Ambiguity Reduction in New Product Development Projects

Abstract

In this paper, we argue that ambiguity is an essential component of "fuzziness" in the Fuzzy Front End of New Product Development (NPD), and that a better understanding of how ambiguity emerges and is reduced, is called for. We explore the process by which ambiguity was reduced in four NPD projects, and propose a model that enhances our understanding of this process. Ambiguity arises as multiple interpretations, and interpretations can be understood as hypotheses, hence these can be tested by using the hypothetical-deductive method (HDM). We present a model showing that ambiguity in NPD projects is efficiently reduced by applying the HDM to test the multiple interpretations that give rise to ambiguity and the assumptions underlying these interpretations. We discuss theoretical implications and the usefulness of the model for practitioners of NPD.

Project Evaluation: A Mixed-Method Study into Dilemmas in Continuation Decisions

“…The lack of data surrounding the project is argued to increase equivocal situations that often lead to decision of escalation; especially data or information on the projects past performance [41]. Prior studies have highlighted the lack of data in term of types, quantity and quality as well as validity and reliability may increase the level of equivocality and worsen the situations [23,36,42]. The identified issues within this category are the problems with accuracy (LED1) and availability (LED2) of the requisite data as well as the level of detail of the data (LED3) [43,44].…”

Unraveling equivocality in evaluation of information systems projects

“…The equivocality term was then taken up by the management and organization domain and was reconciled with Galbraith's concept of uncertainty (1977) by Lengel in 1984 (Brun andSaetre 2008). Around the same era, in his seminal works, Bowen (1987) incorporated equivocality further in the management/organization domain by challenging the conventional wisdom of the cause of escalation, which was previously dominated by psychological explanations (i.e., self-justification).…”

“…Moreover, studies from the Strategy and Management domain discuss equivocality in the theme of (1) new product development (NPD) (integration and performance, contracting effectiveness, fuzzy front end process) (Brun and Saetre 2008;Carson et al 2006;Koufteros et al 2005), for instance, the role of equivocality in influencing the new product development process; and, (2) organizational design (Griesinger 1990). …”

“…Equivocal situations might potentially emerge when the initiators, users and the developers deal with new and sophisticated technology or with unfamiliar innovative projects for IS/IT investments (Kydd 1989). The unfamiliarity often leads to difficulty in defining the intended IS/IT as well as the prerequisites for embracing such technology (Brun and Saetre 2008;Fazlollahi and Tanniru 1991).…”

“…Specifically, information on the projects past performance could contribute to equivocality. Moreover, Brun and Saetre (2008) indicated that validity and reliability of information surrounding the projects might induce equivocality as well. Although information overload might also exacerbate the equivocal situations, previous studies have highlighted the lack of data/information (Bowen 1987;Levander et al 2011).…”