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RESEARCH ARTICLE
On Prognosis of Forecast Technique of Replacement of Old Products (Innovative
Technologies) by New Products (Innovative Technologies)
E. L. Pankratov1,2
1
Department of Mathematical and Natural Sciences, Nizhny Novgorod State University, 23 Gagarin Avenue,
Nizhny Novgorod, 603950, Russia, 2
Department of Higher Mathematics, Nizhny Novgorod State Technical
University, 24 Minin Street, Nizhny Novgorod, 603950, Russia
Received: 27-10-2019; Revised: 25-11-2019; Accepted: 05-01-2020
ABSTRACT
In this paper, the prognosis and analysis of the process of the replacement of new lines of innovative
products must take into account the capacity of the market, the possible demand for different versions
of the product, the presence in the market of competing products – analogs, the proximity of the market
to saturation, etc. In this paper, an approach of analysis of the replacement of new lines of innovative
products (innovative technologies), recommendations for replacement of line of old products on line of
new products (innovative technologies) has been introduced.
Key words: Analytical approach for analysis, model for prognosis, replacement of new lines of
innovative products
INTRODUCTION
In modern economic theory, scientific and
technological progress is considered as one of the
relevant factors of long-term economic growth.
The impact of scientific and technological
progress on a particular sector of the economy
is manifested in the creation of new products
that have important competitive advantages
over existing ones or in the modification
(modernization) of already produced products.
Often, new products are based on new (innovative)
technologies. However, technological superiority
requires timely modernization of production and
training of personnel, that is, significant financial
and organizational investments. At the same time,
the abandonment of the transition to innovative
technologies can lead to tangible losses of market
positions or even to a complete cessation of
activities.Atpresent,oneoftheimportantexamples
of markets characterized by the displacement of
some products by others, more attractive from
a technological point of view, is the market of
information and telecommunication technologies
Address for correspondence:
E. L. Pankratov
E-mail: elp2004@mail.ru
(market of data transmission services). Most data
service providers are now faced with the question
of the degree of market saturation and prospects
for its development; this question is also relevant
in the light of the emergence of new mobile data
technologies, etc.[1-9]
The aim of this work is to formulate and analyze
the model of the dynamics of the replacement of
new lines of innovative technologies, taking into
account the capacity of the market, the possible
demand for various products, the presence of
competing products on the market, the proximity
of the market to saturation, etc.
METHOD OF SOLUTION
In this work, to analyze the change of generations
of innovative technologies, we adapt the model of
Lottky-Volterra.[10,11]
d N t
d t
r
K
N t
r
N t N t
d N t
d t
r
K
1
1
1
1
1
1
2 1
2
2
2
1
1
1
1
( ) = − ( )− ( )





 ( )
( ) = −

N
N t
r
N t N t
2
2
2
1 2
( )− ( )





 ( )








 (1)
Where, K1
and K2
are the market capacity for
the number of two products: N1
(t) and N2
(t),
ISSN 2581-3463
Pankratov: On prognosis of replacement of line products
AJMS/Jan-Mar-2020/Vol 4/Issue 1 12
respectively; r1
and r2
are the coefficients of
growth of the quantity of products; g1
and g2
are
the characteristics of competition between two
products. Initial conditions for the functions N1
(t)
and N2
(t) could be written as
		 ( ) ˆ
0 =
i i
N N . (2)
To simplify of analysis of the considered of
replacement of new line of products let us
transform the Equation (1) to the following form
d N t
d t
r N t
r
K
N t
r
K
N t N t
d N t
d t
r N t
1
1 1
1
1
1
2 1 1
1
1 2
2
2 2
( ) = ( )− ( )− ( ) ( )
( ) =

(
( )− ( )− ( ) ( )







r
K
N t
r
K
N t N t
2
2
2
2 2 2
2
1 2


(1a)
where αi
=γi
Ki
/ri
. Farther, we will determine the
solution of the above system of equations as the
following power series
		N t N t
i i
j
ij
j
( ) = ( )
=
∞
∑
0
, i =1 or 2. (3)
Substitution of these series into Equation (1a) at
both values of number of products i (i=1 or 2)
gives a possibility to obtain following equations
for the functions Nij
(t)
	
d N t
d t
r N t
K
N t
d N t
d t
r N t
K
10
1 10
1
10
2
20
2 20
2
1
1
( ) = ( )− ( )






( ) = ( )−
,
N
N t
20
2
( )






;(1b)
d N t
d t
r N t
N t
K
r
K
N t N t
d N t
11
1 11
10
1
1
1
10 20
21
1 2
2
( ) = ( ) −
( )





 − ( ) ( )
(
( ) = ( ) −
( )





 − ( ) ( )
d t
r N t
N t
K
r
K
N t N t
2 21
20
2
2
2
10 20
1 2
2
;	
(1c)
d N t
d t
r N t r N t
r
K
N t N t
r
K
N t
12
1 12 1 12
2
1
1
10 12
1
1
11
2 2
( ) = ( )− ( )
− ( ) ( )− ( )N
N t
d N t
d t
r N t r N t
r
K
N t N t
r
K
20
22
2 22 2 22
2
2
2
20 22
2
2 2
( )
( ) = ( )− ( )
− ( ) ( )−
2
2
21 10
N t N t
( ) ( )
; (1d)
Initial conditions for the functions Nij
(t) could be
written as: ( )
0
ˆ
0 =
i i
N N ; Nij
(0) = 0, i ≥1, j ≥1.
Solution of the above equations by standard
approaches[12]
gives the following result
	
( )
( )
1
1
2
2
1 1
10
1 1 1 1
2 2
20
2 2 2 2
ˆ
,
ˆ ˆ
ˆ
ˆ ˆ
=
− +
=
− +
rt
rt
r t
r t
K N e
N t
K N e N K
K N e
N t
K N e N K ;(4a)
N t
r
K
N
K
r d
N N
t
11
1
1
10
1
1
0
10 20
2
2 1
( ) =
( ) −












( ) ( )
∫
exp

 
  e
exp
exp
2 1
2
2
10
1
1
0
0
21
2
2
2
N u
K
ru d u d
N t
r
K
N
t
( ) −












( ) =
∫
∫


0
0
1
2
0
10 20
20
2
1
2 1

 
 
( ) −












( ) ( )
( ) −



∫ K
r d
N N
N u
K
t
exp










∫
∫ r u d u d
t
2
0
0

 ;
(4b)
N t
K
N t r
K
N t N t
K
N t
12
1
10 1
1
11 20
1
10
2
1 1
2
8
1
2
( ) = ( )− −
( ) ( )
− − ( )





















×
( ) ( )− − ( )










tg
t r
K
N t N t
K
N t
1
1
11 20
1
10
2
2
8
1
2







(4c)
N t
K
N t r
K
N t N t
K
N t
22
2
20 2
2
21 10
2
20
2
1 1
2
8
1
2
( ) = ( )− −
( ) ( )
− − ( )





















×
( ) ( )− − ( )










tg
t r
K
N t N t
K
N t
2
2
21 10
2
20
2
2
8
1
2







In this paper, these required quantities of products
N1
(t) and N2
(t) framework the considered
approach. The approach is usually enough good
approximation to obtain to make qualitative
analysis and obtain some quantitative results. The
Pankratov: On prognosis of replacement of line products
AJMS/Jan-Mar-2020/Vol 4/Issue 1 13
results of analytical calculation have been checked
by comparison with the results of numerical
simulation.
DISCUSSION
In this section, we will analyze the dynamics of
the replacement of lines change of innovative
technologies depending on the market parameters
(market capacity, possible demand for various
products, etc.). Figure 1 shows the dependence
of the quantity of the products on time at various
values of the market capacity. The increasing of
the curve numbers corresponds to the increasing
of market capacity. From this figure, it follows
that the decrease in market capacity leads to
a more rapid saturation with an increase in
the number of products. Figure 2 presents the
dependence of the quantity of products on time at
different values of its initial quantity. Increasing
of curve number corresponds to the increasing
of the initial quantity of products, which leads to
an increasing of initial quantity of products with
an earlier achievement of the saturation of the
market. Figure 3 illustrates the dependence of the
quantity of product on time at different values of
the growth factor of its quantity. The increasing
of number of the curve corresponds to the
increase in the value of the growth factor of the
number of goods. From Figure 3, it follows that
an increase in the value of the growth factor of
the number of product leads to an increase in the
number of product with an earlier achievement
of the saturation of the market. Figure 4 shows
that dependence of the quantity of products on
Figure 1: Dependence of quantity of product on time for
different values of market capacity. The increase in the curve
number corresponds to the increase in market capacity
Figure 2: Dependence of the quantity of product on at
different values of its initial quantity. Increasing of curve
number corresponds to increasing of initial quantity of the
product
Figure 3: Dependence of quantity of product on time at
different values of the coefficients of the growth in the number
of product. The increasing of curve number corresponds to the
increasing of growth coefficients of the quantity of product
Figure 4: Dependence of quantity of product on time at
different values of the characteristics of its competition
with another product. The increasing of curve number
corresponds to the increasing of values of the characteristics
of the competition of the product with another product
Pankratov: On prognosis of replacement of line products
AJMS/Jan-Mar-2020/Vol 4/Issue 1 14
time at various values of the characteristic of its
competition with other products is presented.
The increasing of curve number corresponds to
the increasing of the value of the characteristics
of the competition of the considered product
in comparison with another product. From
this figure, it follows that an increase in the
competition of the considered product with other
products can lead to a decreasing of product in a
market. At the same time, the opposite effect is
possible, which leads to a change in the values of
the corresponding product.
CONCLUSIONS
In this paper, we introduce an analytical approach
for analysis of the replacement line of product
process. Using the approach, we analyzed the
dependence of the above process on different
parameters.
REFERENCES
1.	 Mandal S. The influence of organizational culture on
healthcare supply chain resilience: Moderating role of
technology orientation. J Bus Ind Mark 2017;32:1021-37.
2.	 Peng X, Cai L, Lu S, Cai Y, Gao Y. Optimal liquidity
management and hedging in the presence of a
nonpredictable investment opportunity. Int J Innov
Manag 2016;20:1650011-3.
3.	 Ple L, Lecocq X. Customers as creative resources: Their
influence on firm freedom. J Bus Strategy 2015;36:11-22.
4.	 Lynette JR, Iain AD. Where’s the strategic intent in key
account relationships. J Bus Ind Mark 2013;28:111-24.
5.	 Thurner TW. Transfer revenues of research and
technology organizations (RTOs) in times of economic
crisis. Int J Innov Manag 2017;21:1750017.
6.	 Liu Y, Shi Y. Factors influencing innovation and
industrial performance in Chinese manufacturing
industry. Int J Innov Manag 2017;21:1750040.
7.	 Wu CW, Hung WZ. Real national income average
growth rate: A novel economic growth and social fair
evaluation index. Econ Res Int 2010;2010:678927.
8.	 Yaghoubi R, Yaghoubi M, Locke S, Gibb J. Mergers
and acquisitions: A review (Part 2). Stud Econ Finance
2015;33:437-64.
9.	 Prat J. Dynamic contracts and learning by doing. Math
Financ Econ 2015;9:169-93.
10.	 Peschel M, Mende W. The Predator- Prey Model: Do
We Live in a Vorterra World? Wien, NY: Springer-
Verlag; 1986.
11.	 Svirezhev YM. Nonlinearities in mathematical ecology:
Phenomena and models. Would we live in Volterra’s
world? Ecol Model 2008;216:89-101.
12.	 Korn G, Korn T. Definitions, theorems and formulas for
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On Prognosis of Forecast Technique of Replacement of Old Products (Innovative Technologies) by New Products (Innovative Technologies)

  • 1. www.ajms.com 11 RESEARCH ARTICLE On Prognosis of Forecast Technique of Replacement of Old Products (Innovative Technologies) by New Products (Innovative Technologies) E. L. Pankratov1,2 1 Department of Mathematical and Natural Sciences, Nizhny Novgorod State University, 23 Gagarin Avenue, Nizhny Novgorod, 603950, Russia, 2 Department of Higher Mathematics, Nizhny Novgorod State Technical University, 24 Minin Street, Nizhny Novgorod, 603950, Russia Received: 27-10-2019; Revised: 25-11-2019; Accepted: 05-01-2020 ABSTRACT In this paper, the prognosis and analysis of the process of the replacement of new lines of innovative products must take into account the capacity of the market, the possible demand for different versions of the product, the presence in the market of competing products – analogs, the proximity of the market to saturation, etc. In this paper, an approach of analysis of the replacement of new lines of innovative products (innovative technologies), recommendations for replacement of line of old products on line of new products (innovative technologies) has been introduced. Key words: Analytical approach for analysis, model for prognosis, replacement of new lines of innovative products INTRODUCTION In modern economic theory, scientific and technological progress is considered as one of the relevant factors of long-term economic growth. The impact of scientific and technological progress on a particular sector of the economy is manifested in the creation of new products that have important competitive advantages over existing ones or in the modification (modernization) of already produced products. Often, new products are based on new (innovative) technologies. However, technological superiority requires timely modernization of production and training of personnel, that is, significant financial and organizational investments. At the same time, the abandonment of the transition to innovative technologies can lead to tangible losses of market positions or even to a complete cessation of activities.Atpresent,oneoftheimportantexamples of markets characterized by the displacement of some products by others, more attractive from a technological point of view, is the market of information and telecommunication technologies Address for correspondence: E. L. Pankratov E-mail: elp2004@mail.ru (market of data transmission services). Most data service providers are now faced with the question of the degree of market saturation and prospects for its development; this question is also relevant in the light of the emergence of new mobile data technologies, etc.[1-9] The aim of this work is to formulate and analyze the model of the dynamics of the replacement of new lines of innovative technologies, taking into account the capacity of the market, the possible demand for various products, the presence of competing products on the market, the proximity of the market to saturation, etc. METHOD OF SOLUTION In this work, to analyze the change of generations of innovative technologies, we adapt the model of Lottky-Volterra.[10,11] d N t d t r K N t r N t N t d N t d t r K 1 1 1 1 1 1 2 1 2 2 2 1 1 1 1 ( ) = − ( )− ( )       ( ) ( ) = −  N N t r N t N t 2 2 2 1 2 ( )− ( )       ( )         (1) Where, K1 and K2 are the market capacity for the number of two products: N1 (t) and N2 (t), ISSN 2581-3463
  • 2. Pankratov: On prognosis of replacement of line products AJMS/Jan-Mar-2020/Vol 4/Issue 1 12 respectively; r1 and r2 are the coefficients of growth of the quantity of products; g1 and g2 are the characteristics of competition between two products. Initial conditions for the functions N1 (t) and N2 (t) could be written as ( ) ˆ 0 = i i N N . (2) To simplify of analysis of the considered of replacement of new line of products let us transform the Equation (1) to the following form d N t d t r N t r K N t r K N t N t d N t d t r N t 1 1 1 1 1 1 2 1 1 1 1 2 2 2 2 ( ) = ( )− ( )− ( ) ( ) ( ) =  ( ( )− ( )− ( ) ( )        r K N t r K N t N t 2 2 2 2 2 2 2 1 2  (1a) where αi =γi Ki /ri . Farther, we will determine the solution of the above system of equations as the following power series N t N t i i j ij j ( ) = ( ) = ∞ ∑ 0 , i =1 or 2. (3) Substitution of these series into Equation (1a) at both values of number of products i (i=1 or 2) gives a possibility to obtain following equations for the functions Nij (t) d N t d t r N t K N t d N t d t r N t K 10 1 10 1 10 2 20 2 20 2 1 1 ( ) = ( )− ( )       ( ) = ( )− , N N t 20 2 ( )       ;(1b) d N t d t r N t N t K r K N t N t d N t 11 1 11 10 1 1 1 10 20 21 1 2 2 ( ) = ( ) − ( )       − ( ) ( ) ( ( ) = ( ) − ( )       − ( ) ( ) d t r N t N t K r K N t N t 2 21 20 2 2 2 10 20 1 2 2 ; (1c) d N t d t r N t r N t r K N t N t r K N t 12 1 12 1 12 2 1 1 10 12 1 1 11 2 2 ( ) = ( )− ( ) − ( ) ( )− ( )N N t d N t d t r N t r N t r K N t N t r K 20 22 2 22 2 22 2 2 2 20 22 2 2 2 ( ) ( ) = ( )− ( ) − ( ) ( )− 2 2 21 10 N t N t ( ) ( ) ; (1d) Initial conditions for the functions Nij (t) could be written as: ( ) 0 ˆ 0 = i i N N ; Nij (0) = 0, i ≥1, j ≥1. Solution of the above equations by standard approaches[12] gives the following result ( ) ( ) 1 1 2 2 1 1 10 1 1 1 1 2 2 20 2 2 2 2 ˆ , ˆ ˆ ˆ ˆ ˆ = − + = − + rt rt r t r t K N e N t K N e N K K N e N t K N e N K ;(4a) N t r K N K r d N N t 11 1 1 10 1 1 0 10 20 2 2 1 ( ) = ( ) −             ( ) ( ) ∫ exp      e exp exp 2 1 2 2 10 1 1 0 0 21 2 2 2 N u K ru d u d N t r K N t ( ) −             ( ) = ∫ ∫   0 0 1 2 0 10 20 20 2 1 2 1      ( ) −             ( ) ( ) ( ) −    ∫ K r d N N N u K t exp           ∫ ∫ r u d u d t 2 0 0   ; (4b) N t K N t r K N t N t K N t 12 1 10 1 1 11 20 1 10 2 1 1 2 8 1 2 ( ) = ( )− − ( ) ( ) − − ( )                      × ( ) ( )− − ( )           tg t r K N t N t K N t 1 1 11 20 1 10 2 2 8 1 2        (4c) N t K N t r K N t N t K N t 22 2 20 2 2 21 10 2 20 2 1 1 2 8 1 2 ( ) = ( )− − ( ) ( ) − − ( )                      × ( ) ( )− − ( )           tg t r K N t N t K N t 2 2 21 10 2 20 2 2 8 1 2        In this paper, these required quantities of products N1 (t) and N2 (t) framework the considered approach. The approach is usually enough good approximation to obtain to make qualitative analysis and obtain some quantitative results. The
  • 3. Pankratov: On prognosis of replacement of line products AJMS/Jan-Mar-2020/Vol 4/Issue 1 13 results of analytical calculation have been checked by comparison with the results of numerical simulation. DISCUSSION In this section, we will analyze the dynamics of the replacement of lines change of innovative technologies depending on the market parameters (market capacity, possible demand for various products, etc.). Figure 1 shows the dependence of the quantity of the products on time at various values of the market capacity. The increasing of the curve numbers corresponds to the increasing of market capacity. From this figure, it follows that the decrease in market capacity leads to a more rapid saturation with an increase in the number of products. Figure 2 presents the dependence of the quantity of products on time at different values of its initial quantity. Increasing of curve number corresponds to the increasing of the initial quantity of products, which leads to an increasing of initial quantity of products with an earlier achievement of the saturation of the market. Figure 3 illustrates the dependence of the quantity of product on time at different values of the growth factor of its quantity. The increasing of number of the curve corresponds to the increase in the value of the growth factor of the number of goods. From Figure 3, it follows that an increase in the value of the growth factor of the number of product leads to an increase in the number of product with an earlier achievement of the saturation of the market. Figure 4 shows that dependence of the quantity of products on Figure 1: Dependence of quantity of product on time for different values of market capacity. The increase in the curve number corresponds to the increase in market capacity Figure 2: Dependence of the quantity of product on at different values of its initial quantity. Increasing of curve number corresponds to increasing of initial quantity of the product Figure 3: Dependence of quantity of product on time at different values of the coefficients of the growth in the number of product. The increasing of curve number corresponds to the increasing of growth coefficients of the quantity of product Figure 4: Dependence of quantity of product on time at different values of the characteristics of its competition with another product. The increasing of curve number corresponds to the increasing of values of the characteristics of the competition of the product with another product
  • 4. Pankratov: On prognosis of replacement of line products AJMS/Jan-Mar-2020/Vol 4/Issue 1 14 time at various values of the characteristic of its competition with other products is presented. The increasing of curve number corresponds to the increasing of the value of the characteristics of the competition of the considered product in comparison with another product. From this figure, it follows that an increase in the competition of the considered product with other products can lead to a decreasing of product in a market. At the same time, the opposite effect is possible, which leads to a change in the values of the corresponding product. CONCLUSIONS In this paper, we introduce an analytical approach for analysis of the replacement line of product process. Using the approach, we analyzed the dependence of the above process on different parameters. REFERENCES 1. Mandal S. The influence of organizational culture on healthcare supply chain resilience: Moderating role of technology orientation. J Bus Ind Mark 2017;32:1021-37. 2. Peng X, Cai L, Lu S, Cai Y, Gao Y. Optimal liquidity management and hedging in the presence of a nonpredictable investment opportunity. Int J Innov Manag 2016;20:1650011-3. 3. Ple L, Lecocq X. Customers as creative resources: Their influence on firm freedom. J Bus Strategy 2015;36:11-22. 4. Lynette JR, Iain AD. Where’s the strategic intent in key account relationships. J Bus Ind Mark 2013;28:111-24. 5. Thurner TW. Transfer revenues of research and technology organizations (RTOs) in times of economic crisis. Int J Innov Manag 2017;21:1750017. 6. Liu Y, Shi Y. Factors influencing innovation and industrial performance in Chinese manufacturing industry. Int J Innov Manag 2017;21:1750040. 7. Wu CW, Hung WZ. Real national income average growth rate: A novel economic growth and social fair evaluation index. Econ Res Int 2010;2010:678927. 8. Yaghoubi R, Yaghoubi M, Locke S, Gibb J. Mergers and acquisitions: A review (Part 2). Stud Econ Finance 2015;33:437-64. 9. Prat J. Dynamic contracts and learning by doing. Math Financ Econ 2015;9:169-93. 10. Peschel M, Mende W. The Predator- Prey Model: Do We Live in a Vorterra World? Wien, NY: Springer- Verlag; 1986. 11. Svirezhev YM. Nonlinearities in mathematical ecology: Phenomena and models. Would we live in Volterra’s world? Ecol Model 2008;216:89-101. 12. Korn G, Korn T. Definitions, theorems and formulas for reference and review. In: Mathematical Handbook for Scientists and Engineers. 2nd  ed. New York: McGraw- Hill Book Company; 1968.