By Christoph Kausch

ISBN-10: 3790819611

ISBN-13: 9783790819618

ISBN-10: 379081962X

ISBN-13: 9783790819625

Client integration within the early innovation part has been thought of the strategy of selection in conception and perform. turning out to be event with the idea that has proven unforeseen unintended effects which can even outweigh its famous benefits. as a result, administration has to be capable of check prematurely no matter if the involvement of shoppers will upload total price to each particular innovation project. To aid yet to not change the ultimate managerial choice, a mathematical formulation is built. It can be utilized to all types of procedure constructions, takes under consideration the hazards and advantages contingent on a company's scenario in addition to risk-reducing and benefit-increasing measures and interprets them into numerical values. The ensuing determine shows the potential price of shopper integration in a selected undertaking.      

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Extra info for A Risk-Benefit Perspective on Early Customer Integration (Contributions to Management Science)

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Integrated customers can provide the necessary information on market needs and wishes; products developed accordingly will sell well. The benefit of better market orientation as a consequence of early customer involvement can even be considered as the most cogent argument in favor of this concept (Kujala 2003; Littler et al. 1995; Wilson et al. 1996). 50 2 Literature review of key issues Reduction of development time One of the most frequently mentioned benefits of customer integration is the resulting speeding up of the development process (Cordero 1991; Littler et al.

G. a customer’s idea may make further research unnecessary, or it may abbreviate the later production process or preparations for market launch. However, recent empirical research has questioned this benefit; the high hopes placed in time-reducing effects of customer integration have not been fulfilled to the expected extent (Brockhoff 2005a). Cost reduction A number of authors (Cordero 1991; Littler et al. 1995; Mabert et al. 1992; Millson et al. 1992; Qualls et al. 1981) have advocated sharing and thus reducing the costs of product development by collaboration.

In the context of economics, the terminology varies. Besides disadvantage, the terms negative side effect (Gassmann et al. 2006a), “disbenefit” (Littler et al. 1995), and risk are employed synonymously. As for risk, the use as counterpart of benefit is not quite correct: risk is the other side of chance. It is “an uncertain event which, should it occur, has a negative impact on achieving the objects” (Simon 1999). Risk consists of two components, the impact or consequence of an event and the probability or frequency of its occurrence; the mathematical formula is risk = impact level multiplied by probability of occurrence (Muessig 1997).

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A Risk-Benefit Perspective on Early Customer Integration (Contributions to Management Science) by Christoph Kausch


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