The knowledge base for product development 159 70 60 40 g 10 Fig 4.3 Man-days(MD)and mean expenditures spent in PD Process(Source: Adapted from Cooper and Kleinschmidt, 1988) and indeed impossible task if management has not been planning ahead. It may be impossible from the present knowledge level in the company, and therefore food companies often fall back on capital investment, buying equipment and knowledge from the equipment manufacturing company gement needs a strategic knowledge policy for the company that identifies the knowledge areas and also the dissemination of the knowledge within the company. The communications policy must ensure that the knowledge is not embedded in departments, but can be made available and integrated by the product development team. This again emphasises the need for product development to be integrated throughout the functional areas in the company. The basis for all knowledge is people, and management has to see that people with the necessary knowledge, skills and capabilities are in the product development team, and that they are able to create knowledge in the project as it is needed and communicate this knowledge for future projects Is management transmitting this to the human resources group and is it prepared to employ people with the necessary skills, and reward them for their skills? Tissen(1999 suggested that these creative, innovative people need to be thought of as highly as soccer players, with high transfer fees and high salaries. Management also needs to provide the information system that selects, collects, integrates and analyses information and also has an interface with the product developers that leads to efficient recovery of the specific information. This is far beyond the
and indeed impossible task if management has not been planning ahead. It may be impossible from the present knowledge level in the company, and therefore food companies often fall back on capital investment, buying equipment and knowledge from the equipment manufacturing company. The management needs a strategic knowledge policy for the company that identifies the knowledge areas and also the dissemination of the knowledge within the company. The communications policy must ensure that the knowledge is not embedded in departments, but can be made available and integrated by the product development team. This again emphasises the need for product development to be integrated throughout the functional areas in the company. The basis for all knowledge is people, and management has to see that people with the necessary knowledge, skills and capabilities are in the product development team, and that they are able to create knowledge in the project as it is needed and communicate this knowledge for future projects. Is management transmitting this to the human resources group and is it prepared to employ people with the necessary skills, and reward them for their skills? Tissen (1999) suggested that these creative, innovative people need to be thought of as highly as soccer players, with high transfer fees and high salaries. Management also needs to provide the information system that selects, collects, integrates and analyses information and also has an interface with the product developers that leads to efficient recovery of the specific information. This is far beyond the Fig. 4.3 Man-days (MD) and mean expenditures spent in PD Process (Source: Adapted from Cooper and Kleinschmidt, 1988). The knowledge base for product development 159
160 Food product development information system in many food companies at the present time, but companies should be aiming for it. It is a significant factor that can make product development more effective and efficient another factor that management needs to consider is the direction for the company's knowledge. This grows from the base of present knowledge, which may lead to skewed directions in building up the future knowledge. For example the company can be directed by craftsmen and rely on tacit craft knowledge, knowledge which is based on doing and remembering; accountants and rely on financial knowledge engineers and rely on scientifically analysed practical knowledge marketers and rely on social/personal interactions in a marketing situation cientists and rely on scientific logic and method There are always several forms of knowledge in the company, but the dominant knowledge gives the direction to the company, and the other knowledge follows it Box 4.1 Formation of a product strategy 1. Develop sophisticated scenarios for the competitive environment of today and the future 2. For each of the scenarios, describe the ideal successful companies within the scenario and their attributes, in particular the advantaged and base knowledge incorporated in their products/services and throughout their value chains (advantaged knowledge knowledge that does or can provide competitive advantage, base knowledge -knowledge internal to a business that may provide short-term advantage, e.g. best practices) Also decide on the depth of each knowledge that is needed 3. Determine who are the current and potential future knowledge leaders in developing and applying the advantaged and base knowledge elements identified. For your company, identify the specific internal individuals who possess the knowledge. Outside the company, it is best to specify institutions/companies and even individuals who possess the knowledge 4. Decide where the ideal company should source its knowledge, both internal and external to the company. Decide on the depth of a particular knowledge hat should be inside the company and the source for the extra knowledge needed 5. Choose the ideal company to model your company upon, and develop the business strategy and routes to reach that ideal. Plan how you are going to acquire and maintain people with the necessary knowledge 6. Establish the effects on shareholder value of the particular area of advantaged knowledge Source: From Clarke, 1998, by permission of Research Technology Management
information system in many food companies at the present time, but companies should be aiming for it. It is a significant factor that can make product development more effective and efficient. Another factor that management needs to consider is the direction for the company’s knowledge. This grows from the base of present knowledge, which may lead to skewed directions in building up the future knowledge. For example the company can be directed by: • craftsmen and rely on tacit craft knowledge, knowledge which is based on doing and remembering; • accountants and rely on financial knowledge; • engineers and rely on scientifically analysed practical knowledge; • marketers and rely on social/personal interactions in a marketing situation; • scientists and rely on scientific logic and method. There are always several forms of knowledge in the company, but the dominant knowledge gives the direction to the company, and the other knowledge follows it Box 4.1 Formation of a product strategy 1. Develop sophisticated scenarios for the competitive environment of today and the future. 2. For each of the scenarios, describe the ideal successful companies within the scenario and their attributes, in particular the advantaged and base knowledge incorporated in their products/services and throughout their value chains (advantaged knowledge – knowledge that does or can provide competitive advantage; base knowledge – knowledge internal to a business that may provide short-term advantage, e.g. best practices). Also decide on the depth of each knowledge that is needed. 3. Determine who are the current and potential future knowledge leaders in developing and applying the advantaged and base knowledge elements identified. For your company, identify the specific internal individuals who possess the knowledge. Outside the company, it is best to specify institutions/companies and even individuals who possess the knowledge. 4. Decide where the ideal company should source its knowledge, both internal and external to the company. Decide on the depth of a particular knowledge that should be inside the company and the source for the extra knowledge needed. 5. Choose the ideal company to model your company upon, and develop the business strategy and routes to reach that ideal. Plan how you are going to acquire and maintain people with the necessary knowledge. 6. Establish the effects on shareholder value of the particular area of advantaged knowledge. Source: From Clarke, 1998, by permission of Research Technology Management. 160 Food product development
The knowledge base for product development 161 and often is at a much lower level. This is seldom realised by the directors who sit Boards of companies and give the knowledge direction that is followed by the xecutive directors and then the rest of the company. It is important that a wider knowledge direction is recognised and set for the company. The company needs to develop a knowledge strategy as shown in Box 4.1 Think break Select four food companies, two manufacturing consumer foods and two processing food ingredients for food manufacturers, with which you are familiar 1. Decide what are the overall directions for the companies, and then decide what are the major and minor knowledge areas in the company 2. What are the companies' most important innovations during the last five years? 3. How do these innovations relate to their knowledge areas? 4. Now looking at your own company, identify the different knowledge areas and discuss firstly the importance of each and then the use of them. Scale the importance and use on the following scales Not important Very important Seldom used 5. Identify the future innovation directions of the company and decide what knowledge will be needed for these future innovations 4.2.2 Knowledge systems There is a need to select a system for knowledge, but what is it to be? The first general concept is a combination of the traditional and the new, but the short answer is that the Western ideology of knowledge may prevent this. One of the knowledge bases for processing technology is science; however, Western science as well as not appreciating technology even finds it hard to tolerate technology that it can neither comprehend nor appropriate(Marglin, 1996). This has presented problems in food knowledge because it has led to definitions of food science and food technology as being different, with one thought of as superior knowledge to the other. This is quite basic to Western thought, with ideas of episteme and techne: episteme is knowledge based on logical deduction from self-evident first principles techne reveals itself only through practice, its theory being implicit and ually available to practitioners. Techne is embodied as well as embedded in a local social cultural and historical context(Apfell-Marglin, 1996). Techne knowledge is geared to creation and
and often is at a much lower level. This is seldom realised by the directors who sit on Boards of companies and give the knowledge direction that is followed by the executive directors and then the rest of the company. It is important that a wider knowledge direction is recognised and set for the company. The company needs to develop a knowledge strategy as shown in Box 4.1. 4.2.2 Knowledge systems There is a need to select a system for knowledge, but what is it to be? The first general concept is a combination of the traditional and the new; but the short answer is that the Western ideology of knowledge may prevent this. One of the knowledge bases for processing technology is science; however, Western science as well as not appreciating technology even finds it hard to tolerate technology that it can neither comprehend nor appropriate (Marglin, 1996). This has presented problems in food knowledge because it has led to definitions of food science and food technology as being different, with one thought of as superior knowledge to the other. This is quite basic to Western thought, with ideas of episteme and techne: • episteme is knowledge based on logical deduction from self-evident first principles; • techne reveals itself only through practice, its theory being implicit and usually available to practitioners. Techne is embodied as well as embedded in a local social, cultural and historical context (Apfell-Marglin, 1996). Techne knowledge is geared to creation and Think break Select four food companies, two manufacturing consumer foods and two processing food ingredients for food manufacturers, with which you are familiar. 1. Decide what are the overall directions for the companies, and then decide what are the major and minor knowledge areas in the company. 2. What are the companies’ most important innovations during the last five years? 3. How do these innovations relate to their knowledge areas? 4. Now looking at your own company, identify the different knowledge areas and discuss firstly the importance of each and then the use of them. Scale the importance and use on the following scales: Not important _______________________________________________________ Very important Seldom used _________________________________________________________ Always used 5. Identify the future innovation directions of the company and decide what knowledge will be needed for these future innovations. The knowledge base for product development 161
162 Food product development discovery rather than to verification; it recognises a variety of avenues to knowledge; the test of knowledge is practical efficacy. This knowledge split between episteme and techne was epitomised in food industry knowledge by the craftsman and the food scientist But now, knowledge and action are increasingly based on a combination, a synthesis between episteme and techne. In the food industry it will be the ability to synthesise a method of product development that combines logical thought with action in building knowledge, so that greater knowledge develops and therefore more advanced products. As Apfell-Marglin(1996)noted'a particular system has its own theory of knowledge, its rules for acquiring and sharing knowledge, its own distinctive ways for changing the content of what counts as knowledge, and fina its own rules of governance, both among insiders and between insiders the universities and the research centres, and at the same time providing an atmosphere and organisation to create new knowledge. This again needs the adoption of total technology as a basis for company management and in particular innovation management. The dominance of one function has led to a lack of true development in the food industry The domination of the financial knowledge system led to cost cutting, staff redundancy and mergers, which in the end decreased the total knowledge he company and the industry The domination of the marketing knowledge system led to deterioration technical ability and plant The domination of the production knowledge system led to deterioration in the consumer/product relationship and loss of competitive strengths For successful product innovation, there is a need today for a knowledge system which integrates and does not allow domination; which accepts and uses the logical thought and principles of science but actively creates knowledge by venturing into unknown futures. Product development is a process that is built on this type of knowledge system as shown in Fig. 4.4 The knowledge capabilities in product development are related to all the functions in the company, R&D, intellectual property, engineering, purchasing, quality assurance, rapid testing of the product, distribution system, personnel, environmental relations, and so on. Everything and everyone need to be included as shown in Box 4. 2. This is an example of both collecting the companys information and of using it to develop new knowledge, new products and new restaurants The knowledge system relies mainly on three human factors: cognitive under- standings, learned skills and deeply held beliefs of individuals(Quinn, 1992) Quinn chose the term cognitive understanding instead of knowledge to emphasise that what is needed is a perceptive and understanding knowledge. The PD team needs the know-how for an activity, and also needs the skills to perform the activity. But if there is a lack of self-belief, will or motivation to succeed, then the activity may be completed at a lower level and in a longer time. The company has to have the know-how to solve the product development problems, the skills to use
discovery rather than to verification; it recognises a variety of avenues to knowledge; the test of knowledge is practical efficacy. This knowledge split between episteme and techne was epitomised in food industry knowledge by the craftsman and the food scientist. But now, knowledge and action are increasingly based on a combination, a synthesis between episteme and techne. In the food industry it will be the ability to synthesise a method of product development that combines logical thought with action in building knowledge, so that greater knowledge develops and therefore more advanced products. As Apfell-Marglin (1996) noted ‘a particular system has its own theory of knowledge, its rules for acquiring and sharing knowledge, its own distinctive ways for changing the content of what counts as knowledge; and finally its own rules of governance, both among insiders and between insiders and outsiders.’ Food industry management can do this by making strong access links into the universities and the research centres, and at the same time providing an atmosphere and organisation to create new knowledge. This again needs the adoption of total technology as a basis for company management and in particular innovation management. The dominance of one function has led to a lack of true development in the food industry. • The domination of the financial knowledge system led to cost cutting, staff redundancy and mergers, which in the end decreased the total knowledge in the company and the industry. • The domination of the marketing knowledge system led to deterioration in technical ability and plant. • The domination of the production knowledge system led to deterioration in the consumer/product relationship and loss of competitive strengths. For successful product innovation, there is a need today for a knowledge system which integrates and does not allow domination; which accepts and uses the logical thought and principles of science but actively creates knowledge by venturing into unknown futures. Product development is a process that is built on this type of knowledge system as shown in Fig. 4.4. The knowledge capabilities in product development are related to all the functions in the company, R&D, intellectual property, engineering, purchasing, quality assurance, rapid testing of the product, distribution system, personnel, environmental relations, and so on. Everything and everyone need to be included as shown in Box 4.2. This is an example of both collecting the company’s information and of using it to develop new knowledge, new products and new restaurants. The knowledge system relies mainly on three human factors: cognitive understandings, learned skills and deeply held beliefs of individuals (Quinn, 1992). Quinn chose the term cognitive understanding instead of knowledge to emphasise that what is needed is a perceptive and understanding knowledge. The PD team needs the know-how for an activity, and also needs the skills to perform the activity. But if there is a lack of self-belief, will or motivation to succeed, then the activity may be completed at a lower level and in a longer time. The company has to have the know-how to solve the product development problems, the skills to use 162 Food product development
The knowledge base for product development 163 Social sciences principles and methods Scientific principles Total technology principles Logic, first principles Scientific methods +Total technology methods R&D Product development Fig. 4.4 Science, engineering and total technology this know-how and develop the commercial product, and the belief in the product that motivates them to lead the project to product success. Bringing the three together in people leads to outstanding product designers, process engineers, marketers, production staff and financial experts. Bringing the three together in the company Board and in management leads to an outstanding company. The knowledge system for product development depends less on providing capital and physical resources(although they are still needed) than on finding and educating people to develop the knowledge, skills and attitudes they need for product development in general and for specific tasks in product development The knowledge system also needs to share knowledge, and to provide structures such as teams to encourage this sharing. Knowledge grows when shared, some people would say exponentially. The company knowledge base increases with time, the next project starting from a higher knowledge base than the previous project. Sharing is an excellent way to create knowledge; people with different knowledge and skills, talking, interacting and working together rub ideas off each other so that original ideas form. People with specialised nowledge need to be educated to share their knowledge with other people, so that they can increase their own knowledge as well as blend in with other specialist knowledge in the company. One of the great hurdles to knowledge growth is knowledge snobbery, one type of people thinking they are superior to others. In a commercial company, which has to deliver successful technology roducts, markets and production-it can be a complete disaster. The aim for success is interwoven, forward-looking knowledge. It must be realised that there is a certain limit to the amount of knowledge that people can carry; some can work only in one area, others may manage two areas, the outstanding people hree or four. Information overload can swamp people. But everyone can integrate knowledge, if it is in a basic form without speciality details and jargon. It is important to identify what are the key knowledge areas to have in the company and concentrate on them. Knowledge can be bought from outside to
this know-how and develop the commercial product, and the belief in the product that motivates them to lead the project to product success. Bringing the three together in people leads to outstanding product designers, process engineers, marketers, production staff and financial experts. Bringing the three together in the company Board and in management leads to an outstanding company. The knowledge system for product development depends less on providing capital and physical resources (although they are still needed) than on finding and educating people to develop the knowledge, skills and attitudes they need for product development in general and for specific tasks in product development. The knowledge system also needs to share knowledge, and to provide structures such as teams to encourage this sharing. Knowledge grows when shared, some people would say exponentially. The company knowledge base increases with time, the next project starting from a higher knowledge base than the previous project. Sharing is an excellent way to create knowledge; people with different knowledge and skills, talking, interacting and working together rub ideas off each other so that original ideas form. People with specialised knowledge need to be educated to share their knowledge with other people, so that they can increase their own knowledge as well as blend in with other specialist knowledge in the company. One of the great hurdles to knowledge growth is knowledge snobbery, one type of people thinking they are superior to others. In a commercial company, which has to deliver successful technology – products, markets and production – it can be a complete disaster. The aim for success is interwoven, forward-looking knowledge. It must be realised that there is a certain limit to the amount of knowledge that people can carry; some can work only in one area, others may manage two areas, the outstanding people three or four. Information overload can swamp people. But everyone can integrate knowledge, if it is in a basic form without speciality details and jargon. It is important to identify what are the key knowledge areas to have in the company and concentrate on them. Knowledge can be bought from outside to Fig. 4.4 Science, engineering and total technology. The knowledge base for product development 163