Download PDF by Christoph Kausch: A Risk-Benefit Perspective on Early Customer Integration

By Christoph Kausch

ISBN-10: 3790819611

ISBN-13: 9783790819618

ISBN-10: 379081962X

ISBN-13: 9783790819625

Customer integration within the early innovation part has been thought of the tactic of selection in concept and perform. becoming event with the concept that has proven unforeseen unwanted side effects which can even outweigh its famous merits. hence, administration should be capable of verify upfront no matter if the involvement of consumers will upload total worth to every specific innovation venture. To aid yet to not change the ultimate managerial determination, a mathematical formulation is constructed. it may be utilized to all types of strategy buildings, takes into consideration the dangers and advantages contingent on a company's state of affairs in addition to risk-reducing and benefit-increasing measures and interprets them into numerical values. The ensuing determine exhibits the possible price of purchaser integration in a particular undertaking.

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Extra info for A Risk-Benefit Perspective on Early Customer Integration

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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.

They recommend a procedure that starts with two input streams: a pre-phase consisting of opportunity identification, idea generation, and market/technology analysis on the one hand and a company-driven strategy, comprising a strategic vision and the assigning of responsibility, on the other hand (Khurana and Rosenthal 1998: 64ff). The streams join up in Phase Zero that analyzes customer needs, competitors, and market segmentation. By means of feasibility studies and project planning, a go/no go decision is made, opening or closing the way to the project’s technical execution.

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). The negative side effects of customer integration are about to gain more scientific interest: Bower and Christensen (1995: 44), Littler, Leverick and Bruce (1995: 18-19), Veryzer (1998b: 143ff), Kujala (2003), Wilson, Littler et al. (1995), Gassmann, Kausch and Enkel (2006a).

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A Risk-Benefit Perspective on Early Customer Integration by Christoph Kausch

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