New product development: the OSRAM case

Abstract

This thesis is the result of a work experience with the role of assistant Product Marketing Manager at OSRAM Spa, one of the two leading light manufacturers in the world. Having a global presence for a company such as OSRAM is very important but, at the same time, it is challenging. The company is facing continuous processes of innovation and improvements; it is also increasing the focus on growth, innovation and technology leadership. The company is investing heavily in the business of tomorrow by remaining a leading innovator; in fact, it has separated the lamp’s business unit, which has become a separate legal entity called “LEDVANCE”, to follow the need to focus on innovative and smart products for the future. The business of OSRAM is in a phase of transition from old to new lighting technologies, becoming an important player in a world that is even more digitalized. The purpose of this work experience includes supporting the firm in data collection and analysis of the general lighting market, in particular, the market for LED drivers; also giving support to the formulation and development of business processes from the product idea to commercialization, and acquiring and analysing data about strategies and optimisation processes in the product portfolio. The global lighting market is continuously evolving and digitalizing, and the adoption of LED technologies is even more intensive, thanks to their growing quality of light and reduction in cost. In addition, the world of Internet of Thing is transforming the lighting industry with a direct combination of controllers, sensors and LEDs with the power of the internet. The market is quite fragmented, and there will be new players entering this new technology segment, which is considered a healthy business with enormous potential for innovative companies. Therefore, the development of new products with innovative features is fundamental to competing in this environment and maintaining a solid position and a strong market share. A company can develop new products through its own development processes or by acquiring patents or licenses from other companies. The speed-up time to market and maximum fit with customer needs characterise a successful launch process, so involving customers during each part of the development process is fundamental to receiving continuous feedback and solid information. This work, in fact, analyses each phase of the launch process of a new product and its introduction into the market. There are several difficulties and needs to manage during each stage of the process, and there are many functions involved. The purpose of the thesis is to identify and analyse all potential and concrete contestations happening during the real process of the new product development, with particular attention on the concrete development process adopted by OSRAM for “Alpha” product. A final in-depth empirical study is carried out to understand how people involved in the process make sense of their actions, decisions and experiences. With this inductive approach of Gioia Methodology, I would like to find and analyse emerging patterns and critical decisions inside the NPD process to see how players answer to problems and uncertainty.