Big Data is a powerful tool in any data-driven decision-making scenario. Read this article to learn how it can be utilized in new product development to unlock needs customers may or may not directly state.
Research Methodology
An in-depth case study is presented on the use of big data to improve customer involvement by STE, a young but innovative high-tech company, so as to draw lessons for the effective use of big data to improve customer involvement in NPD. A case study is considered a suitable research approach when exploring emerging complex phenomena (e.g., big data adoption and use) in real-life settings. Besides, a case study is considered an appropriate approach when answering research questions such as 'how' and 'why' things are done. Additionally, the case study approach is recommended for researches where theories are at their formative stage.
Research settings: a longitudinal case study of STE, an electronics company
Qualitative sampling, unlike quantitative sampling, tends to be purposive rather than random. The choice of informants, episodes and interactions is usually driven by a conceptual question. We followed Wamba et al. and conducted a longitudinal case study. In this particular case, one of the authors had the opportunity to step into a project started at STE in which the objective was to design and to develop a new wearable electronic headset. STE is a Chinese SME manufacturer founded in 2007. It is an innovator in wearable medical equipment. The company is best known for its wearable electronic headset, which can be used to monitor brain activity. The brain activity data is streamed to a smartphone or stored in the system. The data is then transmitted in real time to a receiver located up to 10 miles away. The company has stated that its main customers are patients in old age; the product can help doctors intervene earlier and avoid complications. However, since this market size is comparatively small and most doctors are not familiar with the product, sales were decreasing year by year. In addition, STE experienced challenges with a lack of understanding and customer empathy on the part of its engineering staff. In order to improve its market performance and gain competitive advantage, the company decided to innovate and to launch new products with improved functionality and a different market focus.
The main objective of the NPD project was to design and develop a new wearable electronic headset with a new virtual reality function for young people to better understand and control their minds. This is a monitoring device in which user will wear it while they are watching videos, searching the Internet or playing games. It provides users with accurate, real-time feedback on the brain activities. In this way, users can have a better understanding of active areas of the brain in different situations, such as relaxation, improved mood and reduced stress. Two main goals for the project were stated by STE:
(a) Use big data to better understand customer upcoming trends, expectations and preferences, economically and interactively.
(b) Gain insights concerning customer perceptions, acceptance and input through big data and customer involvement.
The company has its own information department for data collection and management in order to help meet both of these objectives. The project had four main stages: customer profile determination, identification of different information sources, customer involvement design, and customer access and participation.
Data collection
In this study, data collection covered multiple sources of evidence, which allowed us to increase the validity of our constructs. Initially, a retrospective method was applied to become familiar with the initial part of the project, when the concept took shape in 2013. To eliminate distortion, only written reports drawn upon in this wave of data collection. Then, starting in 2014, the subsequent data collection included 6 months of research in real time. The aim was to record how researchers worked in the company. For this wave of data collection, sources included: semi-structured interviews with key respondents, on-site observations, annual reports, industrial reports, technical or non-technical documents, newsletters, project reports, strategic planning reports, and discussions with the NPD team. One of the authors was actively engaged in project itself, in market research. This meant that every unit of market information was recorded in real time by one of the researchers. In total, 16 semi-structured interviews were conducted, each lasting 1–2 h. The initial interviews were kept broad in scope in an effort to cover a wide range of motivations, decisions and competences. As the research project progressed and the theory was refined, interview questions became more focused, in an effort to ascribe more details to the emerging patterns. STE's CEO championed the project. The STE NPD team consisted of the CEO, NPD team manager, designers, functional specialists, electronics engineers, information analysts, researchers, and a marketing manager.