Information Acceleration: Validation and Lessons from the Field

The more really new a product is, the more difficult it is to predict consumer response. However, accurate forecasting of really new products is an essential element in a firms innovation strategy. Therefore many leading firms are experimenting with the use of multimedia computers to present information to consumers so that these customers can react to a really new product as if it were now in the market of the future. We explore two aspects of best practice in this area of forecasting by examining the validity of a new multimedia forecasting methodology called information acceleration (IA) and lessons learned from eight real-world new-product applications of the methodology. We report two internal validations and one external validation of new product sales forecasts based upon IA. The internal validation for a new automobile suggests that a computer-simulation of an automobile showroom provides forecasts that are not significantly different from those obtained based on a physical showroom. The internal