ENTSP 320 exam #1 Flashcards
Cashless Payment Systems
Faster, safer and more efficient digital transactions
Faster, safer and more efficient digital transactions
Broader reach of digital financial infrastructureBroader reach of digital financial infrastructure
(Transferwise vs. Bank wire or Western Union)(Transferwise vs. Bank wire or Western Union)
Emergence of new digital currenciesEmergence of new digital currencies
** Bitcoin, Facebook Libra, etc.Bitcoin, Facebook Libra, etc.
Emergence of new digital payment providersEmergence of new digital payment providers
** AmazonPay, AliPay, Apple Pay, Google Pay, etc.AmazonPay, AliPay, Apple Pay, Google Pay, etc
Advancements in financial systems
Comparative advantages through
international trade (old idea!)international trade (old idea!
Enable Just-In time Production
Highly cost efficient (Example: UPS vs LH Cargo; Container Shipping)(Example: UPS vs LH Cargo; Container Shipping)
** Faster and broader reach (e.g., merchant marine)(e.g., merchant marine)
** Highly reliable, predictable and punctualH (e.g., constant GPS)(e.g., constant GPS)
** Improved import and customs procedures (EU; NAFTA; but Brexit)(EU; NAFTA; but Brexit)
** Environmental concerns of all the shipping?
Key Current Socio-Technological Trends
Advancements in logistical systems
- Parts arrive via truck from supplier in crates ready for assembly
- crates are hauled directly to assembly line )-no storage)
3.. challenge: requires close synchronization of parts delivery and production process
- advantage: eliminates warehouse and inventory costs
Advancements in production systems (“just in time” systems)
accelerate innovation
rapid prototyping technologies
virtual prototyping
mitigate risks, iterate more rapidly
drives growth and competitive advantages
Advancements in prototyping (3D printing)
product life cycle matrix: question marks, stars, cash cows, dogs
Boston Consulting Group matrix (question marks, stars, cash cows, dogs)
at maturity stage providing company with cash and profits and require less investment
strong market share, low growth rate
cash cows
high growth rate, strong market share
become cash cows
stars
in introduction stage with uncertainty
weak market share, high growth rate
want to become stars
question marks
weak market share, low growth rate
decline stage
dogs
clear goals
strong leadership
effective communication
trust and respect
accountability
adaptability
innovation and creativity
Characteristics of high-performance teams
- Step 1: Identify potential competitors based on competing products
- Step 2: Identify top 3-5 competing products/competitors
- Step 3: Collect Additional Deeper info for these 3-5 competing products
- Step 4: Re-analyzee based on “deeper” product/competitor data
- Step 5: Assess strength and weaknesses for each product/competitor
Competitor/competing product analysis
need conflict management to avoid conformity **
Conflict management/resolution strategies
used as conflict avoidance
allows others to feel pressured not to share their own thoughts
Conformity/peer pressure
overall market size
market segment
customer characteristics (including price sensitivity )
- production
- marketing
- distribution channels
Who the customers are
Where the customers are
How the customers behave and feel
evaluate market-segment attractiveness
Identify initial target markets
Customer/market segment analysis
protection granted to the unique visual qualities of a manufactured item; in other words design patents provide protection for the ornamental aspect of an item’. Protection for the distinct look of a product; these patents have a term of 14 years from application
Design Patent
lowered barriers to market entry
accelerated innovation cycles
shift in business models (sharing economy, subscriptions, platform based businesses)
customer empowerment
data driven decision making
globalization and remote work
erosion of traditional revenue streams
Disruptive effects of digitalization and the internet
more diversity = more creativity
more diversity = greater conflict
Diversity and creativity of R&D project teams
reduces redundancy ***
efficiency
experitise and quality
increased motivation
lack of flexibility
dependency issues
communication barriers
Division of labor (specialization advantages, coordination challenges)
changed from first to invent in 2013
Simpler to establish
More trust in granted patents
Consistent with other countries
First to file
Microsoft project tool progress chart
project schedule with milestones
GANTT Chart
Sufficient resources for very large innovative projects
Sufficient resources for very risky projects
Potential to accumulate very deep internal knowledge and capabilities over time
Innovation advantages of large and established companies
Legally protected exclusive rights to an invention, commercial symbol, and other outcomes of creative work
Types of intellectual property rights:
Patent
Trade Secrets
Trademark
Copyright
Intellectual property (IP)
more advanced manufacturing
digital transfromation
sustainable manufacturing
reshoring and nearshoring
collaborative ecosystems
lean practices
Manufacturing trends in North America
a necessary component of successful invention commercialization
Stage 1: get first customers and grow customer base
Stage 2: deal with increasing competition
Established firms can be highly effective “secondary movers”
Market entry: “Best beats first”
top-down approach: start with total market and narrow down)
Bottom up approach (analyze specific customer segments and focus on their needs
competitive analysis
analyze competitors market share, data and such to learn about the market size
Market estimates for new products
Customer characteristics
… including price sensitivity (
Market segment characteristics/dimensions
North American Industry Classification System codes, are used to classify business establishments into specific industries for the purpose of data collection, analysis, and reporting. These codes are used primarily by government agencies, businesses, researchers, and other organizations to facilitate the comparison of economic statistics across different
NAICS codes
Provisional patent application (cheap, fast)
- Simple description of the invention (“sufficiently detailed”)
- Protects “filing date” against later similar inventions by others
- No substantive evaluation by patent office
- No public disclosure
- Permission to use the term “patent pending”
- Only 1 year then must file for patent
Patent application (expensive, slow)
- Formal patent claims, inventors’ oaths, disclosure statements
- Requires no prior public disclosure (important)
- Non-Disclosure Agreements (NDAs)
Patent application process (expenses, processing time)
Unified procedure to file patents in each of 152 participating countries
However, requires follow-up with each country separately to obtain the country’s patent
Separate fees in each country
Patent Cooperation Treaty (PCT)
Territorial:
- litigation conducted within the jurisdiction the patent is granted
Expenses:
- extremely expensive with legal fees, expert witnesses and discovery.
ARE COMPLEX
Time Frames:
- depends on complexity
-can drag on for several years
Patent litigation (territorial limits, expenses, time frames)
increasing worldwide
china has most, then USA then Japan
Patent trends
Legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an enabling disclosure of the invention.
Granted by governmental patent offices based on patent application evaluation that the invention is new, useful, nonobvious, enabled and clearly described.
Limits:
public disclosure to competitors
expenses
legal cost
slow litigation process
territorial limits
Benefits:
protection
strong market position
recovery of innovation investments
option to license or sell
positive company image
Patents (definition, types, benefits, limits)
conflict avoidance and peer pressure is the opposite of diverse thinking. Distrust the conformity of others
Peer pressure and team creativity/decision quality
These patents are awarded for newly discovered plant varieties and last for 20 years from application
Plant patent
using Boston Consulting Matrix
allows to predict future portfolios
Portfolio analysis techniques
align with corporate strategy
balance risk and return
foster culture of entrepreneurship
prioritize high-impact projects
cross-function collaboration
Portfolio management of R&D projects
Project team meets one more time after task completion
To identifying “lessons learned”
To transfer “lessons learned” to future projects (e.g., management information systems)
Post-mortem meetings
primary: data you collect
Secondary: data someone else collects
Primary vs secondary data
push systems
strategies require forecasting and planning
- Forecasting to predict relevant changes
- Planning to adjust to forecasted changes in advance
Proactive business strategies
market introduction phase (question marks)
Growth phase (stars)
Maturity phase (cash cows)
Decline phase (dogs)
Product life cycle
project management is a dynamic “balancing act” that requires constant adjustments and attention to changes.
Project management challenges
- start/end on time
- come prepared
- stay focused
- listen actively
- one-person speaks at a time
- use constructive language
- follow agenda
- let everyone talk
- summarize
- provide feedback
Project meeting ground rules
celebrate milestones for positive momentum ***
Project milestones
Components:
- Project Scope
- Project Milestones and Outcomes
- Project Team and Key Resources
- Project Tasks, Activities and Schedule
- Budget/Investment/Financials
- Critical Risk Assessment
Project plan (components, pros and cons)
Evaluate identified risks
Qualitative analysis
Cheap and fast
Expert judgements of probability: likely / moderately likely / unlikely
and expected damage: small / medium / substantial / high
Quantitative Analysis for significant risks
Develop risk responses
Develop risk management plan (execute, monitor and adjust)
Project risk analysis (qualitative and quantitative)
Objective:
Specify exact activities and desired outcomes
Challenge for innovative projects:
Uncertainty of new task to produce novel outcomes
Frequently unanticipated events
Need for adjustments and changes in scope
Project scope definition (importance, pros and cons)
better to have frequent short meetings
start meetings with project status report
agenda-driven meetings focused on coordination & discussion issues relevant for everybody
Project scheduling
Define activities
- Decompose project into separate
subtasks
Develop and optimize project schedule
- Determine sequence and duration of
subtasks
- Create project schedule with
milestones (GANTT, CPM, PERT)
- Add details as task execution
approaches (= rolling wave planning)
- What-if scenario analysis (simulate
possible events)
- Crashing and Fast tracking (options of
speed up by using additional
resources or perform tasks
simultaneously)
Monitor and adjust project schedule
Project time management
Simple description of the invention (“sufficiently detailed”)
Protects “filing date” against later similar inventions by others
No substantive evaluation by patent office
No public disclosure
Permission to use the term “patent pending”
Only 1 year then must file for patent
Provisional patent application
Mercedes Benz partners with Google (software), Luminar (sensors), Nvidia (chips) to develop driving assistance systems for cars (since Feb 2023).
Potential Challenges
- Imbalance and changes in partners commitment and contributions
- Need for integration and coordination of R&D activities across forms (e.g., different cultures and management styles)
- Require solid leadership and patience especially in early stages
Exit and Termination Strategies
- Ownership of jointly generated intellectual property
- Continued protection of confidential information
- Ownership of any future income from joint activities
- Responsibility for continuing liabilities from joint activities
R&D collaborations (types, benefits, challenges, exit strategies
strategies require organizational alertness, flexibility and improvisation
Alertness to detect relevant changes
Flexibility and Improvisation to adjust to detected changes
pull strategy
Reactive business strategies
often a major concern of team members … but conflict is also a key contributor to team success.
confronting
compromising
smoothing
forcing
avoiding
Team conflict (how to manage)
Forming (first meets)
Storming ( compete for status)
norming (begin to work more effectively
performing (functioning at high level)
adjourning (stage coming to an end)
Team development stages
leader
facilitator
mentor
coordinator
communicator
mediator
Team management roles
Any formula, pattern, physical device, idea, process, or other information that a firm actively tries to keep secret from competitors
Federal Economic Espionage Act (1996) criminalizes the theft of trade secrets
Trade secrets
horizontal diversification (expandning product line)
vertical diversification ( expanding further into supply chain)
lateral diversification (expanding into completely new industries)
international diversification
Types of corporate diversification (not, conglomerate, concentric)
strengths:
1. encourage innovation
2. protection of IP
3. Promotion of economic growth
4. International recognition
Weaknesses:
1. Provisional patent applications (“blindsides” inventors)
2. Back-lock of patent applications (delayed patent protection)
3. Globalization (only territorial protection, except EU, NAFTA)
4. Limited quality of novelty evaluation by patent offices (e.g., US) (uncertainty of patent protection) [example next slide]
5. Enforceability
6. predatory use or abuses
US patent system (current strength and weaknesses)
These are granted for new products, processes, machines or compounds and extend up to 20 years from the date of application.
Utility patent
Which of the following statements about corporate entrepreneurship do you consider true?
Can support both incremental and radical innovations
In the video about the Tijuana drone factory, Chris Anderson designed, produced and sold drones with a young Mexican business partner. The company became a major player in the commercial drone industry. Where and how did Chris meet this business partner?
Through a drone-community website Chris had created
Based on our class discussion, what is an additional characteristic that corporate entrepreneurs need to be successful compared to entrepreneurs who are engaged in starting their own new firm?
A deep understanding of the firm they work for
. The reading “How Management Teams Can Have a Good Fight” suggested various solution strategies to enable constructive team conflict. Which of the following was NOT one of the recommended solution strategies?
avoid humor
