Innovation EquityAssessing and Managing the Monetary Value of New Products and Services

Innovation EquityAssessing and Managing the Monetary Value of New Products and Services

Elie Ofek, Eitan Muller, and Barak Libai

Print publication date: 2017

ISBN: 9780226618296

Publisher: University of Chicago Press

Abstract

This book bridges the gap between what academics know and what innovation stakeholders— from managers, to investors, to analysts, to consumers—need to know about how new products and services are expected to perform in the marketplace. The book develops a compelling framework that connects the rich academic knowledge on innovation diffusion with that on customer relationship management, thereby marrying our understanding of how consumers adopt innovations with how firms effectively acquire, serve, and retain customers. The result, aptly called innovation equity, is a lens through which to view the commercial potential of innovations. It is a powerful vehicle for placing a dollar value on new products and services that are about to be, or that have recently been, launched. The book further shows how the framework can be used to evaluate the implications of marketing actions, consumer heterogeneity, competition, successive technology generations, and globalization on innovation equity assessments. The exposition is replete with vivid examples from a wide array of domains (such as video games, wireless phone services, computers, tablets, satellite radio, electric vehicles, cloud-based software, pharmaceuticals, and more), which demonstrate how the topics covered apply to real-world situations. A set of hands-on tools for implementing the various topics is provided and, for the interested reader, a companion website features concrete templates that can be adapted to any context. The writing style is highly engaging and the core messages are conveyed using simple, easy-to-grasp language and terminology.