Abstract
The process of product definition, during which a firm establishes the product specifications, has a vital influence on the success of a product but has attracted little attention from researchers. Conventional wisdom stipulates that a firm should finalize its specifications early in the product development process. However, in industries facing rapid technological change, stiff competition, and uncertain customer needs, specifications set too early could become outdated by the time of market launch, thereby decreasing the product's benefits to the customer. The authors discuss an alternative approach, in which a firm delays commitment to product specifications and finalizes them just in time for the market launch after careful deliberation, thereby benefiting from the evolution of core technologies and customer preferences. Because such an approach introduces new managerial challenges, it would be appropriate only under certain circumstances. The authors develop a simple model of the product definition process that offers insights about how a firm should customize the process to suit its needs. They capture these insights as a managerial framework and illustrate them with industry examples involving the development process for laser printers and network test kits.
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