Development Innovations Resources
Many studies have suggested that product innovations are soon followed by process innovations
in what they describe as an industry innovation cycle. It is common to associate which type of
change with physical change, but many changes introduced inside the organisation involve very
little physical change. Rather, it is the activities that are performed by the individuals that change.
Abernathy and Utterback (1978) suggested that product innovations are soon followed by
process innovations in what they describe as an industry innovation cycle. Product innovations
are launched by large companies with substantial resources, especially technical or marketing
resources. Other large firms react swiftly to the launch of such a product by developing their own
versions. For e.g. Matsushita comes up with a copy of most of Sony's innovative product within six months of their launching.
Dyson fell pray to this process and started an industry innovation cycle with many companies
trying to imitate its style of vacuum cleaner. The innovation cycle intensified the competition in
the market and Dyson has been challenged by the low cost competition. The result is Dyson's
effort to reduce the costs in order to substantiate the profit margins by shifting the manufacturing
plant from the UK to Malaysia to keep the profit margins intact.
Where does the information will come from?
The London transport incident information is provided by a variety of sources, but the main
source of information will come from the network controller system. The network controller is a
very sophisticated box equipped with a GPS and many different types of sensors.
- A sensor to analyze how many people are in the bus at a time. Like that you know before to go there is a high possibility you get into the bus.
- A sensor wich monitored the enplacement of the bus on a real time map. Like that you know where is the bus all the time.
Deciding on whether or not to introduce a new product into a new or existing market is like playing with a double-edged sword. There are many possible ways to look at the situation and whether or not it is a worthwhile activity. Market and competitor analyses are two very important factors when making this critical decision. We found off hand that the more competitive and unstable the market is, the less worthwhile it is entering a new product there. Probably the most important decision that has to be made is the conception of the new product. It was discovered that creating a new product specifically tailored for a market is the best way to enter a new product. Utilizing preference testing to find out what volume of attributes are most preferred along with conjoint analysis to discover the relative importance of each attribute is what has to be used when deciding on how your new vaporware product is going to look. Ensuring that the product does not infringe upon others patent zones is equally important, as this avoidable mistake could prove costly. There are various trade-offs when deciding how to compose a new product. In order to keep costs low and stay away from stepping in another firms' patent zones , one may want to cut a few costs, with a huge cost saver being reducing the warranty and compatibility, especially if the relative importance of that specific attribute within that specific targeted market is not considered important. In the end, having a conducive product which meets the needs of the consumer is the bottom line when taking all new product decision variables into consideration.
Introduction of a new product can be quite costly. A wise firm would initially do some prior research as to what activities are taking place within the particular targeted region, including industry growth and potential and other product formulations by competing firms. A firm would not be wise as to introduce a new product into an already over saturated or weak market. Reformulation bids are another testy item which requires intense scrutiny. Using some applicable aspects of game theory, one must anticipate what the competitors are doing in the particular targeted region, as a high Reformulation may be a complete waste of expense. This is where some calculated risk must be made. Introduction of a new product also experiences other divisional expenses which may add up, including the hiring of a sales force. Careful capacity planning should be done ahead of time so in the best possible scenario, a company will have enough capacity to produce all future ordered. In the worst possible scenario, full capacity will not be utilized and it can be sold to recover some of the capacity adding expenses incurred. Capacity planning is a touchy subject which quite frankly requires accurate long term forecasting in order for it to be cost efficient. At times, with the introduction of a new product, some short term pain must be experienced. Quite often, due to the lack of experience curve savings and presence of substantial smoothing effects, the initial cost of the product may be enormous and profit margins may be slim. Along with reformulation, sales force, initial intensive advertising and promotion expenses, there may stand to be little profit gained during an introduction. Negative profits during introduction are not a rare occurrence and a company should not be afraid to experience this. Do not worry, things will probably get better.
There are a few more tips a firm can use in order to have a successful introduction of a new product. Our firm found that initial large expenditures in advertising during the roll-out of the new product is necessary for creating awareness of the product. From our advertising experiments we found that spending more money will always increase awareness of a product. If people like this new product, they will buy it. Increasing incentives for the sales force to work harder on selling the product is another feasible technique, such as increasing sales commission or salary. Dealers can initially be pushed to carry the product by providing temporary rebates. One must remember not to give these rebates for too long of a time or they will lose their effectiveness. A firm newly introducing a product must be brave and not scared to lose a bit of money during the first small stretch of existence and should not compromise their price at the expense of generating increased initial sales as this could be detrimental for long term profit. The last very important factor which should be taken into consideration is whether or not the product should be introduced into one or several markets
Ansoff's Matrix
Another person who has developed this theory further, by outlining a product-market mix, is Igor Ansoff. Ansoff's Matrix looks not just at the management of a product portfolio but also widely at market developments and opportunities. The Matrix matches existing and new product strategies with existing and new markets.
This is an example of an Ansoff's product-market matrix.
The Matrix suggests five alternative marketing strategies that hinge upon whether the product is new or existing and whether the market is new or existing.
The five strategies are as follows:
- Consolidation - implies a positive and active defence of existing products in existing markets.
- Market Penetration - suggests a further penetration of existing markets with existing products. This will involve a strategy of increasing market share within existing segments and markets.
- Product Development - involves developing new products for existing markets.
- Market Development - entails using existing products and finding new markets for these. Better targeting, market research and further segmentation will identify these new markets.
- Diversification - will lead to a move away from core activities. This might involve some form of integration of production into related activities.
Getting the product right is all about making sure it satisfies customers' needs or wants and can be produced and delivered at a profit. There are lots ways in which I can make my product different and appealing. The sort of factors that are considered are:
- Does it look right?
- Does it feel right?
- How well does it do the job?
- What special features does it have?
- Is it attractive?
- How reliable is it?
- Does it meet the expectation of the target market in terms of quality and value for money?
What is a Patent?
A patent for an invention is a grant of a property right by the Government to the inventor (or his or her heirs or assigns), acting through the Patent and Trademark Office. The term of the patent shall be 20 years from the date on which the application for the patent was filed The right conferred by the patent grant is, in the language of the statute and of the grant itself, “the right to exclude others from making, using, offering for sale, or selling” the invention in the UK or “importing” the invention into the UK . What is granted is not the right to make, use, offer for sale, sell or import, but the right to exclude others from making, using, offering for sale, selling or importing the invention. Some persons occasionally confuse patents, copyrights, and trademarks. Although there may be some resemblance in the rights of these three kinds of intellectual property, they are different and serve different purposes.
Copyrights
A copyright protects the writings of an author against copying. Literary, dramatic, musical and artistic works are included within the protection of the copyright law, which in some instances also confers performing and recording rights. The copyright protects the form of expression rather than to the subject matter of the writing. A description of a machine could be copyrighted as a writing, but this would only prevent others from copying the description; it would not prevent others from writing a description of their own or from making and using the machine
Trademarks/Servicemarks
A trademark or servicemark relates to any word, name, symbol or device which is used in trade with goods or services to indicate the source or origin of the goods or services and to distinguish them from the goods or services of others. Trademark rights may be used to prevent others from using a confusingly similar mark but not to prevent others from making the same goods or from selling them under a non-confusing mark. Similar rights may be acquired in marks used in the sale or advertising of services (service marks). Trademarks and service marks which are used in interstate or foreign commerce may be registered in the Patent and Trademark Office.
I believe the appropriate method of protection for our product is the patent, because it offer the best protection against counterfeiting and piracy.
How much does it cost?
The normal total payable to the patent office to process is GBP £200
- GBP £30 application fee for a preliminary examination
- GBP £100 for a search
- GBP £70 for a substantive examination
Timeline
A typical patent application takes 2 to 3 years to grant, there is a maximum time limit of 4 years from the applications earliest date.
What a customer may want from a service?
Reliability
- The service is consistent, dependable and perhaps backed by guarantees.
Accessibility
- Provided at convenient times and locations with little waiting.
Responsiveness
- The speed and attention given to the customers, needs, request, and problem.
Competence
- The service delivers level of relevant skills and expertise.
Communication
- How well the service do delivers interface with the customer, how accurately and clearly is the service described?
Stress free
- The customer feels welcome when dealing with the provider.
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