Value Analysis as an Integral Part of New Product Development

AbstractAt the present moment, global competition between companies is leading to a constant battle for an adequate market share and this is mostly not only achieved by reducing prices but rather more effectively by constantly introducing new innovations at all levels and across all functions in a company. Conceptions or ideas for new products derive either from external sources (customers or buyers, suppliers, competitors, patent documentation, research centres and educational institutions, chambers, associations and institutes, fairs and exhibitions etc.) or internal sources (managers, sales representatives, merchants and commercial travellers, associate professionals and technologists, designers, in-house innovators etc.) [10]. Companies in the technical field mostly acquire knowledge on the basis of researching a special group of buyers known as the “leading users”. These are the buyers who are the most advanced in terms of using a company's products and in comparison with others they identify possible improvements to products earlier. Companies use surveys, projective methods, group interviews as well as written customers’ suggestions and complaints to identify the needs and wishes of their customers. However, it has to be said that many of the best ideas evolve from the problems customers have with existing products [7].The very core of VA is the effort to determine and eliminate those characteristics of products or services with no real value for the customer or the product, but which, nevertheless, cause costs in the production process or service delivery. Therefore, the VA process ensures a better product or service for the customer at minimal costs compared to replacing the existing product with a less favourable alternative.In the present article, the development of a new product is outlined in which the usefulness of two methods of innovative management – VA and conjoint analysis – was shown