Knowledge Base Repository
In addition to research papers, the Design Society is developing several valuable resources for those interested in the study of design. These include a repository of PhD theses, a library of case studies and transcripts of design activities, and an archive of our newsletters. Please note that these resources are accessible exclusively to Design Society members.
Planning Renewal of Product Platforms for Managing Technology Obsolescence of a Product Family
Kang, Changmuk; Hong, Yoo S.
Type:
Year:
2009
Editor:
Norell Bergendahl, M.; Grimheden, M.; Leifer, L.; Skogstad, P.; Lindemann, U.
Author:
Series:
ICED
Section:
Design Organization and Management
Page(s):
109-120
Abstract:
In the rapidly changing world, technologies quickly become obsolete and a product should be rapidly innovated. Under the platform-based product development strategy, innovation of a product is dedicated to the innovation of a platform. This study handles the problem of determining the optimal timing of innovating or renewing a product platform. While the frequent platform renewal harms profitability of the whole product family, a long lasting platform makes its derivative products obsolete, and unable to create new demands. In order to find the optimal platform life-time compromising such trade-off, a model for estimating the expected profit gained from a platform during a given life-time is developed. This model assumes that a newer product substitutes the demand for older products, and a platform is less likely to be able to adopt a newly developed technology as its life-time is getting longer. The cumulative sales of derivative products are estimated by a diffusion model, and various cases that a series of derivative products is introduced are examined by dynamic programming approach.
Keywords:
