough to
improve the creative process or foster creativity in development teams. In a workshop early this year, the members of PDMA’s UK/Ireland
affiliate debated this question. The discussion centered around the findings of recent research on NPD creativity.
—Tricia Sutton, Chapter Editor

E
ach year the PDMA UK/Ireland affiliate holds a workshop to
receive the benefit of research done by its academic member-
ship. The affiliate held its fourth workshop, “Researching
and Making Sense of Creativity,” on January 18, 2007, at the Man-
chester Business School, University of Manchester, Manchester,
U.K. Aimed at examining the role of creativity in collaborative
New Product Development, the workshop was co-funded by the
Arts and Humanities Research Council (AHRC).
person comes up with a different understanding because each
contacts only one part of the elephant. The story reflects the
need for a combination of approaches in order to obtain a more
comprehensive and accurate understanding.
Methodology selection in design studies
Dr. Claudia Eckert of the Engineering Design Center, Depart-
ment of Engineering, The University of Cambridge, Cambridge,

“
Drs. Helen Perks and
Pammi Sinha, co-chairs of
This thought-provoking...event the workshop, welcomed
focused on current methods used 39 delegates from a variety
of disciplines and institu-
to research creatively.” tions across the United
Kingdom, Ireland, and
Europe. The universities included Manchester, London, West-
minster, Cranfield, Salford, Nottingham, and Groningen. This
thought-provoking and lively event focused on current methods
used to research creatively. A major theme running through the
discussion was that there is a need for a multi-disciplined and
collaborative approach to researching creativity.
Methods and approaches in the psychology of creativity
Professor Ken Gilhooly of the School of Psychology, University
of Hertfordshire, Hatfield, U.K., began the workshop by discuss-
ing three main psychological approaches and methods used in
the study of creativity. He noted that there were many ways to
research creativity; each approach focused on a different aspect
and used different methods for different problems.
Evaluating cognitive processes typically involves experiments
with verbal protocols and think-aloud tasks. These methods may
interfere with a person’s insight, which requires unconscious
thought processes that cannot be verbalized. Assessing individual
differences involves the use of psychometric tests and the ‘big
five’ personality factors (neuroticism, extraversion, openness,
agreeableness, conscientiousness); and those methods can result
in over-generalizations about the study population.
Gilhooly concluded with the analogy of the “blind men and
the elephant problem” based on an old Indian fable where each
U.K., discussed her personal experience in examining the design
process in general and creativity in particular with designers of
knitwear and helicopters.
Eckert noted differences in creativity between experts and
novices. She also discussed her observation that design behavior
remained similar across disciplines, even though the actual activi-
ties and complexities of the projects differed.
Eckert concluded by discussing her rationale for selection of
research methods. The method selected depends upon the situa-
tion and research question, the expectations of the research peer
groups, and the researcher’s self-awareness (e.g., how easily you
build relationships with people, how well you pick up on cultural
references, how much you enjoy detailed analysis), and the ex-
pectations of the research peer group.
Dr. Martin Stacey, School of Computing, De Montfort Univer-
sity, Leicester, U.K., described the complexity of researching the
design process as a “multilevel process.” He identified a number
of ways of looking at design and creativity, such as cognitive
psychology, artificial intelligence, sociology, soft systems, and
ethnography. Stacey argued that the main problem with research-
ing creativity currently is that there are no set criteria across disci-
plines to judge which theories and models are supported or refuted.
Additionally, comparisons between conceptual frameworks have
focused on criticisms rather than synthesis.
Stacey discussed work that he and Eckert conducted about the
fashion industry. Designers work in the continuously shifting
context of current trends. A fundamental question was where
the context originates. In the fashion industry, trends can come
from the designers, magazines, forecasting bureaus, retailers,
and consumers. Although consumers do not directly influence
trends, sales figures will direct companies. Designers, however,

26 JUNE 2007 PDMA Visions Magazine

primarily follow each other, which raises questions about the
roles of individuality and collective creative processes in com-
mercial design.
Creativity in engineering design teams
Dr. Jan Kratzer, Assistant Professor for Business Development
and Strategy, Department of Business Development, School of
Management & Organization, University of Groningen, Gronin-
gen, The Netherlands, explained that as project or team autonomy
increases, one needs to examine creativity within a team context
and the network of knowledge exchange. Kratzer’s research looked
at team leaders and the social structure of leadership.
Kratzer described the role of the team leader on a continuum
between peripheral (not very hands-on) to central to
the team’s activities, engaged in the minutiae of the
team’s activities. He examined measures of creativity
and interviewed teams and their team leaders about
issues, such as how they communicated and their
perspectives on creativity within teams.
Kratzer defined some general guidance on the role
of team leader. Team members should be promoted
to team leader roles based on their managerial ca-
pabilities rather than on professional expertise. The
ability to span boundaries was very important at all
levels, and the team leader needs to make sure that all members
are involved with external networks. A team leader’s involvement
in problem-solving should be kept to a minimum, and the leader’s
involvement in the day-to-day activities of the team should be
moderate.
Why brilliant ideas trigger illegitimate acts
Dr. Babis Mainemelis, Assistant Professor of Organisational
Behaviour, London Business School, London, U.K., discussed
how creativity research has focused on idea generation—not
social evaluation. Noting that creativity literature often examines
climates that promote creativity, he pointed out that creative ideas
emerge even in unsupportive climates. The reasons for why and
how this happens within organizations may be explained by a
number of factors: intrinsic motivation, a love of the work itself;
persistence; nonconformity; openness; and the individual’s cre-
ative identity (the creative adventure). Organizations may respond
to this rule-breaking behavior in a number of ways, from funda-
mentally shifting their perspective to organizational tolerance of
creative deviance.
Hats Off to UK/Ireland Chapter—PDMA’s First International Affiliate
The UK/Ireland affiliate is unique in many ways. For one, it
has the honor of being the Product Development and Manage-
ment Association’s first international affiliate, founded in the late
1990s. Second, it encompasses two countries divided by the
Irish Sea.
The large area and geographic constraint add interesting chal-
lenges and opportunities, as well as provide a diverse set of interests.
The affiliate’s steering committee is spread across the two islands.
Obviously, it is easier for the committees to organize events in their
local areas; but the affiliate has consistently sponsored affiliate-wide
conferences and events each year.
Over the past 15 years, affiliate membership has grown to over
PDMA Visions Magazine
Some of the implications of Mainemelis’ research were that
social evaluation is an integral part of creativity; the idea origi-
nator is part of the social evaluation process, which is a fluid,
unpredictable, and unfolds over time; work climates that promote
autonomy and diversity also promote rule-breaking behavior;
and creativity-relevant traits influence creativity through social
behavior. Creativity-relevant traits are traits commonly found in
persons acknowledged to be creative.
Implications for product development
After the individual presentations, the delegates and speak-
ers discussed the many issues that were raised. While the need
for a combination of research methods was acknowledged, the
question remained of how to obtain cross-disciplinary
agreement on the criteria for rigor. Although there
is no objective measurement for creativity, there are
methods used to quantify it (e.g. counting the number
of new ideas).
Dr. Kratzer’s research did not find significant dif-
ferences between team members’ and team leaders’
perspectives on creativity. Gender differences in cre-
ativity and complex technical teams were difficult to
comment on, though, because the teams investigated
were mainly composed of men.
An overarching question also remains: If management style
has an effect on creativity in a team, does creativity in teams also
have an effect on the manager’s style?
While there are still many questions and opportunities for
“
further research,
the delegates came
away with a bet- Creative ideas emerge even
ter understanding in unsupportive climates.”
of factors that may
influence creativity
and methods to further understand creativity. They also came away
with recommendations to focus future research as well as some
early results to build their teams’ creativity.
Pammi Sinha, Ph.D., leads newsletter and membership efforts for the UK/
Ireland Chapter and also is Program Director for BSc Hons Fashion and
Textile Retailing, University of Manchester, Manchester, England. Tricia
Sutton, PMP, NPDP, is Visions Chapter Spotlight Editor and President
of Sutton Enterprises Inc., Waukegan, Ill.
500. Most practitioner members are industry-based, but the affiliate
also has a healthy academic membership of over 100 people who
come together at an annual workshop, typically held in January.
The theme of the annual workshop varies and provides members an
opportunity to present their current research and share it with oth-
ers in the field. Many collaborative papers have resulted from this
networking opportunity.
The chapter also hosted two successful international conferences
in London in 2001 and 2002 and continues to hold workshops and
events throughout the United Kingdom and Ireland. The affiliate’s
Web site is www.pdma.org/uk.
JUNE 2007 27
 PDMA News

PDMA Global Innovation

Thought Leader Panel
presents recommendations
Brian Christian, President, DASO Consulting LLC (brian@dasoconsulting.com)
and Hamsa Thota, PDMA President and Chairman of the Board and Founder,
Brian Christian Hamsa Thota Innovation Business Development (hthota@innovationbd.com)

As globalization pushes forward, PDMA has taken time to develop a new mandate. The Board of Directors created a special panel to do
so. In this article, two members of the panel describe its recommendations and how they will help PDMA achieve its goal of “Connect-
ing Innovators Worldwide.”

T
he Product Development and Management Association
(PDMA) is in the process of transforming itself from a North
American-centric organization into a global association
with the mandate of “Connecting Innovators Worldwide,” as the
association’s new tagline points out.
The new PDMA mission is to champion development and dis-
semination of the best in New Product Development (NPD) and
management knowledge throughout the global community, thus
enabling people and businesses to grow and prosper through in-
novation and management of new products for world markets.
PDMA creates new panel
Several years ago, PDMA members were asking how the as-
sociation should innovate to achieve this new mission. To get
broader, expert advice, PDMA created a special panel in August
of 2006 to assist the Board of Directors in creating a new strategic
PDMA Global Innovation
Thought Leader Panel
• Peter Beven, Director, Australia Institute of
Commercialisation
• Connie Chang, Resident Director
U.S. Department of Commerce
• Brian Christian, President, DASO Consulting
• George Day, Professor, The Wharton School
• Alex Kandybin, Vice President, Booz Allen Hamilton
• Umesh Ramakrishnan, Vice Chairman, Christian & Timbers
• Larry Schmitt, President, Inovo
• Kyle Spainhour, Vice President, Motorola
• Bill White, President, DuPont Canada
• Gregg Zank, Chief Technology Officer, Dow Corning

“
framework for innova-
tion. The purpose of this
PDMA is in the process of framework would be to
transforming itself from a North help PDMA define its own
role with respect to innova-
American-centric organization tion. Because the needs
into a global association.” of PDMA members and
customers have evolved
from their traditional focus on product development to the broader
requirements of innovation, the Board felt that it was important
for PDMA to expand its offerings to fit these new, broader needs.
The implications of this new innovation role for PDMA’s entire
enterprise strategy were believed to be significant.
This ad hoc panel was named the Global Innovation Thought
Leader Panel. The intention was to form a body of innovation ex-
perts from outside the membership of PDMA’s Board, which itself
is populated with individuals having deep innovation expertise.
In this way, PDMA would get the best of both inside and outside
thinking engaged in this critical initiative. The ten members of
the Global Innovation Thought Leader Panel are listed in the box
on this page. These panel members represent industry, academia,
governmental institutions, and private consulting practices. The
panel held a series of teleconferences, starting in September of
2006. These sessions were led by the panel’s three consultants,
in conjunction with PDMA Executive Director Robin Karol.
By March 2007, the panel had arrived at a consensus around an
innovation framework and set of recommendations for PDMA’s
Board.
The innovation framework
The panel presented its innovation framework and recommenda-
tions to the PDMA Board on March 15, 2007, at PDMA’s annual
strategic planning meeting in Philadelphia. Larry Schmitt, Presi-
dent of Inovo and one of the panel members, presented the panel’s
findings. Exhibit 1 illustrates the proposed innovation framework.
This framework has provided a base for subsequent work that is
ongoing. The three-dimensional model was well received by the
Board, which applauded its simplicity and intuitiveness. Each of
the 48 cells of the cube contains know-how relevant to that specific
innovation topic area.
X-axis—Three types of innovation
The three dimensions of the cube require some definition. The
first dimension, on the x-axis, refers to the three types of innova-
tion: product/service, business model, and operational. These
three types are intended to capture the full range of focus areas for
innovation in which organizations might engage. Product/service
innovation is the most commonly known variety and refers to in-
novation in the basic offering provided to the customer. Business
model innovation is a little less intuitive and refers to innovation
in the way in which a particular product or service offering cre-
ates value. Operational innovation relates to innovation in the way
internal practices, processes, and tools are designed, often with
the intent to improve effectiveness or efficiency but also with the
potential to increase value received by the customer.

28 JUNE 2007 PDMA Visions Magazine

 Y-axis—Stages of innovation
The second dimension, on the y-axis, Proposed by the PDMA Global Innovation Thought Leader Panel
refers to the stages of innovation. These four
stages—discovery, development, commer-
cialization, and lifecycle management—are
intended to capture the full life cycle of prod-
uct development from discovery through
end-of-life retirement.
Z-axis—Building blocks of innovation
The third dimension, on the z-axis, refers
to the building blocks of innovation. These
four building blocks—strategy, organization,
process, and knowledge—are the elements
that any organization must address to build
a sustainable innovation capability.
This innovation model allows PDMA to
define its traditional innovation scope as
well as its desired innovation scope going
forward. Specifically, the traditional focus
of PDMA has been product/service innovation in terms of type of
innovation. The traditional focus in terms of stage of innovation
has been mostly development and commercialization but with
strong offerings also in discovery and some coverage of lifecycle
management. In terms of the building blocks axis of innovation,
PDMA has traditionally focused on all four areas, though process
has clearly been a priority.
The recommendations
The panel offered three primary recommendations: First, it
suggested that the Board accept the proposed innovation model.
Second, it recommended that the Board undertake an innovation
initiative to reinvent itself, following the same processes and using
the same tools that it offers to its members and other customers. In
other words, the panel’s suggestion was “Doctor, heal thyself.”
“
Third, the panel rec-
ommended a Voice of
The panel recommended… the Customer (VOC)
a deep dive qualitative study study to better under-
stand the current and
of current as well as potential future needs of its mem-
future customers.” bers and other custom-
ers. In other words, the
third recommendation
simply emphasized the need to get the innovation process started
in the right place—with the customer. More specifically, the panel
recommended going beyond written surveys with multiple choice
questions to undertake a deep dive qualitative study of current as
well as future customers. The panel felt this type of study might
enable PDMA to understand more fully how best to serve the
interests of members—and potential members—and capture the
valuable nuggets of insight that lead to innovative solutions. This
customer knowledge will be used to help define the appropriate
innovation scope for PDMA going forward. It will also be the fuel
that will feed the next stage of the innovation process, the idea
creation stage. The innovation landscape is rapidly changing; and
if PDMA wants to be an important part of this landscape in the
future, it must understand its customers better and more deeply
than other organizations that offer the same or similar services.
PDMA Visions Magazine
Exhibit 1: New PDMA Innovation Framework
SOURCE: PDMA Innovation Thought Leader Panel
The path forward
The response to these recommendations by the PDMA Board
was extremely positive. The Board accepted all three of the panel’s
recommendations. It adopted the proposed innovation model as
the foundation for its innovation efforts going forward. It also
accepted the need to execute an innovation process to identify
new products and services for its customers, and perhaps even
develop a new busi-
“
ness model. Finally,
PDMA understands These recommendations...
the need to under-
take a VOC process set the stage for a great deal
as the next stage in of work in the future.”
this innovation initia-
tive. Appropriately,
PDMA planned to
begin this VOC study at the PDMA/IIR Front End of Innovation
Conference in early May in Boston.
Clearly, these recommendations are only a start. They set the
stage for a great deal of work in the future. PDMA is, however,
committed to evolving its role to meet the expanding innovation
needs of its members and other customers. After all, if PDMA is
to be an effective advocate for innovation and for its members, it
must deeply understand its customer base and continuously spawn
innovation in its own offerings. The vision that the PDMA Board
has for the organization is that it be an example of innovation to
its entire customer base.
The Board offers its sincere gratitude to all members of the
Global Innovation Thought Leader Panel for their time and
commitment in helping PDMA begin this important innovation
journey.
Brian Christian is Founder and President of DASO Consulting LLC,
located in St. Joseph, Mich. Hamsa Thota is President and Chairman
of the Board of PDMA. He founded Innovation Business Development
Inc., St. Simons Island, Ga. Both are on the Global Innovation Thought
Leader Panel.
JUNE 2007 29
PDMA International Conference
Innovation Connection 2007
Orlando, October 1-2, 2007

This year, PDMA has reinvented The International Conference to provide

an un-matched environment for NPD professionals to gather and learn
from some of the smartest minds in the space.

• Join an intimate dialogue with Keynotes and Gurus @ Gurus@Play™

• Experience a fresh approach to innovation challenges @ Innovation
on Demand
• Learn the latest tools for creating a sustainable product development process
@ Tool Story
• Hear a debate about the most controversial concepts in innovation
@ Hot Topics
• Arrive early and learn the latest academics’ findings @ Research Forum
• Stay late for deep dive learning of key methodologies @ Workshops

Special programming has limited seating.

First come first serve.
Register and secure your place at: www.pdma.org/2007visions

30 JUNE 2007 PDMA Visions Magazine

PDMA News

From Blogs to Books

Two resources for NPD
professionals

Adam Hansen, Visions Resource Editor and Creative Process Consultant, Ideas
to Go, Inc. (ahansen@ideastogo.com)
Adam Hansen

T
his edition of From Blogs to Books is short. We only have China and the innovation that drives those products. Meanwhile,
room to discuss two books—a “must-have” for the new indigenous Indian and Chinese companies are creating intellec-
product professional who is regularly addressing multiple tual property and innovations that will compete with those same
external and internal constituencies; and a book that looks at the Western companies.
true impact of China and India on Information Technology (IT) “In IT and the East, James M. Popkin and Partha Iyengar ex-
and innovation overall. amine the vital questions these developments raise: What’s the
long-term impact of high-tech outsourcing? How will innovation
Made to Stick: Why Some Ideas Survive and Others Die be managed in the future? Can Western firms compete in Asian
By Chip Heath and Dan Heath markets while protecting key intellectual property? Will the in-
Random House, January 2007, 304 pages novation engine inexorably shift east? What would such a shift
mean for Western countries currently driving innovation? The
Among the important questions answered in this book are: authors also discuss the emerging alliances between Indian and
“What are the qualities of ideas that really ‘stick’?” “How does Chinese technology companies and outline the implications for
truly communicating differ from sharing data?” And “What’s ‘The Western businesses.
Curse of Knowledge’?” Made to Stick pulls together research in “Filled with extensive interviews with high-level executives,
memory and emotion with key learning from, among other cases, government officials, and academics from around the world, IT
those persistent urban legends that we’ve all heard. The brothers and the East is the first book to articulate the challenges that new
Heath have distilled the key principles into a helpful mnemonic business scenarios and capabilities in India and China pose for
(“SUCCES” for Simple, Unexpected, Concrete, Credible, Emo- Western technology firms.”
tional, Stories) and make it clear that using these principles will
help your ideas be more “sticky.”
This approach works, they assert, because it helps you as a
message crafter to overcome “The Curse of Knowledge,” the
simple notion from psychology and economics that the more
we understand something, the harder it is to place ourselves in
a position of being naïve to it—we simply can’t remember what
it was like not to know it, and thereby underestimate the need
to provide enough cognitive and emotional hooks for others to
grasp it. The authors point out that we are on the receiving end of
“The Curse of Knowledge” anytime we’re talking to IT support
(apologies to all readers in IT!), and in doing so, effectively help
us grok the concept by using Simplicity, Concreteness, Cred-
ibility, perhaps at least some Emotion and a Story that we might
all be able to share.
Do yourself a favor and at least browse through this book the
next time you’re in a bookstore, and check out a handful of podcast
interviews with the authors (HBR IdeaCast, Social Innovation THE POLITICS OF
INNOVATION
Conversations, etc.). Worth your consideration.

IT and the East: How China and India Are Altering the
Future of Technology and Innovation
By James M. Popkin and Partha Iyengar The challenge of new product
Harvard Business School Press, April 2007, 226 pages development isn’t coming
up with the next big thing,
From the publisher: it’s moving it through the
system. Big Bang uses concise
“The center of gravity in the technology world has shifted east. research results, empowering
Today, India and China are churning out some of the world’s Idea Farming sessions,
best-trained computer science and electrical engineering gradu- quantitative concept ranking
ates. In both countries, consumer classes and domestic markets what’s next? and innovation DNA analysis
to successfully drive the idea
for technology have ballooned. Western high-tech firms are 404.614.0660 l bigbangip.com to commerce.
increasingly sourcing their products’ assembly from India and

PDMA Visions Magazine JUNE 2007 31

 Maximize Your Team’s
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32 JUNE 2007 For information on how to join and for a detailed list of Team Membership benefits please visit www.pdma.org.
PDMA Visions Magazine
PDMA News

From the Editor of JPIM:

A restrospective of The Journal of
Product Innovation Management
Anthony Di Benedetto, Department of Marketing, Temple University
(anthony.dibenedetto@temple.edu) and Editor of JPIM

Anthony Di Benedetto

T
he Journal of Product Innovation Management (JPIM or the
Journal) is well over 20 years old and is still going strong. JPIM: Upcoming Major Articles
With that milestone in the past, it was time to look back
and see how the Journal, and indeed the academic discipline of July 2007
product innovation itself, has matured. As these things go, it is “NPD Planning Activities and Innovation Performance: The Mediating
still a young discipline, and we have witnessed its evolution thus Role of Process Management and the Moderating Effect of Product
far in the pages of JPIM. Innovativeness,” Sören Salomo, Joachim Weise, and Hans Georg
The May 2007 issue opens with an article that will be of special Gemünden
interest to our academic readership: It is a retrospective on JPIM “Which Tangible and Intangible Assets Matter for Innovation Speed in
written by Wim Biemens, Abbie Griffin, and Rudy Moenaert. Start-Ups?” Ans Heirman and Bart Clarysse
They document JPIM’s development over its first 20 years and “Does Market Orientation Facilitate Balanced Innovation Programs? An
comment on its impact on the academic community in term of Organizational Learning Perspective,” William E. Baker and James
knowledge stock and flow. They examine, for example, the use M. Sinkula
of academic sources by JPIM authors, as well as the use of JPIM “Development of a Design Audit Tool for SMEs,” James Moultrie, P.
articles by authors writing for other journals. John Clarkson, and David Probert
Though we could do better in some ways (we ought to be bet-
“Learning to Reduce Inter-Organizational Learning: An Analysis of
ter cited in the strategy and management literature, for example), Architectural Product Innovation in Strategic Alliances,” Roman
JPIM has clearly established itself as the leading journal in the Grunwald and Alfred Kieser
growing area of technology innovation management.
Also appearing in the May 2007 issue is a Perspectives article by
Jeff Thieme, who uses a social capital perspective to examine the
contributions made by the most-published academic researchers in
the area of innovation management. Many of the names he cites
will be familiar to our regular JPIM readership. Taken together,
these two articles are a wonderful snapshot of our journal and
academic discipline at this stage in their evolution. I hope you
enjoy them, and all the rest of these upcoming issues!

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PDMA Visions Magazine JUNE 2007 33

 VISIONS Insights into Innovation
™

HOW TO CONTACT VISIONS

Subscriptions Reprints and Copyright Permission 2007 PDMA Officers

Visions is Product Development and PDF files of articles are available for $350. and Board Members
Marketing Association’s (PDMA) quarterly Contact Ms. Henry Van at PDMA Association
magazine focused on keeping members Headquarters at hvan@ahint.com
abreast of trends and developments in the (1-800-232-5241 x1 or 1-856-439-9052 x1) Executive Director
New Product Development (NPD) world and for reprint orders and copyright permission. Robin Karol NPDP
rkarol@pdma.org
the latest thinking of product development and
management leaders. All PDMA members President and Chairman
Author Submissions Hamsa Thota NPDP
receive print copies of Visions as part of
E-mail me or one of our sub-editors hthota@pdma.org
their membership package. Subscriptions
(see our masthead) any time with your Vice Chairman
are available at $85 per year in the United
ideas or drafts. Final submissions must Rich Notargiacomo NPDP
States or $125 abroad. Contact Bob Fogle at
follow the Visions Submission and Style
bobfogle@earthlink.net (860-350-5010). Secretary – Treasurer
Guidelines, which are posted on the Bob Johnston
PDMA Web site.
Advertising VP Academic Affairs
Ms. Henry Van, PDMA —April Klimley Peter Koen
Phone: 1-800-232-5241 x1 Visions Editor-in-Chief VP Certification
hvan@ahint.com (VisionsEd@pdma.org) Jerry Groen NPDP

Roger Stevens VP Chapter Development

Phone: 1-317-926-6272 Reudi Klein NPDP
rstevens@ind.com Advertiser Index VP Conferences
June 2007 Visions Dale McIntyre
Online Visions
VP Marketing
A Web-based version of print Visions may Mark Adkins
be found at www.pdma.org. David Olson, Big Bang .................................Page 31
VP Publications
PDMA Webmaster (webmaster@pdma.org).
Classifieds .................................Page 33 Ken Kahn NPDP

Back Issues Eureka Ranch.............Inside Front Cover JPIM Editor

Single issues: United States $25, non-United Anthony Di Benedetto, NPDP

States $35; multiple copies: 10 for $200. Plus Innovare ..................................Page 15 Directors-at-Large
Don Abraham
shipping. Contact Bob Fogle at bobfogle@ Innovation Focus ......................Page 7 Cecil Chappelow
earthlink.net (860-350-5010). K.T. Connor
PDMA International Conference........Page 30 Tom Hustad NPDP
Web Advertising PDMA Team Memberships...............Page 32
Gerry Katz NPDP
Cheryl Perkins
Advertisers have their display ads posted on Ira Uslander
the Web site in a special advertising portion of Photizo Group ...........................Page 33
Visions online. Stratgyn Institute ....................... Back Cover

Visions Calendar and Deadlines

2007 and 2008
PDMA Staff
Authors Display ads Classifieds & Chapters
1-800-232-5241
Pdma@pdma.org
September 2007 July 16 July 23 July 30
Director of Operations
Amy Williams

December 2007 October 9 October 22 October 29 Association Services Manager

Henry Van Nostrand
Chapter Services Manager
Melissa Baldwin
March 2008 January 14, 2008 January 21, 2008 January 28, 2008 Marketing and Conference Manager
Nick Spencer
Marketing Coordinator
Meggan Runner
June 2008 April 14, 2008 April 21, 2008 April 28, 2008
Further contact information
Authors’ guidelines (www.pdma.org); chapter and affiliate updates can be found on the Officers
& Staff page of www.pdma.org.
(pdma@pdma.org); advertising inquiries (rstevens@ind.com).

34 JUNE 2007 PDMA Visions Magazine

 PDMA Chapters and Affiliates
PDMA U.S. Chapters Minnesota Philadelphia PDMA Affiliates
Tom Worm Joshua Cohen
Arizona Aspen Research Corporation RatnerPrestia PDMA Australia
Asit Goel NPDP (651) 264-6000 (610) 407-0700 Alex Crossley
Optimal Strategix tworm@pdma.org jcohen@pdma.org Energising Enterprises Pty Ltd
(602) 692-1140 Web: www.pdma.org/minnesota Web: www.pdma.org/philadelphia 61 413 42 6463.
agoel@pdma.org crossley@tpg.com.au
Chapter E-mail: New England (Boston Area) Rocky Mountains
pdmaAZ@pdma.org Peter Flentov Jamie Henry PDMA e.V. (Germany)
Web: www.pdma.org/arizona 20/20 Innovation LLC First Data Corp. Dr. Peter Harland
(617) 678-2020 (303) 967-6344 Fischbachtal, Germany
Carolinas pflentov@pdma.org jhenry2@pdma.org +49 (0) 6166 932880
Montie Roland Web: www.pdma.org/newengland Web: www.rmpdma.org h@rland.de
Montie Design
(919) 481-1845 New York / New Jersey Southern California PDMA India
mroland@pdma.org Judy Iskovitz (SAN DIEGO AREA) Prof. Chandrasekaran Kesavan
Web: www.pdma.org/carolinas Optimal Business Edward Naranjo R.M.K.Engineering College
Performance, LLC General Monitors +914424911746
Central Texas (973) 218-9061 (949) 581-4464 ckesavan@pdma.org
(Austin Area) jiskovitz@pdma.org enaranjo@pdma.org
Dave Angelow Web: www.pdma.org/nynj Web: www.pdmasocal.org PDMA NL (Netherlands)
Business Foundations Dr. Gert Staal NPDP
(512) 633-1500 NE Ohio (Cleveland Area) Tampa Bay New Business Development 
dangelow@pdma.org Dave Lupyan Mike Presta Academy B.V.    
Web: www.pdma.org/austin Scot Labs Division of the Nielsen Media Research +31 (0570) 670 509
Scott Fetzer Corp. (813) 366-4611 gert@nbda.nl
Chicago (440) 543-3033 mpresta@pdma.org Web: www.pdma.nl
Scott Miller dlupyan@pdma.org Web: www.pdmatampabay.org
IPDG (Integrated Product Web: www.pdma.org/cleveland PDMA New Zealand
Development Group) West Michigan Aruna Shekar
(312) 238-9362 Northern California Steve Racelis Massey University
smiller3@pdma.org Noel Adams Uniform Color Company 64-9-443 9729
Chapter E-mail: Phase Forward LLC (616) 494-8794 AShekar@pdma.org
pdmachicago@yahoo.com (415) 722-3661 sracelis@pdma.org
Web: www.chicagopdma.org nadams@pdma.org Web: www.pdma.org/wm PDMA SE (Southern Europe)
Chapter E-mail: Paolo Zanenga
Cincinnati info@norcalpdma.org Western New York TWG Consulting sri
Joseph Kormos Web: www.norcalpdma.org Stan Caplan +39 335 5794748
Product Masters Usability Associates paolo.zanenga@twgconsulting.it
(513) 638-1911 Ontario (585) 442-0499
jkormos@pdma.org Richard Scheps scaplan@pdma.org PDMA FRANCE
Web: www.tristatepdma.org Wardrop Engineering Inc. Web: www.wnypdma.org Eric Gabas-Varini
(905) 673-3788 Artemis International Solutions
Detroit rscheps@pdma.org Wisconsin Corporation
Ray Parnell NPDP Chapter E-mail: Shajan John +33 (0)1 46 90 15 59
Photonics NPD info@ontariopdma.ca Milwaukee School of Engineering egabas@pdma-france.org
(586) 549-9257 Web: www.ontariopdma.ca (414) 227-7217
dparnell@pdma.org sjohn@pdma.org PDMA SUB-SAHARAN AFRICA
Web: www.pdma.org/detroit Oregon Web: www.pdma.org/wisconsin Colin Openshaw
Dorian Simpson NPDP Energy Services
Georgia Planning Innovations Group +031 7928612
Peter Weissman (971) 223-6170 Colin.Openshaw@eskom.co.za
Cytec Surface Specialties, Inc. dsimpson1@pdma.org
(678) 255-4739 Chapter E-mail: PDMA UK / Ireland
pweissman@pdma.org president@oregonpdma.org Mark Whelan NPDP
Web: www.pdma.org/georgia Web: www.pdma.org/oregon Enterprise Ireland
+353 61 213358
Los Angeles Peoria (Illinois) mwhelan@pdma.org
Eric Rose Roy Bullivant Web: www.pdma.org.uk
(818) 383-8330 CGN & Associates
erose@pdma.org (309) 672-6400
Web: www.pdma.org/losangeles rbullivant@pdma.org
Chapter E-mail: peoria@pdma.org
Web: www.pdma.org/peoria

List compiled May 9, 2007: See the PDMA Web site for subsequent changes and more current information (www.pdma.org).

Moving? NOTIFY THE PDMA OFFICE 800-232-5241

PDMA Visions Magazine JUNE 2007 35

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