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Abstract— Industrial convergence is recognized as a key concept
and global trend in the future technological revolution. Global
enterprise recognizes the convergence trend and they are going to
create a competitive convergence market thought which to increase the
value of the goods or to develop innovative products. Otherwise small
and medium sized enterprises lack the business item concept
development capabilities considering the convergence trends. In this
study, we propose the Convergence Business Item Development
Model that business item concept development framework considering
the convergence trends. The proposed framework consists of 5 main
steps and 15 details steps. In order for the analysis, the company's core
technologies and theirs business item concepts, business capabilities.
And Considering the mega-trends, consumer needs trends and based
on Analysis of Patents, market analysis, environmental analysis
methodology utilizes business planning. For the practical use of the
CBIDM Framework proposed, a case study is required to validate the
target SMEs.
Keywords—Industrial convergence, Convergence Business Item
Development Model, Product-Service Converging Item Development
Planning Process, SMEs Business Strategy
I. INTRODUCTION
LOBAL economy is being rapidly converted to „age of
convergence‟ that creates new value based on the creative
convergence between technology and industry recently. The
convergence was developed to digital convergence as it was
conducted in information & tele-communication industry in
1990‟s and it evolved up to the convergence of technology,
convergence of product with service and convergence type
among the industries through investment extension of research
and development against convergence technology in the United
States and Europe in the early of 2000‟s. The convergence is
used as the tools that enhance the competitiveness in many
companies recently. Especially, the global companies have been
Da Hoon Lee is with the Division of Korea National Industrial Convergence
Center at Korea Institute of Industrial Technology in Republic of Korea (e-mail:
Sunhee Cho is with the Division of Korea National Industrial Convergence
Center at Korea Institute of Industrial Technology in Republic of Korea
(e-mail:[email protected]).
Heeyoung Jang is with the Division of Korea National Industrial
Convergence Center at Korea Institute of Industrial Technology in Republic of
Korea (e-mail: [email protected]).
Insoo Lee is with the Division of Korea National Industrial Convergence
Center at Korea Institute of Industrial Technology in Republic of Korea (e-mail:
Woonghee Shon is with the Division of Korea National Industrial
Convergence Center at Korea Institute of Industrial Technology in Republic of
Korea (Correspondence goes toWoonghoo Shon, e-mail: [email protected]).
enhancing their positions at the existing market or enlarging
their business territories to new market through business item
that merges the products with the services. But small and
medium enterprises are experiencing the difficulties of
developing convergence items due to insufficient
product-development competence that considers the
characteristics of convergence market. Especially, small and
medium enterprises develop the products by focusing only the
improvement of existing products in the phase of drawing idea
of developing new product for product development.
Due to such reason, they are suffering from developing
convergence item that can guarantee the mid-to-long term
profitability. This study suggested the framework of drawing
idea that small and medium enterprises can apply in the phase of
idea for development of convergence product.
II. BACKGROUND
Frame work for developing new products has been being
carried out since ago. Framework that ROBERT G. COOPER
[1] consists of 7 progressive stages, 16 detailed activities and 7
evaluation (judgment) activities so that they can be used for new
product development in general and goes to next step through
evaluation (judgment) for each step if main activity is
completed for each step. The progressive procedure is as Fig 1
and main contents of each step is as Table 1.
TABLE 1
SEVEN-STAGE NEW PRODUCT PROCESS
STAGE Contents of performance
1 IDEA Draw and define an idea for product
development
2 PRELIMINARY
ASSESSMENT
Preliminary assessment of technology and
market
3 CONCEPT Product concept development by analysis
of consumers & competitive product
4 DEVELOPMENT Preliminary development of technology
R&D, prototype and trial product
5 TESTING Product verification & sophistication
through technology & performance test
6 TRIAL Product from in-house test and
sophistication of market response
7 LAUNCH Market launch & extension / continuous
improvement development
A Study on development of
Convergence Business Item Development Model
Youngsoo Park, Sunhee Cho, Kyoungyong Park, Insoo Lee, and Woonghee Shon
G
International Journal of Humanities and Management Sciences (IJHMS) Volume 3, Issue 6 (2015) ISSN 2320–4044 (Online)
393
Fig. 1 Flow diagram of the seven-stage new product process model (ROBERT G. COOPER, 1983)
This study specified the contents from step 1 to step 3 among
the main steps of the model suggested by ROBERT G.
COOPER. So, final output aims to draw the concept of
convergence business item including service as well as product
as the concept of business item is drawn.
III. CONVERGENCE BUSINESS ITEM DEVELOPMENT
FRAMEWORK
A. Outline and characteristics of model
The suggested model is the model of framework to support
small and medium enterprises to draw the development concept
idea of convergence item systematically. The suggested
framework consists of total 5 main steps and 16 detailed steps. 5
main steps are shown as Fig2. The suggested framework was
designed so that small and medium enterprises can use that
simply and easily and helps them to draw the development
concept of future-oriented convergence products through the
possessed core technology and simple data of existing
production items. And it applied the evolution concept of the
system based on the law of technology evolution by applying
TRIZ theory and concept [2]. and it implemented phasing so
that various common management methods can be used at the
proper time by technology-system analysis method and business
model analysis method.
Fig. 2 Convergence Business Item Development Process
B. Applicable companies
The suggested framework can be used by regular companies,
but it can be applied in most desirable way if the company
recognizes the necessity of innovation possesses core
technology and composes the relevant production facilities and
sales infrastructure as the products that were previously
produced existed. And, if the company is willing to develop new
convergence products or services through the convergence,
sophisticate the existing items or create new market,
commercialize the existing items or services with the new value
by using the idea and technology in the same or different fields
and lead future-oriented new convergence product and
convergence service by using current competence in maximum,
the desire output can be drawn.
1st step analyzes the internal competence and managerial
environment that the company possesses such as managerial
status of the company, vision and goal, outline and
characteristics of items that are produced and supplied and
business type. As the companies know their internal competence
well in general, so would be not much difficult.
2nd
step is the step that analyzes technical and environmental
trends and technical trend analysis performs the analysis of
patent trend that is related with the items that the company
possesses, company in competition and technology trend and
environment analysis conducts various aspects of
environmental factors such as macro-analysis of market and
industry related with the items and social awareness and
necessity related with the items. 2nd
step can be carried out
through the collection and analysis of existing data or by the
planning team of the company internally and can be investigate
by market analysis investigation research agencies.
International Journal of Humanities and Management Sciences (IJHMS) Volume 3, Issue 6 (2015) ISSN 2320–4044 (Online)
394
TABLE II
CONVERGENCE BUSINESS ITEM DEVELOPMENT PROCESS DETAIL
Proc-edure Contents What is done
Investigation
on current
status of
company
Investigation of
company information Investigate the data of vision, goal & strategic operational direction of company through web.
Investigation of main items Investigate outline, main functions, business type of item
Investigation of possessed
competence Investigate possessed patents, business method related with analysis object
Environment
analysis
Technology
analysis
Patent Analyze quantitative trend of main countries related with object to analyze using
patent information of foreign patent DB
Technical trend Analyze related technology development trend of domestic &
foreign companies and similar patents of possessed patents
Environment
analysis
Industrial trend Set size of relevant market/industry against object to analyze and analyze trend focusing literature
Social trend Excavate social issues related with object to analyze such as big data analysis and
literature investigation based on keyword
Analysis of
relevant issues
Technology S-curve Analyze technical maturity of object to analyze using quantitative analysis data of patent
9-Windows Analyze direction of expected future shape by analyzing past & present shape of object to analyze
Business model Analyze general business model against object to analyze (Using 9-Blocks model)
5Force Analyze external competition factors that can influence on decision-making related with
object to analyze for macro-environment analysis
PEST Analyze political, economic, social & technical issues in domestic &
foreign countries related with object to analyze
Trend issue Draw trend issue related with object to analyze among entire mega trend contents
Analysis of
developmental
direction
Evaluation of technology
evolution level
Analyze technical evolution level required to enable object to analyze to
satisfy mega trend issue based on status of company/item & relevant trend analysis data
Evaluation of socio-cultural level Analyze current level in socio-cultural point of view to enable object to analyze to
satisfy mega trend issue based on status of company/item & relevant trend analysis data
Drawing
developmental
direction
Draw developmental direction Draw alternative plan that can be suggested as report type considering feasibility of realization &
business among the results of analyzed developmental direction through experts in the field
3rd
step is the step of analyzing the relevant issues and draws
the meaningful data by applying the technology, market,
industry and social environment investigated in 2nd
step to
technology analysis method and management analysis method.
Technology S-curve analysis [3], 9-Windows analysis, business
model analysis, 5 Force analysis, PEST analysis and mega trend
issue analysis are used as main techniques [4]. Other than these,
other management analysis methods such as SWOT analysis or
3CFAW analysis can be used along the need of the company or
industrial characteristics. Good quality of information can be
drawn only if preliminary study is conducted and the analysis is
carried out regarding the method of using each method and main
characteristics.
4th
step is the step that analyzes developmental direction and
draws the concept idea of feasible business item targeting mega
trend and consumer need trend by collecting competence
information of the company collected at 1st step, information of
technology, market, industry and social environment analysis
drawn from 2nd
step and analysis data of main relevant issues
drawn from 3rd
step. It is required to diagnose the technology
that the company possesses currently or evolution step of
products and services to draw the idea. The judgment of
evolution step is evaluated by dividing into technical evolution
and social evolution [5, 6]. The detailed evaluation index is
shown as Table 3. TABLE3
EVALUATION INDEX OF TECHNICAL EVOLUTION AND
SOCIO-CULTURAL EVOLUTION
Detailed index of evaluating
technical evaluation level
Detailed index of evaluating
socio-cultural evaluation level
Completeness of technical system Government policy
Energy conductivity Market competitiveness
Harmony of rhythm Object to sell to
Increase of abnormalness Applicability of product
Increase of dynamic
characteristic(flexibility) Consumer protection
Increase of interaction between
materials User-friendliness
Possibility of imbalance Environment-friendliness
Transference to upper system Cultural improvement
Transference to micro-level Emotional satisfaction
- Satisfaction in price
International Journal of Humanities and Management Sciences (IJHMS) Volume 3, Issue 6 (2015) ISSN 2320–4044 (Online)
395
More various and realistic ideas can be drawn if suggesting
the idea together with the experts in the field rather than drawing
the idea within the company in 4th
step. Developmental
direction can be drawn by discussing the innovative method in
the same market or industry by referring to the access concept of
Fig.3, the method that replaces the existing item or approaches
with the new concept in the same market or industry and the
method that can create the market based on new concept of
service that does not exist.
Fig. 3 Concept of searching convergence territory that is technology,
product and service-centered
5th
step is the step that summarizes the analyzed and drawn
outcome and draws the analysis data drawn from step 1 to 3 and
concept result of convergence business item drawn from 4th
step.
IV. CONCLUSION
This study carried out the research of the method that enables
small and medium enterprises to excavate future-oriented
business item idea that is capable of securing global
competitiveness in convergence trend environment. It was
designed to excavate the idea with minimum cost in short time
by using the competence that the company possesses in the
maximized way as the main feature, business environment was
analyzed using general management method and developmental
direction of products and services were diagnosed using TRIZ
theory. In order to raise the utilization of framework suggested
in this study, case study should be carried out targeting actual
company and the specified study of detailed analysis procedure
together with case study.
ACKNOWLEDGMENT
This study has been provided with assistance and support of
the MOTIE (Ministry of Trade, Industry and Energy, Grant NO.
10041570); KITECH (Korea Institute of Industrial
Technology).
REFERENCES
[1] R. G. COOPER, “ process model for industrial new product development,
IEEE Transactions on Engineering Management,” Vol. EM-30, No1, Feb
1983, pp. 2–11
[2] B. Zlotin, A. Zusman, Directed Evolution : Philosophy, theory and
practice, 2002
[3] B. Zlotin, A. Zusman, Evolution of Organizations: Evolution Along the
S- curve, 2000.
[4] E. Domb, Strategic TRIZ and Tactical TRIZ: Using the Technology
Evolution Tools, The Journal of the Altshuller Institute, October, 1999
[5] LS Chen, SH Chen, “Using TRIZ Techniques to New Product Function
Development of Smart Phones,” IEMS Vol.10, No.3, Sep. 2011, pp
179-184
[6] D. Mann, E. Jones, “Sustainable Services & Systems (3s) through
systematic innovation methods,” The Journal of Sustainable Product
Design, Vol 2, 2002, pp.131–139
International Journal of Humanities and Management Sciences (IJHMS) Volume 3, Issue 6 (2015) ISSN 2320–4044 (Online)
396
