A STUDY ON PRODUCT ORIENTED INNOVATION STRATEGIES FOR A IMPROVEMENT IN PRODUCT LIFE-CYCLE USING MATLAB PROGRAMING

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1 A STUDY ON PRODUCT ORIENTED INNOVATION STRATEGIES FOR A IMPROVEMENT IN PRODUCT LIFE-CYCLE USING MATLAB PROGRAMING PANKAJ ASWAL 1* MANISH KUMAR 1,2 1.DEPARTMENT OF M.B.A, GRAPHIC ERA UNIVERSITY Po Box , Dehradun, India 2. DEPARTMENT OF M.B.A, GRAPHIC ERA UNIVERSITY Po Box , Dehradun, India * Corresponding Author Abstract In a modern product market customer is focused upon the following parameters, mainly Quality, reliability, Selective exposer, cost and Delivery. Basically modern market trends approaches to technology driven market. This paper deals with the approach of developing strategies technology wise as well as psychological impact on customer Mind, the suggested management method defines the different approach to satisfy the customer in Target market, in this paper use of MATLAB programming to illustrate our research. Keywords: Product innovation, Innovation management, Marketing strategy, Psychographic profile, Product life cycle, Promotion & Distribution. 1. Introduction Product and its development process modeling are very important to product life cycle design. Product s life cycle is a continuous and changing time process and can be divided into a sequence of life phases. The product status evolves from one to another through these life phases. Some evaluation factors, such as cost, reliability, time and environment impacts can be applied on each life phase to evaluate its corresponding performance. [1] considered the product development is usually as the set of activities beginning with the perception of a market opportunity and ending in the production, sale, and Delivery of a product, [2][3] developed the decomposition of product s life cycle, and considering the requirements of customer, producer and environment, many research issues are raised including: design for manufacture (DFM), design for assembly (DFA), design for maintainability (DFMa), design for disassembly (DFD), design for recyclability (DFR), design for quality (DFQ), design for reliability (DFRe), design for environment (DFE). [5] explain the innovator s best dilemma ; the market and service innovation concept in new developing technological product sustain. [6],[7], [8] generate the idea of the product development and penetration of the product in market,considering it as a segment (it may be local,national or global ) [9] illuminate the Innovation strategy for the new innovative products. [10] enlighten the diffusion of innovations for qualitative and quantitative parameter of product. [11] generate New Markets Through Service Innovation. [12] explain Innovation Process and Quality Tools for the products. [13] explain the quality control and optimization of resources. [14] developed Service innovation strategy and process through a cross-national comparative analysis. [15] illuminate the Innovation types COPY RIGHT 2012 Institute of Interdisciplinary Business Research 775

2 and innovation management practices in service companies [16] generate the Patterns of innovation in service industries In a past study, approach is to build their product quality, cost and delivery is the main subject to increase the product sales, volume and sales. The technology based product and day by day innovative product is the mainstream of recent consumer Market. Research and development strategy activity should be kept for existing product to keep higher technological advantage for long time. The consumer evaluated the product by value of service quality, performance and sustainability. Here in traditional market customer have to believe in service as well as the value benefit of the product. The best idea to satisfy the Customer is to be intending them to merge into the current emerging market trend [1,17]. The new product development management focuses the improvement and modification of the product which already exists in market and makes the Psychological impact for obtaining higher customer satisfaction, however current competitive product market only part of tangible product which is not as per customer s satisfaction. [11] Organizations need to seek the different approaches such as effective combination of tangible product and intangible (or services) as a part of product. Therefore, the different management approach should be defined for current product market. In this research first the recent market condition [20]. Taking past performance into consideration and second the target customer can consider with broader perspective as a result effective mode of product development strategy will introduce. 1.1Notation 1. p(x)= a i x 2 +b i x+ c i, Function of product life cycle such that a i <b i <c i, where i=1,2,3, q (x)= saturation region 3. x i = range of saturation point for new innovative product. This paper contains three major points first the current market characteristic is analyzed, second the past market scenario and third conceptual model. Model of product development is put into consideration. The introduced conceptual model is Developed based upon three major Innovation 1. Market and service innovation. 2. Marketing and product Development strategy. 3. The value innovation. These three innovation concept will fulfill the product development strategy. 2. Customer benefits The paper shows the emerging market oriented Product innovative strategies for technology Product market taking into consideration of psychographic constraint and that must be customer/market oriented. All of the innovations Strategy will increase the customer satisfaction in case of product it deals with practical benefit Such as COPY RIGHT 2012 Institute of Interdisciplinary Business Research 776

3 performance, functions and durability. This functional benefit increases market penetration and its share in market. [20] This decreases the market competitiveness. Higher number of product parameter more will be the customer satisfaction and it the Customer perception which he will carry in his mind also adequate product performance and product performance are recognized as the differentiated product in a market. [1,12,19] Also recent customer have started to Consider the higher level of service Quality other than the product market So every successful product used to be Successor of next generation market. [1] As product and services are equally Important for customer satisfaction And gain market competitiveness But the case is to deliver the customer Benefit is different as product is tangible, And judged by consuming or making use of it whereas services are intangible, Judged by the experience (making image in the mind). 3. Communication triangle Consumer relationship triangle To deliver the customer benefit organization must communicate customers with different Promotional schemes. In earlier days face-to- Face communication was the only method is To gain the customer retention but now a days IT, hoardings, brand ambassadors and news Paper Was the most effective way is to notified by the Customer. Thus the type of services is beneficial to the Customer as the short period of time to Communicate. Customers always expect from The Company the quality product, just-in-time Delivery, quicker communication and low cost. Sometimes management cannot be able to play the role alone thus organization is focused in finding the solution to quality of service and later but most important psychographic constraint. [14,15] COPY RIGHT 2012 Institute of Interdisciplinary Business Research 777

4 4. Product innovation and product life cycle Product life cycle of new developed product This type of product selected by the customer at the time of purchase and innovation that has been used (Technological point of view) in it. First of all new technology used for new products as it will give better impact against the other technological products. [1,3] Second it must fulfill the customer expectation and it should be recognized by its innovative approach. Third its functionality is distinguished by the rate of selection by gaining the customer retention. [4] And hence it will increase the peak value of product life cycle, as the new product will sustain in market only when it is at par with other technological product and the long sustainable time [3]. Thus increasing product Performance and adding new product functions by applying the new and creative technology are the fundamental method of the product innovation and increment. in the of peak of product life cycle. dx 1 /dt=0 and dx 2 /dt=0 shows the maximum value(or maxima) of product life cycle but the amplitude is maximum in case of x 2 which means that product is sustainable in the market for longer duration of time. COPY RIGHT 2012 Institute of Interdisciplinary Business Research 778

5 4.1 Service innovation Taking into the consideration we take Product as a tangible and service as useful to the customers, by adding more functions to it the service system becomes more efficient, effective and controllable. Third the performance and controllability of the system should be improved, such higher level of performance with control over the market, increases the competitive nature with respect to other players. [3,4] 4.2 Value innovation Innovation of service and product is always appreciated by the customers, but there an improvement is costly. For the benefit of the customer, the product needs to offer something new and different functions. The innovation offers higher quality than the current competitive products. Price hike may also decrease the current market value of product. Even higher benefit with reasonable price settings brings higher customer value. [2,4] It might be the balance of the customers benefit and price. So the value is Intangible item. In most of the technology always identified by the customers not by products, product performance is very important which is offered by the physical part of products. However service gives the Credibility and sustainability of the success of the product. [1,3] As the traditional style of Communication is not effective enough in developing the stronger and longer relationship with the customers, it should be creative and new to be recognized as a Service innovation second the service system must be so Much effective that it is practical and the product makers. 4.3 Psychological innovation This type of innovation strategies used in the product development strategy. As the product is classified according to the performance, quality, exposer and retentively is the key factor of Psychological innovation, customer is oriented with finding the differentiated product in the market it is better that In a first strike customer is paying his/ her retention over the product. [1] And it is better that it may compare the product with the other products taking it as a base product; the selected product with distinguished performance may lead to the selective product. [2,11] The perception of the customer for the product will built up which will give a market a large segment for this distinguished product, this above approach will lead to the retention of the customer for making the product as a brand, and Psychological innovative method for this technology driven product. [16,18] 5. Algorithm and Flow Chart: 1. Input a, b, c. 2. Define integer a, b, c (a<b<c) 3. q (x) =ax 2 +bx+c. 4. p (x)= dq(x)/dt. 5. f(x)=fit the point on curve. 6. x 2 =a 0:c(spacing x-axis). COPY RIGHT 2012 Institute of Interdisciplinary Business Research 779

6 7. y 2 =(y-axis). 8. Ploting x 2, y Plot on grid. 10. End. NOTE: C is the highest additional feature point Note (1) 6. Conclusion The following procedural set of quantity is required for the development of product by enhancing the capability of existing product by changing certain parameters such that there should be some additional features has been added which increases the life cycle or life span of the product by making as a innovative product as it require least time of production, least cost, higher sales as per the knowing of the people perfection of existing product this will create the impact on target market and opens the roots of new market. We used MATLAB programming to illustrate our results Note (1a) Note (1b) COPY RIGHT 2012 Institute of Interdisciplinary Business Research 780

7 REFERENCES 1. Kotler.p, Marketing Management12 th edition Prentice hall (2006). 2. Kotler. P, Principles of Marketing, 11th edition Prentice Hall (2003). 3. West.A. Innovation strategy.london Prentice Hall International (1992). 4. Rogers.E.M Diffusion of innovations New York Free press(2003). 5. Yan P.T, Zhou M.C and Donald S, An integrated Product and process development methodology: concept formulation, Robotic and Computer Integrated Manufacturing, 1999, 15(3): pp Tang J. S, Qin G.S and PengY. W, State-of the art and developing trends of product life cycle integration, Manufacture Automation, 2001,23(8): pp. 1-4, T. C. Kuo, S. H. Huang and H. C Zhang, Design for manufacture and design for X : concepts, applications, and perspectives, Computers & Industrial Engineering, 2001, 41(3): pp Vegte W. F. V. D, Pulles J. P. W and J. S. M. Vergeest, Towards computer-supported inclusion and integration of life cycle processes in product conceptualization based on the processes tree, Automation in Construction, 2001, 10: pp Cristensen.C.N the innovator s best dilemma; the revolutionary national best seller that changed the way of business. New York Harper business (2003). 10. Berry.L.V, Shankar.J, Parish.S, Cadwallader, and Dotzel Creating New Markets Through Service Innovation MIT Sloan. 11. Justin L, Walker.F, The Innovation Process and Quality Tools, Quality Progress Vol. 40, Issue. 7, p , Jul Evans, J. R.; The Management and Control of Quality, 2nd ed. 13. Alam.I, Service innovation strategy and process: a cross-national comparative analysis, International Marketing Review Vol. 23, Issue. 3, p , Oke, A, Innovation types and innovation management practices in service companies, International Marketing Review Vol. 23, Issue. 3 p , Miles, I, Patterns of innovation in service industries, IBM Systems Journal, Vol. 47, Issue. 1, p , ,Jan-Mar Timothy F. Bresnahan and Richard Schmalensee, "The Empirical Renaissance in Industrial Economics: An Overview," Journal of Industrial Economics, 35(4), pp Lefteris Tsoulfidis, "Between Competition and Monopoly," Competing Schools of Economic Thought, ch. 9, pp Springer 18. Nicolas Boccard, "Industrial Organization, a Contract Based approach (aka IOCB), Open Source Textbook 19. Caves, E Richard (January 1992). American Industry: Structure, Conduct, Performance. Prentice Hall, 7th E. pp G.C. Archibald, 1987 (2008)."firm, theory of the," The New Palgrave: A Dictionary of Economics,V. 2, pp COPY RIGHT 2012 Institute of Interdisciplinary Business Research 781

8 Note (1) FLOW CHAT (Supporting Algorithm) COPY RIGHT 2012 Institute of Interdisciplinary Business Research 782

9 Table and figure: Table1 Note (2a) S.No Input parameter of life cycle curve p q f Saturation point A B C A B C A B C A B C A B C COPY RIGHT 2012 Institute of Interdisciplinary Business Research 783

10 Note (2b) COPY RIGHT 2012 Institute of Interdisciplinary Business Research 784