Applied Mathematics & Information Sciences

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Objective: The purpose of this paper is to develop the simulation model for evaluating business values of new BM adopting new R&D technologies using pattern analysis. Method: Through the pattern analysis, the cost-based pricing and price elasticity of demand, this paper proposes the methods for evaluating business value of new R&D and how it can change the existing market Conclusions: The simulation model consisted of four modules, such as 1) calculate the quantity of sales, 2) predict the price according to cost-based pricing, 3) calculate the cost and 4) analyse the changes of the traditional market based on the formula of price. Finally, based on the modules, this conducted the simulation model, where control variables are the pattern of the growth rate and the price.Based on the above equation, this paper develops a simulation model and adapts it to a Korean service company.

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