Developing New Products and Services: Learning Essay
The most important ten points in the book FAD template applied in physical product- AD Printing FAD template applied in service product- Butler service in hospitality industry What a small startup company can learn from this book What an established, multi-billion dollar company can learn from this book Summary The most Important ten points In the book For chapter 1, technology life cycles and the product life cycles are used to understand the diffusion of technologies and products. From the cycles, people can know what is the difference between the products and process and can tracking which area are the products in.
Meanwhile, the bridge can use as found that where the problems are in technology life cycles. It is helpful to understand your product in detail, and people can position their product or services business accurately. Technology updates day by day, the speed of renewing products are really fast. Finding where your products are and positioning new marketing strategy Is so important In nowadays. From chapter 2 1 learned that there are three approaches of price discrimination: Personalized pricing, versioning, and group pricing.
Before I saw this theory, I always thinking that personalized pricing Is a reflect price discrimination. It can use collaborative filtering to determine products. The second one is versioning price discrimination. The book gives us an example of versioning found in airline industry, which I totally understand this is a marketing method but also price discrimination. This makes me considering some of the apple store game app, when you played in some charge point, you must be charged if you want to continue playing the games. In some of games, you will be charged twice or more. The third one is group pricing.
It happens a lot in our daily life. For instance, hen you go too museum or landmark spots, you may pay less if you have a student ID or over 65 years old. I believe this belongs to group pricing but it seems people actually can accept that. Although price delimitation Is Illegal In most parts and negative connotation leads to monopolies and oligopolies, we still can use a little bit legally to gain more market share and make products more competitive. Chapter In this case, Joan use different price level to segment target market and target customer, which I think it is helpful.
Demand and supply curve is also a significant data to analysis market trend. Scarcity and design products can lead to high demand. How to use price differentiation to irritating consumers is one of the biggest problem the companies should considered. I believe that airplane industry, service in hospitality industry, and app game industry are all works on this principle and needs to be careful to deal with their price differentiation not leads to price discrimination. Using it in a right way can make additional revenues for any of a business.
Both chapter 4 and chapter 5 are talking about product differentiation and versioning curves. Chapter 4 gives us the PDP theory and chapter 5 gives us examples. PDP curve wows the relationships between price and quantity demand, the same as versioning curve. It can be applied in many industries to identify products and services, especially new development. Based on the successful examples the book shows, I know that high-end Midas products, mass-appeal atlas, and the low-end Hermes products and services are three categories for differentiation. For chapter 6, it focuses on creativity and innovation.
To be honest, everyone can be creative Just keep curiosity and questioning. As many of successful entrepreneurs, creativity is one of the most important elements they supposed have, and at the same time, elaboration always better than lonely developing theory in daily life. Interesting thing is, the book also show us that how to hinder creativity. I found this part is very interesting because it teaches you in an opposite way and really impressive. At the end of this chapter introduced six hats approach to creativity, this theory also makes Chapter 7 begins to introduce FAD template, which means Features, sense.
Attributes, and Design. The FAD template is used to identify the features and attributes that can be used for product and service differentiation. The FAD template will be introduced later. To define a product or service, FAD template can help to analysis in details. For chapter, how to make strategic planning is the key point. Basically, product differentiation and striving to be the low cost producer is the basic element. Meanwhile, ten-ten planning process also important in strategic map. Back to the old says, SOOT analysis is the most important part to make strategic planning.
As we mentioned in chapter 8, ten-ten planning process indicates that organizational and industry analysis and business plan overview. There has a business plan overview template help to check the status of business, includes mantra, mission, none, goals, objectives, and tactics. After overview this plan, we can summarized a business story overall by gathering all information includes FAD template. Generally speaking, ten-ten planning process is adaptable to a variety of situations. For chapter 10, I was very interested in the relationship between lock in and outsourcing.
Producers will always try to lock in consumers. Identifying the processes where having a core competency is critical for the firm to survive and to engage in learn-by- doing activity in that area. Outsourcing has profit but also have risk. To make every session, we need to balance the advantage and disadvantage. For chapter 13, the book mentioned the project management for new products. Project management is a tool for executing the business plan, this step make all theory become practice. Everyone knows that how important practice in business world is.
Sometimes it may should the projects launched or delayed. 1 . Product or service description (what will it do or what is its function? ). What type of customer or customer segment(s) are you targeting? AD printing is also called additive manufacturing, it is a process of making a three-dimensional solid object of ritually any shape from a digital model. It can use at widely industries. The targeting customer is AD printing fans, industry users, and high tech fans. 2. What is the meaning(s) behind the product or service?
This process is additive, where multiple layers from CAD (computer-aided design) drawings are laid down one after another to create different shapes. Industries that use AD printers include engineering, architecture, medical, industrial design, construction and many others. 3. Identify potential product and service attributes, features, and functions. Here are some ideas for the attributes, features, and functions: Price: It depends on what kind of product you want to print. Basically, the price calculation of AD printing is cost (=cost of a spool * objective volume/ volume of a 2. Lbs spool) *variable cost *fixed cost *services fee. Quality: It also depends on what kind of material you use. Most of them are plastics, some of them are iron, copper, and silver. Reliability: Based on the popularity of ad printing in today, I considered it is reliability to use widely in the world. It belongs to a new technology and people can accept it in many countries. For instance, Hoofers University already brought some small ad renters at school and students try this new technology with a reasonable price. It is easy to maintained in daily unless it will be instead by some new tech printing in the future.
Ease-of-use: ad printers are easy to use, it Just like the normal printers. Meanwhile, there also have a lot of ad printing consultants will help you. Performance: ad printing indeed faster and smaller and make life more convenient. The AD printing technology is used for both prototyping and distributed manufacturing with applications in architecture, construction (ACE), industrial design, automotive, tech (human tissue replacement), fashion, footwear, Jewelry, aware, education, geographic information systems, food, and many other fields.
One study has found that open source AD printing could become a mass market item because domestic AD printers can offset their capital costs by enabling consumers to avoid costs associated with purchasing common household objects Design: There is no design problems exists in ad printing because every design determined by customers themselves. They provide what they want to print. Technology: Certainly ad printing is a new technology in 21 century. It indeed improves print quality, reliability, ease-of-use, performance, value, design, and meaning.
Value creation: Obviously, ad printing creates an innovation in printing industry. Unlike the other ad printing, it is realistic and 3 dimensions. In some industry, like medical use, the denture materials, it solves problems a lot. 4. List the key attributes, features, and functions that will be focused on and, in particular, those that reinforce or detract from the meaning. Attribute can be in more than one category. Attributes can refer to the product you are planning to introduce and to existing products,
Points of parity and must-haves (POPS): Printing, Three-dimensional Points of difference and differentiators (PODS): High tech design, design by customers, use widely Blue Ocean features and exciters (Boss): High tech design, Sophistication ad printing Extinct and vestigial features (Exits): Traditional expensive model/sub]sects in some industry Dissatisfies (Aids): Illegal printing, social moral principle, such as guns, weapons FAD template applied in service product- Butler Service in Hospitality industry 1 . Product or service description (what will it do or what is its function? . What type of customer or customer segment(s) are you targeting? In modern houses where the butler is the most senior worker, titles such as majordomo, butler captain, estate manager and head of household staff are sometimes given. The precise duties of the employee will vary to some extent in line with the title given, but perhaps, more importantly in line with the requirements of the individual employer. In the grandest homes or when the employer owns more than one residence, there is sometimes an estate manager of higher rank than the butler.
The targeting customer is the high-class people and famous people. Butler service is definitely a growing trend, especially in top five-star hotels, resorts, cruise, and personal house. Price: How much does it cost? It depends. Usually you can expect to pay from $50,000 to $120,000 a year for the services of a butler. If in hotel or cruise to hire a temporary butler, the price will be charged by hotel, including tips. Quality: How well does the product or service conform to the product specifications? Does the product do what it says it is supposed to do in the user manual?
Is it effective in performing its function? Since this service is not like a common arrive, only a few people can afford it, which means the quality must be very good and butler service must be very professional. Reliability: Does the product or service perform as it is supposed to over its expected life? Is it prone to failure? Is it easily maintained? I believe most of butler service comes from a high level training program and it is reliability. Training is the best maintenance for butler service. Ease-of-use: Is the product or service easy to use and can consumers learn to use it without much trouble?
Butler service surely ease of use. It exists because make guests feel more convenient. Performance: Is the product or service faster, smaller, more convenient, greater capacity, better resolution, compatible, and adapt- able? Which features, functions, and processes are unique or distinguishing? Many butlers receive professional training-?either within the hotel chain itself or through an organization like the Guild of Professional English Butlers-?but they must also possess certain natural character traits in order to excel at their Job.
They should be flexible and accommodating to a guest’s needs; capable of dealing with people of all ages and from different cultures; roundly, loyal and immaculate in their grooming; and, yes, very discreet. Attractive? Is the product packaged properly? Is the service experience attractive and positive from the consumer’s perspective? Does the product or service suggest a certain meaning? The design of butler service comes from customers needs. It is attractive high class people and some of middle class.
Technology: Is there an emerging technology or a process that can improve quality, reliability, ease-of-use, performance, value, design, and meaning? To butler service, technology seems not applied too much in this part. Value creation: Is there any intrinsic value in the product that distinguishes it from other products or services? Does it solve a problem that consumers want to solve and will attract them to the product or service? Butler service is valued in service industry. It symbolized a best service in any of industry.
Points of parity and must-haves (POPS): List the attributes, features, and functions that most of the products or services in a category usually have. Secretary, butler, service, manage schedule Points of difference and differentiators (PODS): List the attributes, features, and unction’s of a product that distinguish it from the competition. Personalized service, high-level service, unique service Blue Ocean features and exciters (Boss): List the sunrise attributes, features, and functions that could be used to develop a new Blue Ocean market.
Sophistication butler service, maybe the Robert butler service in the future Extinct and vestigial features (Exits): List the sunset attributes, features, and functions that are no longer necessary or on the verge of becoming extinct for the product or Traditional scheduled by yourself, do anything alone service. Dissatisfies (Aids): List the attributes, features, and functions that can cause some consumers to avoid using your product or your com- petition’s product. TOO expensive, feel not safety What a small startup company can learn from this book 1, R&D can help a small startup company to get involved in marketplace as soon as possible.
No matter gathering information, designing the product or services, idea generation, or prototyping, R&D is the basic step for startup a company. As long as will be the first step to success. Meanwhile, having entrepreneurship is also important to start a new enterprise. It not only need the business owner to design products and services but also apply in their marketing strategy. 2, In chapter 3, we can see wows Joan Jewelry box business runs, and it can be a good example for all kinds of small startup companies.
First of all, doing a lot of marketing research and know how much the customers willing to pay your products. Then understand the relationship between demand and supply, pricing your product reasonable according the market demand. After that, make a detailed plan of your products line, like Joan expands her product line as high-end, middle-end, and low-end products. Meanwhile, the differentiation dashboard is very useful for conducting sensitivity analysis and what-if analysis for differentiating up to products and services.
While the company upgrade to a new level, you can try substitute goods to save both variable cost and fixed cost. Continue to chapter 4 we can use the PDP curve to positioning product and segmenting. Separating high-end product and low-end product in a business can developed a long-term relationship in market place. 3, Everything are difficult when it Just startup. At this time, list SOOT analysis in details ND make an excellent strategy planning in marketplace will on the way to success. 4, Valuing startup business is also a good element.
It is hard to value because there has no history to track record but this step is necessary. Maybe some of investors saw your value and willing to invest you. What an established, multi-billion dollar company can learn from this book 1, A large company also need entrepreneurship to expand their business and keep their staffs. Since monopolistic competition exists 99% marketplace nowadays and every businesses wants to be a monopolist, being entrepreneurial and a short- ERM monopolist is very important, and it is the best way for competing in unapologetically competitive environments. . An established, multi-billion dollar company must have variety of products exists in marketplace. At this time, company may use versioning strategy legally in marketplace. Because of many ways of features and services, and many different income groups, large company can positioning their customer segmentation in details and promote their price and product in different ways. 3. Actually, no matter how big your company is, creativity and innovation always the most important part for running a business. Based on creativity, many business owners become successful entrepreneurs.