Client-orientation in new product development: a case of biotechnological agri-input

Abstract

Evaluation of agricultural technology development and review of commercial product development revealed that only a small percentage of the new products have succeeded in the market. For instance, the numbers of varieties released are for more than the ones actually adopted by the farmers. Analysis of the reasons for success or failure of the technological products showed that the major factor was a poor understanding and non-integration of the consumer needs by the people involved in the new product development. The term integration refers to the processes of bringing the preferences of the internal and external consumers together, and finding alternative ways to satisfy them. This process of integration can be referred as Client-Orientation, conceptualized with four dimensions, namely [1] generation of information from the consumers, [2] responsiveness to needs of the consumers, [3] interfunctional coordination, and [4] provision of information to the consumers. If client orientation and product success are assumed to be positively correlated, then, the process which increases the client orientation of the people involved in the product development need to be spelt out. Two objectives were set viz, [1] to understand the client orientation in the new product development by studying biotechnological agri-inputs and [2] to explain the influence of organization specific factors on client orientation. Multiple cases have been studied in the present investigation. The organizations were classified into four groups namely [1] Private Commercial, [2] Private Noncommercial, [3] Public Commercial, and [4] Public Noncommercial. The study included various products like development of brassica, rice varieties and biofertilizers using biotechnological means. I have concentrated the study on the process of developing biofertilizer, to compare different organizational variables by controlling for the influence of product related factors. Major findings of the study are: Generation of information from the c0n.rumer.r: [1] when scientists involved in developing new product communicate directly with the consumers, it is more likely that the product will reflect the preferences of the consumers; [2] There is no strong evidence of using formal mechanisms to generate information in the early stages of product development across the organizations. Scientists initiate the process based on the review of literature and their own assumptions about the consumer needs. However, later in the process of evaluation, farmers are included for validating the assumptions about the product attributes made earlier, [3] The scientists in product development teams depend on one or very few information gate keepers within the organization for client related information, [4] High commercially focused organizations use formal mechanisms of information generation in later stages of the product development for fine-tuning the product attributes according to the needs and likings of consumers. Responsiveness to needs of the consumers: [1] There may be poor responsiveness when the scientists have resolved the problem in their mind. That is, scientists may have preconceive solutions which may prevent them from giving due weightage to the preferences of farmers, [2] Organizations with high commercial focus do not take into account just the technical parameters of the product, but evaluate its performance based on consumer acceptance along with the technical attributes. The research focused organizations on the other hand might give greater weightage to technical attributes rather than field performance. Inter-functional coordination: [1] Mutual accountability of different groups/teams of scientists involved in new product development is much higher in the organizations with high commercial focus, [2] Several process contribute to mutual accountability, such as team rewards, cross disciplinary linkages in the process of development of products as well as in the validation at farmer level. Provision information to the consumers: [1] Scientists establish linkages with farmers for provision of information mainly through intermediate functions, like marketing or extension, [2] Commercially focused organizations‘ plan their information provision mechanisms to the consumers more systematically than less commercially focused organizations, [3] High commercial organizations use their own organizational channels for dissemination of information and low commercial organizations depended more upon the governmental or external channels. Reliance on subsidized channels reduced the pressure in less commercially focused organizations to get closer to the clients. The framework of client orientation developed in the study is indeed useful for planning new product development process. There is a need for developing systematic linkage with the consumers from the early stages of new product development for focusing and fine tuning the product attributes on the needs and likings of the consumers. There is a need for developing systems to institutionalize the process of information generation from the consumers to maintain continuity and effective utilization.