IDEAS home Printed from https://ideas.repec.org/a/wly/syseng/v11y2008i3p187-202.html
   My bibliography  Save this article

Measuring the life‐cycle value of enduring systems

Author

Listed:
  • Tyson R. Browning
  • Eric C. Honour

Abstract

A goal of systems development is to produce enduringly valuable product systems— i.e., systems that are valuable when delivered to their users and which continue to be attractive to their stakeholders over time. However, quantifying the life‐cycle value (LCV) provided by a system has proven elusive. In this paper, we propose an approach to quantifying a system's LCV based on the key parameters that have perceived value to the system's stakeholders. For this, we draw upon insights from the management, marketing, product development, value engineering, and systems engineering literature. We then demonstrate our proposed approach with an example of a cellular telephone system. By designing systems for maximum LCV, systems architects and engineers will provide dramatically increased value to their organizations and other stakeholders. However, to provide maximum LCV, a system may need to be designed to facilitate adaptability to changing circumstances and stakeholder preferences. We conclude the paper with discussions of some of the major difficulties in measuring LCV and some of the opportunities for further research in this area. © 2008 Wiley Periodicals, Inc. Syst Eng

Suggested Citation

  • Tyson R. Browning & Eric C. Honour, 2008. "Measuring the life‐cycle value of enduring systems," Systems Engineering, John Wiley & Sons, vol. 11(3), pages 187-202, September.
    • Handle: RePEc:wly:syseng:v:11:y:2008:i:3:p:187-202
    DOI: 10.1002/sys.20094
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sys.20094
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sys.20094?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Eric von Hippel, 1986. "Lead Users: A Source of Novel Product Concepts," Management Science, INFORMS, vol. 32(7), pages 791-805, July.
    2. Barry L. Bayus, 1998. "An Analysis of Product Lifetimes in a Technologically Dynamic Industry," Management Science, INFORMS, vol. 44(6), pages 763-775, June.
    3. Avner Engel & Tyson R. Browning, 2008. "Designing systems for adaptability by means of architecture options," Systems Engineering, John Wiley & Sons, vol. 11(2), pages 125-146, June.
    4. Earll Murman & Thomas Allen & Kirkor Bozdogan & Joel Cutcher-Gershenfeld & Hugh McManus & Deborah Nightingale & Eric Rebentisch & Tom Shields & Fred Stahl & Myles Walton & Joyce Warmkessel & Stanley W, 2002. "Lean Enterprise Value," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-4039-0750-9.
    5. Anant K. Sundaram & Andrew C. Inkpen, 2004. "The Corporate Objective Revisited," Organization Science, INFORMS, vol. 15(3), pages 350-363, June.
    6. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    7. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
    8. Peter N. Golder & Gerard J. Tellis, 2004. "Growing, Growing, Gone: Cascades, Diffusion, and Turning Points in the Product Life Cycle," Marketing Science, INFORMS, vol. 23(2), pages 207-218, December.
    9. Tyson R. Browning, 2003. "On customer value and improvement in product development processes," Systems Engineering, John Wiley & Sons, vol. 6(1), pages 49-61.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marchand, André, 2016. "The power of an installed base to combat lifecycle decline: The case of video games," International Journal of Research in Marketing, Elsevier, vol. 33(1), pages 140-154.
    2. John Hauser & Gerard J. Tellis & Abbie Griffin, 2006. "Research on Innovation: A Review and Agenda for," Marketing Science, INFORMS, vol. 25(6), pages 687-717, 11-12.
    3. M. I. M. Wahab & C. -G. Lee & P. Sarkar, 2023. "A real options approach to value manufacturing flexibilities with regime-switching product demand," Flexible Services and Manufacturing Journal, Springer, vol. 35(3), pages 864-895, September.
    4. Peres, Renana & Muller, Eitan & Mahajan, Vijay, 2010. "Innovation diffusion and new product growth models: A critical review and research directions," International Journal of Research in Marketing, Elsevier, vol. 27(2), pages 91-106.
    5. Qin, Ruwen & Nembhard, David A., 2012. "Demand modeling of stochastic product diffusion over the life cycle," International Journal of Production Economics, Elsevier, vol. 137(2), pages 201-210.
    6. Christopher J. Blackburn & Mallory E. Flowers & Daniel C. Matisoff & Juan Moreno‐Cruz, 2020. "Do Pilot and Demonstration Projects Work? Evidence from a Green Building Program," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(4), pages 1100-1132, September.
    7. Kivi, Antero & Smura, Timo & Töyli, Juuso, 2012. "Technology product evolution and the diffusion of new product features," Technological Forecasting and Social Change, Elsevier, vol. 79(1), pages 107-126.
    8. East, Robert & Uncles, Mark D. & Romaniuk, Jenni & Hand, Chris, 2014. "The decay of positive and negative word of mouth after product experience," Australasian marketing journal, Elsevier, vol. 22(4), pages 350-355.
    9. Theoharakis, Vasilis & Vakratsas, Demetrios & Wong, Veronica, 2007. "Market-level information and the diffusion of competing technologies: An exploratory analysis of the LAN industry," Research Policy, Elsevier, vol. 36(5), pages 742-757, June.
    10. Laciana, Carlos E. & Rovere, Santiago L. & Podestá, Guillermo P., 2013. "Exploring associations between micro-level models of innovation diffusion and emerging macro-level adoption patterns," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(8), pages 1873-1884.
    11. Rui Leite & Aurora Teixeira, 2012. "Innovation diffusion with heterogeneous networked agents: a computational model," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 7(2), pages 125-144, October.
    12. Donald R. Lehmann & Jeffrey R. Parker, 2017. "Disadoption," AMS Review, Springer;Academy of Marketing Science, vol. 7(1), pages 36-51, June.
    13. Katharina Elisabeth Fischer & Tom Stargardt, 2016. "The diffusion of generics after patent expiry in Germany," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(8), pages 1027-1040, November.
    14. Rietveld, G.J. & Eggers, J.P., 2016. "Demand Heterogeneity and the Adoption of Platform Complements," ERIM Report Series Research in Management ERS-2016-003-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    15. Delre, S.A. & Jager, W. & Bijmolt, T.H.A. & Janssen, M.A., 2007. "Targeting and timing promotional activities: An agent-based model for the takeoff of new products," Journal of Business Research, Elsevier, vol. 60(8), pages 826-835, August.
    16. Hann Earl Kim & Johannes M. Pennings, 2009. "Innovation and Strategic Renewal in Mature Markets: A Study of the Tennis Racket Industry," Organization Science, INFORMS, vol. 20(2), pages 368-383, April.
    17. Ashish Sood & Gareth M. James & Gerard J. Tellis, 2009. "Functional Regression: A New Model for Predicting Market Penetration of New Products," Marketing Science, INFORMS, vol. 28(1), pages 36-51, 01-02.
    18. Nikolopoulos, Konstantinos & Buxton, Samantha & Khammash, Marwan & Stern, Philip, 2016. "Forecasting branded and generic pharmaceuticals," International Journal of Forecasting, Elsevier, vol. 32(2), pages 344-357.
    19. Scott A. Shane & Karl T. Ulrich, 2004. "50th Anniversary Article: Technological Innovation, Product Development, and Entrepreneurship in Management Science," Management Science, INFORMS, vol. 50(2), pages 133-144, February.
    20. Lemmens, A. & Croux, C. & Stremersch, S., 2012. "Dynamics in international market segmentation of new product growth," Other publications TiSEM 306086bd-670f-48d2-97d1-3, Tilburg University, School of Economics and Management.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:syseng:v:11:y:2008:i:3:p:187-202. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1520-6858 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.