A New Market Adoption Model for the Information Systems Industry

Abstract

:The information systems (IS) industry has challenges in the effectiveness of product development because new product failures are a significant problem. High failure rates of IS projects suggest that organizations need to improve their ability to forecast market adoption of their products. This study first reviews several aggregate diffusion models based on selection criteria created according to the needs of the IS industry. It then concludes that developing a new market penetration model based on the criteria is helpful to the IS product development process. The new model is formulated by using conjoint analysis and a purchase decision simulator. The functionality of the model is also demonstrated on the sales data global positioning systems (GPS). Forecasting the life cycles of technical products such as IS is essential for engineering managers to develop products with potential market success. As a result, this research contributes to the engineering management body of knowledge by providing two beneficial outcomes: (1) a brief survey of market adoption models to engineering managers, and (2) a new model for engineering managers, particularly for the ones working with IS, to support their new product development decisions based on forecasts on future market adoption of their products.