Exam1 Flashcards
Tight-Integration (Performance-Time Graph)
companies want to control all aspects of the production of a new product until the bugs have been worked out
Standard (Performance-Time Graph)
Standards – a company will develop standards for its products so that suppliers will know what the company wants specifically
Modularity (Performance-Time Graph)
new products will eventually evolve into modules (subsets), so that the developer can identify major pieces of the product
Thin integrators (Performance-Time Graph)
companies that duplicate modules identified and created by developers in order to make competitive products
Mashups
a mashup is a combination of technologies that the creator hopes will be received, and viewed as a disruptive technology. Usually mashups are not patentable items.
Product Price/Demand Curve for established technology
Products that are based on proven, and established technology respond to the classic demand curve where the cost decreases as volume increases
Product Price/Demand Curve for new technology
Tend to maintain their price levels even with increasing demand
Why are tech products not perfectly elastic?
- A disruptive technology does not respond to the typical curve, because it is the “only-game-in-town”; therefore, there is no incentive to reduce prices.
- An existing, sustaining technology (that is subject to the typical elastic demand curve) is subject to many sales channels, and availability over a wide area of needs; increasing demand may insulate the total market from price variations, and sometimes may actually cause the price to go up
Product Acceptability Test Categories
Functional Performance – solving the defined problem, and duration of lifetime
Acquisition Cost – price per unit, or new technology-defined price point
Ease-of-Use Characteristics – user interface
Operating Cost – power, batteries, etc
Reliability – throw away, depot repair, exchange
Serviceability – how long and how much to get unit back into service
Compatibility – does unit fit with other technologies in the overall system
Strategic Business Units
- It is a profit center, as opposed to a cost center;
- It belongs to some parent organization, such as a corporation, company, division, or directorate;
- It often has control over the revenues it makes, is often responsible for its own administrative expenses, e.g., benefits, insurance packages, and operating policies;
Joint Venture
- A new company is created by the union of resources from two or more other companies that see the benefits of combining efforts to bring a new product(s) to market;
- The JV is initiated with money, I.P., and space from the two contributors, and given a relatively free hand to pursue the stated objectives of the JV;
- The JV may even manufacturer, and sell its created product(s);
Why do Acquisitions usually occur?
The acquisition usually occurs because the purchaser either wants the technology, or recognizes that competition will be much more effective if a different company is positioned against other companies;
Ways to gain a business advantage:
Mashups Make, or buy, technology Performance-Time Graph Redefine costs of doing business Redefine management and organization Redefine marketing techniques Make maximum use of technology
Six Themes of Success
- Business Focus
- Consistent Priorities and related products. - Adaptability
- Flexibility and change acceptance - Organizational Cohesions
- Good communication and clear roles. - Entrepreneural Culture
- Small divisions
- Different funding channels
- Tolerance to failure. - Sense of Integrity
- Hands-on Top Management
- Awareness and involvement
Types of Disruptive Strategies
Operations: Efficient manufacturing.
Technology: Unique, non-obvious tool that provides a new capability or a new way of realizing an old capability.
Warranty and Servicing: Total replacement, Parts shipping, on call 24/7, etc.
