A quantitative model for innovation management in product portfolio

This study presents a quantitative model to aid strategic decisions concerning innovation management denominated DEIN – Strategic Decision Making on Innovation – which embodies both spontaneous and inducted innovation. The model was constructed based on the review of literature and interviews conducted with experts. It comprises a framework to evaluate the different elements involved in innovation management such as: (i) ideas associated to product or process innovation; (ii) competitiveness of existing product range; (iii) innovation associated to existing portfolio;(iv) new product competitiveness; and (v) company’s level of innovation. The use of DEIN can help companies decide which products of their portfolio will be maintained, discontinued, improved, or innovated. DEIN model is described in detail in this paper. It was developed based on a study carried out in two companies in different market segments: automotive and platform anchoring rope. It was also evaluated in three companies in other different segments. The evaluation led to improvements in the model and confirmed its relevance and applicability in the business scenario