— Product Innovation is a key aspect of any company and central to the Innovation and New Product Development (NPD) process. Companies must take risks to launch new products speedily and successfully. The ability to diagnose and manage risk is very important activity in a high- risk environment. This paper examines a modified approach to risk assessment using Monte Carlo simulation for Product Innovation and Development (PID) value chain. Weighted Risk Assessment Table (WRAT) developed as risk assessment model and Monte Carlo simulation used to assess the project value at risk and its uncertainty. An overall Product innovation and Development Value Chain framework was also developed and the same is used to explore various risks, categorize them according to their sources, assesses those risks and their variability. The methodology was demonstrated using a case study on a new innovative home appliance.
— New product development, risk assessment, monte carlo simulation, innovation.
G. Thangamani is with the Indian Institute of Management Kozhikode, India (e-mail: firstname.lastname@example.org).
Cite: G. Thangamani, " Modified Approach to Risk Assessment ― A Case Study on Product Innovation and Development Value Chain," International Journal of Innovation, Management and Technology vol. 7, no. 1, pp. 16-21, 2016.