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Strategy Flashcards

1
Q

Attributes of Defender / Niche

A
  • locate and maintain in a relatively stable product / service

product domain thorugh high quality or low price

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2
Q

Cooper’s 5 Strategy Statements

Guru of NPD - 1980s

A
  • Differentialted
  • Low budget, conservative
  • Technology push
  • Not in the game
  • High best, diverse
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3
Q

Attributes of Reactors / Reactive

not successful

A
  • not agreesive until business is threatened

= no strategy

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4
Q

Attributes of Analyzers / Fast Followers

A
  • seldom first but often have better products
  • tryo to maintain stablitity but innovate at edges at market
  • internal efficiencies / reliable, high quality products
  • monitors competition, brings more cost effective products
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5
Q

Arena Assessment

how the market looks

A

Top left - Wildcats (high risk)
Bottom left - Dogs
Top Right - Stars (good bets)
Bottom Right - Cash Cow (conversative bet)

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6
Q

Disruptive Technologies

A
  • introduces different value prop

- typically different technology basis

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7
Q

Sustaining Technologies

A
  • discontinuous or tweaking or incremental
  • improve established product
  • same customers
  • same technology
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8
Q

Contents of a Business Model

A
  1. Customer Value Proposition
  2. Profit Formula
  3. Key Resources
  4. Key Processes
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9
Q

Wheelright & Clark

“Product strategy should answer 4 questions…”

A
  1. Who are the target customers
  2. What products will be offered
  3. How will they reach the customers
  4. Why will customers prefer our products to our competitors
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10
Q

Maximize Market leverage from common technology

A

Process

  • segment markets
  • identify growth areas
  • define current platforms
  • analyze competing products
  • consider future platforms initiatives
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11
Q

Project Execution

A

PROJECT TEAM
composition
organization

PROJECT MANAGEMENT
reviews and evaluation
decision making
tools

PROBLEM SOLVING
info gathering
conflict resolution
functionality integrity

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12
Q

Alliance or Partnered Projects

A

Firm buys a newly designed product or process from another firm

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13
Q

4 Types of Product / Process Development Projects

A
  1. New core product
  2. Next generation product
  3. Addition to product family
  4. Add-on and enhancements
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14
Q

Performance Measures for Development Projects

A

Time to market

Productivity

Quality

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15
Q

5 factors involved in the choices about platform generations

A
  1. Technology evolution
  2. Competition
  3. ROI
  4. Customer Support
  5. Available resources
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16
Q

Linking product / market strategy to specific development projects raises 2 critical issues

A
  1. The number, timing and rate of change of platform products
  2. the number, timing, frequency and relationship of derivative products
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17
Q

Critcal issues in the Product / Market Strategy

A
  1. The # of core products
  2. The 3 of enhanced products
  3. The frequency of new product introductions
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18
Q

Product / Market planning and strategy addresses 4 important questions

A
  1. What products will be offered (breadth and depth)
  2. Who will be the target customers?
  3. How will the product reaach the customers (distribution)
  4. Why will customers prefer ours to the competition?
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19
Q

Invention considerations (issues)

A

Timing, pre-requisities, resources and specific outsome are largely unpredictable

cause delay, back tracking and disappointment

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20
Q

“Great Leap Forwarde” Technology Strategy

A

making infrequent but large scale changes in technology that substantially advance the state of the art

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21
Q

“Rapid Inch Up” Technology Strategy

A

Frequent, small changes in technology that cumulatively lead to continuous performance improvement

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22
Q

After focus is defined, what does the technology strategy need to establish?

A

The timing and frequency of implementation

Partly technical and introducing into market

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23
Q

Fist step in creating a Technology Strategy?

A

“Focus” - defines those capabilities to achieve a distinctive advantage to competitors

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24
Q

What Technology Strategies include

A

“know how” that needs to create, produce and market its product and deliver to its customers

Use “know hows” and “know whys”

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25
Typical Product Hierarchy
1. Strategic Plan 2. Portfolio Platform 3. Program 4. Project 5. Sub Project
26
Open Innovation
Use external and internal resources for ideas external and internal paths to market use external licenses and processes
27
Technology Strategy & Planning Objectives
Guides acquistion, development, application of technology for competirive advantage (includes manufacturing proce4ss and service delivery)
28
Diversification Strategy
New markets with new products
29
Product Development Strategy
new products to better satisfy existing market needs
30
Market Development Strategy
open new markets for established products
31
Market Penetration Strategy
Further growth from existing products in existing markets
32
Laying the foundation for projects
- setting out the strategy - building capabiltity - acquiring development resources - defining objectives - selecting projects
33
Benefits of a Platform Strategy
- focus on key decisions @ the right time - enables rapid deployment and consistency - longer term view of the product strategy - operational efficiencies - recognize when product becomes obsolete
34
Brand
The identify of a specific product Can be - symbol - name - color combo - slogan
35
Strategy
A plan of action to reach a particular goal
36
Techniques used in Strategic Planning
- SWOT Analysis (strengths, weaknesses, opportunities and threats) - PEST Analysis - political, economic, social and technical STEER Analyis - socio-cultural / eco, ecological Regulatory EPISTEL - environmental, political, informative, social, technical, economic and legal
37
Strategic Planning
process of defining the strategy or direction and making decisions on allocating its resources to pursue this strategy including people and capital
38
Product Innovation
creation and subsequent introduction of good that is new or improved on previous good or service of its kind
39
Product (noun)
thing or things produced by labor of effort
40
Balanced Scorecard
Often used to evaluate the performance of the business and progress towards objectives
41
Strategic Management
entails specifying the co's mission, vision and objectives developing policies and plans (projects and programs) to achieve its objectives allocating resources to implement the policies, plans and programs
42
Benefits of effective development efforts
Market position Resource utilization Organizational renewal and enhancement
43
Development Strategy Framework
Pre-planning align technical and product marketing strategies
44
Problems in New Product and New Process Development
- Moving toward - mismatches between functions - lack of product distinctiveness - unexpected technical problems - problem solving delays - unresolved policy issues
45
Final Element of a Developmental Strategy
Post Project Learning
46
Integrating / Linking project mgmt elements to Developmental Strategy
Project Strategy Project Execution Project Performance
47
Project Performance Measures
1. Lead times 2. People, resources 3. Project cost 4. Project effectivness
48
Project Strategy
PROJECT CONTENT - knowledge base - company views and procedures PROJECT FOCUS - scope and context complexity PRE-PROJECT PLANS - phases and objectives - performance measures - incentives
49
Strategic Business Unit (SBU)
A business unit w/in the overall corporate identity which is distinguishable from other units because it serves a defined external market. conducts strategy planning in relation to products in the market
50
What was TEAM formerly known as?
Team of Destiny
51
Who is TEAM
is a leadership development co founded by Woodward and Brady in 1999 in Michigan
52
Brand Equity
marketing efforts andf outcomes that accrue to a product with its brand name compared to others with the same product without the brand name
53
Market
variety of systems, institutions, procedures, social relations and infrastructures where partners engage in exchange
54
Mission Statement
Formal, short written statement of the purpose of the company. - guides actions of the company - spells out overall goal - provides sense of direction - decision making guide
55
Loss Leader
product sold at a low price (at or below cost) to stimulate other profitable sales (marketing promotion)
56
Markov Theory
In probablility theory - a Markov model is a stochastic model that assumes Markov property This assumption enables reasoning and computation that would otherwise be intractable
57
Arena
Event simulation software developed by Rockwell. Uses SIMAN processor and simulation language user builds an experimental model by placing models that represented processes or logic
58
Customer Franchise
the cumulative image of a product, held by the consumer, resulting from long exposure to the product or marketing of the product
59
Mass Customization
Use of flexible, computer-aided manufacturing systems to produce custom output - combine low unit costs of mass production processes with the flexibility of individual customization
60
Normative Leverage
application of general norms or the other party's standards to advance one's own arguments for one's own good
61
Creativity
a website covering all things creative in advertising and design launched in 1986 showcases best ideas and creative processes from concept through execution
62
Trademark Symbols
``` UNREGISTERED TRADE MARK - promote brand or good UNREGISTERED SERVICE MARK - promote / brand or sevice REGISTERED TRADE MARK ```
63
Early Adopter
early customer of a product "trend setter"
64
Where does "EARLY ADOPTER" originate from?
Rogers - Diffusional of Innovations
65
Non-Conventional Trademarks
Color Smell Sound
66
P3M3
Programme & Project Mgmt Maturity Model - reference guide for structured best practices - hierarchy of key process areas (KPIs)
67
Objective of Technology Strategy
guides firm in acquiring, developing and applying technology for competitive advantage
68
Sr Mgr Back End Roles
- Team Launcher - Energy Source - Sponsor / Coach - Process Improver
69
Front End Roles for Sr. Product Mgrs
- Direction Setter - Product Line Architect - Portfolio Mgr - Process owner / creator
70
Why aren't Sr Mgrs involved early in projects?
1. a lot of knowledge is involved 2. problems are less defined and tools/roles are not clear 3. lack of metrics / feedback loops 4. absence of urgency
71
Ways that senior managers demonstrate excellence
- set direction - get people aligned - select, train and develop people - create, share, influence how it gets done
72
Michael Porter | Harvard Business
Overall cost leadership Differentialtion Focus
73
Elements of Strategy
- decide what business you're in - decide who your customers are and what you want to offer them - decide how you will play the game - identify strategic assets and capabilities - create the right organizational environment
74
Corporate Values
- states the code of conduct, the posture and behavior expected of people involved in fullfilling the mission
75
Vision Statement
An act of imaging, guided by foresight, that reveals the possibilities. it depicts the most desirable future state of the organization
76
Mission Statement
statement of the company's creed, philosophy, purpose, business principles or corp beliefs purpose is to focus energy and people
77
Strategy Definition (PMDA)
The organization's mission, vision, values one subset of the firm's business strategy is the INNOVATION STRATEGY sr mgrs own the strategy
78
How Strategy Fits Into NPD
``` Corp Mission, Vision, Values to Business Strategy (growth) to Innovation Strategy to New Opportunities Existing Opportunities to Business, Product and Platform Plans ```
79
Miles and Snow's Categories of how firm respond to change
- Prospectors - Analyzers - Defenders - Reactors
80
Defintion of Innovation or NPD Strategy
NPD strategy provides direction from the highest level of the organizations as to the selected drection regarding markets, technologies and customers
81
Corporate Strategy (Alternate)
A co's game plan for achieving its objectives in light of its industry position, opportunities and resources. Plan + objectives
82
Business Strategies
dervived from the co's corporate strategy are its business strategies. Examples of business strategies: ``` IT Strategy Marketing Strategy NPD Strategy HR Strategy PLM Strategy ```
83
Product Strategy defined by Cooper
a strategic master plan that guides your business's new product war efforts
84
What a Product Strategy includes:
- goals for the co's total product development efforts - role of product development - Strategic Arenas - markets or market segments - product types, product lines, product categories - technologies & technical platform Deployment - spending allocation across arenas - which market get how much focus, how many resources How to attack each arena to win
85
NPD Strategy to links from Mission Statement
Mission Statement (purpose) to Corporate / Business Strategy (plan of action) to Functional Strategy (functional depts to support business strategy) <-- this is where the innovation strategy lies
86
NPD Strategy - Value / Benefit | The "Best" companies drive NPD Strategy from
Strategy
87
The Best co's using NPD from Strategy see these results
7 - 10 times better profits as compared to the rest of companies Derive 20-50% revenue from new products
88
NPD Strategy Authors
``` Michael Porter Miles & Snow Wheelwright & Clark Treacy & Wiersema Robert Cooper Anthony Ulwich ```
89
Early Publications From Robert Cooper
NPD Strategy & Process
90
Early Publications from Miles & Snow
NPD Strategy
91
Early Publications Michael Porter
5 Factors, Where We Should Plan (Business not NPD)
92
Coopers 5 Strategy Scenarios
1. Differentiated 2. Low Budget, Conservative 3. Technology Push 4. Not in the Game 5. High Budget, Diverse
93
Cooper - Differentiated
Technologically sophisticated High fit and focus Strong Market Orientation
94
Cooper - Low Budget, Conservative
Low R&D Copycat Undifferentiated products
95
Cooper - Technology Push
Technically sophisticated | Low in market orientation, fit, focus, synergy
96
Cooper - Nol in the Game
``` Unsophisticated Low tech Low risk Copycat Simple/mature technologies ```
97
Cooper - High Budget, Diverse
Heavy R&D No Direction, synergy, fit or focus "Bull in a china shop"
98
Miles & Snow Strategy Types
Prospectors Analyzers Defenders Reactors
99
Miles & Snow - Prospectors
"First to market" Innovators Adapt new technologies
100
Miles & Snow - Analyzers
"Fast Followers" | Often better products
101
Miles & Snow - Defenders
"Nich" Maintain niche in stable market Defend market at all costs
102
Miles & Snow - Reactors
Respond only to duress
103
NPD Strategy Type - FTM
First to Market - new to world - first w/ new technology - requires large R&D budget - often spin off new platform / business unit Ex: DoCoMo, HP Printers, MP3 Player
104
NPD Strategy Type - FF
Fast Followers - moves fast to bring a "better" product to market - not a copycat - Requires large research effort & budget - competitive analysis - most popular Ex: Lexmark Printers, iPod
105
NPD Strategy Type - Niche
Niche / Defender - will do anything (including developing new products) to defend its niche - requires constant efforts associated with customer intimacy & knowledge Ex; Orville Redenbacher, Canon Photo printers
106
NPD Strategy Type - Reactors
Reactors - will do some improvements & enhancements but no real new product development - does not pursue new markets - may be used for dying product line Ex: Cassette player, landline phone, analog tv
107
Goals / Metrics - FTM, Prospector, New To World
% of profits from new products % of sales from new products Open up new window of opportunity
108
Goals / Metrics - FF, Analyzer, New To Company
- want large market share - support the co's overall strategy - % of profits from new products - success / failure rates
109
Goals / Metrics - Defender / Niche
- ROI from development | - Supports the business strategy
110
Goals / Metrics - Reactor
- make money with little investment - success, failure rates - support the business strategy
111
NPD Strategy Links (adds in Core Strategic Vision)
``` Mission Statement to Corp / Business Strategy to Core Strategic Vision to Platform, Market, Technology Strategies ```
112
Core Strategic Vision (CSV)
Articulares the destination and general direction from where you current stand - supplies context for product strategy - guides those developing the prod strat by tellng them 1. where the co wants to go 2. how it expects to get there 3. why it believes it can be successful It is focused, clear, complete and feasible
113
The Relationship of Core Strategy Vision to Strategy
Provides the basis for framing strategy by: 1. Establishing the basis of the product platform strategy 2. Focusing opportunity identification and selection efforts 3. Allowing strategic alignment or other activities 4. guiding NPD decision making 5. Guiding technology strategy & core competency leverage points 6. Setting expectations for stakeholders
114
Platform Definition
A core development project that typically has a design life of several years and establishes the basic architecture for a sest of follow on derivative projects
115
Plaform Definition Part 2
Underlying structures or architecture that are common across a group of products or that will be the basis of a series of products commercialized over a # of years
116
Platform Strategy Includes
- clear understanding of the underlying elements - distinguishable defining technology - platform differentiation provides competitive advantage
117
Wild Cats - High Risk Bets - Top Left
High Market Growth Rate | Low Business Strength, market share
118
Dogs - No Bet - Lower Left
Low Growth Rate | Low Strenght, market share
119
Stars - Good Bets - Top Right
High market growth | High strength, market share
120
Cash Cow - Conservative Bet - Lower rate
Low market growith | High strength, market share
121
Anthony Ulwich
Outcome Driven Innovation
122
Outcome Driven Hypothesis
Innovation is universally inefficient Innovation is art, not science (exact) Lack of precision in = lack of precision out
123
Ulwich - Outcomes Driven Innovation | 6 Organic Market Growth Paths
``` CORE JOBS 1. Core or Sustaining market growth 2. Core Platform disruption 3. Core Market Disruption OTHER JOBS 4. Related Market Growth 5. New Platform Creation 6. Related Growth in a Disrupted Market ```
124
Ulwich - Outcomes Driven Innovation | 1) Core and Sustaining Market Growth
Add a set of features to core platform to help customers get a core job done better
125
Ulwich - Outcomes Driven Innovation | 2) Core Plaform Disruption
Construct a feature set on new platform to help customers get job done better / cheaper
126
Ulwich - Outcomes Driven Innovation | 3) Core Market Disruption
Feature set on a new platform to enable NEW customers to perform the core job of a specialist
127
Ulwich - Outcomes Driven Innovation | 4) Other Jobs - Related Market Growth
Add set of features to core platform to help customers get related job done
128
Ulwich - Outcomes Driven Innovation | 5) Other Jobs - New Platform Creation
Construct a feature set on new platform to help customers get the core job and other jobs done better
129
Ulwich - Outcomes Driven Innovation | 6) Other Jobs - Related Growth in Disruptive Market
Add a set of features to the new platform to help NEW customers to get a related job done
130
Strategic Technology Planning
A plan to acquiring technology to main or gain a competitive advantage Guides the firm in the acquistion, development and application of technology for competitve advantage
131
Sources of Technology Strategy
- Internal or External Needs role defintion and integration
132
T or F You should not consider cost when initially evaluating a technology
True
133
Technology Strategy - Timing and Frequency Decisions
- leader vs follower | - rapid inch vs great leap forward
134
Sustaining Technology
- based on existing or familar - improve performance of established products - discontinuous, radical or incremental
135
Disruptive Technology
- new value prop thru technology | - worse near term product performance / quality
136
Product Innovation Charter (PIC)
Critical strategic doc for commercializing any new product is the who, what, when, where & why of the NPD project
137
PIC Focus
- focuses domains of innovation for each opportunity - strategy is for products, not process - it is a charter - gives conditions under which the organization will operate
138
When is the PIC Created?
Stage 1 - Opportunity Identification
139
PIC Elements
Background - ideas from analysis - manager mandates - why strategy was developed Focus / Arean - tech drivers - market drivers - product types, lines and categories Goals and Objective - project short term - product long term - metrics, profit growth, market status Guidelines - tactics & rules of the road - management requirements
140
Arena / Strategic Arenas Defintion
At least 1 clear tech dimension and 1 clear market dimension that are compatible and have potential the playing field where core competencies can be exploited
141
Strategic Areans
Markets Technologies Product Types
142
Arenas Create Synergies
Product can equae to a company's core competencies
143
Value of PIC
- links corp strategy to product policy - enable sr mgmt to define clear expectations - enables NPD team to receive direction and clarity for work
144
Strategies must provide obvious value to
Customers
145
Where does Product Lifecycle Management Begin?
Stage 5 - Launch
146
When does Portfolio Management Start?
Stage 4 - Development

New Product Development Professional Studies (7 decks)

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