A case-based new financial product screening system

Initial screening is one of the most important and difficult processes in new product development. Many new product screening models have been developed in management and marketing. However, practical applications of these models have been limited in part due to their complexity and inflexibility, and in part due to their excessive data requirements. Thus, simple judgment models have been popular in practice. However, these models suffer from inaccuracy and inconsistency originating from human cognitive limitations. In light of the problems with traditional screening methods, a new approach for screening is proposed, based on managers’ past experience and intuitive judgments-screening by analogy, and develop a computerized case-based system for screening new financial service concepts. Using the system, managers can predict the potential performance of a new product concept based on the performance of past products that are similar to it in terms of product characteristics, firm’s resources, and market conditions. Based on this prediction, managers make a screening decision.