In this article, we focus on the firmware development process that has recently become larger and more complex in the context of digitalization. From a case study involving the development of the firmware for a digital multifunction peripheral (MFP), the firmware architecture have changed alongside the change in organizational structure. As a result, some suggestions are made for the generation and selection process of a product architecture suitable for multi-functionalization, as well as for the ideal form of interdepartmental coordination in an organization. Moreover, the limits of the existing arguments about the development of product architecture are revealed and a new viewpoint is proposed to investigate the dynamics of product architecture.

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This research proposes a model to analyze individual customer preferences using purchase records such as Point-of-Sales (POS) data. To some extent, we can identify the interests of customers from their demographics. Consumers are, however, essentially heterogeneous. It is difficult to determine individual customer behavior in detail through aggregate-level estimation. In this paper, we use a Markov chain Monte Carlo (MCMC) method to construct a hierarchical model for tackling this problem. The model encompasses both “commonality" and “heterogeneity." We apply this MCMC method to the music CD market, where customers have some commonalities although they are heterogeneous. This empirical analysis shows that a hierarchical Bayes (HB) model has a high predictive performance as compared to the naïve forecasting and aggregate-level models.

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This paper discusses a case study of the project management of online content, namely, an online game. For the analysis, the paper presents the patterns of management approach adopted by analyzing a successful case of the development of an online game called “FreeStyle," created by JC Entertainment (JCE). The analysis results reveal that two variables, namely, the CEO's indirect management of the development team and the strong intrinsic teamwork among the development team members, influenced the developers' performance. Finally, the paper illustrates four patterns based on the two aforementioned variables. The pattern of the development project moved from “direct management-low intrinsic teamwork" to “indirect management-high intrinsic teamwork." Due to the pattern change, JCE achieved a high development performance.

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