From Lean Product Development to Lean Innovation: Finding Better Ways of Satisfying Customer Value

Abstract

The application of Lean principles in product development (LPD) is perceived by many as the key to maintaining competitiveness in a globalized business environment. LPD advocates claim that “a strong product development system is a crucial core competence and fundamental to the success of any consumer-driven company” (Morgan and Liker in The Toyota product development system: integrating people, process, and technology, Productivity Press, New York, 2006). However, imitating the work processes and practice of competitors and other companies, essentially Toyota in this case, can at best only bring you so far. This article considers the role of Lean as part of a company’s overall innovation strategy. It is suggested that Lean principles should not be limited to product development, but concern all aspects of a company’s innovation efforts. Furthermore, most studies on LPD tend to place too much focus on the importance of product development with respect to maintaining profitability. The term ‘Lean Innovation’ reflects a more balanced view, taking into account research, ideation, services, marketing, distribution, and other innovation aspects, which are all critical competitive factors.