MANAGING UNCERTAINTY IN PRODUCT INNOVATION USING MARKETING STRATEGIES

Fernandes, Gláucia; Brandão, Luiz Eduardo Teixeira

doi:10.4301/S1807-17752016000200004

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JISTEM - Journal of Information Systems and Technology Management

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Original Article • JISTEM 13 (2) • Aug 2016 • https://doi.org/10.4301/S1807-17752016000200004 copy

MANAGING UNCERTAINTY IN PRODUCT INNOVATION USING MARKETING STRATEGIES

GERENCIAMENTO DAS INCERTEZAS DE PRODUTOS DE INOVAÇÃO A PARTIR DAS ESTRATÉGIAS DE MARKETING

Authorship SCIMAGO INSTITUTIONS RANKINGS

ABSTRACT

Innovation is an important factor in increasing competitiveness of Brazilian enterprises. On the other hand, innovative projects are characterized by many technical and market uncertainties. This article proposes incorporating marketing strategies into risk management methods for the development of new products and technology projects, which we call the 4P's of innovation. To illustrate this concept, we apply this model to an IT project in order to determine its value and risks. The results indicate that the joint use of marketing and risk management tools proposed add value to the project and reduce the probability of the manager making bad decisions.

Innovation; uncertainties; risk management; 4P's of innovation; projects of R&D and IT

Function	General activities
Marketing	Supply market information of PDP (throughout the stages of pre-development, development and post-development).
Engineering	Definitions of product design, process design and preparation for production.
R&D	Identification of new technologies, development and technology domain for the product design, process design and preparation for production.
Supplies	Interaction with suppliers, raw materials, supplies and components, location and supplier development.
Production	Preparation of the production prototype, pilot production, problem solving for the shift, from production on a commercial scale to actions to improve the process capability and product processing cost reductions.
Logistics	Definition of distribution channels and forms for storage, handling and transport of the product.
High admnistration	Strategic planning. strategic planning control results.

Marketing plan	Strategy	Advertising

		Aggressive	Moderate	Subtle
Patent	Disclose the discovery of a new technology and its importance and benefits / costs of the TV consumer society.	Magazines Journals Folder Flyers	Magazines Folder Flyers	Folder Flyers
PDP	Disseminate a new technology to the public highlighting the benefits as well as the time-to-market, product quality and its final cost.	Social events Congresses Books Articles Facebook WhatsApp Links E-mails Mail Merge	Congress Facebook WhatsApp E-mails Mail Merge	Facebook WhatsApp E-mails
Product	Show the functions of the new technology to consumers and emphasize its benefits and usefulness in the short and long term.	Advertising Movies Youtube Soap operas Newspapers	Advertising Youtube Newspapers	Advertising Youtube
Payoff	Draw consumers' attention to the product and promote sales in order to raise the company's revenue.	Promotions Discounts Awards Transport Guarantees	Promotions Discounts Awards	Promotions Discounts

Advertising	4P's of innovation				Value	% Δ value

	Patent	PDP	Product	Payoff
Aggressive	0.020	0.27	3.39	2.99	8.78	84
Moderate	0.020	0.06	1.39	1.79	7.72	61
Subtle	0.003	0.01	1.30	1.78	5.16	8

	Cost	% Δ cost	Revenue	% Δ revenue	Value	% Δ value
Expected value - NPV	20.00		24.78		4.78
Aggressive	26.66	33	35.44	43	8.78	84
Moderate	23.26	16	30.98	25	7.72	61
Subtle	23.09	15	28.25	14	5.16	8

Advertising	% marketing/cost	% marketing/CF
Aggressive	25	10
Moderate	14	6
Subtle	13	6

TECSI Laboratório de Tecnologia e Sistemas de Informação - FEA/USP Av. Prof. Luciano Gualberto, 908 FEA 3, 05508-900 - São Paulo/SP Brasil, Tel.: +55 11 2648 6389, +55 11 2648 6364 - São Paulo - SP - Brazil
E-mail: jistemusp@gmail.com

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[1] Address for correspondence / Endereço para correspondência Gláucia Fernandes, é doutoranda em Administração de Empresas pela PUC-Rio. Mestre em Economia Aplicada pela UFJF. Possui graduação em Ciências Econômicas pela UFV. Atualmente é pesquisadora pelo NUPEI - Núcleo de Pesquisa em Energia e Infraestrutura da PUC-Rio. E-mail: glaucia_fernandes@ymail.com. Autor Correspondente: Pontifícia Universidade Católica do Rio de Janeiro, Brasil, Marquês de São Vicente, 225 - Gávea, Rio de Janeiro, 22451-900, Tel.: 21 21389358 Luiz Brandão, é doutor em Finanças pela PUC-Rio, MBA pela Stanford Graduate School of Business, Mestre em Engenharia Civil pela Universidade de Stanford e graduado em Engenharia Civil na PUC-Rio. Atualmente é Professor Associado da Pontifícia Universidade Católica do Rio de Janeiro e Coordenador do NUPEI. E-mail: brandao@iag.puc-rio.br.