Title: A methodology for measuring product innovation: a case study for a manufacturing system

Authors: Mustafa Batuhan Ayhan; Ercan Oztemel

Addresses: Industrial Engineering Department, Faculty of Engineering, Marmara University, Office No: MA 213 Ziverbey/Kadikoy, Istanbul, Turkey; Department of Computer Science and Technologies, University of Bedfordshire, Office No: MC216, Luton LU1 3JU, UK. ' Industrial Engineering Department, Faculty of Engineering, Marmara University, Office No: MA 217 Ziverbey/Kadikoy, Istanbul, Turkey; Department of Computer Science and Technologies, University of Bedfordshire, Luton LU1 3JU, UK

Abstract: In this study, a general definition of the product innovation for the manufacturing suit as well as vital importance of measuring techniques for that is elaborated. Although there are various studies aimed to measure the product innovation, there is not a consensus on a generic model that can be applied to every manufacturing system. Therefore, the main motivation of this study is to fulfil this gap by defining a methodology to measure the product innovation based on four quantifiable indicators which can easily be adopted for different manufacturing bodies. These indicators mainly depend on the changes in the product portfolio and listed as: 'change in product portfolio', 'new product ratio', 'sales amount ratio of new products', and 'sales revenue ratio of new products'. Calculation methods of these indicators are clearly identified. Depending on the results of these indicators the degree of product innovation is formulated using the weighted change in each of these elements. In order to verify and validate the method, it is employed to measure the product innovation of a manufacturing suit. According to the results of the case study, it can be deduced that the proposed model well meets the requirements of innovation measurement.

Keywords: change management; product portfolio; manufacturing technology; product innovation; manufacturing systems; innovation measurement; product portfolio; new product ratio; sales amount ratio; sales revenue ratio; new products.

DOI: 10.1504/IJMTM.2011.046765

International Journal of Manufacturing Technology and Management, 2011 Vol.24 No.1/2/3/4, pp.139 - 152

Available online: 04 May 2012 *

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