1380 short essays

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  1. Compare and contrast conjoint analysis vs kano method
    • Both method are used to identify the product attribute to be included in the product by evaluating the satisfaction.
    • Conjoint analysis often uses regression weights to give a quantitative measure of the relative importance of the product attribute while kano method evaluate the satisfaction when the attribute is present and when the attribute is absent.
    • Conjoint anaylsis typically uses factorial design to present all different combinations of product features to potential customers and chooses the best combinations out of them.
    • The kano method categorize the analyzed attribute into must-haves, delighters, linear attributes and indifferent qualities.
    • Another major difference of the methods is that the conjoint analysis assumes a linear relationship between attribute and satisfaction while the kano method does not.
    • Other limitations of the conjoint analysis include: the attributes should be independent, uncertainty about what attribute to be included in the analysis, too much attribute will make the analysis too complex, the respondents should be familiar with the product category. It is better to use the kano method when the number of attributes is large.
  2. Explain the stage gate development process and the advantages of developing an innovation using a stage gate process.
    • The stage gate development process is a decision making tool that restricts investment in the more costly part of the innovation until key milestones have been reached.
    • According to this process there are five development stages: scoping, building business case, development, testing and validation and launch. After each of the first four stage, decision must be made about whether to continue with the product or cancel its development based on the results of the previous stage.
    • If the market has shifted or technology has changed, or when negative feedback is received, the project may be scraped and further investment is restricted.
    • It evaluates the project frequently so as the reduce risk of wrong investment due to no proper feedback of the innovation in a long period.
  3. pros and cons of product platform
    • offer more variety without straining organization efficiency
    • reduce R&D and manufacturing cost
    • reduce product cycle time
    • reduce distinctiveness
    • increase demand for organizational coordination
    • over-design of low end product
  4. When is modularity appropriate
    • The product is not highly integrated
    • customer demand is heterogeneous
    • pace of technological change is rapid
    • technical standard has been established
  5. How does IDEO foster innovation within the
  6. Compare and contrast closed vs open innovation
    • Under closed innovation, companies have to hire the best people to work in the company; however, under open innovation companies work with talents within and outside the company
    • In order to profit from R&D closed companies must discover valuable ideas, develop and market the ideas themselves; they should control out their intellectual property so that their competitors don’t profit from their ideas; open innovation companies believe that they do not have to originate research to profit from it; they will profit if they make good use of internal and external ideas, which may involve licensing external technologies and licensing out internal technologies; external acquisitions and collaboration with research partners; open innovations.For example, the best-sellinng P&G Crest SpinBrush toothbrush did not come from P&G labs, but from entrepreneurs from Cleveland. 
    • if the companies lead the industry in making R&D investment, they will discover the best and the most ideas, be the first to the market and lead the market as well; open innovation companies believe building a good business model is more important than being the first to market
    • Closed innovation is good at ruling out the false positives while open innovation is good at ruling out both the false positives and false negatives.
  7. Identify and explain the factors that are leading to a trend towards open innovation
    • The closed innovation model is challenged and companies are now migrating towards open innovation. There are 3 factors leading to this trend.
    • Firstly there is growing mobility of workers. There are more well-trained university graduates and highly experienced workers. Knowledge is more diffused and no longer limited to any corporation’s walls. Companies can readily find valuable ideas outside the company, such as through licensing agreement, acquisition and collaboration. There is less need to do in-house innovation. For example, Intel gets access to new technologies from interacting with university research centers. Moreover, employees would leave the current companies once they see better opportunities at startups or at other companies. For example, employees left Xerox for startups and companies like Apple and Microsoft. IP of their original companies may leak and the idea of controlling out IP under closed innovation model becomes obsolete.
    • Secondly there is growing venture capitalist. It produces a wider availability of funding to commercialize research that are outside the wall of large companies research centers, turning startups into formidable competitors. For example, Intel Capital is a venture capital arm that invests in promising startups. This facilitates the exit of key engineers of a company to form new company.
    • Lastly the fast time to market of technology undermines the closed innovation model. Companies that do innovation need not be the first to market, which challenge the belief that being the first to market will enable companies to lead the industry under the closed innovation model. Moreover, with the rapid pace of technology the shelf life of a particular technology is becoming shorter.
  8. differentiate between open innovation, lead user innovation and crowd sourcing
    • Open innovation: come from outside the boundary of the company. Eg. licensing in and out, buying startups, collaboration
    • Lead-user innovation: comes from lead user
    • Crowd-sourcing: comes from the crowd(individual/team) that work on specific problems broadcasted by firms
  9. Examples of research collaborations
    Intel; university research centers.

    Merck; multi year collaboration with Amrad
  10. Examples of open innovation

    • P&G; submit ideas online
    • Innocentive signed up scientists for solutions to problems; BASF acquired a new manufacturing process for compound from retired chemical engineer.

  11. Examples of news business out of internal technologies

    Lucent’s New Venture Group; commercialize any Bell Laboratory tech that did not fit with any Lucent’s business

  12. Examples of crowdsouring companies

    • Innocentive, ideaconnection-crowdsources solutions to research problems
    • Threadless-crowdsources the design of t-shirts
    • Xprize

  13. Example of lead user innovation

    • Straps on windsurf board and windsurfers
    • Idea for protein based hair conditioners came from women who rinse hair with home made conditioners containing beer or egg
    • Bose made speakers that can be mounted on walls to give better sound quality. From how users were using speakers

  14. Examples of type 1 leader users(target application market)

    Manufacturer of x-ray equipment; medical radiologist working on medical imaging

  15. Examples of type 2 leader users(similar application in analogous market)

    • Manufacturer of x-ray equipment; engineers in semiconductor industry who look for imaging to find defects
    • Automobile manufacturer looking for innovations on braking; engineers from aircraft industry who have developed brakes(ABS)

  16. Examples of type 3 leader users(with respect to important attribute of problems faced by users in target market)

    Manufacturer of x-ray equipment; sound pattern recognition specialist

  17. How should companies manage the product development process?

    • Managing under time pressure(Vasa)
    • Stage gate development methodology
    • Using prototypes and experimentation (paper airplane)
    • Creating the right environment (IDEOS)

  18. Managing innovation outside the company

    • Open innovation(innocentive)
    • Lead user innovation
    • Crowd-sourcing(threadless)

  19. IDEO’s innovation system
    IDEO’s innovation system creates the right environment for innovation.

    The innovation process of IDEO is vey structured. IDEO first uses anthropology to conduct extensive market research. Then intense brainstorming, called the Deep Dive is carried out. Then the team would vote on ideas and start to build prototypes. The 3R approach, which is Rough, Rapid and Right, is adopted in the prototype-building. Experimentation is encouraged and there are a lot of trial and errors.

    IDEO has a relatively flat organization with little hierarchy. The organizational unit is small as the team is divided into subgroups to facilitate parallel processing. The team is diverse as members come from multiple fields like psychology, marketing, biology etc. The team meets with their clients frequently to obtain feedback on the progress and the prototype. The employee turnover rate is low as the job satisfaction is high. This increase the team coherence and motivation in building an innovative product.

    In terms of culture, the work atmosphere is informal, playful, even messy, but disciplined. The culture is quite democratic. The status of the employee is based on their ideas and there is a high level of trust and respect between team members. Failure is accepted and ideas are shared and learned.

    In terms of management, there is short power distance between members. There are only few titles in IDEO. The leaders are low key and lead by example. They can be simultaneously made fun of and respected. They interfere only at critical stage when focus is needed. Moreover, IDEO has a knowledge management system where no idea is completely rejected. Concepts that did not work are saved so that other people may build on them. All new products are displayed so that the entire organization can benefit from the ideas.
  20. Examples of market pull innovations

    • ATM
    • Budged airlines
    • On-line shopping, eg. Taobao.com
    • Airbags in cars
    • Nintendo Wii

  21. Examples of technology push innovation

    • Telephone
    • x-ray equipment
    • privacy filter

  22. example of ethnography

    • shopping cart
    • Sirius Satellite Radio developed a music player based on how people were listening to music
    • Meters used to observe what viewers are watching on TV

  23. Failures of first to markets

    • Ofoto
    • Friendster
    • Netscape
    • Apple Newton
  24. Different kind(strategies) of first-to-market
    First to upgrade

    clear differentiation over its competitors(from IBM to Compaq after upgrading)

    First to respond to market changes

    Shirt in customer preference, regulation changes(accounting software in compliance with Sarbanes Oxley Act)(ex.)

    First to create the market

    Involve high risk;

    Need to play the role of pioneer and educate customers about the benefits(telephone, plain-paper copying, walkman)<br
  25. Different kind of fast follower
    Wait until a new market is clarified

    More certainty about customer preference

    Cost for educating initial customers is expensive

    Reverse engineer successful competitive products

    Reduce R&D cost and ease market entry; since there is already a successful comparable product in the market
  26. Reassessing building of paper airplane
    Building prototypes

    Try out a design concept

    Saves time and money

    Facilitate learning

    Foster communication

    Tighter integration between R&D, manufacturing and marketing

    Sequential process for new product development; no overlapping; disconnect

    R&D and marketing-opportunities identification and concept development, R&D-product design, manufacturing-process design

    Partly parallel-confusion; uncertainty

    Iterative development; iterate the process of design, building, testing and analyzing multiple times until satisfied

    Keeping things on track

    Manage the scope, time and cost(tradeoff)

    Choosing teams with diversity

    More ideas and greater likelihood of innovation
  27. What is the difference between market pull innovation and technology push innovation?
    Market pull: conveyed to marketing, which then initiates R&D

    Technology push: create a market because no market need yet exist for the technology; often based on radical technology and need to be adapted to fit market needs; slower customer adoption
  28. How a customer evaluates an innovation

    • Current product being used: attributes viewed as ‘loss’; innovation: attributes considered as ‘gain’
    • Can be explained by the prospect theory; loss aversion; value loss at 2/3 times the level of gain;
    • thus new products must provide benefits 2/3 times better than existing products;
    • otherwise customer will not adopt them

  29. challenges in identifying customer needs
    • how to identify? Customer complaints and unfulfilled wishes are clues to unmet customer needs
    • focusing on who to ask-only address the needs of people asked
    • what features to be included? Risk of trying to address every need; customer needs change over time
    • when to introduce an innovation-complementary technologies need to be in place in order for an innovation to be successful(e-book reader and e-book store)

  30. compare and contrast different market research method
    • ethnography-involve observing customers
    • lead user method
    • focus group-sessions in which 8-12 people come together to discuss their needs and preference on new products or services
    • survey research

  31. accuracy of survey depends on
    the question are phrased such that they are clear and respondents are willing to answer

    use proper sampling such that the sample is representative of the population

    gather information from a large enough number of people to differentiate statistically between the answers of the different respondents
  32. How employers protect their IP?

    • Non-disclosure agreement @ time of employment
    • Better educate employees
    • (1)Trade secrets: consequence of stealing
    • (2)Obligation under non-disclosure agreement
    • Exit interviews
    • Restrictions on where you hire from
    • Review legal agreements of new hires at previous company
    • Intake interviews

  33. Discuss the Threadless business model

    • (1) Difference from other companies
    • Other companies
    • • Company hires and pays for designers
    • • Designers brainstorm design or work on their own
    • • Employees and designers forecast the demand for each T-shirt
    • • Make & print T-shirt
    • • Company will get the IP of the design
    • Threadless
    • • People post designs
    • • People vote designs
    • • Choose top ten designs
    • • Make & print T-shirt
    • (2) Advantages
    • Outsource designing to users
    • More creative designs/new ideas
    • Reduce HR costs
    • Provide incentives to users whose designs are chosen
    • Outsource selection of top designs to users
    • Can get some sense of the demand
    • Reduce wasted inventory
    • Users have strong relationship with the product created
    • Users may buy some of the designs they created
    • May market it to others

  34. Innocentive: Benefits of open innovation

    • • Access to knowledge outside the company
    • • Benefit from out-of-the box thinking
    • • Get access to more diverse ideas
    • • Get difference perspectives on a problem
    • • Faster Innovation
    • – More competition
    • – Someone may already know the solution
    • • Minimize Risk and cost

  35. Key lessons from ttools

    • • The importance of getting everyone who sees your innovation to sign a non-disclosure agreement
    • • Keeping detailed records of the development of your innovation:
    • • Key dates
    • • Drawings
    • • Prototypes
    • • Preferable records are notarized

  36. Key lessons from Vasa

    • • Changes in requirements
    • • Approach 1: freezing requirements (not practical given the market demands)
    • • Approach 2:
    • • Process for understanding whether changes can be handled in current design
    • • Start afresh when the king demanded a larger ship and use the work done for another smaller ship
    • • Excessive schedule pressure
    • • TIME MANAGEMENT: Reduce time required by cutting down on some of the scope e.g. adornments on the ship, sculptures etc
    • • Reliance on Master Shipwright
    • • HR & RISK MANAGEMENT: ensuring project knowledge is not concentrated in a few hands. Backups for critical jobs.
    • • Excessive innovation
    • • RISK MANAGEMENT: scaled down models to understand performance of different designs
    • • Unethical behavior
    • • HR MANAGEMENT: encouraging a culture that is open that allows team members to voice opinion freely
    • • Long Communication times
    • • COMMUNICATION MANAGEMENT: clearly given that it was 17th century it took time for messages to travel

  37. Discuss Kodak’s failure to transit into the digital world and what could it have done differently

    • (1) RPV model
    • The people, technology(patent), manufacturing, non-risk taking attitude and razor blade model which made Kodak successful in the traditional film photography no longer valid in digital world
    • (2) What could it have done differently
    •  Kodak could have benefited from having an independent subsidiary in charge of digital technology, as suggested by the disruptive innovation theory.
    •  Important that subsidiary does not compete with traditional photography for resources
    •  Would have allowed Kodak to match the Resources, Processes and Values needed for the digital technology, and overcome cognitive and action inertia.
  38. Examples of strategic alliance

    • Horizontal alliances between Kodak and HP on R&D
    • Technological alliance between Pfizer and Celebrex
    • Marketing alliance: Nestle

  39. Examples of joint venture

    • 3com and HUAWEI jointly own H3C
    • Joint research organization: HUAWEI-HKUST innovation laboratory, semiconductor Research Corporation

  40. Examples of licensing

    • Intel licensed out its instruction set for making microprocessor to AMD
    • Microsoft licensed some of the unused patents to Toshiba
    • Lockhead Martin licensed patents on flight simulators to video game company
    • Cross-licensing between Sun Microsystems and Microsoft

  41. Outsourcing and contract manufacturing

    Boeing’s outsourced the production of sections of the Dreamliner airplane

  42. Examples of independent subsidiary(doesn’t compete for resources with other division)

    • Quantum creates an an independent subsidiary for 3.5DD
    • IBM spins out Microcomputer division
    • HP spins out Inkjet division

  43. Compare & contrast conjoint analysis vs. Kano method

    •  Both of them are used to identify the Right Product Features
    •  Respondents should be familiar with the product category
    •  Conjoint analysis only captures linear relationship; Kano method may capture both
    • linear and non-linear relationship
    •  Conjoint analysis typically uses factorial design experiment; Kano method uses survey
    •  Conjoint analysis becomestoo complex when there are too many attributes

  44. Explain the stage gate development process and the advantages of developing an innovation

    • using a stage gate process
    •  The stage gate process specifies that after each stage, decision must be made about
    • whetherto continue with the product or to cancel its development
    •  Can identify false positive in the early stage, restricts investment in the more costly
    • stages of the innovation process until key milestones have been met

  45. Essay Type: Explain how lead-users can help companies in each stage of the innovation

    • development process with relevant examples
    •  Idea generation and conception: Lead user could be sources of ideas
    •  e.g. The idea for protein-based hair conditioners came from inventive women in
    • the early1950s who rinsed their hair with home made conditioners containing
    • egg or beer
    •  Design and development: Lead users could be active co-developers
    •  e.g. Windsurfersinvolved in the development of windsurf board with appropriate
    • friction
    •  Test and market introduction: Lead users could be testers and end-consumers
    •  e.g. Sport teams who involved in the innovation development process of Gatorade
    • also user Gatorade

  46. Compare and contrast closed vs. open innovation

    • Closed innovation:
    •  The smart people in our field work for us
    •  To profit from R&D, we must discover it, develop it, and ship it ourselves
    •  If we discover it ourselves, we will get it to market first
    •  The company that gets an innovation to market first will win
    •  If we create the most and best ideas in the industry, we will win
    •  We should control our IP, so that our competitors don’t profit from our ideas
    •  Rules out false positives
    • Openinnovation:
    •  Not all the smart people work for us. We need to work with smart people inside and
    • outside the company
    •  External R&D can create significant value; internal R&D is needed to claim some portion
    • of that value
    •  We don’t have to originate the research to profit from it
    •  Building a better business model is better than getting to market first
    •  If we make the best use of internal and external ideas, we will win
    •  We should profit from others’ use of our IP, and we should buy others’ IP whenever it
    • advances our own business model
    •  Rules out false positives & false negatives

  47. Identify & explain the factors that are leading to a trend towards open innovation

    •  Growing mobility of workers
    •  led to knowledge to be diffused well beyond any corporation's walls
    •  Growth of Venture Capital
    •  a wider availability of funding tocommercialize research from outside the walls of
    • corporate R&D centers, turning start-ups into formidable competitors
    •  Fast time to market of technology & shorter shelf life
    •  Company that does R&D first need notbe the first to market. Moreover, the shelf
    • life of a particulartechnology is getting shorter.

  48. Essay: What are the pros & cons of crowd-sourcing innovation?

    • Pros:
    •  Knowledge access
    •  E.g. the Chemist in Italy who has an ingenious solution for your problem
    •  Out of the box thinking
    •  Labor access
    •  Not having to employ the ‘crowd’ reduces costs
    •  Reduces risk
    •  Company pays if they like the solution
    •  Control over cost of innovation
    •  Internal benchmarking
    •  Comparing internal solution to the ‘crowd’ solution
    • Cons:
    •  Problems that companies consider to be secret or high value to their business are
    • unlikely to be crowdsourced
    •  Innovation that requires expensive equipment restricts the size of the crowd
    •  Management issues on Intellectual property
    •  E.g. What happens to the IP of the solutions that don’t win?

  49. What are Pros and cons of being first to market?

    • Pros
    •  Enjoytemporary monopoly
    •  Reputation can be enhanced
    •  Capture a market share advantage
    •  Get experiences before competitors
    •  Influence the definition of standardsCons
    •  Involves risk,need to play the role of pioneer
    •  Cost for educating initial customers is expensive
    •  Development costs and market entry cost will be higher than not being the first

  50. What are the Advantages of being a fast follower?

    •  Nobody really knows how customers will eventually use the product or what they will
    • prefer
    •  Cost for educating initial customers is expensive
    •  Reduce development costs and ease market entry, since there is already a comparable
    • product that is successful in the market

  51. Compare & contrast offensive vs. defensive cannibalization strategies

    • Offensivecannibalization:
    •  Often done by market laggards
    •  An opportunity for an attacker to move first in introducing the new technology
    •  The attacker erodes the position of the dominant company, although the attacker
    • cannibalizes its own product in the process
    • Defensive Cannibalization:
    •  Often doneby market leaders
    •  Cannibalize yourself before competitors do it
    •  Cannibalization to continue as the technology leader
    • Both offensive and defensive cannibalization:
    •  Can hurt overall sales and cannibalize profits
    •  Pricing is used most often as the mechanism to control the rate of cannibalization
    •  Higher price of the new product , the lower the cannibalization rate

  52. Explain value chain evolution theory that provides insights into the decision to vertically

    • integrate or outsource
    • 1. Performance Undersupply
    • 2. In-House Development
    •  Proprietary Architecture leads to better ‘Performance’ –reliability & functionality.
    • 3. Performance Improvement
    • 4. Performance Oversupply
    • 5. Outsourcing
    •  Modular Architecture suitable for faster development, lower cost development
    • 6. Jump in Customer Demand
    •  Performance will be undersupply again and lead to re-Integration

  53. Explain why certain companies in the computer industry made most of the money based on

    • the value chain evolution theory
    • Performance oversupplyhappens often in computer industry, which gives an advantage to
    • those companies produce computer parts rather than those produces the integrated
    • product

  54. What are the Pros and cons of forming strategic alliances?

    • Pros
    •  Allow companies to specialize
    •  Cost reduction & economies of scale
    •  Learn capabilities
    •  Creation of standards
    • Cons
    •  Loss of proprietary knowledge
    •  Antitrust problems

  55. Explain cross licensing with appropriate example
     Firms agree to license patents to all of their existing and future inventions in a

    particular field of use for a specified period of time

     For example, Microsoft and JVC entered into a cross license agreement. Each party is able to practice the inventions covered by the patents included in the agreement
  56. pros and cons of outsourcing and contract manufacturing
    • core activities of business take center stage
    • cost savings
    • gives flexibility in manpower management and staffing
    • risk of lossing confidential information
    • lose management control of business functions
    • problems with quality over outputs
    • communication
    • hidden cost arises
Card Set:
1380 short essays
2013-05-23 03:00:11
1380 short essays

1380 short essays
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