EvaServe: Markets and foresight evaluation module

Contents


1. Evaluation goal

The evaluation service can be seen as a multivariable entity in which the viewpoints handled by the modules are interconnected and depend on each other to varying extent. This interdependency means that the modules can be disconnected only by making simplifying assumptions. The best results can be reached by the interactive handling of the parts of other modules connected to the chosen evaluation viewpoint and evaluation profile. In practice this means that at least in the ideal case the evaluation profile contains elements from more than one module even though the main interest is just the viewpoint of a single module.

The goal of this module is to evaluate the impact of future technology development on the market prospects of a service. In short the questions are:

  • How the markets will develop during the study period?
  • How will the development of technology and markets affect the position of the evaluated service on the market?
  • How can the position of the service on the market be improved?

The primary application area is services and products connected to transport telematics but the study can be applied to other lines of business.

The foresight of technology development and markets as a whole is long-span and extensive activity: it deals with a great number of technical, commercial and social background issues that can have a direct or indirect impact on both the development of the technology and the business possibilities based on it. The evaluation process described here is based on the constant foresight activity of VTT concretising and using its results, methods and experience which are constantly accumulated.

This description is the general model of the process. The precise contents of each evaluation case is a case-specific application of it: some parts of the process can be left out and new elements added as needed. The practical evaluation methods depend on the characteristics and development stage of the service and the agreed evaluation depth. Evaluations of a service carried out at the design, implementation and operation stages differ somewhat in character but the fundamental goal is the promotion of the prospects of the evaluated service in the market. The best scope can be reached by extending the evaluation to the entire life-span of the service, either as a single evaluation of the entire life-span or by repeating the evaluation during the operation of the service. The evaluation can if desired also be adapted to a more continuous interactive support process of service development.

markkinat_ja_ennakointi_prosessi.png

Although the evaluation process is presented here as linearly progressive the stages are in practise partly parallel and for some part also iterative: e.g. market development has also a backward impact in the chain to technology demand and from there to technology development thus practically reflecting also on the evaluation process.

The method description has been partly idealised. In practise e.g. the technology fields cannot be separated from other development as detached patches that do not have interdependent impacts. The nonlinearity of the combined impacts is allowed for as well as possible, at least the existence of the combined impacts has to be recognised. In spite of the combined impacts there are usually a number of essential separate factors and impact methods on which a sufficient result accuracy can be based.

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2. Connection to other modules

Because the successful achievement of the goals of a service or system can depend on both technical, financial and social development the conceptualisation of impact methods required by predictions demands the exploitation of the viewpoints of several evaluation modules at the definition stage. The modules used at the foresight process and the implemented scale depend on the case.

The most closely connected evaluation modules are

  • Economic and market viewpoint:
    • Revenue and finance
    • Profitability
    • Service networks
    • Risk analyses [=> Risk management?]
  • Technical viewpoint:
    • System analyses
    • Usability
    • Technical feasibility
    • Technical risks
    • Information security
    • Data storage
  • Social viewpoint:
    • User needs
    • Political goals
    • Social impacts

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3. Definition stage of the evaluation process

The evaluation process begins with the definition stage outlining the general operation principle and realisation method of the service, delimiting the elements to be evaluated and deciding upon the evaluation methods used and the scale of the analyses. This stage is done in co-operation with the client. At first the essentials of the service are outlined using the following table.

Service overview and outlining the fundamentals.

Task

Task name

Task description

1.1

General goal of evaluation

The evaluation maker and client go over the goals the client has for the evaluation. This stage is common to all modules because the total evaluation can incorporate element from any module.

The result of this stage is a view common to both the client and the evaluation maker of the total profile and process of the evaluation and of the associated parts of the modules.  A common understanding about the work distribution between modules is also formed. The client gets at least a preliminary cost and timetable estimate if these have not been agreed upon earlier.

1.2

Outlining the function and goals of the service for evaluation basis

The evaluation maker gets acquainted with the service. The purpose is to form a sufficiently accurate and realistic picture of the service for the definition of the evaluation process. I.e. the questions “for whom?”, “what?”, “why?” and “how?”. This means examining and recording the contents, operation principle, target group and intended impacts of the service.

The main factors are usually:

  • Service parties ("for whom?")
    • users
      • consumers
      • companies
      • public sector
      • society
    • service providers
    • other parties, e.g.
      • technology and infrastructure suppliers
      • sub- and ancillary service suppliers
      • development service suppliers
  • Basic idea of service; main functions ("what?")
    • service contents
    • what are the alterations to current situation?
  • Purpose of service; benefits to parties ("why?")
    • needs of different target groups
    • relation of service to these needs
    • what are the benefits to other parties?
  • Operation principle of service ("how?")
    • internal structure
    • external networking
      • technical surroundings
      • business
      • society
    • operation processes:
      • how the data and commodities move?
      • where the information is stored?
      • how the different parties contribute?

Information sources:

  • Documentation
  • Presentations and service demonstrations
  • Testing
  • User interviews

Connections to other modules [?]

  • From the technical viewpoint the modules are System analyses, Reliability, Technical feasibility, Technical risks, Information security and Databases.
  • From the economic viewpoint the modules are Revenue and finance, Profitability, Service networks and Risk analyses.
  • From the social viewpoint the modules are User needs, Political goals and Social impacts.

The actual definition of the evaluation process is carried out according to the table below.

Definition stage of the evaluation process.

Task

Task name

Task description

2.1

Definition of the part to be evaluated

The parts and functions to be evaluated are agreed upon as are the scope of the evaluations for each part. The evaluation profile is adjusted so that it on the other hand takes into account the entire service and special features for the essential parts and on the other hand produces the information that the customer seeks from the evaluation.

Possible evaluation viewpoints:

  • Technical
  • Economical
  • Social
  • Others; agreed upon according to service

Setting limits on the evaluation requires the study of at least the following:

  • Application areas
  • Study period (lifespan stage)
  • Geographical limits
  • Factors especially limited from the evaluation

2.2

Definition of evaluation result goals

After making the evaluation profile the used measuring methods and result presentation style are agreed upon. Result goals (measured subjects) and descriptive instruments include:

  • Global applicability
  • Total markets
  • Development trend and speed
  • Competition
  • Hedging against competition
  • Other case-specific special factors

The measurement methods are chosen according to the character of the service, viewpoint and scope:

  • Questionnaire and interview studies
  • Comparison to base data
  • Comparison to former similar services
  • Model based analyses

The scope and reliability of the chosen instruments is evaluated in comparison with the set goals (including the impacts of assumptions and approximations on the results). The measuring method and instruments are particularised as needed.

2.3

Data

The data or at least the data types to be used in the evaluation are selected.

Public data

  • Scientific articles and conference material
  • Other publications and reports

Chargeable reports, such as

  • Business Insights
  • Gartner
  • Dialog Profound
  • Mindbranch

VTT  roadmaps

  • Liikennetelematiikan kehittyminen Suomessa vuoteen 2010 (RTE360/02)
  • ROADMAP for Network Technologies and Services (Technology Review 162/2004)
  • Security-tutkimuksen roadmap (VTT Tiedotteita VTT 2327)
  • Älykkäät palvelut -teknologiatiekartta (VTT Tiedotteita 2243)
  • Human-Technology Interaction Research and Design - VTT Roadmap (VTT Research Notes 2220)
  • Communications Technologies - The VTT Roadmaps (VTT Research Notes 2146)
  • Mobilizing Business Applications (Tekes Technology Review 167/2005)
  • Exergame Technology Roadmap [http://www.vtt.fi/innovaatiot/tiekartat_ExergameRoadmap.jsp?lang=en]

Other VTT reports

Expert interviews

  • Experts within VTT
  • External domestic and foreign experts

Expert workshops arranged by VTT for accumulating data

Questionnaires either by VTT or subcontracted

  • Experts
  • Service end-users
  • Service target group (business)

The results of other evaluation modules

2.4

Instruments: technology

Scalability of service

  • Evaluation about how the technology impacts of the dynamic forces affect the scalability of the service (e.g. possibility to implement the service for a small user base and expanding it by demand).
  • Connection to the Technical feasibility module

Adaptability of service

  • Evaluation about how the technology impacts of the dynamic forces affect the adaptability of the service (e.g. adaptability/convertibility for other business areas and customers).
  • Connection to the Technical feasibility module

Standards

  • Conformity to standards
  • Adaptability to standardisation

Availability

  • Usability and availability locally
  • Usability and availability globally

Uncertainties, risks

  • The scope and depth of the impacts of possible technology recesses
  • Hedging possibilities

2.5

Instruments: business

Ability to commercialise

  • Business model in the changing/changed situation
  • Potential ways of using the services
  • Possible ways of formation of new ways of using
  • Connection to Service networks module

Evolution viewpoint

  • Does a plausible scenario for user growth exist?
  • Sensitivity to market development speed and direction
  • Connection to Service networks module

Protection of own technology of service

  • Evaluation of how the services own technology is protected or can be protected against dynamic changes
    • Patents
    • Software authorisation
  • Connection to the Technical feasibility module
  • Connection to the Information security-module

Uncertainties, risks

  • Cyclical fluctuation of the economy
  • Market impacts of possible technology recesses
  • Hedging possibilities  
  • Indirect uncertainties from other modules

2.6

Timetable and resources

At the end of the definition stage a final estimate about the resources required by the implementation of service evaluation is given:

  • Timetable
  • Customer and valuer liaison
  • Possible acquisitions and need for special arrangements

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4. Impacts of technology development on service

The current state of the technologies essential for the service is studied and the future development is estimated. The study follows the afore-appointed methods and definitions. The result is an evaluation of the development of the technologies relevant for the studied service in the study period.

The evaluation of the development of the technologies relevant for the studied service in the study period is carried out according to the table below.

Evaluation of technology development impacts.

Task

Task name

Task description

3.1

Current technology situation

Starting point: the relation of service to current technology situation

The current situation and development trends are studied from a general service viewpoint. The technology fields to be studied are identified and refined into evaluation technology starting points.

  • Current state of technologies
  • Standards and other similar definitions
  • Common practises
  • Connection to other modules: System analyses, Usability, Technical feasibility, Technical risks, Information security and Databases

3.2

Dynamic technology

Identifying the factors affecting technology development and their counter forces:

  • Scientific achievements
  • Technology political decisions (e.g. EU funding)
  • Mega-trends guiding behaviour and needs (impact of markets)

Factors resisting dynamic forces

  • Legislation and regulations lagging behind technology development
  • Impacts of intellectual property rights

3.3

Future technology

Evaluations on

  • New ways of using technical devices, attitude changes, emergence of new user needs
  • New/changed possibilities of the service provider to offer existing service (more efficiently) and develop new services
  • The development of scientific achievements into technology
  • The development of standards and other definitions
  • Technology  protection

A view of the new situation emerging from the identified technology impacts of dynamic changes is formed.

3.4

Impact measurements

The agreed instrument is applied to the evaluated service

  • at the current state of technology
  • at the future state of technology

These form the framework of the evaluation result for technology development.

3.5

Study of measurement results

The possible sources of error and their reflection on the technology instrument results are studied. The sources of error can be e.g.:

  • Basic data inaccuracy
  • Insignificant background and support data
  • Oversimplification of evaluation profile

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5. Impacts of market development on service

The development of markets and the status of the service on the market are evaluated according to the method in the table below. The market is impacted by also other factors beside general economic development.

Evaluation on market development and its impacts.

Task

Task name

Task description

4.1

Relation of service to current market situation

Evaluating the place of the service on the current market. Special study of:

  • Total extent of market
  • Market shares by target group
  • Demand (including service need of users)
  • Competition situation
  • Co-operation and networking
  • Connection to Revenue and finance module
  • Connection to Profitability module

Third party market research is utilised when needed.

4.2

Recognition of dynamic forces

Identifying the factors impacting market development and their counter forces:

  • Changes in the usage habits of services and technology
  • Service formation ways (e.g. customer initiative)
  • General economic development
  • Business area changes
  • Social development

Factors resisting dynamic forces

  • The decelerating impact of legislation and regulations
  • Impacts of intellectual property rights on business possibilities
  • Connection to Revenue and finance module
  • Connection to User interfaces module

4.3

Future status of markets

The same factors are analysed as in the current market (top-down):

  • Total extent of market
  • Market shares by target group
  • Demand (including service need of users)
  • Competition situation
  • Co-operation and networking
  • SWOT analyses
  • Connection to Service networks module

4.4

Impact measurement

The agreed instrument is applied to the service

  • In the current market situation
  • In the future market situation

These form the framework of the evaluation result for market development.

4.5

Study of measurement results

The possible sources of error and their reflection on the technology instrument results are studied. The sources of error can be e.g.:

  • Basic data inaccuracy
  • Insignificant background and support data
  • Oversimplification of evaluation profile

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6. Results

The main results of the evaluation are formed by the results from the above technology and market development analyses and their conclusions done using the agreed instruments. The evaluation process is concluded with assembling the results and reporting according to Table 5 .

Table 5. Results.

Task

Task name

Task description

5.1

"Instrument readouts"

Assembling the results of the instruments.

5.2

Comparison with goals

The differences with possible goal results are reviewed.

5.2

Reliability evaluation

Uncertainty factors and possible sources of error are evaluated. When necessary return to the evaluation process, redefine the instruments, base data or evaluation profile.

5.3

Conclusions

Making conclusions (e.g. SWOT of service or similar). Seek opportunities to prepare for a new situation.

5.4

Reporting

The evaluation and its results are reported to the client.

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7. Follow-up

Possible monitoring or a new evaluation round at a later lifespan stage. Agreed upon separately.

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8. Examples

Improvement of transport routes between Nordic countries and Central Eastern Europe Segercrantz, Wladimir Foresight on Regional Issues: Baltic Sea as European Sea. Background papers. Meeting in Tallinn/Estonia, 14 - 16 Sept. 2000. Ertel, S. (ed.) (2001), 81 - 91

Tekniikan tulevaisuus. Kehityksen ennakointihankkeiden tuloksia Lievonen, Jorma 1995. VTT, Espoo. 76 s. VTT Tiedotteita - Meddelanden - Research Notes : 1666 Asiasanat: technology, future, estimating, forecasting, development, scenarios, predictions, surveys

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References

Teknologian ennakointi ja teknologian arviointi: http://www.vtt.fi/palvelut/all/all_2/inno_ennakointi.jsp

Towards security evaluation based on evidencecollection. Savola, Reijo; Proceedings of the Information Security South Africa (ISSA) 2006 from Insight to Foresight Conference. Sandton, Gauteng, South Africa, 5 - 7 July 2006 (2006), 10 p. Toimiala: Tieto- ja viestintätekniikka, elektroniikka

Vaikuttavaa tutkimusta. Arviointikäytäntöjä julkisissa tutkimusorganisaatioissa: Helia ja SAMK http://www.vtt.fi/inf/pdf/tiedotteet/2006/T2332.pdf Kutinlahti, Pirjo; Lähteenmäki-Smith, Kaisa; Konttinen, Jari 2006. VTT, Espoo. 131 s. + liitt. 6 s. VTT Tiedotteita - Research Notes : 2332 Asiasanat: Research and Development, impact analysis, impact assessment, polytechnics, innovations, regional impact, evaluation, priorities, customers, networking

Methodological Introduction Heinonen, Sirkka Workshop on Mobility Foresight, 25th April, 2005, Espoo. VTT, NTF. Espoo (2005)

Väestön ikääntyminen - haaste ja mahdollisuus teknologian ennakoinnille ja innovaatioille - VIHMA http://ktm.elinar.fi/ktm_jur/ktmjur.nsf/12b74ae4d1122aadc22565fa003211a6/14BEBA69DE2FF20DC2256DF00035C54F/$file/tura17teo.pdf Väyrynen, Erja 2003. Kauppa- ja teollisuusministeriö, Teknologiasasto, Helsinki. 119 s. + liitt. 13 s. Kauppa- ja teollisuusministeriön tutkimuksia ja raportteja 17/2003 Asiasanat: ageing population, foresight, development of technology and innovation policy

Industrial innovation, economic performance and technology foresight - comparative perspectives on Japanese and Finnish developments http://www.vtt.fi/inf/pdf/symposiums/2003/S228.pdf Saarinen, Jani (ed.) 2003. VTT Technology Studies, Espoo. 64 p. VTT Symposium : 228 Asiasanat: innovation, technology foresight, science and technology policy, Sfinno, Japan, Finland

Teknologian ennakointi- ja arviointikäytäntöjen kehittäminen eurooppalaisen kokemuksen pohjalta http://www.vtt.fi/inf/pdf/tiedotteet/2002/T2174.pdf Eerola, Annele; Väyrynen, Erja 2002. VTT Teknologian tutkimus, Espoo. 151 s. + liitt. 4 s. VTT Tiedotteita - Research Notes : 2174 Asiasanat: technology foresight, technology assessment, technology roadmapping, R&D priory setting, technology policy

Technology foresight in the Nordic countries http://www.risoe.dk/rispubl/SYS/syspdf/ris-r-1362.pdf Eerola, Annele; Holst Jörgensen, Birte 2002. Risö National Laboratory, Roskilde, Denmark. 70 p. Risö R : 1362

Deepening report of Finland + An overview of nordic foresight exercise Eerola, Annele ESTO Report 'Monitoring of European Foresight Activities'. ESTO-IPTS Seminar. Brussels, 15 May 2001 (2001), 36 - 54, 160 - 179, 276-285

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Appendices

Revision history

Version

Date

Author(s)

Comments

0.1

10.10.2005

Jaakko Lähteenmäki, Liisa Rautiainen, Mika Naumanen.

First draft.

0.2

9.5.2005

Juha Törönen, Jaakko Lähteenmäki

Second draft. Word and MindManager versions. Contents reorganised.

0.3

22.6.2006

Juha Törönen

HTML version based on MindManager version.

0.31

1.8.2006

Juha Törönen

Style definitions in html file, contents intact.

0.32

25.9.2006

Juha Törönen

Revised method description.

0.4

24.11.2006

Juha Törönen

Table organised, contents revised, references added.

0.5

30.11.2006

Juha Törönen

Contents revised further.

0.51

11.12.2006

Juha Törönen

Process flow chart added.

0.6

8.3.2007

Juha Törönen

Table reorganised, text revised.

EvaServe – Markets and foresight

Revised: 8.3.2007