Launching New IT Product Into the Market

Bringing a new IT product onto the market possess a high business risk due to two main factors: lifetime of an IT product is usually short; IT market is very competitive one. Product success depends on many mutually linked factors and very often the relations among them are difficult to grasp by business analysts. In the paper we present the System Dynamics model describing some important factors which should be analyzed before bringing a new IT product onto the market. We assume that an IT product is maintained within an outsourcing model by other company which uses a cloud computing for that purpose. Our study embraces analysis of the pricing policy of product and that takes into account opponents in the market. We also consider possible modifications of IT product configurations, outsourcing scope and the modification of marketing policy depending on actual IT product parameters. While building the model presented in the paper, contrary to other models in literature, we have used only parameters which can be estimated precisely. By sticking to this attitude we have obtained the model which is more useful than other models presented in the literature on the subject. We present simulation results of the dynamic model for different simulation scenarios resulting from different policies of bringing a new product onto the market.