Problem-solving by abduction in new product development

The article adds to the literature on virtual simulation tools in new product development. Although virtual simulation tools are increasingly adopted in new product development, the broader managerial and organizational implications of such an adoption are still not fully understood. The article sets the question of how to organize the use of virtual simulation tools in new product development in a larger framework - that of new product development as a problem-solving activity. We interpret virtual simulation tools as enabling problem-solving by abduction. We identify the advantages of problem-solving by abduction, as compared to induction and deduction. Drawing on a case study of a main European car manufacturer, we analyze how problem-solving by abduction is implemented in practice. We will conclude with some remarks concerning the broader managerial and organizational implications of adopting virtual simulation tools, and how to manage them.