Please place all stuff along back wall.

1

• Please place all stuff along back wall.
• Please bring a writing utensil and a pad of
  paper.
• Please sit with your teams such that one person
  is in the front row, one person is directly
  behind that person in the second row, etc.

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6 Customer Needs

• Please escort me into the hall.
• Please write down your customer needs.

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5 List of Features

• 6, please pass your description to 5.
• 5, please draft a list of features.

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4 - Drawing

• 5, please pass the list of features to 4 do
  not pass the customer needs
• 4, please create a drawing to illustrate the
  features.

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3 - Prototype

• 4, please pass the drawing to 3 do not pass
  the list of features.
• 3, please create a prototype from the drawing.

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2 Mass Production

• 3, please pass the prototype to 2 do not
  pass the drawing.
• 2, replicating the prototype, please produce as
  many units as needed.

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1 Sell to Customer

• 2, please pass the completed designs to 1 do
  not pass the original prototype.
• 1, please create an advertisement to sell the
  product to me, your customer. Please be sure to
  include how many units you have for sale.

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Customer Needs

• Three paper fans
• With at least one fringed edge
• Must have a handle

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Over-the-wall Engineering
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Concurrent Engineering
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Concurrent Engineering

• Please sit in a circle with your group.
• I want two paper hats with fringed edges, but I
  do not want it to have a pointy end.
• Complete
• List of customer needs
• Device features
• Drawing
• Prototype
• Mass production
• Advertisement

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12
Market Entry
13
Overview

• Concurrent versus over-the-wall
• Core Competence
• Continuous versus discontinuous innovation
• Dominant design
• Acceptability
• Adaptability
• Market entry
• Barriers
• First to market
• Late to market

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Concurrent vs. Over-the-wall

• Time
• Allocation of resources
• Customer needs
• Management
• Quality control

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Core Competence

• Primary area of specialization
• Knowledge acquisition
• Collective learning
• Coordination of skills and technology
• Example Radiator Company
• Brazing of aluminum

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Test for Core Competence

• Providing access to a wide variety of markets
• Adding to the benefits of the end product as
  viewed by the customer
• Discouraging imitation by competitors

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Continuous vs. Discontinuous Innovation
Dis
in
con
Continuous Innovation
nov
a
ous
tin
u
tion
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Continuous Innovation

• Create features and refinements to their end
  state products
• Make new products that enhance their existing
  product line
• Improve their production process

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Discontinuous Innovation

• New products / service
• New knowledge
• Customers future needs

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Dominant Design

• Standard model
• Perception
• Function
• Cost

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Acceptability

• Functional performance
• Acquisition cost
• Ease-of-use characteristics
• Operating cost
• Reliability
• Serviceability
• Compatibility

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Adaptability

• Learning by using
• Network externalities
• Scale economics in production
• Information increasing returns
• Technological interrelatedness

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Market Entry 8 Factors for Success

1. Having a high performance-to-cost ratio
2. Coordinating and interfacing the creation,
   making, and marketing functions
3. Providing a high contribution margin
4. Benefiting existing technology and market
   strengths
5. Allocating resources for marketing and promoting
   the product
6. Planning and coordinating research and
   development
7. Supporting all stages of product design
8. Entering into the market at an early stage

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Early versus Late Entry

• Early
• Customer loyalty
• Set price
• Discourage competition
• Set learning curve
• Patents

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Early versus Late Entry

• Late Entry
• Imitate
• No worries for adaptability or acceptability
• Less research and development cost
• Generic brand medicine

26
Conclusion

• Concurrent versus over-the-wall
• Core Competence
• Continuous versus discontinuous innovation
• Dominant design
• Acceptability
• Adaptability
• Market entry
• Barriers
• First to market
• Late to market

27
Questions