Journal
TECHNOLOGICAL FORECASTING AND SOCIAL CHANGE
Volume 71, Issue 1-2, Pages 81-100Publisher
ELSEVIER SCIENCE INC
DOI: 10.1016/S0040-1625(03)00064-7
Keywords
roadmapping; technology choice; new product development; investment risk; supply chain integration
Categories
Ask authors/readers for more resources
Typically, firms decide whether or not to develop a new product based on their resources, capabilities and the return on investment that the product is estimated to generate. We propose that firms adopt a broader heuristic for making new product development choices. Our heuristic approach requires moving beyond traditional finance-based thinking, and suggests that firms concentrate on technological trajectories by combining technology roadmapping, information technology (IT) and supply chain management to make more sustainable new product development decisions. Using the proposed holistic heuristic methods, versus relying on traditional finance-based decision-making tools (e.g., emphasizing net present value or internal rate of return projections), enables firms to plan beyond the short-term and immediate set of technologies at hand. Our proposed heuristic approach enables firms to forecast technologies and markets, and hence, new product priorities in the longer term. Investments in new products should, as a result, generate returns over a longer period than traditionally expected, giving firms more sustainable investments. New products are costly and need to have a durable presence in the market. Transaction costs and resources will be saved, as firms make new product development decisions less frequently. (C) 2003 Elsevier Inc. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available