Chapter 3

Question 1

What is a product platform?

Answer 1

Product families that share similarities in design, development, or production process

Question 2

How can greenfield (new) market opportunities be identified (4)?

Answer 2

1. Find a new location or venue
2. Find a new activity center where firm’s strengths can be leveraged (similar to a product category)
3. Identify a fast-growing need
4. Find a “new to you” industry

Question 3

The PIC is:

• The new product team’s strategy
• For products–not processes
• Is for innovation (think of the definition of a new product)
• A charter (a document specifying the conditions under which a firm will operate

Answer 3

No Answer

Question 4

What are the contents of a Product Innovation Charter (PIC)?

Answer 4

1. Background - Key ideas from the situation analysis, special forces such as managerial dicta, reasons for preparing a new PIC at this time.
2. Focus - At least one clear technology dimension and one clear market dimension that match with each other and have good potential.
3. Goals-Objectives - What the project will accomplish, either short-term as objectives or longer-term as goals. Evaluation measurements.
4. Guidelines - Any “rules of the road,” requirements posed by the situation or by upper management. Innovativeness, order of market entry, time/quality/cost, miscellaneous.

Question 5

What are three special guidelines for the PIC (3)?

Answer 5

1. Degree of Innovativeness
   a. First to Market
   b. Adaptive Product (taking a competitor’s pioneering product and adapting it in some way)
   c. Imitation (Emulation)
2. Timing
   a. First
   b. Quick
   c. Second
   d. Slow
   e. Late
3. Miscellaneous
   a. Avoidance of competition with certain firms
   b. Recognition of weaknesses
   c. Patentability
   d. Product Integrity (all aspects of a product are internally consistent)

Question 6

Examples of Product Platform Planning:

• Car industry: A multibillion dollar cost for a new car platform is spread out over several models
• Boeing: The same platform is used to make passenger, cargo, short- and long-haul planes
• Black & Decker: A single electric motor is used for dozens of consumer power tools

Answer 6

No Answer

Question 7

Dimensions for Assessing Strategic Fit:

• Strategic goals (defending current base of products vs. extending the base)
• Project types (fundamental research, process improvements, or maintenance projects)
• Short-term vs. long-term projects
• High-risk vs. low-risk projects
• Market familiarity (existing markets, extensions of current ones, or totally new ones)
• Ease of development
• Geographical markets

Answer 7

No Answer