Decisions on new product development under uncertainties

Yeu Shiang Huang, Li Chen Liu, Jyh Wen Ho

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

In an intensively competitive market, developing a new product has become a valuable strategy for companies to establish their market positions and enhance their competitive advantages. Therefore, it is essential to effectively manage the process of new product development (NPD). However, since various problems may arise in NPD projects, managers should set up some milestones and subsequently construct evaluative mechanisms to assess their feasibility. This paper employed the approach of Bayesian decision analysis to deal with the two crucial uncertainties for NPD, which are the future market share and the responses of competitors. The proposed decision process can provide a systematic analytical procedure to determine whether an NPD project should be continued or not under the consideration of whether effective usage is being made of the organisational resources. Accordingly, the proposed decision model can assist the managers in effectively addressing the NPD issue under the competitive market.

Original languageEnglish
Pages (from-to)1010-1019
Number of pages10
JournalInternational Journal of Systems Science
Volume46
Issue number6
DOIs
Publication statusPublished - 2015 Apr 26

All Science Journal Classification (ASJC) codes

  • Control and Systems Engineering
  • Theoretical Computer Science
  • Computer Science Applications

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