Opening up the NPD process: a case study within the oil and gas industry

Abstract: This article investigates the practical application of open innovation
principles within industrial new product development (NPD). Previous
research on open innovation has primarily focused on the notion as such and
not yet on how to integrating the principles of open innovation with well-
established models for NPD. We aim to help close this knowledge gap. The
purpose of this study is to explore how firms can benefit from opening up
the NPD process by integrating the principles of open innovation with the
well-known and widespread Stage-Gate model. To do this, previous literature
is studied in combination with case study data investigating the existing
occurrences and potential opportunities of employing the principles of open
innovation within NPD at a firm within the upstream Oil & Gas business.
Our empirical study shows that there are great virtues in the
systematization of the already occasionally occurring open innovation
practices. Additionally, a noticeable desire to pursue a more open approach
to NPD was identified among the respondents. The results of this study
allowed the enactment of a practitioner-oriented work model which exploits
the advantages of “openness” while simultaneously capturing the benefits
deriving from the systematic and structured approach implied by the Stage-
Gate model. Furthermore, by opening up the Stage-Gate model, yet another
opportunity is exposed: to allow the work model to facilitate a systematic
adjustment of the way value is created and captured within the company
(I.e. its business model and its underlying core capabilities) to the
external environmental dynamics. This aspect is further included in the new
work model. The main implications of this study are that is indicates great
opportunities and possibilities in opening up the NPD process. It further
introduces an easy applicable work model that facilitates the opening.
Moreover, our results apply not only to firms within the Oil & Gas
industry, but to all NPD processes where a Stage-Gate methodology is
employed.