The Iterative Development Method : Its aspects and effect on innovation within new product development

Abstract: An industrial product development project can be extensive and put a significant financial strain on the company that executes it, especially if the developed product underperforms. For startup companies this becomes considerably noticeable since they often have limited resources with respect to capital and personnel. Additionally, startups seldom have an established customer base and thus do not have established customer needs to go after during a development project. The iterative development method often used in software was hypothesised to be beneficial to use on hardware as well to circumvent these issues, encourage innovation, accelerate progress, and be cost-effective with its cyclic characteristics.  This thesis was carried out in partnership with the external partner AirForestry, an innovative startup company developing a tree harvesting drone that will have its primary usage in forestry thinning operations. Through action research, the iterative development method was researched by applying it to the development of a large system aimed to aerially receive full-length trees, cut into appropriate logs, and stack these to be collected by a logging truck. A proposal for how a system of this nature could be designed which the external partner was satisfied with.  The iterative development method proved to be efficient in forcing innovative advancements and a way to quickly move forward in a project. Limitations to the method’s compatibility with larger projects and unclear framework for its usage were however identified. This meant that future research on its capability with projects of different natures is required.