A methodology for measuring product innovation

Authors: Prof. Dr. Ercan ÖZTEMEL, M. Batuhan AYHAN

Abstract

In this study, a general definition about innovation as well as vital importance of measuring techniques for product innovation is explained. A new approach for creating an innovation index for the improved products is established through the comparison of profit and sales values of improved and existing products. In order to achieve this index the terms “innovation earnings” and “innovation benefits” are introduced. The Degree of product innovation is formulated using these terms along with Research and Development expenditure.

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rodondo4's picture
Submitted by rodondo4 on Tue, 01/07/2008 - 5:54pm.

Dear Conference Participants,

Welcome to Production Organisation and Management Session of IPROMS 2008. My name is Adebayo William, I am your co-chair for this session. I will like to welcome all visitors to this session and also express appreciation to authors for contributing their papers to IPROMS 2008.

Authors kindly find time to upload your video presentation online as soon as you can. If you need assistance please contact me via my email: williamsoa@cf.ac.uk.

Visitors and all other conference participants are encouraged to register free in order to post questions and comments, and don’t forget to show interest by asking authors engaging questions on their work.

I am positive that together we will all have stimulating and lively discussions virtually.

Kind regards,
Adebayo Williams
Production Organisation and Management Session Co-Chair
IPROMS 2008


Oztemel's picture
Submitted by Oztemel on Fri, 04/07/2008 - 9:43pm.

Dear chairmen,
thank you very much for your kind introduction of the session.

With good wishes

Prof.Dr. Oztemel


iwilliams's picture
Submitted by iwilliams on Wed, 09/07/2008 - 12:35am.

Dear Prof.Dr. Oztemel,

I found your paper quite interesting. I wonder if you can apply the same metrics to measure the effectiveness of a competency, which is what is used to successfully explore and develop new product ideas.

ii). When is an innovation stopped being regarding as an innovation, is it after the competitor or the organisation comes out with a new or improved product? Or does an innovation has a life span before it losses it appeal?

Thank you

Adebayo


Oztemel's picture
Submitted by Oztemel on Wed, 09/07/2008 - 3:34pm.

Dear Mr. Adebayo;

Surely you can get some hints from the metrics provided in the paper. however, new products may not always imply innovation. You may need to take some other factors such as customer satisfaction into account.

For your second question, innovation is all about new ideas yielding a value. As long as you turn your ideas into product (granting a profit or sales increase) and market those it ends there. Our main motivation is that any new things can not be considered as innovation if it does not bring any value to originator. That was taken into account in our metrics. We intentionally disregard those cases in our calculations. Please refer to value of Gama (1 or zero) for this.

I hope I can satsify your question. Please let us know your views on this.

Best regards

Prof. Dr. Ercan Oztemel
Batuhan Ayhan


iwilliams's picture
Submitted by iwilliams on Thu, 10/07/2008 - 12:06am.

Prof.Dr. Oztemel,

Thank you for your response.

Frequently organisations cultivate and explore their competency to bring about new ideas (innovation?), diversified the product base, invent new market, enter new ones or gain increased market-share through technologically improved product. New ideas or product (innovation) as mentioned in the paper cannot be conceived without having the competency required to accomplish this task.

Therefore, given the relationship that exists between competency and innovation and it “nebulous nature”, shouldn’t organisations be focusing more on measuring the effectiveness of competency as the productivity measure rather than innovation? In this connection, competency is defined as specialised process knowledge and technical expertise which can be leveraged to create value (e.g. innovation) or gain competitive advantage.

Thank you

Adebayo.


Oztemel's picture
Submitted by Oztemel on Mon, 14/07/2008 - 12:56pm.

Dear Adebayo.

You are right. However, This study is about following the change where the capability of innovativeness is part of it.

Competency may not always result with innovation. You may be so competent but not keen on innovating new products.

Our aim is to measure the capability of a company creating innovatiove products. Therefore, the innovation is defined as new things which creates a value (not only for ideas)

I agree with you. it would be beneficial to create a link between innovation and competency.

We will also consider competency in measuring the capability of technological adapataiton which is anothe component of manufacturing change management.

We would like to be in touch with you and discuss things even after the conference.

Best regards

Prof. Dr. Ercan Oztemel


iwilliams's picture
Submitted by iwilliams on Mon, 14/07/2008 - 5:51pm.

Dear Prof. Oztemel,

Thank you once again for your kind response. I will be most pleased if I can be in touch with you after the conference. My email is: williamsoa@cf.ac.uk. I wonder if I can have your contact details as well.

Thank you

Adebayo


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