Success rates in the development of new products and services are very low due to a lot of uncertainties. The ability to start new businesses is vital to every firms’ prosperity and growth. These issues have been the focus of high attention for marketing sectors in a bid to extend research.
However little has been done in the way of empirical research to identify what are clear factors for successful businesses and products.
By carefully looking at successful products and services, businesses will gain insights that may benefit the successful development of new products and services. Past research of successful products and services has shown that each has it’s own validity (key success factors) and thus market suitability - the company must have the technical knowledge to develop these factors.
In the telecommunication industry, there are much more uncertainties because the businesses and products are very new compared to other industries. Also, the telecommunication industry has shown more rapid technological changes and diverse technological evolutions than any other industry.
In this area, we’ve found that technological evolution leads to new telecommunication businesses.
Under these uncertain environments, there is a necessity for a new business appraising model to help analyze the product concept and technologies to obtain higher success rates.
From the factors founded by this success model, I would like to introduce the feasibility test model for success in the development of new products and services. Therefore, this study aims to reveal the common denominators of successful business models and also aims to make a simple tool for developers analyzing products and technologies to help lower the risk in developing new products.
For this purpose, I introduce two effective factors: utility and technological externality.
Consumers will make a decision to buy based on the utilities they get while the corporation supply value added products (benefits ) by technological externalities. Using these concepts, I introduce two functions. A function of success, based on utility and technology externality and a function of utility, using cost and benefit.
Also for easier adaptation in the field, the TBC model and TBC appraisal table have been designed.
I hope this simple tool will prove to be a helpful guide for many developers, thus lightening their work loads.
This study will also provide idea and technology screening for market suitability and will also highlight implications for predicting telecommunication services and products.
