Method for Evaluating the Value of Technology in the Manufacturing Industry

Abstract

The aim of this research is to develop and test a new method for evaluating the value and costs of technology in the manufacturing industry based on Design Science. The overall purpose is to enable the evaluation of product lifetime value creation already in the concept phase. This would improve the manufacturer’s capability to design for the total cost of ownership and thus, improve planning in the engineering asset management context. A constructive research strategy is used, and the Design Research Method with an industry case study is applied in developing and evaluating the method. This paper contributes to the literature by presenting a new method for evaluating technology based on Design Science. Product characteristics and properties are modeled, and the technology characteristics are evaluated against them. The proposed method opens the product, which is traditionally seen as a black box in techniques for valuing technologies, to the technology evaluation process. The target application for the proposed method is the existing product and business environment where sufficient design knowledge is available. This method supports decision making in technology-related questions at the managerial level. This paper recognizes and uses value creation mechanisms to evaluate the value and costs of technology.