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Boosting the Initial Phase of the
R&D Process by Applying Social
Media Technologies



NITIM 2011 @ Tampere
Ph.D. Candinate Tero Peltola
Industrial Management / Tampere University of Technology
Supervisor: prof. Saku Mäkinen
Outline
   Motivation and Context
   Reseach targets and Methods
   Schedule




tero.peltola@tut.fi / Industrial Management / TUT   17.12.11
Gartner Hype Cycle for Emerging
      Technologies 2011




Source: http://www.gartner.com/hc/images/215650_0001.gif


     tero.peltola@tut.fi / Industrial Management / TUT     17.12.11
Non professional softwares
   Facebook
       Over 750 million active users
   Google+
       c. 25 million
   Qzone
       c. 480 million
   Twitter
       Over 200 million
   LinkedIn
       c. 100 million
                                                    Source: Wikipedia, Facebook.com, Google+

tero.peltola@tut.fi / Industrial Management / TUT                    17.12.11
Forecasts: using social media
        technologies in companies
           Use of social media technologies will be increased,
            as only 5 out of 115 companies estimated that they
            will not use them in future.
           In addition to marketing and PR, R&D process and
            internal communication are considered to benefit
            from social media technologies.
           Estimated to become more important tool for
            internal communication than for PR
           Over 81% (IT professionals) are motivated to
            participate in online communities by the desire to
            help peers solve problems.

Sources: EVA_Sosiaalinen_media_yrityskäytössä_yhteenvetoraportti.pdf : published 14.2.2011
http://emergingtech.ittoolbox.com/research/survey/toolboxcom-pja-social-media-index-wave-vii-
24002
        tero.peltola@tut.fi / Industrial Management / TUT                         17.12.11
Assumptions for Social Media
Technologies to be used
(1)When people from the other department help me, I will
   want to repay it by the all means.
(2)A personal relationship with people in the other
   department is part of daily life.
(3)When I meet with trouble at work, people who are using
   SMT with me will help me even it is not their responsibility
   accord to their work description.
(4)When conflict occurs between two departments, people in
   different departments can overcome it if they have using
   SMT.
(5)If I am using SMT with people in the other department, I
   can get extra help, for example, they can deal with my
   issue quicker and more efficiently.

                                                    Source: Analogy to Perks et
                                                    al. 2009
tero.peltola@tut.fi / Industrial Management / TUT   17.12.11
Social Media Technologies and
Product Lifecycle

                       Product
                       development          Testing


        Concept
            c
        generation                                  Commercialization


     Budgeting and                            Postcommercialization
     scheduling                                        monitoring

                                          Service
                     Planning




tero.peltola@tut.fi / Industrial Management / TUT                  17.12.11
Development process and the idea of the
customer's dreams, desires and delights

    At Fuzzy Front End fragments of
     information are collected and the
     coherent mindset for the R&D
     project is established.
    Communication between different
     organizations is highlighted during
     FFE.(*)


                                                     (*) Sources for example: Hise et al.,
                                                     Gomes et al.
 tero.peltola@tut.fi / Industrial Management / TUT                17.12.11
Research walk-through

                                                                                Literature
                                   Social software                                review
            Initial stage                                     R&D process
                                     installation
           determination




Kick-off
                                                                                  Analysis
             Reference                       Measured
                data                           data



                             Analysis
                                                                     Thesis

              tero.peltola@tut.fi / Industrial Management / TUT               17.12.11
Research Targets
   Integrating social media technologies into
    existing management tools
                                        ..
                                      CRM
                                       ERP
                                      SCM
    Supply                                          Customers
    chain                             Social
                                      Media
                                        ..



                          Other organizations
tero.peltola@tut.fi / Industrial Management / TUT     17.12.11
Research Targets
   Integrating social media technologies into
    existing management tools
        To gather the coherent vision of customer's
         dreams, desires and delights accross
         organizations
        To boost FFE in the beginning of the R&D
         process to be more effectively and efficiently
        Beyond microblogging




tero.peltola@tut.fi / Industrial Management / TUT   17.12.11
Quantitative metrics for the
software
   Traffic
        Avarage time spent
        Unique / repeated visits
        ..
   Structural
        Followers
        Contribution per follower
        ..
   Activity
        Number of feeds
        Number of activities
        ..
   Innovation
        Submitted and Approved ideas
        Number of companies to continue utilizing StreamWork
        ..
                                                                Source: analogy to Errasti et al.

tero.peltola@tut.fi / Industrial Management / TUT               17.12.11
SAP StreamWork
   Microblogging, virtual teams, decision
    making tools, document storage &
    version management, online meetings
   Using available and recognized social
    intelligence management tool enables
        Integration to other SAP applications
        Convincing
        Results and findings are easy to adopt


tero.peltola@tut.fi / Industrial Management / TUT   17.12.11
Quantitative metrics for the R&D
Process with social software
   Quality
        Determinated value [1...10]

   Reliability of delivery
        Estimated vs. Realized schedule

   Price
        Number of ”the late design changes”




                                                    Source: analogy to Errasti et al.

tero.peltola@tut.fi / Industrial Management / TUT   17.12.11
Cross-functional Integration




   Source: Nakata et al. 2010
tero.peltola@tut.fi / Industrial Management / TUT   17.12.11
Presumable results
   Software related results
        Majority of users will contribute the
         R&D process
   R&D process related results
        More efficient R&D process
   Company related results
        New communication methods




tero.peltola@tut.fi / Industrial Management / TUT   17.12.11
Schedule




tero.peltola@tut.fi / Industrial Management / TUT   17.12.11
Thank you
                 Further questions?

References:

Helen Perks, Kenneth Kahn, and Cong Zhang, An Empirical Evaluation of R&D–Marketing NPD Integrationin
Chinese Firms: The Guanxi Effect, Journal of Product innovation Management, 2009, issue 26.

Cheryl Nakata and Subin Im, Spurring cross-functional integration for higher new product performance : a
group efectiveness perspective, journal of product innovation management, 2010, issue 27

Richard T. Hise, Larry O'Neal, A. Parasuraman and James U. McNeal. Marketing/R&D interaction in new
product development: Implications for new product success rates,Journal of Product Innovation Management,
Volume 7, Issue 2, June 1990, Pages 142-155

J.F.S. Gomes, P.C. de Weerd-Nederhof, A.W. Pearson, M.P. Cunha. Is more always better? An exploration of
the differential effects of functional integration on performance in new product development, Technovation
23, Elsevier, 2003

N. Errasti, I. Santos, O. Lizarralde. Social Software in Support of Collaborative Innovation Processes.
Proceedings of ERIMA 2010, Germany
              tero.peltola@tut.fi / Industrial Management / TUT                         17.12.11
Contact information




                 fi.linkedin.com/in/teropeltola




tero.peltola@tut.fi / Industrial Management / TUT   17.12.11

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NITIM presentation

  • 1. Boosting the Initial Phase of the R&D Process by Applying Social Media Technologies NITIM 2011 @ Tampere Ph.D. Candinate Tero Peltola Industrial Management / Tampere University of Technology Supervisor: prof. Saku Mäkinen
  • 2. Outline  Motivation and Context  Reseach targets and Methods  Schedule tero.peltola@tut.fi / Industrial Management / TUT 17.12.11
  • 3. Gartner Hype Cycle for Emerging Technologies 2011 Source: http://www.gartner.com/hc/images/215650_0001.gif tero.peltola@tut.fi / Industrial Management / TUT 17.12.11
  • 4. Non professional softwares  Facebook  Over 750 million active users  Google+  c. 25 million  Qzone  c. 480 million  Twitter  Over 200 million  LinkedIn  c. 100 million Source: Wikipedia, Facebook.com, Google+ tero.peltola@tut.fi / Industrial Management / TUT 17.12.11
  • 5. Forecasts: using social media technologies in companies  Use of social media technologies will be increased, as only 5 out of 115 companies estimated that they will not use them in future.  In addition to marketing and PR, R&D process and internal communication are considered to benefit from social media technologies.  Estimated to become more important tool for internal communication than for PR  Over 81% (IT professionals) are motivated to participate in online communities by the desire to help peers solve problems. Sources: EVA_Sosiaalinen_media_yrityskäytössä_yhteenvetoraportti.pdf : published 14.2.2011 http://emergingtech.ittoolbox.com/research/survey/toolboxcom-pja-social-media-index-wave-vii- 24002 tero.peltola@tut.fi / Industrial Management / TUT 17.12.11
  • 6. Assumptions for Social Media Technologies to be used (1)When people from the other department help me, I will want to repay it by the all means. (2)A personal relationship with people in the other department is part of daily life. (3)When I meet with trouble at work, people who are using SMT with me will help me even it is not their responsibility accord to their work description. (4)When conflict occurs between two departments, people in different departments can overcome it if they have using SMT. (5)If I am using SMT with people in the other department, I can get extra help, for example, they can deal with my issue quicker and more efficiently. Source: Analogy to Perks et al. 2009 tero.peltola@tut.fi / Industrial Management / TUT 17.12.11
  • 7. Social Media Technologies and Product Lifecycle Product development Testing Concept c generation Commercialization Budgeting and Postcommercialization scheduling monitoring Service Planning tero.peltola@tut.fi / Industrial Management / TUT 17.12.11
  • 8. Development process and the idea of the customer's dreams, desires and delights  At Fuzzy Front End fragments of information are collected and the coherent mindset for the R&D project is established.  Communication between different organizations is highlighted during FFE.(*) (*) Sources for example: Hise et al., Gomes et al. tero.peltola@tut.fi / Industrial Management / TUT 17.12.11
  • 9. Research walk-through Literature Social software review Initial stage R&D process installation determination Kick-off Analysis Reference Measured data data Analysis Thesis tero.peltola@tut.fi / Industrial Management / TUT 17.12.11
  • 10. Research Targets  Integrating social media technologies into existing management tools .. CRM ERP SCM Supply Customers chain Social Media .. Other organizations tero.peltola@tut.fi / Industrial Management / TUT 17.12.11
  • 11. Research Targets  Integrating social media technologies into existing management tools  To gather the coherent vision of customer's dreams, desires and delights accross organizations  To boost FFE in the beginning of the R&D process to be more effectively and efficiently  Beyond microblogging tero.peltola@tut.fi / Industrial Management / TUT 17.12.11
  • 12. Quantitative metrics for the software  Traffic  Avarage time spent  Unique / repeated visits  ..  Structural  Followers  Contribution per follower  ..  Activity  Number of feeds  Number of activities  ..  Innovation  Submitted and Approved ideas  Number of companies to continue utilizing StreamWork  .. Source: analogy to Errasti et al. tero.peltola@tut.fi / Industrial Management / TUT 17.12.11
  • 13. SAP StreamWork  Microblogging, virtual teams, decision making tools, document storage & version management, online meetings  Using available and recognized social intelligence management tool enables  Integration to other SAP applications  Convincing  Results and findings are easy to adopt tero.peltola@tut.fi / Industrial Management / TUT 17.12.11
  • 14. Quantitative metrics for the R&D Process with social software  Quality  Determinated value [1...10]  Reliability of delivery  Estimated vs. Realized schedule  Price  Number of ”the late design changes” Source: analogy to Errasti et al. tero.peltola@tut.fi / Industrial Management / TUT 17.12.11
  • 15. Cross-functional Integration Source: Nakata et al. 2010 tero.peltola@tut.fi / Industrial Management / TUT 17.12.11
  • 16. Presumable results  Software related results  Majority of users will contribute the R&D process  R&D process related results  More efficient R&D process  Company related results  New communication methods tero.peltola@tut.fi / Industrial Management / TUT 17.12.11
  • 17. Schedule tero.peltola@tut.fi / Industrial Management / TUT 17.12.11
  • 18. Thank you  Further questions? References: Helen Perks, Kenneth Kahn, and Cong Zhang, An Empirical Evaluation of R&D–Marketing NPD Integrationin Chinese Firms: The Guanxi Effect, Journal of Product innovation Management, 2009, issue 26. Cheryl Nakata and Subin Im, Spurring cross-functional integration for higher new product performance : a group efectiveness perspective, journal of product innovation management, 2010, issue 27 Richard T. Hise, Larry O'Neal, A. Parasuraman and James U. McNeal. Marketing/R&D interaction in new product development: Implications for new product success rates,Journal of Product Innovation Management, Volume 7, Issue 2, June 1990, Pages 142-155 J.F.S. Gomes, P.C. de Weerd-Nederhof, A.W. Pearson, M.P. Cunha. Is more always better? An exploration of the differential effects of functional integration on performance in new product development, Technovation 23, Elsevier, 2003 N. Errasti, I. Santos, O. Lizarralde. Social Software in Support of Collaborative Innovation Processes. Proceedings of ERIMA 2010, Germany tero.peltola@tut.fi / Industrial Management / TUT 17.12.11
  • 19. Contact information fi.linkedin.com/in/teropeltola tero.peltola@tut.fi / Industrial Management / TUT 17.12.11