PRODUCT PROPOSAL PROCESS AND DYNAMIC EVALUATING CAPABILITIES IN THE INDUSTRIAL PRODUCT DEVELOPMENT

Abstract

The purpose of this paper is to discuss the product proposal process in the industrial product development by using a triad information processing model. This model tries to explain the information flow in the triad relationship between an industrial product manufacturer, a consumer product manufacturer, and consumers. It seems to be effective that the industrial product manufacturer responds only to the concepts or specifications presented by the consumer product manufacturer. However, the consumer product manufacturer often misunderstands or mistranslates its consumers’ needs. In these cases, how should the industrial product manufacturer propose its solution in the product development process? This paper tries to clarify the product proposal process by the industrial product manufacturer and to show the importance of dynamic evaluating capabilities. These capabilities are defined as the knowledge and capabilities that the industrial product manufacturer evaluates the functional requirements of their customers’ product from its end-users’ point of view, and also as the knowledge and capabilities that can redefine the business domain of the industrial product. The industrial product manufacturer should develop such capabilities for an effective execution of its product proposal process.