chapter 7 analyzing product/service risks and benefits
TRANSCRIPT
Chapter 7
Analyzing Product/Service
Risks and Benefits
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Learning Objectives
• Discuss the current trends in product/process development
• Differentiate the way entrepreneurs develop products from the way they develop services
• Describe the product development cycle
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The Nature of Product/Process Development
• Sophisticated customers in fragmented markets
• The impact of technology
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How Entrepreneurs Develop Products & Services
Impact of Insufficient Resources:• Poor execution• Time to market increases• First to market opportunities are missed• Projects are made simpler so that more can be done
with less• Team morale declines• And more…
Can you think of some more…?
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Figure 7.1: The Consequences of Resource Shortfalls for New Product Development
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How Entrepreneurs Develop Products & Services
• New product failure results from:– Lack of good market analysis– Technical problems
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Figure 7.2: The New Product Development Success Curve
Source: Based on the research of Greg A. Stevens and james Burley in “Piloting the Rocket of Radical Innovation,” Research Technology Management, 46(2):16-26.
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How Entrepreneurs Develop Products & Services
• Strategies to consider when competing effectively in product development:– Design products right the first time– Shorten the time to market– Outsource some product developments tasks
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Figure 7.3: From Idea to Market
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The Product Development Cycle
• The process cycle components:– Opportunity recognition– Technical feasibility analysis – Design and development of platform– Prototype building and field testing– Initial market tests– Product market introduction and ramp-up
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Table 7.1: New Product Checklist
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Outsourcing Product Development
• Areas suitable for outsourcing that require engineering analysis, design and expertise:
– Component design– Materials specifications– Machinery to process– Ergonomic design– Packaging design– Assembly drawings & specifications– Parts and material sources (suppliers)– Operator’s and owner’s manuals
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Let’s Summarize
• Know the current trends in product/process development
• Differentiate the way entrepreneurs develop products from the way they develop services
• Describe your product development cycle