Modeling the Market Value of a Product Based on New Technologies - Preliminary Tool Concept
DOI:
https://doi.org/10.7494/dmms.2024.18.6641Abstract
Changes in the way market advantage is achieved and the emphasis on value creation that has been introduced by technological change are forcing companies to seek new and effective management tools when it comes to innovative activities; hence, the discussion and presentation of the conceptualization of such a decision-making model. Its basic premise is to take the technology life cycle as a determinant of the market diffusion of a product based on the use of new technologies. Consequently, a decision matrix is developed – one dimension of which is innovation measured by the dynamics of technical debt and the other by customer-perceived value. The product as an analytical object is considered as the sum of the utility functions while allowing for each utility function to originate from the use of a different technology (which is in an adequate phase of its life cycle). After presenting the theoretical model, an example of an analysis of a fictitious product is given, which is a device for cooling and printing food substances. The presented analysis example shows the practical possibilities of using the developed decision-making tool in the areas of the technological and
marketing activities of the enterprise and, in particular, the design of new products or new utility functions.
References
Artmann C. (2009). The Value of Information Updating in New Product Development. Berlin – Heidelberg: Springer-Verlag. DOI: https://doi.org/10.1007/978-3-540-93833-0.
Asthana P. (1995). Jumping the s-curve. IEEE Spectrum, June 1995, pp. 49−54. URL: https://api.semanticscholar.org/CorpusID:109777335.
Blut M., Chaney D., Lunardo R., Mencarelli R. & Grewal D. (2023). Customer perceived value: A comprehensive meta-analysis. Journal of service Research, 27(4), pp. 1−24. DOI: https://doi.org/10.1177/10946705231222295.
Bowden M.J. (2004). Moore’s Law and Technology S-Curve. Stevens Alliance for Technology Management, SATM, 8(1), pp. 1−4. URL: https://gwern.net/doc/technology/2004-bowden.pdf [10.07.2024].
Chen S.-Ch. & Quester P.G. (2009). A value-based perspective of market orientation and customer service. Journal of Retailing and Consumer Services, 16(3), pp. 197−206. DOI: https://doi.org/10.1016/j.jretconser.2008.11.015.
Cunningham W. (1993). The WyCash portfolio management system. In: J.L. Archibald, M.C. Wilkes (Eds.), Addendum to the Proceedings: Object-Oriented Programming Systems, Languages, and Applications, OOPSLA’92, New York: ACM Press,
pp. 29−30. DOI: https://doi.org/10.1145/157710.157715.
Eversheim W. (Ed.) (2009). Innovation Management for Technical Products. Systematic and Integrated Product Development and Production Planning. Berlin–Heidelberg: Springer-Verlag. DOI: https://doi.org/10.1007/978-3-540-85727-3.
Fan B., Qi G., Hu X. & Yu T. (2015). A network methodology for structure-oriented modular product platform planning. Journal of Intelligent Manufacturing, 26, pp. 553–570. DOI: https://doi.org/10.1007/s10845-013-0815-1.
Filipowicz P. (2014). Customer commitment to value creation process: case of innovation based differentiation strategies. International Journal of Business and Management Study, 1(1), pp. 10–13. URL: https://www.zarz.agh.edu.pl/pfilipow/publikacje/pozycja5.pdf [10.07.2024].
Filipowicz P. (2015). Technical debt and customer value added as the parameters of technology innovation based strategies. Central and Eastern European Journal of Management and Economics, 3(4), pp. 255–269.
Filipowicz P. (2019). Conceptualization of product development model based on use function evolution. Central and Eastern European Journal of Management and Economics, 7(1), pp. 9–20.
Foster R. (1986). Innovation: The Attacker’s Advantage. New York: Summit Books. Fuchs C. & Golenhofen F.J. (2019). Mastering Disruption And Innovation in Product Management: Connecting the dots (Management for Professional). Heidelberg: Springer International Publishing AG. DOI: https://doi.org/10.1007/978-3-319-93512-6.
Ha Y.W. & Park M.C. (2013). Antecedents of customer satisfaction and customer loyalty for emerging devices in the initial market of Korea: An equity framework. Psychology and Marketing, 30(8), pp. 676–689. DOI: https://doi.org/10.1002/mar.20637.
Highsmith J. (2009). Agile Project Management: Creating Innovative Products. Second Edition. Redwood City: Addison-Wesley.
Ho J.C. (2011). Technology evaluation in Taiwan’s technology industries: Strategies, trajectories, and innovations. Technological Forecasting & Social Change, 78(8), pp. 1379–1388. DOI: https://doi.org/10.1016/j.techfore.2011.03.008.
Ho J., Shahnewaz S. & Ruhe G. (2014). A Prototype Tool Supporting When-to-release Decisions in Iterative Development. In: 2nd International Workshop on Release Engineering (RELENG), Mountain View, CA, USA, pp. 1–3. URL: https://releng.polymtl.ca/RELENG2014/html/proceedings/releng2014_submission__11.pdf [10.07.2024].
Huang M.-H. & Wang E.T.G. (2013). Marketing is from Mars, IT is from Venus: Aligning the worldviews for firm performance. Decision Sciences Journal, 44(1), pp. 87–125. DOI: https://doi.org/10.1111/j.1540-5915.2012.00396.x.
Jensen M.B., Hienerth Ch. & Lettl Ch. (2014). Forecasting the commercial attractiveness of user-generated designs using online data: An empirical study within the LEGO User Community. Journal of Product Innovation Management, 31(S1),
pp. 75–93. DOI: https://doi.org/10.1111/jpim.12193.
Keinonen T. & Takala R. (Eds.) (2006). Product Concept Design. A Review of the Conceptual Design of Products in Industry. Springer Science + Business Media. DOI: https://doi.org/10.1007/978-1-84628-126-6.
Kumar P. & Puneet T. (2019). A paradigm for customer-driven product design approach using extended axiomatic design. Journal of Intelligent Manufacturing, 30, pp. 589–603. DOI: https://doi.org/10.1007/s10845-016-1266-2.
Kumar S. & Phrommathed P. (2005). New Product Development: An Empirical Approach to Study of the Effects of Innovation Strategy, Organization Learning, and Market Conditions. Springer Science+Business Media. DOI: https://doi.org/10.1007/b101081.
Liu Q., Du Q., Hong Y., Fan W. & Shuang W. (2020). User idea implementation in open innovation communities: Evidence from a new product development crowdsourcing community. Information System Journal, 30(5), pp. 899–927. DOI:
https://psycnet.apa.org/doi/10.1111/isj.12286.
McNally R.C., Akdeniz M.B. & Calantone R.J. (2014). New product development processes and new product profitability: Exploring the mediating role of speed to market and product quality. Journal of Product Innovation Management, 28(S1),
pp. 63–77. DOI: https://doi.org/10.1111/j.1540-5885.2011.00861.x.
Millier P. (2011). Stratégie et marketing de l’innovation technologique. 3ème edition. Paris: Dunod.
Moon H., Park J. & Kim S. (2015). The Importance of an innovative product design on customer behavior: Development and validation of a scale. Journal of Product Innovation Management, 32(2), pp. 224–232. DOI: https://doi.org/10.1111/jpim.12172.
Moore G.E. (1965). Cramming more components onto integrated circuits. [reprinted from Electronics, 38(8), pp.114–117]. IEEE Solid-State Circuits Society Newsletter, 11(3), pp. 33–35. DOI: https://doi.org/10.1109/N-SSC.2006.4785860.
Mul J.& Di Benedetto C.A. (2011). Strategic orientations and new product commercialization: mediator, moderator, and interplay. R&D Management, 41(4), pp. 337–359. DOI: https://doi.org/10.1111/j.1467-9310.2011.00650.x
Mulder-Nijkamp M. (2020). Bridging the gap between design and behavioral: (Re)searching the optimum design strategy for brands and new product innovations. Creativity and Innovation Management, 29(4), pp. 11–26. DOI: https://doi.org/10.1111/caim.12393.
Nord R., Ozkaya I., Kruchten P. & Gonzales-Rojas M. (2012). In search of a metric for managing architectural technical debt. In: 2012 Joint Working IEEE/IFIP Conference on Software Architecture & European Conference on Software Architecture, pp. 91–100. DOI: https://doi.org/10.1109/WICSA-ECSA.212.17.
Pearce J.A. & Robinson R.B. (1994). Strategic Management Formulation, Implementation, and Control. Fifth Edition. Burr Ridge – Boston – Sydney: Richard D Irwin.
Pieper T. (2019). User Innovation Barriers’ Impact on User-Developed Products. An Empirical Investigation on User Innovation Processes. Springer Gabler. DOI: https://doi.org/10.1007/978-3-658-25506-0.
Porter M.E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press.
Radford S. & Sridhar S. (2005). All co-production is not created equal: A value congruence approach for examining the degree of co-production. In: B.A. Walker, M.B. Houston (Eds.), AMA Summer Educators’ Conference 2005. Enhancing Know-
ledge development in Marketing, American Marketing Association, pp. 244–251.
Ritter T. & Walter A. (2012). More is not always better: The impact of relationship functions on customer-perceived relationship value. Industrial Marketing Management, 41(1), pp. 136–144. DOI: https://doi.org/10.1016/j.indmara-man.2011.11.020.
Sánchez-González G. & Herrera L. (2015). User cooperation effects on firm’s innovation outputs. Canadian Journal of Administrative Sciences Revue Canadienne des sciences de l’administration, 32(2), pp. 86–101. DOI: https://doi.org/10.1002/cjas.1319.
Schultz C., Salomo S., Talke & K. (2013). Measuring new product portfolio innovativeness: How differences in scale width and evaluator perspectives affect its relationship with performance. Journal of Product Innovation Management, 30(S1), pp. 93–109. DOI: https://doi.org/10.1111/jpim.12073.
Sood A. & Tellis G.J. (2005). Technological evolution and radical innovation. Journal of Marketing, 69(3), pp. 152–168. DOI: https://doi.org/10.1509/jmkg.69.3.152.66361.
Tang D., Yin L. & Ullah I. (2018). Matrix-Based Product Design and Change Management. Singapore: Springer Nature. DOI: https://doi.org/10.1007/978-981-10-5077-0.
Townsend J.D., Wooseong Kang W., Montoya M.M. & Calantone R.J. (2013). Brand-specific design effects: Form and function. Journal of Product Innovation Management, 30(5), pp. 994–1008. DOI: https://doi.org/10.1111/jpim.12042.
Verhagen T., Boter J. & Adelaar T. (2010). The effect of product type on consumer preferences for website content elements: An empirical study. Journal of Computer-Mediated Communication, 16(1), pp. 139–170. DOI: https://doi.org/10.1111/j.1083-6101.2010.01536.x.
Published
How to Cite
Issue
Section
License
Remeber to prepeare, sign and scan copyright statement
The content of the journal is freely available according to the Creative Commons License Attribution 4.0 International (CC BY 4.0)
Accepted 2024-12-05
Published 2024-12-20
