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Improving product rollover management at Axis Communications

Tinglöf, Hanna LU and Liljebrunn, Nathalie LU (2017) MTT820 20162
Engineering Logistics
Abstract
Background
For companies’ long term survival it is essential to manage product rollovers successfully. It can even be more important than the product development in some cases. Unfortunately, most companies experience less than successful product rollovers. Several difficulties can jeopardise a successful rollover, such as: technical problems that can delay a new product introduction, excess product inventory can hold up a new product introduction, bad timing of new product introduction can lead to order cancelations of the old product, and sales forecasts can be too optimistic, creating stocks and obsolete. There is substantial work done about new product introductions, but the product rollover is surprisingly understudied given the... (More)
Background
For companies’ long term survival it is essential to manage product rollovers successfully. It can even be more important than the product development in some cases. Unfortunately, most companies experience less than successful product rollovers. Several difficulties can jeopardise a successful rollover, such as: technical problems that can delay a new product introduction, excess product inventory can hold up a new product introduction, bad timing of new product introduction can lead to order cancelations of the old product, and sales forecasts can be too optimistic, creating stocks and obsolete. There is substantial work done about new product introductions, but the product rollover is surprisingly understudied given the theoretical and practical importance.

Problem formulation
Being a market leader, innovation and product performance are two core attributes for Axis Communications. At Axis, the main focus is on short time-to-market. With high pressure on the product development time frame delays are common, which leads to challenges in timing of the rollover. Managing product rollovers is expressed as a challenge by several employees at Axis, and the current rollover strategy was questioned. Some employees addressed the need for a more structured decision making process.

Purpose
The purpose of our master thesis is to contribute to increased general knowledge about management of product rollover strategy at companies, and to recommend how Axis Communications could improve their management of product rollover strategy.

Method
The master thesis is based upon a constructive research approach. A practically relevant research problem was detected at Axis through a pre-study. A general understanding of the topic was carried out through a literature review. Through a multiple case study, understanding of a five companies’ rollover management was derived. The case study was conducted through interviews, surveys, and gathering of open source information. Insight from literature, the multiple case study, and analysis of the derived knowledge formed the construct - an improvement suggestion to Axis regarding its product rollover management. The construct was presented, tested, and modified through a workshop with key employees at Axis.

Conclusion
We recommend Axis Communications to implement an iterative product rollover process, where the product introduction and product elimination is planned in conjunction. The process should include monthly meetings with representatives from all functions involved in the planning of product rollovers. We also recommend Axis to use a decision making matrix including three different primary rollover strategies. (Less)
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author
Tinglöf, Hanna LU and Liljebrunn, Nathalie LU
supervisor
organization
course
MTT820 20162
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Product rollover Product replacement Product transitions New Product Introduction Product elimination Strategy Management
report number
5825
language
English
id
8901239
date added to LUP
2017-01-25 14:19:13
date last changed
2017-01-25 14:19:13
@misc{8901239,
  abstract     = {Background 
For companies’ long term survival it is essential to manage product rollovers successfully. It can even be more important than the product development in some cases. Unfortunately, most companies experience less than successful product rollovers. Several difficulties can jeopardise a successful rollover, such as: technical problems that can delay a new product introduction, excess product inventory can hold up a new product introduction, bad timing of new product introduction can lead to order cancelations of the old product, and sales forecasts can be too optimistic, creating stocks and obsolete. There is substantial work done about new product introductions, but the product rollover is surprisingly understudied given the theoretical and practical importance.

Problem formulation 
Being a market leader, innovation and product performance are two core attributes for Axis Communications. At Axis, the main focus is on short time-to-market. With high pressure on the product development time frame delays are common, which leads to challenges in timing of the rollover. Managing product rollovers is expressed as a challenge by several employees at Axis, and the current rollover strategy was questioned. Some employees addressed the need for a more structured decision making process.

Purpose 
The purpose of our master thesis is to contribute to increased general knowledge about management of product rollover strategy at companies, and to recommend how Axis Communications could improve their management of product rollover strategy.

Method 
The master thesis is based upon a constructive research approach. A practically relevant research problem was detected at Axis through a pre-study. A general understanding of the topic was carried out through a literature review. Through a multiple case study, understanding of a five companies’ rollover management was derived. The case study was conducted through interviews, surveys, and gathering of open source information. Insight from literature, the multiple case study, and analysis of the derived knowledge formed the construct - an improvement suggestion to Axis regarding its product rollover management. The construct was presented, tested, and modified through a workshop with key employees at Axis.

Conclusion 
We recommend Axis Communications to implement an iterative product rollover process, where the product introduction and product elimination is planned in conjunction. The process should include monthly meetings with representatives from all functions involved in the planning of product rollovers. We also recommend Axis to use a decision making matrix including three different primary rollover strategies.},
  author       = {Tinglöf, Hanna and Liljebrunn, Nathalie},
  keyword      = {Product rollover Product replacement Product transitions New Product Introduction Product elimination Strategy Management},
  language     = {eng},
  note         = {Student Paper},
  title        = {Improving product rollover management at Axis Communications},
  year         = {2017},
}