Equating business value of new high-tech products

Investing in new product development crucially depends on the capacity to estimate product business value in the very early phases of the development process. Using the strategic analysis matrix approach and general dimensional analysis the mathematical relationship between the business value of the new product and the influential factors in the decision-making process of investors is determined. One of the key findings is the strong non-linear relationship between the business value of the new product idea and the market acceptance. The formalism is exemplified on a real case study from the field of software products. (C) 2010 CIRP.