The Value of Information Updating in New Product Development
Managing uncertainty in new product development projects for improved valuation and decision making is one of the most complex and challenging problems in operations management. It is important for any corporation depending on the success of new products
- PDF / 2,045,461 Bytes
- 216 Pages / 439.37 x 666.142 pts Page_size
- 82 Downloads / 212 Views
Christian Artmann
The Value of Information Updating in New Product Development
123
Dr. Christian Artmann Immenstadt, Germany [email protected]
ISBN 978-3-540-93832-3
e-ISBN 978-3-540-93833-0
DOI 1 0.1007/978-3-540-93833-0 Lecture Notes in Economics and Mathematical Systems ISSN 0075-8442 Library of Congress Control Number: 2008943983 © Springer-Verlag Berlin Heidelberg 2009 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permissions for use must always be obtained from Springer-Verlag. Violations are liable for prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: SPi Publishing Services Printed on acid-free paper springer.com
To my family
Preface
Ever since I learned to fly airplanes, I am passionate about long-distance gliding in the Alps. Every time I take off in the early morning, I never know exactly which challenges I will have to overcome during the day. Especially the weather conditions are constantly changing, making it impossible to forecast even the thermal behind the next mountain range with certainty. Despite this lack of information, I have to decide whether it is worthwhile to "jump" over the ridge into the next valley towards my target. To obtain the experience how to instantly study the new conditions, reassess the previous plan, and adjust the route accordingly was a tough process, ending several times in an acre instead of my home airport. But most other times, when it worked out, I was rewarded with great moments and majestic impressions. New product development projects resemble long-distance flights in many aspects. They are also exposed to numerous uncertainties and require continuous adjustments of the development efforts in order to successfully launch the product. While decision making during a flight is relatively straightforward and can be based on experience, it is far more complex for development projects. The basic principle, however, remains the same. Additional information obtained during the process has to be considered in the decisions for the remaining periods. Although this process is intuitive and follows the natural way of making decisions, it has hardly been formalized for development projects so far. It became the goal of this work to develop a decision model that explicitly takes information updates into account in order to better manage uncertainty. I hope it will be instrumental to manag
Data Loading...
