Optimising Product Enhancements Strategic Approach
Optimising Product Enhancements Strategic Approach
Article history
Submitted 12.10.2021 Revised Version Received 07.11.2021 Accepted 03.12.2021
ABSTRACT
Purpose: This paper examines the strategic alongside market trend analysis while
importance of product enhancements in exploring advanced technologies to tackle
competitive global markets. This research these challenges in the delivery sector.
addresses the dual characteristics of product Findings: Enhancements drive
enhancement strategies by examining their competitiveness, but complexities arise from
incremental and transformational aspects. rapid technology changes and demands. Tools
This research explores challenges because like Agile and modular design improve
product development complexity increases processes, while customer insights foster
due to advancing technology and pressing innovation. Recommendations: Adopt Agile
stakeholder needs along with reducing and PLM tools, leverage modular design, use
product lifespan durations. customer feedback, and invest in sustainable,
Materials and Methods: The paper takes a technology-driven solutions to balance
conceptual approach, analyzing complexities innovation with efficiency.
in product development and reviewing tools Keywords: Product Enhancement,
such as Agile methodologies, PLM systems, Managing Complexity, Product
modular design, and additive manufacturing. Development, Agile methodologies, Product
The study investigates customer insights strategy
INTRODUCTION
Today’s cutthroat global markets and ever-increasing change, more so in the current centralised
economy, product improvements cannot be termed as mere by products but rather as a major
strategic imperative for any firm. Ongoing enhancement of product attributes, their functions
and effectiveness help to meet customer needs and expectations, maintain product market
standing and respond to new opportunities. However, the process of optimisation of products is
becoming more complicated because of integration of the modern initiatory technologies,
multifaceted demands of stakeholders, and the reduced product cycle.
This highlights the complexity is not only a technical challenge but also a significant operational
and managerial issue in the product development (PD) process. Every stage in a product’s life
cycle design, development, and implementation introduces new sources of supply chain
dependency, amplifying complexity[1]. If left unmanaged, these factors appear as increased
costs, extended schedules, decreased employee throughput, and possible quality issues in the
product. To overcome these difficulties, managers should use tactical management techniques
that accommodate the requirement for innovation and the necessity for reasonable complexity
control.
1. Incremental Enhancements
When it comes to incremental changes these are incremental changes, making a product, process
or service slightly better than before. These changes are to increase effectiveness, productivity
or customer satisfaction but are not likely to cause a shift in the basic roles or structure of the
product. Such innovations are often characterized by:
• Continuous Improvement: Applying continuous minor adjustments that, when
accumulated, produce marked improvements in efficiency in the long run. These are
minor adjustments applied regularly, which, over time, lead to significant improvements
in efficiency and effectiveness. For example, a smartphone brand improving its battery
life or camera quality in each new model.
• Lower Risk: Because change is gradual and based on existing products and services, it
is often accompanied by less risk than radical innovations [14]. Since the changes are
gradual and based on existing products or services, incremental enhancements typically
come with lower risk compared to radical innovations. For instance, car manufacturers
making improvements in fuel efficiency or safety features with each model year.
• Resource Efficiency: Usually, incremental innovations involve less expenditure, due to
which SMEs can accommodate these innovations. For example, the literature reveals
that growth and survival in SMEs depend on incremental innovations [15]. Incremental
innovations generally involve lower expenditures and are more resource-efficient. Small
and medium-sized enterprises (SMEs) often find it easier to implement these types of
innovations.
Real-World Example: Apple’s annual updates to its iPhone models often include incremental
changes such as improved cameras, faster processors, and better battery life without drastically
changing the phone's overall design.
2. Transformational Enhancements
Radical improvements include innovations that make the product distinct or dramatically
modify it, which brings out a completely distinct product or a drastically different product. These
innovations often lead to the development of new markets or the disruption of existing ones and
are characterised by
• High Impact: Transformational innovations can significantly alter the market, customer
expectations, and business operations. For instance, the introduction of the first iPhone
created a completely new market for smartphones, revolutionizing how we
communicate, work, and entertain ourselves.
• Increased Risk and Reward: They are normally associated with higher risks given their
ideas and concepts are new to the market, but in equal measure, they come with the
advantage of high returns [16]. Because these innovations involve new, untested ideas
or concepts, they often come with higher risks. However, if successful, they yield high
returns. The launch of Tesla’s electric vehicles is an example of a transformational
product that revolutionized the automobile industry, despite significant risks and
challenges involved in the development.
• Resource Intensiveness: Radical innovations typically require considerable investment
in research and development, which can be costly. Companies investing in
transformational enhancements often face high upfront costs but stand to reap substantial
rewards if the innovation succeeds. A prime example is the development of the first
v. Technological and Market Uncertainties: This has major challenges especially when
there is ambiguity on the feasibility of the technology and the market. Agreeing that these
uncertainties are inevitable, establishing a sound new product development framework that
blends agility and design thinking is useful.
vi. Software Product Management Complexities: The software industry presents particular
issues like new technologies’ introduction, new customer demands, and frequent product
modification. Managing complexities of software products therefore requires subscribing
to effective software product management practices [22].
Managing Complexity In Product Development
Product development is not a single step process but a series of activities which involve
conception, design, modeling, testing and making of the product. As used here, the term
complexity is defined as a state wherein a number of factors are involved and are mutually
dependent on each other within the design, utility of the product and market acceptability[23].
Appreciation of complexity is useful for managing challenges and ensuring that complex
products which are competitive and innovative are developed[24]. The key dimensions of
product development complexity are as follows:
Dimensions of Complexity in Product Development
• Technical Complexity: Complexity of product formations, additions of new sophisticated
technologies, and its ability to interface or replace other systems[25]. For example, Tesla
faces significant technical complexity as it integrates cutting-edge technologies into its
electric vehicles (EVs), such as advanced battery systems, autopilot features, and AI-
based driving capabilities.
• Process Complexity: Involves the coordination of relationships between diverse tasks of
product development and distribution. A practical example is Apple, which has
successfully streamlined its product development processes across multiple global teams
to ensure seamless coordination from design to manufacturing, ultimately delivering
products like the iPhone efficiently. Microsoft exemplifies this, with its product
development teams working across different time zones and disciplines. Effective
collaboration tools and clear communication protocols help mitigate this challenge.
• Organizational Complexity: The management of multiple teams, participants and
departments in an organisation where people may work from different geographic
regions[26].
• Market Complexity: Fluctuations in the needs of customers, competition, market needs
and expectations, and standards that a product needs to meet. Samsung navigates market
complexity by continuously adapting its smartphones and consumer electronics to meet
changing consumer preferences and technological advancements.
Sources of Complexity
• Customization and Personalization: As consumers demand unique services and products,
designs and architectures become more complicated. For example, Nike offers
customized sneakers through its Nike By You platform, which requires the company to
manage intricate production and design processes to meet individual customer
preferences.
• Integration of Emerging Technologies: Integrating any AI, IoT, or any other advanced
technology raises the stakes[27]. General Electric (GE), for instance, integrates IoT
sensors into its machinery and equipment to provide predictive maintenance and real-
time data analytics, creating complex product ecosystems.
• Regulatory and Compliance Requirements: Policies regarding local and international
standardisation can pose some challenges to the advancement in development of the
technology[28]. Pharmaceutical companies like Pfizer must adhere to stringent
regulations across various markets, which significantly affects their product development
timelines and processes.
• Evolving Market Trends: In this process, it has been challenging to meet the pace of the
customers and at the same time guarantee the stability of the product. Amazon
exemplifies this with its ability to adapt to market trends in e-commerce and logistics,
constantly optimizing its systems to meet evolving customer demands.
Challenges Associated with Complexity
• Resource Allocation: Striking the time, cost, and personnel optimisation when it comes
to complex issues. For example, Toyota has developed sophisticated lean manufacturing
techniques to ensure optimal resource allocation while developing new vehicle models,
ensuring high-quality production without overextending resources.
• Communication and Collaboration: Effective communication across various disciplines
and specializations [29]. Google manages this challenge by fostering an open culture and
using collaborative tools like Google Docs and Hangouts, which enable real-time
communication across its global teams.
• Risk of Delays: Interactions between components may indicate complex
interdependence, which may block the pipeline and drain fluid from the product's market
timetable[30]. For instance, Boeing experienced delays in its 787 Dreamliner project due
to complexities in supply chain coordination and integration of various systems.
Addressing these complexities through modular design and better integration strategies
could have reduced these delays.
• Decision-Making: The measuring of the priority levels of goals and objectives as well as
making decisions on the likelihood of achieving different goals and objectives based on
a set of criteria such as time, cost and quality[31]. Amazon relies heavily on data-driven
decision-making processes, using insights from customer behavior and operational
metrics to determine the most effective course of action.
The Need for Complexity Management
• Failure to manage complexity can lead to increased costs, extended time-to-market, and
limited market applicability. For instance, Intel faced delays in releasing new
semiconductor products due to complexity in its manufacturing process, which caused
the company to lose ground to competitors like AMD.
• Understanding is a strong defence against risk because it gives organisations an early
clue on possible problems that can be countered using different mitigation measures[32].
• Managing complexity provides organizations with early insights into potential problems,
allowing for timely mitigation measures. This helps in creating durable, scalable products
aligned with long-term business strategies, preventing costly redesigns and missed
market opportunities.
customer needs and the current market conditions on each cycle[41][42]. Design and
development of improvement is done across organizations where designers, developers, and
marketers are some of the functional teams used; this is because the improvement affects various
dimensions of the product. Agile development not only facilitates the process of delivering
enhancement quickly but also makes it possible for organizations to be flexible in responding
to complaints and or new calls[43]. An example of this is Spotify, which frequently releases
small, iterative updates to its music streaming platform, based on user feedback, to refine user
interfaces and improve features like recommendations. This iterative process ensures that
enhancements align with customer needs and market conditions while enabling rapid responses
to feedback and emerging demands. Through cross-functional teamwork between designers,
developers and marketers Agile development ensures improvements target different dimensions
of a product. The methodology allows fast delivery and builds organizational adaptability while
speeding up time to market.
iv.Leverage Technology
Applying applied technologies is one of the most important principles of strategic product
improvement. Application of artificial intelligence, machine learning and other automation tools
allow organizations to control processes, predict customers’ behavior and provide new features.
Prediction analytics enables businesses to find problem areas where user-focused improvements
would generate more appeal. Related to operational optimisation, technology also increases
productivity by relieving routine tasks for innovative solutions. Through the participation of
innovative solutions, organizations can provide people with unique and valuable functionalities
that will help them adapt to the competitive environments of today’s world and make the
necessary improvements to become associated with innovation and quality. Through machine
learning algorithms Netflix delivers customized content suggestions that build user satisfaction
as well as viewing engagement. Artificial intelligence systems that perform predictive analytics
help organizations detect areas which need improvement and developing trends to make relevant
updates which users will appreciate. Machine learning technologies break down customer
behaviors to suggest customized product choices and automated procedures optimize business
operations by releasing personnel for innovative work. Leveraging these technologies positions
organizations as innovation leaders and allows them to adapt swiftly to competitive
environments.
Literature Review
Table I summarises previous studies on strategic approaches and tools for optimising product
enhancements and managing complexity in various domains, as discussed below:
In, Li and Lau (2018) analysed the issues with the present "new" product development process
in manufacturing sectors and investigated how a four-step smart product development strategy
may enhance the safety of toy products any further. There are several stages to the new product
development process that various manufacturing companies use while making consumer goods.
There is already an integration of IT with smart-related elements in Industry 4.0 to increase
transparency and productivity, but the safety of toy products is only evaluated during the new
product development phase[44].
In, Cui, Chan and Calantone (2014) research shows that a company's prior knowledge can have
a dual impact: increasing its capacity to profit from fresh information and decreasing its
incentive to learn. Compared to companies that depend either too little or too much on existing
knowledge, those that use a reasonable amount of current knowledge gain more from new
information. The "learning zone" describes this ideal situation. In addition, they discover that
for less unique new items that offer a comparable learning environment, the moderating effects
of prior knowledge are more pronounced[45].
In, Rangu, Chatterjee and Valluru (2017) tries to extrapolate useful information from asset
evaluations in order to improve asset Text mining, sometimes called text data mining, is a
method for discovering relevant and non-trivial information or patterns within text sources. tries
to extrapolate useful information from asset evaluations in order to improve asset Text mining,
sometimes called text data mining, is a method for discovering relevant and non-trivial
information or patterns within text sources. An ever-developing technology, text mining aids
businesses in gaining a deep understanding of their consumers and redefining their
demands[10].
In, Iyer et al. (2017) they have acquired the reviews for six different phone models by scraping
the Amazon website. After cleaning the data, they founded that it contains people's opinions
expressed in various ways. Our system will compile product reviews, analyse each word's
emotion score, and then decide if the phrase is generally good or negative. They have created a
dashboard that allows the consumer to readily see the mobile's individual characteristics. Based
on the needs of our users, they have also forecasted comparable items. The charts show how the
product's popularity has changed over time. The system's end result will be 1) a review timeline
2) Suggesting Products[46].
In, Xiu and Muro (2017) in the manufacturing sector, analysing faulty manufacturing data is
critical for improving product quality. A unique ID issued to each product allows for the retrieval
of manufacturing data used in defect investigation. Unfortunately, individual IDs cannot be
added to current machining operations in production lines, such as the sintering and cutting
procedures. This leads to the issue of not being able to prepare manufacturing data for fault
investigation[47- 59].
close these gaps to achieve comprehensive innovation processes. New technological capabilities
in text mining combined with sentiment analysis hold promise to extract deep product
development insights from unorganized data sources that include customer review content. The
effectiveness of these methods relies on complex algorithms and advanced tools but their precise
accuracy suffers when working with subpar data resources. Quality improvement in
manufacturing depends on analyzing defect data. Complex production environments create
barriers for today's systems to assign dedicated identifiers to products which prevents them from
tracking and resolving defects efficiently.
The research provides insightful information about strategic methods and operational tools yet
fails to bridge the gaps around comprehensive implementation of safety, innovation and quality
in product development sequences. Current frameworks restrict universal application because
they concentrate on individual industries and technological areas. The present research aims to
fill this gap by proposing a comprehensive approach that combines advanced tools, such as
modular design and predictive analytics, with strategies to balance innovation and efficiency.
The comprehensive framework optimizes product creation at all levels of industry operations
making products adaptable to emerging obstacles and technological innovations. Future
investigations should research enhanced prediction analytics together with AI-based choice
processes along with real-time data cohesion to achieve increased product improvement
efficiency and adaptability. Further research must focus on exploring new tracking techniques
for product quality throughout production and the modular exploration of innovation versus
cost-effectiveness balance.
CONCLUSION AND RECOMMENDATIONS
Conclusion
Product enhancements serve as fundamental elements that preserve market competitiveness
together with customer satisfaction under changing market conditions. Firms can optimize
processes and reduce risks by adopting strategic approaches along with Agile methodologies
and modular design and emerging technological tools during complex product development
projects. Organizations can sustain steady growth by combining incremental and
transformational innovation approaches to manage resource constraints and market saturation
and technological uncertainties. Through effective inclusion of customer input alongside market
data businesses guarantee their products stay appropriate with their organization's goals.
The findings of the analyzed studies deliver concrete information which decision-makers across
different sectors can turn into measurable actions. Our focus on safety in smart product
development will make organizations guide their design phases toward quality and regulatory
compliance which defines current safety standards. Prior knowledge research demonstrates how
practitioners should use "learning zone" strategies to create innovative learning opportunities.
Through their text mining applications for customer insights companies can enhance product
design while delivering better satisfaction rates to their consumers. Sentiment analysis systems
provide businesses with market trend insight tools to develop better marketing strategies.
Research into defect analysis demonstrates the importance of better traceability systems which
drives organizations to develop improved manufacturing quality through technological
innovation and policy initiatives. These combined research findings create the groundwork to
implement data-driven approaches integrated with customer orientation and sustainability in
real-world innovation initiatives.
Recommendations
Future research should explore the integration of AI and machine learning to enhance product
optimisation, particularly in predictive analytics and real-time complexity management.
Additionally, studies should focus on developing cost-effective frameworks for leveraging
emerging technologies like digital twins and additive manufacturing. There is also a need for
cross-industry collaboration to establish standardised practices for managing complexity in
product development. Lastly, the sustainability of product enhancements should be examined,
ensuring that innovation aligns with environmental and societal goals.
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Copyright (c) 2021 Chethan Sriharsha Moore, Suneel Babu Boppana, Varun Bodepudi,
Krishna Madhav Jha, Srinivasa Rao Maka, Gangadhar Sadaram
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