Udenio_Learning And Innovation Flashcards
What are the operation strategy drivers and what does the succesful companies does?
competence. What are you able to produce–Process, how you manage your resources
What is a trade-off?, deamand and supply side
Es una u otra!!
Custormer side-market segmentation. Supply side. Priorization of competencies!
Knowing the trade-off from the client side
attributes that result in equality. From the customer side its the same a expensive car with a lot of attributes than a cheap car with less attributes
Knowing the trade-off from the supplier side
Knowing the utilities curves of the customer, me as a supplier can I target this wishes. I know my process and I know where and how to produce my products. cheap and low attributes or viceversa
Analyze the customer!
Analyzing the customer. Whiling to pay a lot of money for a lux and customer b not whiling to pay a big money for high lux. look at the DELTA cost
What are the trade offs?
Analyzing the customer, which zone, which customer. How much are the customers (red and green) whiling to pay for a product–From the red color customer, to which zone should I move
Red color is not whiling to pay a lot and the green doesnit offer a lot of lux for the money. Conclucion, the market is perfectly segmented!–for attaching the red customer we should move to the right
What is this trying to say from the customer side
From the customer side, moving to the right zone its ok. the variations are going to be the same..MARKET SEGMENTATION
What is this trying to say from the supplier side, look at the axes!!
To change production (red) we need a lot of money because the production is stabilshed, and to make a bit a change. Flow shop—-Green line, job shop, not a lot to change cost in order to change the production
What are the trade-offs from the supplier side, what does point 1 and 2 are telling us, what happen whith the red point 2—what happen when redline goes up
Improvement–red line goes up–Innovation,** radically** changing my processes (green line)
As company, target the customers you want to takel but this MUST be allignd with your production processes, if your production line is efficient DONT CUSTOMIZE! –if you have a shop that is very customize very explussive, DONT CUSTOMIZE WITH MASSA PRODUCTION. Be aware, use IMPROVEMENT to learn and change your process and use **INNOVATION **to radically change the process you have
What is a EFFICIENT FRONTIER
Where nobody can compeet against you, like 3 and 1, on the other side look to point 4, they can be easelly defeated
How to bring a firm to a frontier
- How to be cost competitieve
- How wel you understand your own cost and your cost competitors are good at. VERY IMPORTANT
- The trade off curve. (what can you produce and what cost), knowing this, you can operate in all the curve BUT the more spread you are in the curve the most chances you have to fail A COMPETITOR CAN DEFEAT YOU instead FOCUS!!
How to focus an (Taylor) operation?
Focus on operation/processes and work in improvement your processes - By grouping your processes and operations you can work better!. then you can learn to improve!
Points to analyzecompetitieve threats
Improvement and innocation
What is Continuos improvement and Innovation?
Innovation. Radically differences–
What is the efficient frontier–Innovation and Improvement
Place in the curve where you can be better in one zone WITHOUT been worse in the other zone–Innovation change processes. Improvement. improves the process (you work in the same way but faster
Differences between Radical improvement versus continuous improvement
CI make small changes in order to produce more, a faster process—radicall improvement. Change the full process, extreem changes
How to improve through variability reduction?
Not necessarily changing the target but reducing defects that cause the variability (see six sigma)- we achive this by learning (CONTINUOUS IMPROVEMENT)
Ways to reduce the variability, how does learning can be (dimensions)?
By learning (CI’s)–theoretical and operational-
More of CI’s
How can you get better once you know you are compettitieve or not–explain the learning curve
CI’s (everyday)–So more you do something the better you become on that something, the cost in production is less as more as you produce or get better produce on that thing
Explain the learning curve, what happens with the cost of the production and how does this happens?
What is the LEARNING RATE
Is the rate in which your cost production will decreasse when you increasse the production. This allows you to predict!! But be aware your cost will decrease a lot, almost free but it has a limit!!
What is the Economic of Scale
Is the amount of production during a certain time
What is innovation and why is so difficult ?–where does innovation happens–what are the unk unks-
Radical Changes, in terms of products and processes, DIFFICULT TO MANAGE, here you operate in a space that is totally unknown!–totally uncertainity and here is where innovation happens!!–
-What happen when there are a lot of uncertainities by means, you cant foreseen a plan for contingencies?—which approachs you can use and what does this means
these follow when APRIORI YOU DONT KNOW what it will happen–sequentiall approach–parallel approach
Trial and error approach, what is this and what are the draw backs
A lot of unknowns, the best you can do is to PLAN your first step!. and sequentally trying solutions (iterating) –it takes a long time in order to improve
What is the parallel approach-
You start with different plans PARALLEL and finally you will get one good one–it can be much faster!.–you apply this approach because you don’t have any knowledge about the solution–
Which approach should you use?
Setting really complex and cheap to do a few a parallel solutions, then choose this one–ALWAYS LOOK AT THE SETTING!!
What is DISRUPTION THEORY, once you have found the innovation hows do they affect the company and the possition of the company in the markt
How does the market leaders are defeated through the small companies, the question is how and why
What is product innovation and encroachment
Are two types of innovations..HEE (coming behind you and appears suddenly) Tends to come from the market leader (appears at the high end of the market )..LEE, it comes from small companies, with a product that is LESS MORE THAN THIS ONE THAT IS THE MARKET LEADER BUT its good in one thing
Why is the LEE so deadly
the hee doesnt have any incentive to continue improving (they do always the same but faster)–so startups comes with new levels and processes (always very expensive) BUT at the beginning of the curve the cost is always expensive but later on (very quick) the companies know how to produce them and at the end are competitive with the hee because there are more inovative
What doe this HEE graph is saying?
A new product is coming, it sales a lot, afterwards comes a new one, the older start to decreassing the sales and the new one increasse its sales…and so on
What is the Willines to pay Curve, what is this saying us–how large will the market for the product will be at a ginven price
what the market will do if we change the price, assumming we have a single product.
WTP with HEE, what is the behaviour of the new product and new technology–how will the market respond to having P1 and P2 in competition–what is indifference point
Indifference point: where the market will split, to the right purchase product 1 and to the left the customers purchase P2–P1 = to the right will have a higher utility and P2 to the left will have a higher utility (P1 is the cheaper product)
What this curve is trying to say about the products and sales
Is much better for companies to have two products (new tech and old tech) because on this way they can takel all the customers, instead if they have one product they will loose a lot of clients and money
How Innovations diffuse, what happen with new and old products and their prices
the pricess becomes lower due to the massa production, once the new product apppears and start to gaing market, the companies produce more and more, they know better to produce the new product and this makes them able to decrease the
What is the low-end encroachment.. and what allows the market to do?
Are products that are “inferior” in technology than the existing products, wel better than the older products in one dimmencsion, but are products that make the market bigger
What this plot telling us?, what happen the curve of the entrant (impact)?, why the new company kill the old company
the new company extends the market, the new product is not as good but there is more people that want that product–cost is going down faster, and capture more market and so they get larger profits
