MODELING INNOVATION PROCESSES FOR DECISION-SUPPORT AND MANAGEMENT SIMULATION

The article describes results from an ongoing research project that st arted several years ago. It outlines the concepts of computer-based de cision support and the role of management simulators for innovation ma nagement. It presents a modularly composed model of the innovation pro cess which reflects the tight relationships between corporate actions and competitors' response. The model explains how the dynamics of a pr oduct life cycle are generated, and how the firm's performance influen ces market behavior. Different innovation strategies, such as pricing, capacity expansion and the role of effective quality control, are ana lyzed and evaluated. The model is then extended to include the process es of research and development and their relationships to resource all ocation and market success. A management simulator-based on the compre hensive innovation model is introduced which supports teaching and tra ining and fosters organizational learning.