Knowledge-based competitive strategy using direct customer experience for automobile product development

Abstract

The automobile product development (PD) design space continually increases in size and complexity. In this dynamic environment, firms must identify competitive strategies that maintain or increase financial return. Firms can compete on several factors including price/cost, time-to-market, or differentiation (e.g., function or quality). Here, we envision that differentiation through expertise in integration can be a successful strategy in the automotive industry. Expertise in integration requires attention to knowledge management, which is crucial for competitive advantage [Drucker P. The Atlantic Monthly, 1994, 274(5): 53–80]. A key component of the PD process is the acquisition of data about customers’ responses to vehicle performance and the rapid use of that information in the development of new products. The paper proposes a system for collecting near real-time data about responses to vehicle performance and its integration with recent developments in design and analysis. The proposed system would collect customer psychophysical response data, correlate it with vehicle parameter response data, and apply this information with feasible design automation to provide reduced cycle time, improved quality, and greater customer satisfaction. The paper discusses some relevant technological and legal constraints and concludes that such a system is feasible, can provide a near-term competitive advantage, and in the long-term, in some form, will be necessary for success.

Keywords

product development / strategy / knowledge management