Corporate quarterly financial result and new product development

With the atrophy of the world economy due to the influence of the new coronavirus, the site of new product development is about to undergo a significant transformation, and I shall say that company cannot survive without it. It is because the era of producing products that demand unexpectedness in a fulfilled social environment has already finished. Then, what are the issues in achieving that transformation? I would say that it is due to the management structure of the company itself.
Since many companies are enforcing quarterly settlement of accounts, they are obliged disclosing a financial index (ROE, ROA) to their shareholders in every three months, which shows how effectively the total assets held by companies could create profit.  In other words, a company will be judged of their profit efficiency that how much profit can be secured using shareholders’ equity, with visualized numbers, in just three months. Therefore, those with high ROA and ROE are evaluated as attractive to shareholders. However, the question is that it is possible or not to keep having such a divine mechanism which can create products that attract customers in a situation close to oversupply and also makes significant profits? For example, products such as smartphones require technological progress day by day, such as creating a database of large volumes of data in the palm of your hand, sending and receiving them, installing various applications, and exchanging information around the world. In particular, the IT Parts that form the basis of those are developed with anxious feeling like stepping on thin ice. Talking about the development, In the past, one part was composed with one performance, but in the current situation where downsizing and performance pursuing the limit are forced, many performances are overlapped in one component.  It is expected that this development status and the adherence to the quarterly US-style financial results mentioned earlier will continue in the future.

Bounded Awareness

To proceed with product development in such unprecedentedly harsh circumstances, I should say that it is difficult to increase the product value and achieve the company’s own goals by merely adopting a front-end loading system. Professors Lovallo, Kahneman and others also explained that humans create “Bounded Awareness” in their decision-making processes even without these harsh conditions.  When “Bounded Awareness” is created, Human beings become challenging to see, use, and convey it even if that information can be easily obtained and recognized it, then accept what is put out without going against the situation on the spot. They also explain that most people are often unaware of how “Bounded Awareness” is created. To promote Quick decision-Making with overcoming the fate of a company such as short-term schedules, creating product values, and the conscious barriers of developers,  I think it will be vital to incorporate the front-end loading of new product development as “linked Management” and practice it in more sophisticated new product development.  What shall be the way to prompt Quick decision-Making with overcoming so-called “the fate of a company” such as short-term schedules, creating product values, and the conscious barriers of developers?  I think it is vital to incorporate “the front-end-loading of new product development” as “linked-Management” and to practice it in more sophisticated new product development.

Reconsideration of front-end loading in new product development

The front-end-loading of new product development that we have been advocating so far has been emphasizing the difficulty at the beginning of development and Extracted risks related to them, and consideration of its workarounds.
However, considering the magnitude of the impact of the new coronavirus on new product development, it can be said that it is difficult to secure an advantage in the market because this method does not accurately grasp the market theme.
Therefore, in reconsidering the front-end loading of new product development, I would like to suggest, once again, to promote vigorously the synergistic effects of technologies to secure the market advantages.