(Person) Percentage - Sabanci University Research Database

The Asian Media & Mass Communication Conference 2010 Osaka, Japan
Introduction
New product development (NPD) is one of the key to get competitive advantage
and maintain growth of the firm (Chang and Cho, 2008; Liao, Hsieh, and Huang,
2008; Wang, 2009). However, NPD is a risky process (Ozer, 2005). Less than 15% of
NPD projects are commercially successful (Cooper, 2001). As the result, the vital
issue in NPD is how to evaluate the future success of new products (Balachandra,
1984; Benson, Sage, and Cook, 1993). In Taiwanese TV industry, the product is its
program. The rating would be influenced by programs. The amount and fees of
advertising obtained by TV companies would be affected by the rating. The TV
companies depend largely on advertising to maintain their operation. In other words,
evaluating and selecting new program projects plays an important role for TV
companies.
Nevertheless, most of the evaluation approaches merely focus on the effect of
financial benefit, quality, possible amount of potential customers and so on (Oh, Suh,
Hong, and Hwang, 2009). The decision makers need a comprehensive evaluation
model for the future success of new program projects. BSC proposed by Kaplan and
Norton (1992) is widely applied to evaluate business performance. BSC links
financial and non-financial, tangible and intangible, inward and outward factors can
provide an integrated viewpoint for decision makers to evaluate the new program
projects. AHP, proposed by Saaty in the 1970’s, allows factors to be compared, with
the importance of individual factors being relative to their effect on the problem
solution (Saaty, 1980). AHP has been widely applied for decision-making problems.
We combines BSC with AHP to help Taiwanese TV company managers make better
decisions for new program projects selection.
In this paper, we firstly present BSC. Next, AHP as selection tools is described.
The proposed approach within the context of selecting the optimal new program
projects is shown in Section 4. The conclusion is given in Section 5.
Balanced scorecard (BSC)
BSC proposed by Kaplan and Norton (1992) is widely applied to evaluate
business performance. BSC is with the intent to keep score of a set of measures that
maintain a balance between financial and non-financial measures, between internal
and external performance perspectives. Of the BSC 4 perspectives, one is financial
and the other 3 involve non-financial performance measurement indexes: customer,
internal business process and learning and growth. The financial perspective is about
how the strategic action contributes to the improvement of revenue. In customer
perspective, customers are the source of business profits. Hence, satisfying customer
needs is the objective pursued by companies. The objective of internal business
process perspective is to satisfy shareholders and customers by excelling at business
processes. The goal of the last perspective, learning and growth, is to provide the
infrastructure for achieving the objectives of the other 3 perspectives and for creating
long-term growth and improvement through systems, employees and organizational
procedures (Kaplan and Norton, 1996).
Method: Analytic hierarchy process (AHP)
AHP, proposed by Saaty in the 1970’s, is designed to structure a decision
process in a scenario affected by independent factors (Saaty, 1980). AHP allows
factors to be compared, with the importance of individual factors being relative to
their effect on the problem solution. Priorities are established using pairwise
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