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Extracting Value from Learning Curves: Integrating Theory and Practice
Author(s) -
Linton Jonathan D.,
Walsh Steven T.
Publication year - 2013
Publication title -
creativity and innovation management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.148
H-Index - 60
eISSN - 1467-8691
pISSN - 0963-1690
DOI - 10.1111/caim.12013
Subject(s) - learning curve , simplicity , exploit , computer science , simple (philosophy) , value (mathematics) , industrial engineering , data science , management science , econometrics , economics , machine learning , engineering , philosophy , computer security , epistemology , operating system
Learning curves are used as management metrics in many industrial settings. However, their apparent simplicity masks the tremendous number of changes and opportunities that are summarized by this apparently simple exponential relationship. Through exploration of these underlying opportunities, practitioners are able to better identify and exploit opportunities. By integrating learning curve theory to include design, supply chain and life cycle management to a framework illustrating the complex series of events that comprise the seemingly parsimonious learning curve, it is possible to better see how learning curves reduce cost, expand existing markets and create new markets. Illustrations are used to assist practitioners in taking economic advantage of the theoretical contributions offered in this framework.