HANDBOOK OF PRODUCT AND SERVICE DEVELOPMENT IN COMMUNICATION AND INFORMATION TECHNOLOGY

HANDBOOK OF PRODUCT AND SERVICE DEVELOPMENT IN COMMUNICATION AND INFORMATION TECHNOLOGY

Handbook of Product and Service Development in Communication and Information Technology Edited by Timo O. Korhonen Helsinki University of Technology, Finland and Antti Ainamo Helsinki University of Technology, Finland KLUWER ACADEMIC PUBLISHERS NEW YORK, BOSTON, DORDRECHT, LONDON, MOSCOW

ebook ISBN: 0-306-48712-8 Print ISBN: 1-4020-7595-2 2004 Springer Science + Business Media, Inc. Print 2003 Kluwer Academic Publishers Dordrecht All rights reserved No part of this ebook may be reproduced or transmitted in any form or by any means, electronic, mechanical, recording, or otherwise, without written consent from the Publisher Created in the United States of America Visit Springer's ebookstore at: and the Springer Global Website Online at: http://www.ebooks.kluweronline.com http://www.springeronline.com

TABLE OF CONTENTS CHAPTER 1: OVERVIEW 1 CHAPTER 2: SYSTEMATIC IDEA PRODUCTION, AND CULTIVATION IN HIGH TECH-PRODUCT DEVELOPMENT 2.1. 2.2. PROCESS OF CREATIVITY 2.3. STRUCTURED CREATIVITY TECHNIQUES 2.4. SUMMARY 9 11 15 24 41 CHAPTER 3: USER CENTERED DESIGN OF TELECOMMUNICATIONS SERVICES 45 3.1. 3.2. 3.3. 3.4. VIEWPOINTS ON USER EXPERIENCE BRINGING THE USER S VOICE INTO THE DESIGN PROCESS IMPOSSIBLE? No, BUT YOU HAVE TO MANAGE IT! 45 46 57 71 CHAPTER 4: PRODUCT DEVELOPMENT GENERATIONS: SOME LESSONS FROM PERSONAL DIGITAL ASSISTANTS AND PALMTOP COMPUTERS 4.1. 4.2. PRODUCT DEVELOPMENT IN RAPIDLY EMERGING MARKETS 4.3. METHODS 4.4. PDAS,PALMTOPS, AND 2G PHONES 4.5. CONCLUSION CHAPTER 5: PROJECT PORTFOLIO MANAGEMENT IN TELECOMMUNICATIONS R&D 5.1. 5.2. MANAGING BUSINESS-ORIENTED R&D 5.3. PROJECT PORTFOLIO MANAGEMENT 5.4. METHODS FOR PROJECT PORTFOLIO MANAGEMENT 5.5. APPLYING PORTFOLIO MANAGEMENT IN THE DIFFERENT STAGES OF R&D 5.6. DISCUSSION 79 79 80 86 86 92 99 100 101 113 119 128 136 CHAPTER 6: QUALITY IN HIGH-TECH PRODUCT DEVELOPMENT 6.1. WHAT IS QUALITY? 6.2. WHAT IS HIGH-TECH? 6.3. HOW TO DEAL WITH THE INHERENT UNCERTAINTY OF HIGH-TECH 6.4. THE EMERGENCE OF QM FOR THE MODERN HIGH-TECH ENVIRONMENT 6.5. SEQUENTIAL AND REPETITIVE PROCESSES 6.6. THE PRACTICE OF QM IN THE MODERN HIGH-TECH ENVIRONMENT v 149 149 152 152 155 158 164

vi 6.7. FINAL WORDS 166 CHAPTER 7: INNOVATIONS IN THE INTERNET AND MOBILE ERA: THE REAL DOT.COM REVOLUTION WEB 171 7.1. 7.2. 7.3. 7.4. 7.5. 7.6. NEW POSSIBILITIES TO MASS-CUSTOMIZE EXISTING PRODUCTS NEW TECHNOLOGIES MAKE COMPANIES DISINTEGRATE WHO IS GOING TO PROFIT FROM THE INNOVATIONS? THE GENERIC STRATEGIES POSSIBLE FOR INNOVATORS AND ASSET OWNERS CONCLUSIONS AND NEW TRENDS 171 173 177 179 182 188 CHAPTER 8: PATENTING AND INTELLECTUAL PROPERTY RIGHTS IN ACADEMIC - INDUSTRIAL VENTURES 8.1. 8.2. 8.2. 8.3. 8.4. 8.5. 8.6. 8.6. 8.7. 8.8. DEFINING PATENTING 196 APPLYING FOR A PATENT - FORMAL PROCEDURES IN EUROPEAN COUNTRIES COMPARING PATENTING IN EUROPE AND IN THE US PATENTING ABROAD SOME PRACTICAL ADVISES PATENTING IN NEW MARKET AREAS 203 UNIVERSITY BASED RESEARCH AND PATENTING COVERING PATENTING COSTS 8.9. 8.10. 8.11. LICENSING:ALTERNATIVE FOR SMALL START-UP VALUATING PATENTS ON THE BALANCE SHEET CONCLUSIONS COMPANIES 193 193 194 196 198 200 202 203 204 205 207 208 CHAPTER 9: FINANCE AND VENTURE CAPITAL MARKETS 211 9.1. 9.2. 9.3. 9.4. 9.5. 9.6. 9.7. 9.8. 9.9. 9.10. 9.11. A FIVE STAGE MODEL SOURCES OF EXTERNAL FINANCE DEMONSTRATING PERSONAL COMMITMENT:SWEAT EQUITY FUND RAISING CLIMATE INVESTMENT FOCUS VENTURE CAPITAL AND THE COMMUNICATIONS SECTOR INITIAL PUBLIC OFFERINGS (IPOS) GOING PUBLIC:SOME CONSIDERATIONS PUBLIC EQUITY MARKET OVERVIEW CONCLUDING REMARKS 211 211 217 218 223 224 225 229 230 231 233 CHAPTER 10: ROLE OF UNIVERSITIES IN THE PRODUCT DEVELOPMENT PROCESS: STRATEGIC CONSIDERATIONS FOR THE TELECOMMUNICATIONS INDUSTRY 10.1. 10.2. 10.3. 10.4. EXECUTIVE SUMMARY TECHNOLOGY AND NEW PRODUCT DEVELOPMENT PROCESS UNIVERSITY-INDUSTRY RELATIONSHIP 235 235 236 239 240

vii 10.5. 10.6. 10.7. ROLES OF UNIVERSITIES AND THE NATURE OF SCIENTIFIC RESEARCH 243 SOME STRATEGIC CONSIDERATIONS 244 CONCLUSIONS 250 INDEX 255

Foreword Writing and editing of this book has been an enjoyable challenge. It is based on S-72.124, Product Development of Telecommunication Systems a course that has been lectured on a yearly basis in Helsinki University of Technology (HUT), Finland. In this book, we have set the focus on inspecting the distinctive factors typical to the implementation of telecommunications product and service development in high-tech enterprises and especially in Finnish high-tech telecommunications companies and research enterprises. An important case we frequently refer to is the Nokia s way to work. Fortunately enough, this book has been written in HUT, only a kilometer away from Nokia s headquarters, and actually much, much nearer in a research cooperational sense. All of us contributing to this book know a lot about Nokia s way of working and we believe that also you are interested in sharing our thoughts. When a company works in a high-tech field, it is not dealing with hightech services or products only, but high-tech extends to all of its infrastructures and operational levels manifested in high-systems, high-services, highdesign etc processes. In this book, our goal has been to give you a fair, general picture of the most important practicalities that should be realized in high-tech enterprises. We do this by following a top-down, multidisciplinary approach by starting from the basic ideation, usability, product conception and management issues and by proceeding to quality, financing, and patenting, emphasizing general telecommunications and e-business considerations. We are sure that this text provides useful perspectives, irrespective of your own operational level in high-tech, whether you are a telecommunications or other e-commerce beginner or professional, system designer or a manager. This book would have not been possible without all the dedication and know-how of the contributing colleagues. There have been several persons that have read the manuscript in its various stages: In this, I would like to express special thanks to Michael Hall, Ruth Vilmi, Diane Pilkinton-Pihko, and Laura Takkinen who has made a major contribution in the overall layout design. We wish you fruitful moments with this book! Helsinki, June 2003, Editors ix