Stakeholder engagement in early stage new product-service system development

© 2013 by M.H. Yip, IfM University of Cambridge. All rights reserved M.H. Yip can be contacted at [email protected]

PICMET ’13

Exploring factors that influence stakeholders engagement in early stage new product-service system development

in healthcare & wellness industry

August 01, 2013 Man Hang Yip ([email protected])

Supervisor: David Probert Advisor: Rob Phaal

Centre for Technology Management, Institute for Manufacturing Department of Engineering, University of Cambridge, U.K.


Structure of this presentation Introduction Motivation of my research Research methodology Findings and propositions Limitation & future research directions


Introduction


Motivation of my research Background & motivation: Aging population; Patients & physicians’ demand new medical technologies; Reduced funding drove interests in new health care services; government regulations; quality initiatives…

Main gaps identified: (1)  Process – holistic non product/service-bias PSS development process (2)  PSS classification – mainly uses tangibility to separate product & service (3)  Multiple stakeholders – who apart from customers to involve & when

Main literature reviewed: Servitisation & product-service system (PSS); stakeholder theories; new product/service development process (NPD/NSD); market information processing in NPD

Robert Ledley, U.S. patent No. 3,922,552 (Nov. 25, 1975)

Intended contributions: Academia – theoretical perspectives in new product and/or service development process model; stakeholder identification Industry – practitioner guideline on early stage stakeholder engagement, base on characteristics of new PSS


How to classify PSS?

How different PSS types influence the early stage process & stakeholder roles?

What is the early stage of an unbiased & holistic process for new PSS development?

Who are the stakeholders?

When to engage whom?

Breakdown of the research question

Contextual factors in the intended operating environment


Research methodology

*Eisenhardt, K., 1989. Building theories from case study research. Academy of management review, 14(4), pp.532–550. Yin, R., 1994. Case Study Research Design and Methods (2nd Ed.). Thousand Oaks, CA: Sage.

Approach

The approach of building theory from case by using multiple cases is selected. This is because of its suitability and strength of having a higher probability of generating a novel theory that is more likely to be testable and empirically valid*.

Using “theoretical case sampling” strategy, Health ICT PSS is targeted for its: (1)  Wide application for healthcare service efficiency in the EU and USA with mixed results; (2)  Introduction relates to the contextual factors of organisation processes and human skills; (3)  Dependency on existing hospital infrastructure, user perception, patient perception.

Data collection and analysis: Planned to be overlapped to allow reflection on interview protocols Iterations (3-4) planned to explore the influencing contextual factors Extending from Health ICT to other sectors in healthcare; and possibly to other industries with similar characteristics


Cases

Current status: 11 cases involving 25 commercial offerings from 8 companies

1 2

3

4

Independent Linked Incorporated

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ess

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Data Connectivity Direction of increasing complexity

Case Number

Legend:

To digitalise capturing of patient results; manage ward’s process by electronic workflow and reduce management overhead

To detect a deteriorating patient and alert right level of care

To reduce patient reporting turnaround time

To improve hospitals’ bed management and patient discharge process


Findings

A four-level framework could guide practitioners to systematically identify stakeholders for the new PSS development process

Proposition 1

Note: the total number of stakeholder groups have increased & re-grouped to 32 groups that are spread over 4 levels.


Findings

The type of connectivity between an ICT PSS and its operating environment can be separated into that resulting from data interactions and related to process interaction: Data Connectivity and Process Connectivity

Proposition 2

Proposition 3

Data and process connectivity can have three degrees: independent, linked, incorporated.

Note: a PSS characterisation technique has emerged to systematically define the type of connectivity (data/physical or process) and degree of connectivity.

Note: definition of data connectivity has been extended to data/physical connectivity following the extension of cases from health ICT to other health & wellness PSS.


Findings

Stakeholder engagement in early stage development needs to be varied depending upon whether and to what extent the PSS has data

and process connectivity with the systems in its operating environment

Proposition 4 Types & Degree of connectivity Any Data only Data & Process


Summary of contributions of this paper

1 2

3

4

Independent Linked Incorporated

Inde

pend

ent

Link

ed

Inco

rpor

ated

Pro

cess

Con

nect

ivity

D

irect

ion

of in

crea

sing

com

plex

ity

Data Connectivity Direction of increasing complexity

Case Number

Legend:

Stakeholder identification framework

Connectivity with systems in intended operating

environment

Stakeholder roles in early stage new PSS development


Limitations of the findings

Limited cases specific to health ICT sector

Definition of the degree of connectivity was loose and difficult to validate

There are many other contextual factors that potentially impact stakeholder and timing of involvement


ü  Addresses the need of an holistic process for new PSS development ü  Forces the development team to think in the context of the operating environment ü  Facilitates a common understanding of the new development ü  Provides a common basis for comparing the complexity of different ideas

The PSS characterisation approach*:

Further research directions

Note: More information of PSS characterisation approach can be found in: Yip, M. H., R. Phaal, and D. Probert, "Healthcare product service-system development: which stakeholder to engage and when?" Proceedings of The XXIV ISPIM Conference - Innovating in Global Markets: Challenges for Sustainable Growth, Helsinki, June 2013. (ISBN 978-952-265-421-2)


Currently inviting companies to participate to test the feasibility, usability and utility of the technique on a new product / service idea. Companies from all industry / sectors are welcome to participate. Idea can be an incremental or a brand-new idea to the firm.

Contact [email protected] if you are interested to participate

Flexible participation mode, depending on your needs: o  1 half-day session o  1 full-day session o  A series of half-day sessions with

“thinking time” in between

Testing the PSS characterisation technique


How to classify PSS?

How different PSS types influence the early stage process & stakeholder roles?

What is the early stage of an unbiased & holistic process for new PSS development?

Who are the stakeholders?

When to engage whom?

Further research directions

Contextual factors in the intended operating environment

Business

Stakeholder engagement in early stage new product-service system development