IJIMT 2018 Vol.9(5): 194-201 ISSN: 2010-0248
doi: 10.18178/ijimt.2018.9.5.813

Risk Assessment of Product Innovation and Development Using Markov Process Approach

Thangamani G.
Abstract— Product Innovation is a key aspect of any company and central to the New Product Development (NPD) process. Companies must take risks to launch innovative new products speedily and successfully for its survival and sustainability. Despite meticulous efforts by companies to bring innovations, most of them are failing in the market place and hence the ability to diagnose and manage risk is a very important activity in high risk innovations. This paper presents a new Product Innovation and Development (PID) process and a quantitative methodology for risk assessment. FMEA (Failure Modes and Effects Analysis) and Markov process analysis are combined and presented as the risk assessment method which brings research value to risk assessment in PID process. This methodology also investigates the overall Product innovation and Development process and explores various risks, categorize them according to their sources, assess those risks and explores various risk mitigation techniques. The methodology is demonstrated using a case study on a new innovative home appliance project.

Index Terms— New product development, product innovation, risk assessment, markov process, FMEA.

Thangamani G. is with the Indian Institute of Management Kozhikode, India (e-mail: gtmani@iimk.ac.in).

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Cite: Thangamani G., " Risk Assessment of Product Innovation and Development Using Markov Process Approach," International Journal of Innovation, Management and Technology vol. 9, no. 5, pp. 194-201, 2018.

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