chapter 11 the product-innovation process. 2 the three levels of a product core benefit or service...
TRANSCRIPT
CHAPTER 11
THE PRODUCT-INNOVATION PROCESS
2
THE THREE LEVELS OF A PRODUCT
Core Benefit
or Service
Packaging Brand Name
Quality Styling
Installation
After Sale Service
Warranty
Delivery / Credit
Core Product
ActualProduct
AugmentedProduct
Features & Options
3
GOOD, SERVICE, & PRODUCTS
Product : anything that an organization can offer to a market for attention, acquisition, use, or consumption that might satisfy a want or a need (good+service)
Three Levels of a Product– Core : essential benefit or service – Actual : tangible parts - packaging, features and options– Augmented : intangible part - life insurance, after-sale
service Consumer product vs. Industrial product
4
DESIGNING SERVICES
Types of service buyer (Fitzsimmons) : target– Economizers– Convenience seekers
– Heterogeneity ( 다양성보장)
– Perishability
– Personal care seeker– Ethical/loyal customers
– Intangibility– Simultaneity
Attributes of services
Idea 의 원천 ( 기업 내 ) – Vector marketing : latent demands– service delivery system : network
5
MATRIX OF SERVICE PROCESSES
CustomizationLow High
LaborIntensity
Low
High
SERVICE FACTORY Airlines Trucking firm Hotel Resort and Recreation firm
SERVICE SHOP Hospital Auto repair shop Other repair services
MASS SERVICE Retailers Wholesalers Schools Retail banking
PROFESSIONAL SERVICES Doctors Attorney Accountant Architect
6
AN OBJECT/LOCATIONSERVICE CLASSIFICATION
What isServiced
Person Thing
WhereServiced
Customer’s Site
Server’s Site
TV viewingEmployee trainingSwim lessonsPizza deliveryPolice protection
Horse shoedLawn careComputer repairCateringGarbage collection
Exercise clinicLoan dealLegal servicesMovie theaterHealth care servicesBeauty salons
Dry cleaningTax preparationStock salesPizza preparationGoods transportation
7
PRODUCT ARCHITECTURE ISSUES
At the start of the product innovation process, top management must decide certain product architecture issues. Namely:–How can a standardized product meet the core needs of targeted customers
–How Can a standard product comprised of a flexible set of optional functional modules satisfy the needs of buyers who want a customized product?
–How Can a product design be divided into separate modules?–How should these modules interact with each other?–How much technical risk should the design of each module take?–How much reserve capacity should the design of the overall product and its modules have?
–Which of these modules should be designed by outside designer/suppliers.
8
PRODUCT STANDARDIZATION
Mass manufacturing has long sought to make standard products from standard parts. In doing so, they sought to gain the following:– Lower product design costs(common design, unwanted feature)– Lower component design costs(vendor’s expertise)– Lower production costs(large batch, inventory-efficiency)– Lower delivery costs(transportation)– Quicker deliveries(inventories sites near customers)– Brand recognition economies of scale– Simplified comparisons(mail-order purchase)– Stronger consumer protection
9
MASS CUSTOMIZATION
Mass customization seeks to achieve high levels of product customization while retaining the economies of scale of mass manufacturing. It seeks to do this by:
– Offering standard product with customized services
– Customize product at the point of delivery
– Assemble standard, modular components into
customized final goods and services.
10
MODULA DESIGN
Modular product designs– Concentrate all function in a single, special-purpose unit– Develop a module to perform each function– Technology of different modules
Modular Design Interface : Open architecture –vendor Technical Risk : Business decision Placement of reserve capacity in a modular design -
capacity shortfall In-House VS. Outside Module-make or buy
11
SEQUENTIAL VS. CONCURRENT ENGINEERING
Shortcomings of Sequential process– much time(outdated), much cost(rush job)– Quality problem(product recall)– Communication(committees,paper 필요 ), perspective(customer)–
Concurrent engineering 의 성공요인– Leadership– Teamwork– Communications– Simultaneous development
12
ORGANIZING FOR WORLD-CLASS PRODUCT DEVELOPMENT
The product development strategy– Process Inputs
Technology assessment and forecasting Market assessment and forecasting Technology strategy Product/market strategies
Technology Assessment and Forecasting
MarketAssessment and Forecasting
Goals and Objectives
Postproject Learning and Improvement
Project Management and Execution
Aggregate Project Plan
Technology Strategy
Product/Market Strategy