Decision-making in product development: Are you outside-in or inside-out?

Gary J. Summers, Chris M. Scherpereel

Research output: Contribution to conferencePaperpeer-review

Abstract

A company's approach to decision-making affects how its business systems develop and perform. This paper considers two general, but fundamental, approaches to decision-making and their influence on business systems. The Outside-In approach models decisions, calculates the best solutions and pushes the solutions into a business system. This approach embraces complexity, gives decision-makers many degrees of freedom and adjusts to mistakes. The Inside-Out approach keeps decisions in business processes. Rules and policies simplify the system, constrain decision-making, and keep workers from making mistakes. This produces consistency good performance. Generally, the Inside-Out approach is superior. After describing the two systems, this paper applies them to product development and change management.

Original languageEnglish (US)
Pages82-86
Number of pages5
StatePublished - Dec 1 2007
Event28th Annual National Conference of the American Society for Engineering Management 2007 - Innovation Management: Innovation in a Flattened World, ASEM 2007 - Chattanooga, TN, United States
Duration: Nov 7 2007Nov 10 2007

Other

Other28th Annual National Conference of the American Society for Engineering Management 2007 - Innovation Management: Innovation in a Flattened World, ASEM 2007
CountryUnited States
CityChattanooga, TN
Period11/7/0711/10/07

Keywords

  • Business system
  • Decision-making
  • Product development
  • Push vs. pull

ASJC Scopus subject areas

  • Management of Technology and Innovation

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