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Assessment of market potential for innovations with new technology in an existing market

Vries, B. de (2012) Assessment of market potential for innovations with new technology in an existing market.

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Abstract:The aim of this research is to find out how important insights on market potential are for an innovation with new technology in an existing market. Many of the TKH Group’s innovations fit within this profile and in academic literature this is a specific field in which there is a lack of knowledge. The most important finding is that for the cases of this research innovation success is related to the level of insight. Insight is the knowledge obtained on certain variables of an innovation, which together lead to the knowledge on market potential for an innovation as a whole. Innovations, for which more insights were obtained during the development, have a higher level of success. An analysis of the differences in insights and success between the cases shows that on a number of variables the level of insight is directly related to the success of the innovation. Next to the relation between insight and success, a number of variables show a relation between the level of insight and the score on these variables, while a number of variables are related to each other as well. Product advantage, acceptation, market structure and competition are the variables that show a direct relation to the successfulness of the innovation. For all these variables but competition the level of insight is also related to the score on the variable. The scores for market newness, regulation and the influence of market structure are related to product advantage, acceptance, market structure and each other and are thus to be taken into account as well. As the scores on product advantage and acceptation are related to the level of insight, these are especially important. Insights on these variables can actually be used to improve the performance of the innovation. Competition is independent from these variables, which could be explained by reasoning that competition is an important factor for every new product, regardless of its innovativeness. As the results of this research indicate that success is influenced by insights in the market potential of an innovation, the obtaining of insights should be incorporated in the development program for innovations with new technology in an existing market. That insight in market potential of an innovation should be made up from insights in a number of variables. However, this research has only focused on those variables that determine innovation success. This scope offers not the full insight that a company needs to make development decisions. An innovation could be massively successful in a certain market, but if this market is very small, the revenues could still be too low to justify development. Therefore additional variables are needed to determine the fit of the innovation with the company’s strategy. These variables should be deducted from that strategy. When these variables are included, management can use the complete set of variables to assess market potential of innovations and make innovation development programs more successful.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/62374
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