scholarly journals An Inventory Decision Model When Demand Follows Innovation Diffusion Process under Effect of Technological Substitution

2013 ◽  
Vol 2013 ◽  
pp. 1-10
Author(s):  
K. K. Aggarwal ◽  
Chandra K. Jaggi ◽  
Alok Kumar
Keyword(s):  
Diffusion Process ◽  
Innovation Diffusion ◽  
Inventory Management ◽  
Technological Development ◽  
New Products ◽  
Evolutionary Process ◽  
Optimal Solution ◽  
Demand Model ◽  
Ordering Policies ◽  
Innovation Diffusion Process

The concept of marketing literature, especially innovation diffusion concept, plays a pivotal role in developing EOQ models in the field of inventory management. The integration of marketing parameters, especially the idea of diffusion of new products with the inventory models, makes the models more realistic which is most essential while building the economic ordering policies of the products. Also, because of rapid technological development, the diffusion of technology can also be viewed as an evolutionary process of replacement of an old technology by a new one. Therefore, the effect of technological substitution along with the diffusion of new products must be taken into account while formulating economic ordering policies in an inventory model. In this paper, a mathematical model has been developed for obtaining the Economic Order Quantity (EOQ) in which the demand of the product is assumed to follow an innovation diffusion process as proposed by Fourt and WoodLock (1960). The idea of effect of technological substitution of products has been incorporated in the demand model to make the economic ordering policies more realistic. A numerical example with sensitivity analysis of the optimal solution with respect to different parameters of the system is performed to illustrate the effectiveness of the model.

Preconditions for the Management of Invention-Innovation Diffusion Process

2014 ◽  
Vol 2 (1) ◽  
pp. 39-50
Author(s):  
Zdenka Zenko ◽  
Matjaz Mulej
Keyword(s):  
Diffusion Process ◽  
Innovation Diffusion ◽  
Educational Level ◽  
Innovation Management ◽  
Social Systems ◽  
Management Process ◽  
Complex Process ◽  
The Difference ◽  
Innovation Diffusion Process ◽  
Process Managers

This paper contributes to improvement of innovation management. An idea to be developed into an innovation needs a successfully managed whole invention-innovation-diffusion process. Innovation management remains a complex process. Managers with their specialist´s narrow viewpoint can hardly be holistic enough. The difference in knowledge, educational level and specialization among entrepreneurs in SME and researchers in institutions contributes to the difficult cooperation among them. With dialectical systems theory the most important viewpoints can be selected and with the law of requisite holism the innovation management process can become manageable and successful. To support diffusion of inventions their cooperation should be based on ethics of interdependence. Inventions become innovations when purchased and used in social systems as a result of IIDP. Many crises were identified after 2008 and socially responsibly behaving management could be one of the possible solutions.

scholarly journals Mapping Biopharmaceutical Innovation and Diffusion: How the Second Translational Block (T2) Shapes Drug Diffusion

2008 ◽  
Vol 2 (1) ◽  
pp. 89-106
Author(s):  
Joshua Cohen ◽  
Laura Faden ◽  
Kenneth Getz
Keyword(s):  
Literature Review ◽  
Diffusion Process ◽  
Innovation Diffusion ◽  
Large Degree ◽  
Outcome Data ◽  
Third Party ◽  
High Coverage ◽  
Innovation And Diffusion ◽  
Innovation Diffusion Process ◽  
And Diffusion

In the US, there is a vigorous public debate on the merits of biopharmaceutical innovations and their diffusion. There is virtual unanimity about the importance of maintaining a steady stream of biopharmaceutical innovations, to which patients should have timely access. However, the debate’s participants are cognizant that the effects of innovation and diffusion on health outcomes, health care spending, and incentives for future innovation, must be weighed against one another. First, we performed a Medline literature review to map the innovation diffusion process, combining the search terms “innovation,” “diffusion,” and “pharmaceutical.” Second, we conducted a survey of 190 physicians to examine their valuation of the innovativeness and rate of diffusion of 20 new molecular entities (NMEs). Third, we collected data from the Centers for Medicare and Medicaid Services (CMS) Formulary Finder to assess payers’ valuation of the innovativeness of the 20 NMEs in question. Based on our literature review, we identified the key stakeholders involved in the innovation diffusion process. Furthermore, we highlighted the changing landscape of translational movers and shakers, tracing the emergence of T2 barriers, emanating largely from third party payer formulary management. Our empirical analysis suggests payers are exerting influence on physicians’ prescribing decisions, while the role of patients and pharmaceutical firms has diminished somewhat. Payers directly affect prescribing decisions through the use of formularies, and indirectly by funding evidence-based continuing medical education. On average, across the 20 drugs we sampled, the time from approval to first prescription was 33 months, which indicates a slow diffusion process. Our data analysis shows a gap in perception of innovativeness between physicians and payers, with physicians ranking drugs as more innovative on average than payers. And, our findings suggest the more innovative a drug is perceived by physicians and payers the higher market share it has. Striking an appropriate balance on access to and cost of biopharmaceuticals will require policy adjustments on the part of payers. In cases in which there is a large degree of uncertainty or the fiscal impact is particularly high, coverage could be made subject to a policy of coverage with evidence development (CED). Here, coverage would be conditional on development and capture of outcome data. A CED policy could be combined with a risk-sharing arrangement in which financial risk is shared between payers and the biopharmaceutical industry.

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