The effect of volatile business conditions on new product development in the information technology industry

Abstract

The purpose of this thesis is to create an information technology industry management view on the effect of volatility experienced by project and product development management. The key research problems being investigated in this research:  The market demanding new technology and subsequent responses to volatility may force IT clients to change their adoption/procurement of technology during negative/positive periods  Although businesses attempt to understand their industry they can potentially not have sufficient detection mechanisms for volatile conditions and respond too late with too little  The selection of products that must be built for project deliveries to clients while the business environment changes as a result of volatility lead to uncertainties in the business and technology strategy  When business strategy changes, it impacts on the technology product portfolio selection. The changed product portfolio must be build whilst business operations are being executed;  The IT business orders will be impacted by changing economic conditions and balancing the product/project order book with the limited organisational resources is a constant risk for businesses. The research objectives are as follows:  The study combines aspects of business, management and market research. o Market research was performed to understand quantitative and qualitative aspects of IT client behaviour in volatile trade conditions. o During volatile conditions business may require more efficiency, effectiveness and focused productivity. o Some organisational development aspects may require management intervention during periods of volatility since planned behavioural change efforts may impact on organisational culture, human and social processes.  Determine the general responses of IT businesses during periods of volatility and how the technology strategy repositioning, formulation and execution in the business are done.  Collect and analyse data to define the impact of unstable trade conditions on the product development in IT businesses.  Determine the measures IT businesses have adopted to ensure that product development sustains business operations profitably during volatile conditions. New theory is formulated via exploratory research and tested with hypothesis to establish the association strength between key variables. The subsequent responses and best practices determined from industry investigation are documented and new methods formulated to assist in managing innovation in project/products development. ## Die doel van hierdie tesis is on ‘n inligting tegnologie industrie bestuur siening te bou op die effek van wisselvalligheid wat ervaar word deur die bestuur van projek en produk ontwikkeling. Die sleutel navorsing probleme wat ondersoek is in die navorsing is:  Die mark verwag nuwe tegnologie en gevolglike reaksie tot wisselvallige/onbestendighede mag IT kliente forseer om hulle aankope van tegnolgie tydens onstabiele periodes aan te pas.  Al probeer IT besighede die industrie verstaan mag hulle dalk nie voldoende bespeurings meganismes hê om onbestendige kondisies te bespeur en reageer te laat met te min.  Wanneer maatskappy se besigheid en tegnologie strategiëe verander, het dit 'n impak op die tegnologie produk portefeulje seleksie. Die veranderde produk portefeulje moet gebou word, terwyl huidige sake bedrywighede uitgevoer word.  Die IT besigheid bestellings sal beïnvloed word deur die verandering van die ekonomiese toestande. Die balansering van die produk/projek bestel boek met die beperkte organisatoriese aflewer hulpbronne, is 'n konstante risiko vir besighede. Die navorsing doelwitte is as volg:  Die studie kombineer aspekte van die besigheid, bestuur en die mark navorsing. o Mark navorsing is uitgevoer kwantitatiewe en kwalitatiewe aspekte van IT kliënt gedrag in wisselvallige/onbestendige handel omgewing te verstaan. o Gedurende wisselvallige toestande mag besigheid meer doeltreffendheid en produktiwiteit fokus vereis. o Sommige organisatoriese ontwikkeling aspekte kan bestuur ingryping benodig tydens periodes van onbestendigheid, aangesien beplande gedragsverandering pogings 'n impak kan inhou op organisatoriese kultuur, menslike en sosiale prosesse.  Bepaal die algemene reaksie van die IT-ondernemings in tye van onbestendigheid en hoe die tegnologie strategie herposisionering, formulering en uitvoering in die besigheid gedoen word.  Versamel en ontleed data om die impak van onstabiele handels toestande te bepaal op die produk ontwikkeling in IT besighede.  Bepaal die maatreëls wat IT-ondernemings aanneem om te verseker dat die produk ontwikkeling onderhou sake bedrywighede winsgewend gedurende wisselvallige toestande. Nuwe teorieë word via eksplorasie navorsing geformuleer en getoets met hipoteses om die assosiasie tussen sleutel veranderlikes te bevestig. Die daaropvolgende reaksies en beste praktyke van die industrie word gedokumenteer om nuwe metodes geformuleer om te help met die bestuur van innovasie in die projek / produkte ontwikkeling.