R&D Project Selection Incorporating Customer-Perceived Value and Technology Potential: The Case of the Automobile Industry

Sungjoo Lee, Chanwoo Cho, Jaehong Choi and Byungun Yoon
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Sungjoo Lee: Department of Industrial Engineering, Ajou University, Suwon 16499, Korea
Chanwoo Cho: Electronics and Telecommunications Research Institute, Daejeon 34129, Korea
Jaehong Choi: Hyundai Motor Company, Hwaseong 18280, Korea
Byungun Yoon: Department of Industrial & Systems Engineering, Dongguk University, Seoul 04620, Korea

Sustainability, 2017, vol. 9, issue 10, 1-18

Abstract: As user-centric innovation has recently emerged as a successful way of developing new products, services, and concepts, it is worth considering the perspectives of potential technology users during R&D project selection processes. Nevertheless, little effort has been made to reflect customer-perceived value in establishing selection criteria, with the focus mainly on technological potential instead. Therefore, this study aims to develop an R&D project selection model incorporating not only technological potential but also customer-perceived value. For this purpose, a new R&D project evaluation model and process is proposed, and its feasibility is tested by potential users in a real scenario. The automobile industry is suitable for our evaluation model because it is a B2C and system-based industry where customer needs are critical to market success and a number of R&D projects are proposed every year. Finally, a supporting tool is developed to help interact with various evaluators and visualize the evaluation results, as customer involvement is recommended for accurate project evaluation from the perspective of technology users. This study is one of the earliest attempts to reflect customer-perceived value in R&D project selection, and practically, the research outputs are expected to be useful to automobile manufacturers in creating value from R&D projects.

Keywords: supporting system; project selection; customer-perceived value; technology potential; automobiles (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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