Elsevier

Research Policy

Volume 34, Issue 9, November 2005, Pages 1305-1321
Research Policy

The impact of virtual simulation tools on problem-solving and new product development organization

https://doi.org/10.1016/j.respol.2005.03.016Get rights and content

Abstract

New product development nowadays makes heavy use of IT instruments such as virtual simulation tools. The main motivation for introducing virtual simulation tools in new product development is to speed up development and lower its cost. Virtual simulation tools, however, do much more. They introduce profound changes in the organization, including the nature of problem-solving, bearing the potential to increase new product development performance beyond cost and lead time reduction. Understanding these profound changes, we argue, holds the key to unlocking the potential of virtual simulation tools for improving new product development performance, including more innovative products. We support our argument with a case study from the European auto industry.

Section snippets

Virtual simulation tools can do much more than just speed up product development and lower its cost

Virtual simulation tools now play a very important role in new product development. They have been widely hailed to significantly cut development time and costs (Thomke, 1998a, Thomke, 2001a). Accordingly, virtual simulation tools are often introduced in new product development to reap precisely those benefits. In the academic literature, virtual experimentation is also often regarded as a way to overcome the cost and time limitations of physical experimentation methods. Limiting virtual

Introducing virtual simulation tools triggers profound changes in the organization, including the nature of problem-solving

There is ample evidence in the literature that introducing new technology into an organization triggers changes in the way tasks are accomplished, and thus in organizational processes (Barley, 1986, Barley and Kunda, 2001, Orlikowski, 1996, Orlikowski, 2002).2 Technologies alter institutionalized

The case study

Within the literature that frames virtual development as a tool for improving NPD performances, Baba and Nobeoka (1998) was among the first papers to present a virtual simulation tool (3D-CAD) as an enabler of a peculiar form of problem-solving. However, the field research was carried out some years ago (1995) and the technology has improved so much by now that updating their analysis of the effects of virtual prototyping on the nature of problem-solving is needed. D’Adderio's (2001) paper on

Discussion

The basic premise that we started out from is that introducing virtual simulation tools in new product development is not trivial but triggers profound changes in the organization. Our case study has confirmed that and has shed light on some of the effects that introducing virtual simulation tools has on firms. To start with, our data confirms the impact of virtual tools on cost and speed of product development projects, in line with the literature. However, our case study has also evidenced

Conclusion

Throughout this article, we have maintained that virtual simulation tools trigger profound changes in the organization, including the nature of problem-solving. In the previous section, we have identified that virtual simulation tools have an important impact on the redefinition of the set of options to be taken into consideration in problem-solving. In particular through this causal mechanism, we have argued that virtual simulation tools provide the possibility of more innovative designs,

References (55)

  • S.H. Thomke et al.

    The effect of ‘front-loading’ problem-solving on product development performance

    Journal of Product Innovation Management

    (2000)
  • J. West et al.

    Experience, experimentation, and the accumulation of knowledge: the evolution of R&D in the semiconductor industry

    Research Policy

    (2003)
  • P.S. Adler et al.

    Behind the learning curve: a sketch of the learning process

    Management Science

    (1991)
  • K. Arrow

    The economic implications of learning by doing

    The Review of Economic Studies

    (1962)
  • S.R. Barley

    The alignment of technology and structure through roles and networks

    Administrative Science Quarterly

    (1990)
  • S.R. Barley

    Technology as an occasion for structuring: evidence from the observations of CT scanners and the social order of radiology departments

    Administrative Science Quarterly

    (1986)
  • S.R. Barley et al.

    Bringing work back in

    Organization Science

    (2001)
  • R.E. Bohn

    Measuring and managing technological knowledge

    MIT Sloan Management Review

    (1994)
  • L. D’Adderio

    Inside the Virtual Product: How Organizations Create Knowledge Through Software

    (2004)
  • K.M. Eisenhardt

    Building theories from case study research

    Academy of Management Review

    (1989)
  • K. Henderson

    On Line and On Paper—Visual Representations, Visual Culture, and Computer Graphics in Design Engineering

    (1999)
  • R.M. Henderson et al.

    Architectural innovation: the reconfiguration of existing product technologies and the failure of established firms

    Administrative Science Quarterly

    (1990)
  • Iansiti, M., Clark K.B., 1993. Integration and dynamic capability: evidence from product development in automobiles and...
  • T. Itoh

    Abduction for creativity

    International Journal of Technology Management

    (2003)
  • T. Knudsen

    The significance of tacit knowledge in the evolution of human language

    Selection

    (2002)
  • B. Levitt et al.

    Organizational learning

    Annual Review of Sociology

    (1988)
  • G.S. Lynn et al.

    Marketing and discontinuous innovation: the probe and learn process

    California Management Review

    (1996)
  • Cited by (67)

    • Multiphysics simulation optimization framework for lithium-ion battery pack design for electric vehicle applications

      2022, Energy
      Citation Excerpt :

      Typically different criteria such as specific energy, specific power, cell capacity and heat transfer efficiency have been considered to evaluate the energy efficiency and thermal performances of Li-ion battery cell designs. Becker et al. [14], highlighted the role of model-based and virtual simulation tools for speeding up the product development at lower costs. In the context of Li-ion batteries modeling, physics-based approaches such as the well-established Newman-type electrochemical model [15] provide a deep understanding about the underlying physico-chemical phenomena in a Li-ion cell sandwich and has gained enormous popularity in cell design problems [16,17].

    • Optimising lithium-ion cell design for plug-in hybrid and battery electric vehicles

      2019, Journal of Energy Storage
      Citation Excerpt :

      For accelerated product development, many industries have established a model-led approach accelerating design iterations and increasing understanding gained from formalising empirical know-how [9,10]. Furthermore, Becker et al. argue that a model-led approach subtly helps to develop fundamental knowledge of underlying physical phenomena [10]. In the context of battery modelling, physics-based models can provide improved understanding of battery behaviour and a model-led approach can assist in accelerating the pace of battery development [11].

    View all citing articles on Scopus
    1

    Tel.: +33 390242189; fax: +33 390242071.

    View full text