Essays on New Product Development

My dissertation comprises three essays that theoretically and empirically investigate three managerial relevant issues in new product development. In the first essay, our focus is to develop a methodology that allows manufacturers to account for the impact of channel acceptance in new product development. We have developed a model to incorporate the retailer's acceptance criteria, retailer's product assortment, and competing manufacturers' potential reactions directly in the design of the new product, thereby maximizing the product's success probabilities. Our model merges a game-theoretical model with micro-level data on individual consumer preferences. Therefore, this method provides a rigorous, yet practical, solution to the problems that manufacturers face regarding channel acceptance. In the second essay, we examine the impact of subjective characteristics (such as aesthetics and ergonomics) on consumer's preferences for products. Existing studies of consumer preferences such as conjoint models are limited in incorporating the influence of these subjective characteristics into product design. We have developed a model to determine whether the subjective characteristics (such as comfort) are connected with the objective product attributes (such as switch type), and whether both the objective product attributes and the subjective characteristics jointly affect consumer's evaluations towards products. We show that our model outperforms the conjoint model in understanding and designing appealing products for consumers. In the third essay, our goal is to account for variations in product performance across different usage situations and conditions and to design robust new products. Consumer durables such as appliances and power tools tend to be used in various usage situations and conditions, in which their performance can vary depending on the operating conditions. We apply a Multi-Objective Genetic Algorithm (MOGA) to incorporate multi-function criteria in the generation and comparison of product design alternatives. Our approach will be particularly useful for product development teams that want to obtain customers' buy-in as well as internal buy-in early on in the product development cycle. We illustrate the approaches described above in the context of a new power tool development project undertaken by a US manufacturer

Adaptive algorithms for real-world transactional data mining.

The accurate identification of the right customer to target with the right product at the right time, through the right channel, to satisfy the customer’s evolving needs, is a key performance driver and enhancer for businesses. Data mining is an analytic process designed to explore usually large amounts of data (typically business or market related) in search of consistent patterns and/or systematic relationships between variables for the purpose of generating explanatory/predictive data models from the detected patterns. It provides an effective and established mechanism for accurate identification and classification of customers. Data models derived from the data mining process can aid in effectively recognizing the status and preference of customers - individually and as a group. Such data models can be incorporated into the business market segmentation, customer targeting and channelling decisions with the goal of maximizing the total customer lifetime profit. However, due to costs, privacy and/or data protection reasons, the customer data available for data mining is often restricted to verified and validated data,(in most cases,only the business owned transactional data is available). Transactional data is a valuable resource for generating such data models. Transactional data can be electronically collected and readily made available for data mining in large quantity at minimum extra cost. Transactional data is however, inherently sparse and skewed. These inherent characteristics of transactional data give rise to the poor performance of data models built using customer data based on transactional data. Data models for identifying, describing, and classifying customers, constructed using evolving transactional data thus need to effectively handle the inherent sparseness and skewness of evolving transactional data in order to be efficient and accurate. Using real-world transactional data, this thesis presents the findings and results from the investigation of data mining algorithms for analysing, describing, identifying and classifying customers with evolving needs. In particular, methods for handling the issues of scalability, uncertainty and adaptation whilst mining evolving transactional data are analysed and presented. A novel application of a new framework for integrating transactional data binning and classification techniques is presented alongside an effective prototype selection algorithm for efficient transactional data model building. A new change mining architecture for monitoring, detecting and visualizing the change in customer behaviour using transactional data is proposed and discussed as an effective means for analysing and understanding the change in customer buying behaviour over time. Finally, the challenging problem of discerning between the change in the customer profile (which may necessitate the effective change of the customer’s label) and the change in performance of the model(s) (which may necessitate changing or adapting the model(s)) is introduced and discussed by way of a novel flexible and efficient architecture for classifier model adaptation and customer profiles class relabeling

Inferring Complex Activities for Context-aware Systems within Smart Environments

The rising ageing population worldwide and the prevalence of age-related conditions such as physical fragility, mental impairments and chronic diseases have significantly impacted the quality of life and caused a shortage of health and care services. Over-stretched healthcare providers are leading to a paradigm shift in public healthcare provisioning. Thus, Ambient Assisted Living (AAL) using Smart Homes (SH) technologies has been rigorously investigated to help address the aforementioned problems. Human Activity Recognition (HAR) is a critical component in AAL systems which enables applications such as just-in-time assistance, behaviour analysis, anomalies detection and emergency notifications. This thesis is aimed at investigating challenges faced in accurately recognising Activities of Daily Living (ADLs) performed by single or multiple inhabitants within smart environments. Specifically, this thesis explores five complementary research challenges in HAR. The first study contributes to knowledge by developing a semantic-enabled data segmentation approach with user-preferences. The second study takes the segmented set of sensor data to investigate and recognise human ADLs at multi-granular action level; coarse- and fine-grained action level. At the coarse-grained actions level, semantic relationships between the sensor, object and ADLs are deduced, whereas, at fine-grained action level, object usage at the satisfactory threshold with the evidence fused from multimodal sensor data is leveraged to verify the intended actions. Moreover, due to imprecise/vague interpretations of multimodal sensors and data fusion challenges, fuzzy set theory and fuzzy web ontology language (fuzzy-OWL) are leveraged. The third study focuses on incorporating uncertainties caused in HAR due to factors such as technological failure, object malfunction, and human errors. Hence, existing studies uncertainty theories and approaches are analysed and based on the findings, probabilistic ontology (PR-OWL) based HAR approach is proposed. The fourth study extends the first three studies to distinguish activities conducted by more than one inhabitant in a shared smart environment with the use of discriminative sensor-based techniques and time-series pattern analysis. The final study investigates in a suitable system architecture with a real-time smart environment tailored to AAL system and proposes microservices architecture with sensor-based off-the-shelf and bespoke sensing methods. The initial semantic-enabled data segmentation study was evaluated with 100% and 97.8% accuracy to segment sensor events under single and mixed activities scenarios. However, the average classification time taken to segment each sensor events have suffered from 3971ms and 62183ms for single and mixed activities scenarios, respectively. The second study to detect fine-grained-level user actions was evaluated with 30 and 153 fuzzy rules to detect two fine-grained movements with a pre-collected dataset from the real-time smart environment. The result of the second study indicate good average accuracy of 83.33% and 100% but with the high average duration of 24648ms and 105318ms, and posing further challenges for the scalability of fusion rule creations. The third study was evaluated by incorporating PR-OWL ontology with ADL ontologies and Semantic-Sensor-Network (SSN) ontology to define four types of uncertainties presented in the kitchen-based activity. The fourth study illustrated a case study to extended single-user AR to multi-user AR by combining RFID tags and fingerprint sensors discriminative sensors to identify and associate user actions with the aid of time-series analysis. The last study responds to the computations and performance requirements for the four studies by analysing and proposing microservices-based system architecture for AAL system. A future research investigation towards adopting fog/edge computing paradigms from cloud computing is discussed for higher availability, reduced network traffic/energy, cost, and creating a decentralised system. As a result of the five studies, this thesis develops a knowledge-driven framework to estimate and recognise multi-user activities at fine-grained level user actions. This framework integrates three complementary ontologies to conceptualise factual, fuzzy and uncertainties in the environment/ADLs, time-series analysis and discriminative sensing environment. Moreover, a distributed software architecture, multimodal sensor-based hardware prototypes, and other supportive utility tools such as simulator and synthetic ADL data generator for the experimentation were developed to support the evaluation of the proposed approaches. The distributed system is platform-independent and currently supported by an Android mobile application and web-browser based client interfaces for retrieving information such as live sensor events and HAR results

Handbook of Computational Intelligence in Manufacturing and Production Management

Artificial intelligence (AI) is simply a way of providing a computer or a machine to think intelligently like human beings. Since human intelligence is a complex abstraction, scientists have only recently began to understand and make certain assumptions on how people think and to apply these assumptions in order to design AI programs. It is a vast knowledge base discipline that covers reasoning, machine learning, planning, intelligent search, and perception building. Traditional AI had the limitations to meet the increasing demand of search, optimization, and machine learning in the areas of large, biological, and commercial database information systems and management of factory automation for different industries such as power, automobile, aerospace, and chemical plants. The drawbacks of classical AI became more pronounced due to successive failures of the decade long Japanese project on fifth generation computing machines. The limitation of traditional AI gave rise to development of new computational methods in various applications of engineering and management problems. As a result, these computational techniques emerged as a new discipline called computational intelligence (CI)

Preference mining techniques for customer behavior analysis

The thesis has studied a number of critical problems in data mining for customer behavior analysis and has proposed novel techniques for better modeling of the customers’ decision making process, more efficient analysis of their travel behavior, and more effective identification of their emerging preference

Cognitive finance: Behavioural strategies of spending, saving, and investing.

Research in economics is increasingly open to empirical results. The advances in behavioural approaches are expanded here by applying cognitive methods to financial questions. The field of "cognitive finance" is approached by the exploration of decision strategies in the financial settings of spending, saving, and investing. Individual strategies in these different domains are searched for and elaborated to derive explanations for observed irregularities in financial decision making. Strong context-dependency and adaptive learning form the basis for this cognition-based approach to finance. Experiments, ratings, and real world data analysis are carried out in specific financial settings, combining different research methods to improve the understanding of natural financial behaviour. People use various strategies in the domains of spending, saving, and investing. Specific spending profiles can be elaborated for a better understanding of individual spending differences. It was found that people differ along four dimensions of spending, which can be labelled: General Leisure, Regular Maintenance, Risk Orientation, and Future Orientation. Saving behaviour is strongly dependent on how people mentally structure their finance and on their self-control attitude towards decision space restrictions, environmental cues, and contingency structures. Investment strategies depend on how companies, in which investments are placed, are evaluated on factors such as Honesty, Prestige, Innovation, and Power. Further on, different information integration strategies can be learned in decision situations with direct feedback. The mapping of cognitive processes in financial decision making is discussed and adaptive learning mechanisms are proposed for the observed behavioural differences. The construal of a "financial personality" is proposed in accordance with other dimensions of personality measures, to better acknowledge and predict variations in financial behaviour. This perspective enriches economic theories and provides a useful ground for improving individual financial services

A comparison of statistical machine learning methods in heartbeat detection and classification

In health care, patients with heart problems require quick responsiveness in a clinical setting or in the operating theatre. Towards that end, automated classification of heartbeats is vital as some heartbeat irregularities are time consuming to detect. Therefore, analysis of electro-cardiogram (ECG) signals is an active area of research. The methods proposed in the literature depend on the structure of a heartbeat cycle. In this paper, we use interval and amplitude based features together with a few samples from the ECG signal as a feature vector. We studied a variety of classification algorithms focused especially on a type of arrhythmia known as the ventricular ectopic fibrillation (VEB). We compare the performance of the classifiers against algorithms proposed in the literature and make recommendations regarding features, sampling rate, and choice of the classifier to apply in a real-time clinical setting. The extensive study is based on the MIT-BIH arrhythmia database. Our main contribution is the evaluation of existing classifiers over a range sampling rates, recommendation of a detection methodology to employ in a practical setting, and extend the notion of a mixture of experts to a larger class of algorithms

Pattern Recognition

A wealth of advanced pattern recognition algorithms are emerging from the interdiscipline between technologies of effective visual features and the human-brain cognition process. Effective visual features are made possible through the rapid developments in appropriate sensor equipments, novel filter designs, and viable information processing architectures. While the understanding of human-brain cognition process broadens the way in which the computer can perform pattern recognition tasks. The present book is intended to collect representative researches around the globe focusing on low-level vision, filter design, features and image descriptors, data mining and analysis, and biologically inspired algorithms. The 27 chapters coved in this book disclose recent advances and new ideas in promoting the techniques, technology and applications of pattern recognition

Market Segmentation Analysis

Business; Management science; Market research; Statistics