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Showing papers in "Research-technology Management in 2017"


Journal ArticleDOI
TL;DR: Open innovation is becoming increasingly popular in practice and academia: open innovation, open R&D, and open business models as discussed by the authors, and the concepts, underlying assumptions, and implications of open innovation are discussed in two previous special issues (2006, 2009).
Abstract: Institutional openness is becoming increasingly popular in practice and academia: open innovation, open R&D, and open business models. This special issue builds on the concepts, underlying assumptions and implications discussed in two previous R&D Management special issues (2006, 2009). This overview indicates the perspectives needed to develop an open innovation theory more fully. It also assesses some of the recent evidence that has come to light about open innovation, in theory and in practice.

303 citations


Journal ArticleDOI
TL;DR: In this paper, the authors show that business model innovation can be one way to create and capture new value and drive production and consumption toward sustainability, however, business models are not the only way to drive new value.
Abstract: Recent research and practice have shown that business model innovation can be one way to create and capture new value and drive production and consumption toward sustainability. However, business m...

75 citations


Journal ArticleDOI
TL;DR: This study demonstrates that this phenomenon will have significant implications for R&D and innovation management, although the nature and extent of that impact is somewhat uneven among different industry sectors.
Abstract: This study explores the concept of big data and whether, and to what extent, it might affect R&D management in the future. Through extensive discussions to dissect the nature of big data and to ach...

50 citations


Journal ArticleDOI
TL;DR: The Stage-Gate process was created in the late 1980s to meet the need to build best practices into new-product projects in a more systematic and disciplined fashion (Cooper 1990) as discussed by the authors.
Abstract: The original Stage-Gate process was created in the late 1980s to meet the need to build best practices into new-product projects in a more systematic and disciplined fashion (Cooper 1990). Indeed, ...

49 citations


Journal ArticleDOI
TL;DR: Through a case study analysis, it is shown how leveraging a two-sided structure can enable companies to capture value from user-sourced data, enabling a sustainable free-to-consumers business model.
Abstract: OVERVIEW:Consumers are getting used to receiving free services in many different fields, and the popularity of the mobile app industry is feeding this phenomenon. Historically, advertising—a typical two-sided market mechanism—is the primary method that companies relying on a free-to-consumers business model have used to appropriate value in digital environments. But new strategies are needed to make free services sustainable and profitable in the long term. At the same time, companies are gathering a huge amount of data from consumers, especially through mobile apps, by leveraging the sensors embedded in smartphones; this data represents a powerful new source of value. Through a case study analysis, we show how leveraging a two-sided structure can enable companies to capture value from user-sourced data, enabling a sustainable free-to-consumers business model. In this model, users are more than eyeballs to be targeted with advertising; they become data providers, and companies may capture value by using t...

49 citations


Journal ArticleDOI
TL;DR: The human mind is far more powerful when coupled with the smart tool, and the combination is far superior to either one alone, which is the core argument of the book Things That Make Us Smart.
Abstract: I was at Apple’s Advanced Technology Group in the 1990s, a most exciting time in technology. In addition to many advances in technology and human-machine interfaces, the Internet was taking hold, w...

48 citations


Journal ArticleDOI
TL;DR: In a series of discussions aimed at defining the vocabulary of innovation management as mentioned in this paper, the authors take on the profession's terms of art, exploring their origins and mappings to art.
Abstract: This column is the latest in a series of discussions aimed at defining the vocabulary of innovation management. The object is to take on the profession’s terms of art, exploring their origins and m...

32 citations


Journal Article
TL;DR: The question of whether there is a sustainable way to offer digital services for free, besides advertising, remains important, and one potential answer to this question lies in the considerable quantities of data that customers generate in using digital services.
Abstract: The term "freeconomics" was invented to describe the point at which the spread of nuclear energy would make electricity "too cheap to meter" (Anderson 2007). We have yet to reach that point in the energy industry, but a similar scenario is not far from reality in other industries. As Moore's law (Moore 1965) reduces the cost of processing power, storage, bandwidth, and the other technologies that have enabled the digital revolution, computing power, and the services supported by it, is rapidly becoming "too cheap to meter," making it possible for some businesses to offer digital services for free and harvest value in other ways. Facebook, for instance, had more than 1.7 billion monthly active users in September 2016 (Statista 2016a), none of whom paid anything to enjoy its services. Facebook makes money by allowing businesses access to users' newsfeeds, through advertising and business pages. Google and all its services, from the search engine to Street View, from Translator to Google Scholar, operate in the same way- advertisers pay the cost of making those services available to users.These companies leverage an old business model, dating from the beginnings of the modern newspaper industry: advertising. The advertising-based model is a specific type of two-sided market approach in which free (or almost free) services draw large numbers of consumers, who then become targets for the advertisers that pay for access to those consumers. "Selling visitors' eyeballs" (McGrath 2010) is still one of the most popular value-capture mechanisms in the world of digital services and the main revenue-generation mechanism for the digital giants.As this approach has proliferated across the Internet and app spheres, customers have come to expect digital services to be free-even those they might pay for in the physical world. For instance, TomTom and Garmin, both manufacturers of popular GPS units, attempted to sell navigation apps for smartphones-and were shut out of the market by free navigation services like Google Maps and Waze (Buganza et al. 2015). New models have been proposed to escape this digital service ¼free equation, such as freemium models, which mix free basic services with paid premium ones (McGrath 2010; Shapiro and Varian 1999; Teece 2010); in-app purchase models, which give the basic app away but offer users opportunities to enrich their experience with it through paid add-ons (Ghose and Han 2014); and cross-selling models, in which a company offers a free service that supports a physical product, exemplified by Fitbit's companion mobile app to its fitness tracker (McGrath 2010; Matzler et al. 2013). These models offer new ways to capture value from innovations in a world dominated by "free," but none of them fit comfortably into an environment in which customers are increasingly used to not paying for what they get. Thus, the question of whether there is a sustainable way to offer digital services for free, besides advertising, remains important.One potential answer to this question lies in the considerable quantities of data that customers generate in using digital services. A number of companies have begun to explore the value of this data. For example, in 2009, Twitter started selling expanded access to its database of tweets to third parties, many of whom garner insights from it through sentiment analysis-deducing a general mood or reaction from the tweet stream (Cashmore 2009; BrightPlanet 2013). The Twitter Political Index, presented during the 2012 US presidential election, is one example of the potential for Twitter's data stream to support powerful insights (Bilton 2012). In this way, the company created a powerful revenue stream, one that accounted for almost 10 percent of revenues in the third quarter of 2015 (Twitter 2015). Google, Facebook, and many others have experimented with similar approaches, capturing economic value from the data generated by users.All of these companies operate in two-sided markets- markets in which they function as intermediaries between two sets of customers: consumers/users who access the service and advertisers or others who pay for it in exchange for some set of services (for example, advertising or access to data). …

32 citations


Journal ArticleDOI
TL;DR: A brief sketch of the concept and importance of free innovation can be found in this article, where the authors describe how consumers develop valuable products and reveal their unprotected designs to others as free innovations.
Abstract: Consumers develop many valuable products—and reveal their unprotected designs to others—as “free innovations.”11This article offers a brief sketch of the concept and importance of free innovation. ...

29 citations


Journal ArticleDOI
TL;DR: Digitalization and its implications for R&D Management is an IRI Research platform established to consider the likely impacts of three distinct sets of digitalization technologies (virtual experimen,... as discussed by the authors.
Abstract: Digitalization and Its Implications for R&D Management is an IRI Research platform established to consider the likely impacts of three distinct sets of digitalization technologies—virtual experimen...

27 citations


Journal ArticleDOI
TL;DR: A wealth of information and research is available about business leadership in general and its importance, but much less attention has been given to the nature of R&D leadership specifically.
Abstract: A wealth of information and research is available about business leadership in general and its importance, but much less attention has been given to the nature of R&D leadership specifically. Given...

Journal ArticleDOI
TL;DR: The IRI Research-on-Research working group on Innovation Culture analyzed data from the Center for Creative Leadership's KEYS to Creativity and Innovation survey and found that while challenging work is important in all organizations, the importance of organizational encouragement and work group support differs by organizational factors.
Abstract: OVERVIEW:Organizational and corporate culture clearly play a role in innovation effectiveness, but little work has been done to explore the exact nature of that relationship. To address that gap, the IRI Research-on-Research working group on Innovation Culture analyzed data from the Center for Creative Leadership’s KEYS to Creativity and Innovation survey. Key conclusions include that while challenging work is important in all organizations, the importance of organizational encouragement and work group support differs by organizational factors. The impact of organizational encouragement is most pronounced for organizations with low-control, high-support, or high–risk-aversion cultures. Work group support, while important across all segments studied, has less effect than challenging work or organizational encouragement. This information can be used by managers to drive more effective innovation in the context of an organization’s particular cultural characteristics.

Journal Article
TL;DR: Christensen et al. as discussed by the authors argue that the success of an innovation is not a matter of luck, but rather, it's built on a company's ability to uncover, understand, and organize to deliver on a particular job to be done.
Abstract: Competing Against Luck: The Story of Innovation and Customer Choice Clayton M. Christensen, David S. Duncan, Karen Dillon, and Taddy Hall (New York: HarperBusiness 2016) As the CEO of a major company, do you think you are in the business of making products and delivering them to market? Actually, Clayton Christensen says no. Christensen is well known for his comprehensive theory of disruptive innovation; in Competing Against Luck, he focuses on customers and customer needs--the key to success in business, he and his coauthors argue, is to understand what "job" the customer is hiring the company and its product to do. The success of an innovation is not a matter of luck. Rather, it's built on a company's ability to uncover, understand, and organize to deliver on a particular job to be done. Companies survive and grow based on their ability to respond to the causal mechanisms underlying customer choice. This is the central thesis of Competing Against Luck. The authors go on to unpack the fundamental question, why is what causes a customer to purchase and use a particular product or service important? By creating an explanatory framework to answer this question and demonstrating that it is predictive, they add a compelling tool to the innovator's toolbox. The first half of the book elaborates on the theory of the job to be done, which essentially says that when customers buy a product, they are actually buying the execution of a job they need done. The better the execution, the more the customer wants the product. Take the example of a customer who purchases a milkshake. One might think the customer is just buying the milkshake; give him a better shake, one might reason, and he'll buy more milkshakes or pay more for the ones he buys. The milkshake seller might pursue this line of thinking by asking customers, how can we improve our milkshakes so you would buy more and pay a higher price? Should we make it chunkier, more chocolaty, cheaper? This is the wrong question, Christensen contends, because the customer's focus is not on the product, but on the job he or she needs done and the particular experience he or she seeks. In Christensen's example, most milkshakes are sold before 9:00 a.m. to people who come into the restaurant alone, buy a milkshake, and take it with them. After extensive discussions with customers, the team discovers what "job" the milkshake is doing: these morning customers have long, boring rides to work and they want something to keep the commute interesting and keep them from being hungry by the time they get to work. There are, Christensen notes, a lot of other products the customers could have hired to do the job--bananas, donuts, bagels--but those other candidates are not quite right. Bananas are gone too soon, donuts leave crumbs in the car, and bagels are dry and tasteless. The milkshake is perfect for the job to be done: it reduces the tedium of the commute and wards off mid-morning hunger. The competition for the milkshake is not other milkshakes, but other snack food. It is worth noting that not all milkshakes do the same job. Commuters hire a morning milkshake to do a very different job from the one anticipated by the father who buys a milkshake for his son as an after-school treat. …

Journal ArticleDOI
TL;DR: In this article, the authors explore the extent to which companies are (or are not) engaging in training to address those skill gaps, interviews were conducted with 30 senior R&D managers from Fortune 1000 companies.
Abstract: OVERVIEW:Investment in innovation training has the potential to help firms create more successful product offerings, but the extent to which companies do innovation training is unknown Although efforts to optimize formal processes and integrate Agile methods into development have led to more efficient innovation systems, a large skill gap remains that cannot be overcome by tools and processes alone To explore the extent to which companies are (or are not) engaging in training to address those skill gaps, interviews were conducted with 30 senior R&D managers from Fortune 1000 companies The results indicate that even though senior managers’ view of innovation success factors is more focused on human capital than in the past, innovation training rarely happens—80 percent of the companies in our sample reported rarely engaging in structured training to build innovation competencies We offer some recommendations for addressing this gap

Journal ArticleDOI
TL;DR: In this article, the EPSRC Centre for Innovative Manufacturing in Industrial Sustainability (CIMISM) and Business Models for Sustainable Industrial Systems (BSIS) were used to support the work of the authors.
Abstract: This study was supported by the EPSRC Centre for Innovative Manufacturing in Industrial Sustainability (grant EP/I033351/1) and the EPSRC project Business Models for Sustainable Industrial Systems (grant EP/L019914/1).

Journal ArticleDOI
TL;DR: In 1955, the Committee on Evaluation of Engineering Education, headed by respected educator Linton Grinter, issued a call to modernize engineering education in the United States during World War I.
Abstract: In 1955, the Committee on Evaluation of Engineering Education, headed by respected educator Linton Grinter, issued a call to modernize engineering education in the United States. During World War I...

Journal ArticleDOI
TL;DR: In this article, a case study of a local gas supplier, redgas, offers three key lessons from applying service design thinking to create new value propositions in the commodity industry: 1) see the bigger picture, 2) select suitable prototyping methods to support a collaborative ideation process, and 3) communicate narratives to and solicit feedback from customers.
Abstract: OVERVIEW:In commodities markets, companies struggle to develop and communicate solutions for customer needs that provide competitive advantage. Service design thinking can provide the tools to help redesign value propositions to incorporate solutions that meet customer needs and sustain competitive advantage. However, in order to apply service design thinking effectively in organizational settings characterized by product thinking, some specific issues must be addressed. Based on a case study of a local gas supplier, redgas, we offer three key lessons from applying service design thinking to create new value propositions in the commodity industry: 1) see the bigger picture, 2) select suitable prototyping methods to support a collaborative ideation process, and 3) communicate narratives to and solicit feedback from customers.

Journal ArticleDOI
TL;DR: In this paper, the authors describe how an internal idea competition in a large company has evolved over time into a much broader innovation management system that supports a range of different types of innovations, and how it has altered the firm's overall approach to innovation and corporate entrepreneurship.
Abstract: OVERVIEW:As a form of crowdsourcing, idea competitions offer a mechanism to engage larger groups in innovation activities. While much of the literature on crowdsourcing focuses on idea competitions that cross a firm’s boundaries to engage external partners, relatively little is known about how this approach can be used within large companies to engage the internal community. We describe how an internal idea competition in a large company has evolved over time into a much broader innovation management system that supports a range of different types of innovations, and how it has altered the firm’s overall approach to innovation and corporate entrepreneurship.

Journal ArticleDOI
TL;DR: The future of open innovation will be more extensive, more collaborative, and more engaged with a wider variety of participants as discussed by the authors, which will extend beyond technology to business models, and it will emb...
Abstract: The future of open innovation will be more extensive, more collaborative, and more engaged with a wider variety of participants. It will extend beyond technology to business models, and it will emb...


Journal ArticleDOI
TL;DR: In this article, the authors surveyed 202 solvers about the importance of communication in crowdsourcing contests and derived key principles that can help crowdsourcers maintain and grow their solver base.
Abstract: OVERVIEW:When crowdsourcing intermediaries lose crowd members, they lose potential high-quality solutions in the future. As the number of contests and intermediaries grows, it is increasingly critical for crowdsourcers to meet the needs of solvers and avoid seeing them migrate to the competition. Besides winning contests, intensive communication and customized feedback are solvers’ most central needs. For this study, we surveyed 202 solvers about the importance of communication in crowdsourcing contests. Based on our quantitative and qualitative insights, we derive key principles that can help crowdsourcers maintain and grow their solver base.

Journal Article
TL;DR: In Small Data as discussed by the authors, Lindstrom offers readers the opportunity to accompany him on seven globe-trekking, culture-spanning adventures that led to valuable insights for his clients.
Abstract: Small Data: The Tiny Clues that Uncover Huge Trends Martin Lindstrom (New York: St. Martin's Press, 2016) Having researched and applied data and text mining in the telecom industry since the 1990s, I couldn't pass up the opportunity to review Small Data. In a world where big data analytics has won a high level of credibility, and attracted much investment, this complementary perspective was intriguing. The book's title suggested the author had succeeded in finding useful business insights more efficiently by studying small-scope scenarios than by amassing and analyzing large amounts of data. To use a popular analogy, the title implied that Lindstrom had developed ways for decision makers to learn things from individual trees that they couldn't learn by observing the forest. In Small Data, Lindstrom offers readers the opportunity to accompany him on seven globe-trekking, culture-spanning adventures that led to valuable insights for his clients. In my initial scan of the table of contents, these journeys sounded nonsensical-take, for instance, "Sausage, Chicken, and the Pursuit of Real Happiness: Transforming the Future of How We Shop for Food" and "The United Colors of India: Selling Breakfast Cereal to Two Generations of Warring Women." I wondered what the real point of the book might be. But Lindstrom's sincerity in storytelling hooked me in the first 10 pages. I was on board, wherever the journeys would lead, with the hope of gaining a deeper understanding of humanity and of myself personally. Lindstrom defines small data as "the amalgamation of gestures, habits, likes, dislikes, hesitations, speech patterns, decors, passwords, tweets, status updates and more"--the nonverbal signals through which we reveal who we really are. Readers familiar with traditional market research methods such as focus groups may find these sources of data unconventional. However, they are within the scope of ethnography and anthropology, both of which have been applied successfully in the business world. Subtext research, which is the author's name for the gathering and analysis of small data, reveals the imbalances and unmet desires within a culture that might be addressed by a new product, service, or experience. The case studies in Small Data are presented in a nonlinear fashion, matching the way Lindstrom's data and insights evolved over time. I found this approach both entertaining (connecting unexpected insights from diverse sources) and a little challenging. Ultimately, I'd suggest reading the book as a set of parallel stories. The first, and probably most valuable for innovation leaders, is about the author's research method. Chapters 1 through 7 introduce aspects of the approach as it is applied to specific challenges, for instance, how to revive sales in a local grocery store chain or how to design shopping malls so they offer unique and compelling experiences. The final chapter of the book nicely summarizes the steps and overall approach. The second story narrates a collection of principles in practice. Among the many principles offered by the book, one often repeated is the value of somatic markers--the juxtaposition of dissonant concepts (for instance, square cakes and round songs) to increase the likelihood that the audience will remember the message. …

Journal ArticleDOI
TL;DR: The Lean principles as discussed by the authors are a set of philosophies and approaches derived from Japanese management practices that focus on providing optimum value to the customer by eliminating waste and streamlining processes, e.g. processes.
Abstract: Lean principles—a set of philosophies and approaches derived from Japanese management practices that focus on providing optimum value to the customer by eliminating waste and streamlining processes

Journal ArticleDOI
TL;DR: Leadership is an ongoing preoccupation for the innovation community as mentioned in this paper, and every company wants to be a market leader, and many rely on innovation to provide that leadership. At the national level, innova...
Abstract: Leadership is an ongoing preoccupation for the innovation community. Every company wants to be a market leader, and many rely on innovation to provide that leadership. At the national level, innova...

Journal ArticleDOI
TL;DR: The economic benefits of reverse innovation are intuitively compelling, but this new innovation strategy presents several challenges to established firms, ranging from fears of product cannibalization to not-invented-here syndrome as mentioned in this paper.
Abstract: OVERVIEW:The economic benefits of reverse innovation are intuitively compelling, but this new innovation strategy presents several challenges to established firms, ranging from fears of product cannibalization to not-invented-here syndrome. French ophthalmic lens maker Essilor has experimented with reverse innovation over several projects; an examination of its experiences suggests how the specific challenges of reverse innovation may be anticipated and overcome to allow companies to better leverage the results of their global innovation efforts.

Journal ArticleDOI
TL;DR: In this paper, the authors make a distinction between the content expressed via a medium and the message of the medium, the pattern of thought it engendered over time, and the implications of these media for the ways we manage people in traditional R&D and innovation labs.
Abstract: "What is essential is invisible to the eyes. " --Antoine de Saint-Exupery, The Little Prince Where do you live? By this, I mean where do you spend your time? I realized recently that many of the people who coexist with me in my physical world actually live in different places. 1 spend much of my workday in web conferences. Many teams in my organization communicate among themselves using WhatsApp--they live chunks of their work lives in WhatsApp. I connect with my wife face to face or by phone. One of my sons doesn't answer his phone; he only texts. Another lives his social life within his multiplayer online video games; the game space is where he connects with friends to get together in physical space. Where you live affects how you think. When Marshall McLuhan wrote, "The medium is the message," he made a distinction between the content expressed via a medium and the message of the medium--the pattern of thought it engendered over time. In his early days as a teacher, McLuhan had noticed that there was a difference between the way he thought and the way his students thought--a generation gap he famously attributed to the effects of the then-new medium of television. His students had lived large chunks of their lives in the context of television, and he had not. It changed the way they thought. As in everything else, the pace of change in communication media is picking up. New communication practices and tools are cascading into the workplace. Many of these new media started in the personal world and migrated into the business world. Texting with friends became texting with colleagues and then texting with supervisors, or using WhatsApp to connect teams. Twitter in our personal lives became Yammer in our business lives. The content expressed in these media has not changed much--the issues of interest to us in management now are largely the same as they were decades ago--but the media change how things are said and (in subtle ways) the meaning conveyed. Because these new media afford it, sharing of content is generally more immediate and frequent, less linear and hierarchical; the content occurs in bursts, not according to reporting schedules, and the more casual, immediate context means that it's often less formal and breezier in tone and--another new affordance of these tools--more likely to engage multiple media. The individual messages have shorter half-lives--they quickly become buried in message streams and news feeds--and yet have a persistence to them. What are the implications of these media for the ways we manage people in traditional R&D and innovation labs? I began trying to answer this question while watching my teenaged son play his video games. He lived much of his life in those games during high school. This was a great frustration to me and my wife because it seemed like such a waste of time. (Why not read a good book?) But his friends lived there, as well. They met in the video chat room the same way I used to meet people at the mall or at a meeting of a school club. In the environment of the video game, my son and his friends met, talked, formed teams, plotted and executed game strategies, had arguments, discussed politics, and sometimes made plans to meet in the real world--not so far from what I did at the mall. I wonder how these habits--this medium--will shape my son's life, and those of his friends. Are the video games of today harbingers of the work environment of tomorrow? …

Journal ArticleDOI
TL;DR: This presentation explains how the Internet, machine learning, advances in manufacturing, and biotechnology have shifted substantial portions of research and development to startups and labs that do not fit neatly within traditional disciplines.
Abstract: The Internet, machine learning, advances in manufacturing, and biotechnology have shifted substantial portions of our research and development to startups and labs that do not fit neatly within tra...

Journal ArticleDOI
TL;DR: In this article, a special issue is focused on digitalization and the wave of change it's bringing to RD it will roll on through the next few decades, focusing on how it will impact the future of RD.
Abstract: This special issue is focused on digitalization and the wave of change it’s bringing to RD it will roll thro...

Journal ArticleDOI
TL;DR: The transition process at LG Chem Research Park can serve as a model to guide R&D organizations seeking to broaden internal collaboration and move toward deeper open innovation as mentioned in this paper. But, the transition process is difficult and time consuming.
Abstract: OVERVIEW:This paper describes LG Chem Research Park’s process of transforming a large, closed R&D center into a collaborative organization. Experiments with open innovation intermediaries unveiled internal boundaries, both formal and informal. That experience led the organization’s leadership team to seek ways to “unfreeze” the organizational culture. The internal application of open innovation tools broke down formal boundaries between individuals and teams. Informal communities allowed researchers to build relationships, thereby breaking informal boundaries. Easing researchers’ anxieties about collaboration, and then building researchers’ trust, in others and in the organization’s commitment to collaboration, were crucial cultural shifts. The transition process at LG Chem Research Park can serve as a model to guide R&D organizations seeking to broaden internal collaboration and move toward deeper open innovation.

Journal ArticleDOI
TL;DR: A preliminary maturity matrix is offered, a framework that can be used to judge an organization’s maturity and effectiveness in developing and deploying virtual experimentation and simulation capabilities.
Abstract: OVERVIEW:Virtual experimentation and simulation—the use of mathematical models and computer-based simulations to replicate the behavior and performance of physical systems and traditional experiments—has been steadily growing over the past two decades, driven by continual developments in technology and techniques. Virtual experimentation and simulation can enable companies to innovate more effectively and efficiently and build competitive advantage. However, the development and implementation of virtual capabilities is not simple and not without pitfalls; some companies have struggled to fully leverage these technologies. What is currently missing from the knowledge landscape is a common measure of where an organization stands with regard to its virtual capabilities and of what parameters drive effective use of virtual experimentation and simulation. To fill this gap, we offer a preliminary maturity matrix, a framework that can be used to judge an organization’s maturity and effectiveness in developing an...