T. Ford. June 2007. GENERIC
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Design Technology.
Topic 2 Product Innovation (7 hours approx. 7 lessons)
International Baccalaureate Organization (IBO)
-_
Topic 4 – Materials.
Name:
TG:
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Contents:
□ 1. Introduction and Internal Assessment. Page 4.
□
2. Designers and the product cycle. Page 5
□ 3. The Product life cycle. Page 9
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4. The effects of technology and competition on the product life cycle. Page 10.
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5. The Design process. Page 10
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6. Invention and innovation. Page 11
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7. Dominant design, Diffusion into the marketplace, Market pull and Technology push. Page 13
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8. People and markets. Page 16
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9. Checklist Page 21.
Students please note:
Tick each section as you go. Use the checklist at the end to make sure you have learned the unit. Your
teacher may not necessarily cover each stage in this order and some stages take longer than others to
learn. You are expected to keep your own folder of notes and portfolio of work related to this unit which you
must bring to every lesson. This booklet is designed as a guide only – studying is where the learning takes
place! Bring this booklet with you to every lesson.
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Introduction.
Innovation and the continuous development of new and improved products are key to successful design.
This topic considers the relationship between the design cycle and the product cycle. It moves on to
explore the role of invention in innovation and the impact of market pull and technology push on
product innovation. Establishing and developing markets for products are a critical element of the
product cycle.
The following internal assessment must be handed in by the end of term 2; your teacher will give a
deadline. Write it here:
…………………………………………………………………………………………………………………………………………………………
Internal assessment.
This work should show how you are able to apply the knowledge that you are taught in this unit. It will be
assessed against the criteria for Planning (P) and Research (R). Make sure that you check the
criteria as you produce your work. They are shown at the end.
Select a product or group of products which you believe have the potential for development. You may
for example look at the development of portable electronics over recent years and explore how future
products may be developed to meet future needs. The product should ideally relate to you chosen option
i.e. Food, Human Factors or CAD/CAM. Present your analysis in the following way:
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Explain the area that you have chosen to investigate. Write this in the form of a brief or
research question, explaining what you intend to find out and why. Explain how you intend to
conduct your research and summarise the types and sources of information that you intend to use.
Show the time-scale that you have available. 1 side A3.
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Provide a brief synopsis (summary) of how that product has developed over recent years (no
more than previous 10 years). This information should be research based. You must explain clearly
where the information came from and use correct referencing for all items including photographs
and diagrams. The research should be a combination of primary research and secondary
research. This should be 2–3 sides of A3.
•
Provide a summary which shows the key stages of the product’s development. Try to
present this as a ‘timeline’ or any similar system that is appropriate to your work. 1 side A3.
•
Conduct a product analysis on one example of your chosen product. Use this to establish which
aspects of the products’ design are fit for purpose and which could be further developed. 1 side
A3.
•
Conduct a ‘morphological analysis’ to summarise where innovation could take place. Use this
analysis to produce a brief and specification for a new product. 1 side A3.
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Present your innovation as a pictorial view. This can be drawn using any medium that you
choose including CAD. ‘Google Sketchup’, ‘Solidworks’ or any other form of modeling software will
be ideal for this. Discuss the most appropriate method with your teacher first. 1 side A3.
Make sure that every sheet clearly shows the following information:
Your name.
A project title.
IB Design Technology
Centre no. 1206 Sha Tin College
Internal Assessment (P & R).
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Planning (P)
assessment criteria:
Aspect 1
Aspect 2
Aspect 3
Defining the problem
Formulating a brief or
research question
Selecting variables or
specifications
Complete = 2
Identifies a focused
problem for a design
project or investigation.
States a detailed brief or
research question that is
appropriate to the level
of study.
Selects and explains
appropriate variables or
specifications
Partial = 1
Identifies a suitable
problem, but lacks detail
in the explanation.
States a brief or research
question, but this is not
explained in detail.
Selects some appropriate
variables or
specifications.
Not at all = 0
Does not identify a
suitable problem or
repeats the general aim
provided by the teacher.
Does not state a brief or
research question or the
brief or research
question is
inappropriate.
Does not select
appropriate variables or
specifications.
Research (R)
assessment criteria:
Aspect 1
Aspect 2
Aspect 3
Strategies
Data Collection
Data Processing &
Analysis
Complete = 2
Identifies suitable
strategies for research
Collects appropriate
research material
Processes research
material astutely with
detailed analysis
Partial = 1
Identifies some relevant
strategies
Collects some useful
research material
Processes research
material appropriately,
though analysis is limited
Not at all = 0
Does not identify
strategies or strategies
are teacher-directed
Does not collect any
research material or the
material is inappropriate
Processes research
material inappropriately
Levels /Marks
Levels /Marks
General points:
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Make sure that you select your product carefully and that it is suitable for analysis. You must discuss
this with your teacher.
•
Aim for high quality, not quantity. Sheets with detailed, relevant information and careful analysis are
required.
•
Be professional in the presentation of your work.
•
Follow the MLA style for referencing. You MUST make a full reference for every source you have
used including, texts, software and internet material. If you do not, you are plagiarizing which is
unacceptable.
Notes:
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1. Designers and the product cycle.
We often like to talk about ‘designers’ and ‘inventors’ and we sometimes imagine that they work alone,
thinking up new ideas for products. This is only true in a very small number of cases. In this unit, we will
see how product design is very often the result of team work, not one individual person. We will also see
how individuals who we might call ‘inventors’ or ‘designers’ actually do a lot more than just think of the idea.
They also work hard to find innovative ways to get their products designed, manufactured and sold; the
idea really is only a very small part of the process. Finally, thinking up new ideas is very hard, some would
say impossible. So where do ‘designers’ and ‘inventors’ get their ideas from? To find out, we will have a look
at some important pieces of product design.
Useful websites:
http://inventors.about.com/
In groups of two, see if you can find out what things were ‘invented’ by the following people:
Inventors:
Thomas Adams
Charles Babbage
John Logie-Baird
Alexander Graham Bell
Tim Berners-Lee
Edward Binney
Dr. Jacques Edwin Brandenberger
Willis Carrier
Martin Cooper
Who or how were the following products invented? You will need to use a variety of search engines to find
the answers.
Sinclair C5
Tetrapak
Sony Walkman
CD
Electric battery
Cling film
The sandwich
The microchip
Paper clips
The zip.
Have a look at the following page:
The fifty greatest gadgets of the last 50 years.
Discuss:
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•
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What features do these gadgets have in common?
What are their differences?
Why were they successful?
…and just for fun……
Have a look at these inventions:
http://www.chindogu.com/
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Hopefully, you have begun to see that products do not all get ‘invented’ in the same way. Some don’t have
a known inventor, but evolve over time. Chopsticks are a good example of this. Others most definitely are
the result of an innovative idea which then has to made into reality using the skills of others like
manufacturers, retailers and distributors.
The ‘Chindogu’ approach to invention is interesting. Even though the idea may seem ridiculous at present,
future opinion and technological possibilities may change and what seems impossible or ridiculous now
could be an acceptable product in the future.
Let’s try to make sense of this process (how products develop from ideas):
It is helpful to think about four basic stages called the ‘Product Life Cycle’ (sometimes just called the
‘Product Cycle’):
Introduction.
Growth.
Maturity.
Decline.
1. INTRODUCTION. With any new product or service you must introduce it to the market place. Introduce
it with the right image and the right price. Ensure you have the infrastructure to support this new product poor distribution at the start can spell disaster. To introduce a new product to the market place will requires
investment.
2. GROWTH. Once your product has survived the introduction phase it will need to grow. At this stage it is
hoped sales and profits to grow. With a customer base established this might be a good time to introduce
complimentary products or services.
3. MATURITY. The profit revenue from the product is falling and price reductions are necessary in order to
remain competitive. It is likely that your customer base is as wide as it will go.
4. DECLINE. Falling sales means that customers are tiring of your product or buying the same product
from a competitor. The market is changing. At this stage the following issues need to be addressed: Could
the product be re-launched? Does the product need modifying? Do you need a new product? Is it time to
move on? Do you need a new market?
When this stage is reached, companies will often try to use extension strategies. These are techniques to
try to delay the decline stage of the product life cycle. The maturity stage is a good stage for the company
in terms of generating cash. The costs of developing the product and establishing it in the market are paid
and it tends to then be at a profitable stage. The longer the company can extend this stage the better it will
be for them.
Question: Think of a product and try to decide which part of the life cycle it fits into. A few
examples are given to help you get started.
Type of product
Introduction
Growth
Maturity
Decline
Portable music
Mobile computer
Media player
iPod
Discman
Information
Wireless internet
Broadband
Dial-up
Printed
Car
Hybrid vehicles
High fuel economy
Photography
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Introduction.
Growth.
Maturity.
Decline.
For further help, click here:
http://www.netmba.com/marketing/product/lifecycle/
http://www.tutor2u.net/business/marketing/products_lifecycle.asp
However, some products don’t fit this tidy pattern; the reality is much more complex.
Some products don’t go into decline. This is true of mass produced food items like bread and milk. Some
branded products remain continuously popular such as Coke (although Coke products often undergo
extension strategies – can you think of any?). Technological products tend to be the ones that do go into
decline as new technology develops to replace them. This can be seen in the development of mobile ‘phone
technology for instance. However, some products use ‘old’ technology in innovative ways resulting in a new
form of product. Here are some examples:
The Dyson vacuum cleaner.
The Baygen Freeplay radio
One laptop per child.
Swiss Army Knife
Question:
In groups, examine each product. What ‘old technology’ is used? In what ways is the new product
innovative? How might this product be developed in the future? What extension strategies might be used?
Which scientific princples are used in the product?
Write your answers here:
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We can see that there is no single answer to the way products are designed, invented and developed.
Let’s add in some further detail based on what we know. Where would you add in the following terms? At
what stages in the product cycle could these things have an effect?:
Need is
generated.
Product is
designed.
Product demand
declines.
V
Distributors.
Product is
made.
Product is sold.
Product becomes obsolete (out
of date/no longer useful).
Retailers.
CAD.
Production
engineers.
Accountants.
CAM.
Designers.
Prototype.
Log onto this website. Familiarise yourself with the story of James Dyson (look for ‘About Dyson’ and
‘The James Dyson Story’ (you need to select a country from the home page to get into the website –
select UK).
http://www.dyson.com/
In the early stages of the product cycle, many changes were made to to the product (models, prototypes).
It wasn’t until Dyson developed the ‘DC01’ in 1993 that the product stared to reach a global market (the
previous version only sold in Japan). You could say that the product is ‘diffused into the market’, it has
gained acceptance and continues to sell well. We have seen that products can therefore fit into the product
cycle in one of three ways:
1. Early – products which are at the prototype stage or have only just entered the market and are still
gaining acceptance. Example: Portable media players.
2. Mature – products which are selling to their maximum potential and have gained acceptance.
Example: Ball point pen.
3. Late – products which are in decline. Extension strategies may be used and new forms of
technology may be competing for their share of the market. Example: Cassette tape
Questions:
1. What exactly did Dyson ‘invent’? Be careful!
2. Can you see any evidence of extension strategies being used by Dyson? Give clear examples and justify
your answer.
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3. Where would you place the ballpoint pen and the cassette tape in the product life cycle? Explain your
answer.
Product life cycle.
You can see some of these differences between products if you compare the number of sales of a product
against the period of time that the product sells for.
Here is an example:
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The four graphs represent the the number of sales of four types of music product over time:
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•
•
•
The
The
The
The
vinyl LP
MiniDisc or MD
CD
DVD
Here is a description for one of them:
“This product was a market leader for many years until other music formats were launched when sales
declined. However, it has seen a small period of growth again in a ‘niche’ market where the product is
enjoying a revival. It follows a growth-slump-maturity pattern.”
Which graph shows this pattern? Which product does it relate to?
Which graphs do you think match the other products (CD, MD and DVD)
For answers, click HERE
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The effects of technology and competition on the product life cycle.
Finally…
Product life cycles are affected by competition. If a product has a lot of competitors, its life cycle is likely
to be short. This is the case with mobile and entertainment technology, including laptops, mobile ‘phones,
MP3 players, home cinema, media players, game consoles, etc. Products like this may well only reach the
mature phase for a period of months and then move into decline.
However, some products are in the maturity period for much longer periods of time. These tend to be
products which do not rely on new technology for their success and have a universal application. They are
also products that we consume in large quantities. Here are some examples:
Paper clips, ball-point pen, electric plug, light bulbs...can you think of any others?
The Design process.
The product cycle is concerned with how products fit into the market place or put another way, how
a design solution is put into commercial practice.
The design cycle is concerned with how new products come into being in the first place or how
suitable solutions to problems are found. The two can be looked at separately but are related.
The design process in its simplest form looks like this (there are many versions of this idea – this is ours!).
The aim of the design process is to produce a suitable solution to a problem:
A need is
identified
The product is used until
it no longer functions
The product is
manufactured
The product is tested
and evaluated
Ideas are
generated
Prototype solutions
are made
The best solution is
identified
The aim of this process is to produce the best possible solution to the problem. It is the process that we use
when we make projects. If we do not complete any stage of the process, there is a risk that the product
may not be fit for purpose or that the process won’t move to the next stage.
However, different people may have different views about what is ‘best’. A product may be ‘best’ if it the
cheapest. It may be the ‘best’ if it is the most durable. It may be ‘best’ if it uses the highest quality
materials. We all have different views on what ‘best’ means – the design cycle is an attempt to reach the
best compromise between all these needs.
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Invention and innovation.
“Invention: The process of discovering a principle. A technical advance in a particular field often resulting
in a novel product.”
“Innovation: The business of putting an invention in the marketplace and making it a success.”
The stages of innovation:
Developing
an idea into a
product
Redesign…
Production
(manufacture) of
that product
Sales
Questions:
Marketing
(promotion,
advertising…)
Would you describe James Dyson and Trevor Bayliss as inventors or innovators or both?
Which aspects of their work fit the definitions given above?
Could you give examples that show how the redesigning of an existing product leads to ideas for new
products?
There are some fundamental elements that have to be in place before invention and innovation can take
place:
1. Science and scientific understanding. Without this, the technology used in the product cannot
be exploited. For example, the free-play radio uses a scientific principal to store and convert kinetic
energy into electrical energy using a generator (or motor in reverse). Dyson also used a scientific
understanding of centrifuges to develop his vacuum cleaner. It is important to remember that they
did not invent this science. It already existed. They understood it and applied it to new contexts.
This is sometimes called Transfer Technology.
2. Technology. This is the application of science in order to make functional products. It is
Technology that uncovers new possibilities for products. Technology also provides new materials,
manufacturing techniques and process from which innovations can develop.
3. Design. Products must be well-designed to ensure that they are fit for purpose. Designs can be
continuously updated to make them more commercially viable (ie iPod)
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So why do so many inventions fail to become innovations?
Look at this website:
http://www.ipo.gov.uk/
Find out what the following things are:
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Intellectual property:
•
Design
•
Copyright
•
Patent
•
Trademark
What are the benefits of protecting intellectual property in these ways?
How much does it cost and how long does it take?
So now you know how to protect your idea. But how original is your idea? Has someone else thought of it
already?
Log on to:
http://gb.espacenet.com
This site allows you to see if anyone else has already applied for a patent of their idea. You can do a
worldwide search – but it takes longer. Try this as an example:
1. Go to ‘Quick Search’.
2. Select the ‘GB – esp@cenet database’ (each one of these links to a database of patents stored
by each country in the European Union. You can do a worldwide search but it takes longer).
3. Select ‘Search for words in the title or abstract’.
4. Type ‘Solar AND cooker’ in the search terms box. You must use upper case for the AND part. This
will allow it to search for each individual word.
5. Click ‘Search’.
6. Click on one of your results.
7. Click on the tab that says ‘Original Document’. This should show you a PDF file of the patent
application. This is the document that is filed at the Patent Office to register a design as someone’s
‘Intellectual Property’. The Patent Office charge a fee to determine whether or not the design really
is original. If it is, the owner may then state that their design is ‘patented’ or protected by law. This
means that no-one else can copy the design without permission. You will see how complex it is to
prepare a patent. The drawing are very simple, the wording is highly complex.
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8. Now go back to the ‘Bibliographic data’ tab and select ‘Patent status enquiry’. You can find
out whether the patent is still in force or if it has ceased.
Benefits and drawbacks of the patenting process:
Benefits:
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It protects the intellectual property rights of the ‘inventor’.
•
It provides a legal framework for protecting products form being copied.
•
It allows the ‘inventor’ to benefit from their work by giving them exclusive rights over the marketing
of their product.
Drawbacks:
•
It is time consuming and complex.
•
It requires investment that some may not be able to afford.
•
It does not guarantee that ideas will not be illegally copied in other countries.
Carry out a search of your own. Try to think of innovative and radical concepts. Find out if anyone else has
already thought of your idea. Here are a few to get you started:
Pet AND door
Vision AND night
Sandwich AND structure
Ink AND edible
Dominant design, Diffusion into the marketplace, Market pull and Technology push.
You need to know what these phrases mean. Here is the IB’s definition of each:
Dominant design:
IB say: “The design contains those implicit features of a product that are recognized as
essential by a majority of manufacturers and purchasers.”
Put simply:
Dominant designs are products that meet manufacturers’ and users’ needs very well indeed and therefore,
there is no need to change them. They tend to be products that we consume in large amount like the
Tetrapak food carton, Coca Cola bottle, pencil sharpener, paper clip. However, occasionally, a dominant
design is the result of innovation like the iPod, ballpoint pen (‘Biro’), Coca-cola bottle or the Dyson vacuum
cleaner.
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Task:
Make a list of products which are in your view dominant designs:
Diffusion into the marketplace:
IB says: “The wide acceptance (and sale) of a product.”
Put simply: This is when a product is wanted by consumers and can be easily found. Diffusion is when
something has spread out so you can imagine how products like the iPod have spread to reach millions of
people around the world. They are not difficult to find and they are in high demand.
This sounds straightforward but is a major challenge for designers and manufacturers. There can be a lot of
problems to overcome:
•
Consider local, national and global competition. There may be similar products competing for a
share of the same market. A good current example is the competition between mobile’ phone
manufacturers and service providers.
•
Product launches and marketing. Consumers need to know that the product exists and where it
can be purchased. If the target market does not have access to forms of advertising like the
internet, billboards, TV, newspapers and magazines, they will be unaware of the product’s
existence. To make a big impact, a company may use a ‘product launch’ as a strategy to generate
interest. This may be a high profile event like a film premiere. This generates interest in the
product, especially if it is endorsed by celebrities. This in turn helps to get the product into the
media through news channels and magazines. This strategy is used very effectively by games
console manufacturers (Sony, Nintendo) when a new game is launched.
•
A final problem is that consumer tastes vary globally. You can see this with Trevor Bayliss’ windup radio. Consumers in the West and Asia want products that are miniaturised to suit their lifestyle.
However, the intended target group (African nationals) demand radios which are larger. Food
exemplifies this better than any other product. We are all attracted to and repulsed by different
food products, sometimes due to personal taste, sometimes due to ethical and religious reasons.
We like and dislike different flavours, textures, sights and smells. Coca-cola is one of the few food
products that has broken through this cultural barrier to become the most globally recognised
product in existence.
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Product Champion:
IB says: “An influential individual, usually working within an organisation, who develops an
enthusiasm for a particular idea or invention and ‘champions’ it within an organisation.”
Put simply: A person who believes in the value of a product and works with teams in order to make that
product successful. There are product champions behind every successful product. Could you name the
product champions behind the Dyson Vacuum cleaner or the Bayliss wind-up radio? Probably not. They are
the unsung heroes of successful design. Product champions need a range of qualities that far outstrips the
qualities of the lone inventor: have a look at page two of this document:
Product Champions
You can see a big difference between the lone inventor and the product champion. The lone inventor is
totally focused on the making their idea work.
The product champion is a project manager dealing with complex and variable needs. Their job is to bring
together all of these variables to produce a well-marketed and sold product.
See if you can find some examples of product chamnpions. Who are they? What product did they
champion?
Lone inventor:
IB says: “An individual working outside or inside an organization who is committed to the
invention of a novel product and often becomes isolated because he or she is engrossed with
ideas that imply change and are resisted by others”.
Put simply:
This is exactly how Trevor Bayliss and James Dyson worked. It describes a person who is obsessed with the
development of their product and who is convinced of its market potential. The innovation may be so
advanced that it does not gain initial acceptance by others. This makes it very hard for the lone inventor to
work as part of a team. They may be described as ‘dogmatic’ which means inflexible and determined to do
things their own way. It is interesting to think that as we face the need to combat climate change by
consuming less materials and less energy, both products are now looked upon very favourably. Can you
explain why?
Market pull:
IB says: “The initial impetus for the development of a new product is generated by a demand for
the product”.
Put simply: A market pull is when consumers (customers) need or want a new product. Designers and
makers respond to this demand by providing the products that are wanted. A good example is the use of
wireless internet on handheld devices such as mobile ‘phones. We all have an increasing need to access
email, the internet, entertainment and personal information while we are moving. We want to have these
things in any place and at any time. Products are manufactured to meet this new demand, usually as a
variation of mobile ‘phone technology.
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Technology push:
IB say: “Where the impetus for a new design emanates from a technological development”.
Put simply: This is the opposite of market pull and is when an advance in technology opens up potential for
new products. Consumers will have managed without these new products but will be attracted to them by
their advanced features. Here are three examples:
1. Lasers were developed in the 1950s to assist with the exploration of space and have a broad range
of applications. It is only fairly recently that they have been developed to cut materials which has
traditionally been done using other types of machinery (saws, milling machines, sanders, etc.). The
production of laser cutting systems for use in school or the small business has created a demand for
those products. People see the benefits of a system that is highly accurate, rapid and low
maintenance, even though there are plenty of other ways to cut material.
2. Printing technology. As recently as 15 years ago, most families would not have owned their own
computer or printing equipment. Most people would not have seen the need to have these items at
home. However, the manufacture of printing equipment designed for use at home has created an
on-going demand for those products. It is now common for families to own a printer, fax machine,
photocopier, photo-printer etc. The development of miniaturised technology has allowed these
products to be developed and thus, created a demand for them.
3. Friction welding. The development of this new technology has made it possible to manufacture
much larger aircraft than ever before. The development of the technology has pushed the
development of the aircraft. However, the increased demand for air travel has also pulled the need
to develop this new technology. Check the following link:
Friction welding and the Airbus A380
What we have learned is that products are never really the result of a single person’s creative talents. For
the product to be manufactured and marketed, large numbers of teams are needed. Very often, the
inventor is the person who files the patent to protect their idea but we know that this is just the beginning
of a long and complex process. Market pull and Technology push work together as you have seen in the
Airbus video: New technology changes the way people live and so changes their demands which in turn
forces the development of new technology. It is never a clear-cut situation.
People and markets.
People react to technology in different ways. Here are three words that describe these variations:
1. Technophile: Someone who immediately welcomes a technological change
2. Technocautious: someone who needs convincing before embracing technological change.
3. Technophobe: Someone who resists all technological change.
Which of these three words would you use to describe the following people?
Yourself:
Your friends:
Your parents/guardians:
Your grandparents:
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Does age affect how prepared we are to embrace technology? Why is there a relationship between age and
our willingness to use Technology?
You may think that as we get older, we are less interested in new technology or that we are less able to use
it because we become ‘out of touch’ with innovation. It is much more complex than this.
Imagine that you have been given a large sum of money and you wish to buy your first car. You are very
keen but your parents less so and your grandparents are positively against it. Why is this? It is to do with
our awareness of first and second order effects:
A first order effect is the one which is felt immediately. If you buy a car, you feel the effects of
personal gain, your status and independence have improved.
For your parents, the second order effects are more apparent but not immediate to you the
consumer: The cost of running the car, the risk of an accident, the difficulties in providing insurance. Your
parents are able to consider second order effects because they have experienced them themselves. We all
have to take account of second order effects more than ever due to the impact of technology on climate
change. Buying a car adds to the congestion problem, contributes to air pollution and uses precious fossil
fuels. We all have a responsibility to think beyond the first order considerations if we are acting as a
designer or a consumer.
Corporate strategy:
IB says: “Long-term aims and objectives of a company and ways of achieving them by allocation
of resources”.
Put simply; the ways in which a company or organisation decides how to meet its aims. There may well be a
product champion at the heart of this process. There are several forms of corporate strategy:
Pioneering: Pioneering means being ahead of the competitors by introducing a new product first. It is the
most risky (costly) strategy but one with the potential for the largest gains. A pioneering company requires
a strong research and development (R&D) capability, which is expensive. A pioneering company needs to be
financially secure and requires product champions to push new ideas. Consider the Sony or Apple companies
and their various pioneering developments. Good market research can offset some risk, but is problematic
for novel products.
Imitative: The imitative strategy aims to develop a product similar to the “pioneered” product as quickly as
possible. It takes advantage of R&D invested by others, and is less risky, but is based on a strong
development capability.
Companies may use a hybrid strategy (a mixture of imitation and innovation). The aim of corporate
strategy is to sell as many products as possible. Market penetration means increasing sales to existing
customers or finding new customers for existing products. The strategy might also use market
development which means finding new applications for existing products, thereby opening up new
markets. Look at this site:
http://www.victorinox.ch/
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Each part of the Swiss Army Knife or ‘Multitool’ is an existing piece of technology (scissors, saws, knife,
tweezers, pliers, etc.) Each element is re-packaged in a new form which appeals to a new market.
Task:
List the various user groups that Victorinox (the mnanufacturer) is aiming to attract with its products:
Question: What ways do Victorinox use to achieve market penetration? (in other words, how do they
successfully increase their sales and find new customers):
Answer:
Task: Find out about the market development of the plastic Nylon.
For what purpose was Nylon originally developed?
What other applications is Nylon used for now?
Companies which already have well-known products will employ a strategy called product development.
This is the creation of new, modified or updated products aimed mainly at a company’s existing customers.
It helps to make sure that customers remain interested in the product and creates the impression that the
product remains modern and innovative. This strategy is used a lot in the food industry.
Task: See how many variations you can find on the basic Kit Kat chocolate bar. What elements have been
changed and what elements have stayed the same?
Find one other example of product development from the food industry. Explain it below:
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Diversification:
IB says: “Involves a company both in the development of new products and in selling those
products to new companies.”
Your teacher will give you a collection of three pin plugs. The function of each plug is identical but their
forms are different. List the ways in which the plug has been diversified and give a reason why this
diversification has been made:
Diversification:
Reason:
(Example) Reduced volume
Less space taken up
(Example) Red colour
Can match colour of interior or product.
Market sector: “A broad way of categorizing the kinds of markets the company is aiming for”.
Market segmentation: “Markets divide up into smaller segments where the purchasers have similar
characteristics and tastes”.
Here is an example of a Market sector:
Snack food market
sector – those
consumers who
purchase snack
foods.
This market sector can be segmented into groups of consumers with similar characteristics:
Lifestyle
Age
Income
Job
Location
Interests
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Each sector can be broken down into narrower sectors. For example; age may be subdivided into baby,
toddler, pre-school, junior, teenage, adult, etc. Part of a corporate strategy may be to target a general
sector such as those with a similar income or lifestyle, or a very specific sector, such a particular age group.
More detail can be found on the following PowerPoint slide:
Market segmentation
You need to look at slides 5 & 6.
Robust design: “Flexible designs that can be adapted to changing technical and market requirements”.
Product family: “A group of products having common classification criteria. Members normally have many
common parts and assemblies.”
Select a product which is in your view an example of a robust design that evolved into a product family.
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*** END OF TOPIC 2 ***
Checklist: This is what you should know at the end of this unit:
2.1 Designers and the product cycle
2 hours
2.1.1
Describe the product cycle.
cycle
2.1.2
Discuss the role of the designer in the product cycle. Designing is part of the product cycle: as a need is generated, a product
is designed, made and sold, eventually becoming obsolete. The cycle is complicated by distributors, retailers, accountants
and production engineers, all of whom have an influence over the cycle. Although the designer is an integral part of the
process, he or she is not necessarily in control (unlike in the design process). Computer-aided design (CAD) and compute
raided manufacture (CAM), where a prototype is produced by the designer from his or her personal computer (PC), blurs this
distinction.
2.1.3
Outline the product cycle in terms of early,
early, mature and late stages of development. In the early stages of the product cycle,
many changes to the product take place until it develops to the mature stage, where it is diffused into the market, gains
acceptance and sells well. In the late stage, the product begins to decline in need and therefore in sales.
2.1.4
Identify products that are at the early, mature and late stages of their product cycle. The ballpoint pen is in the mature stage,
as it still sells well although the design does not change much. The cassette tape is in the late stage, as it has been
overtaken by successive generations of products.
2.1.5
Compare the design cycle with the product cycle. Highlight how the design process is aimed at producing a suitable solution
to a problem, and that the product cycle is concerned with putting that solution into commercial practice.
2.1.6
Discuss why for many products the product cycle has shortened.
shortened Compare a laptop computer and a ballpoint pen. Laptop
computers are an intensely competitive market, with size and power being key issues.
2.2 Invention and innovation
3 hours
2.2.1
Define invention and innovation.
innovation.
2.2.2
Outline the stages of innovation. Developing an idea into a viable product; its production; marketing and sales; followed by
redesign; and the cycle or spiral continues.
2.2.3
Discuss the importance of science to invention and innovation.
innovation Science explains how the world is.
2.2.4
Discuss the importance of technology to invention and innovation. Technology uncovers new possibilities for materials,
manufacturing techniques and processes.
2.2.5
Explain why the majority of inventions fail to become innovations. Consider marketability, financial support, marketing, the
need for the invention, price, resistance to change, and aversion to risk.
2.2.6
Explain the relevance of design to innovation. For continued innovations (re-innovation), products and processes are
constantly updated (redesigned) to make them more commercially viable and to give consumers choice and improved
products.
2.2.7
Define dominant design,
design, diffusion into the marketplace,
marketplace, market pull and technology push.
push.
2.2.8
Describe a design context where dominant design is relevant. For example, ballpoint pen (Biro), Apple® iPod®, Coca-Cola®.
2.2.8
Explain the difficulties of getting a product to diffuse into the marketplace. Consider local, national and global competition.
The problems of getting novel products to market include product launches and marketing.
2.2.9
Explain why it is difficult to determine whether market pull or technology
technology push is the impetus for the design of new products .
Push and pull are present in most successful innovations. The explanation should apply only to the origin of the idea or where
the idea seems to have been generated.]
2.2.11
Define lone inventor.
inventor.
2.2.12
Discuss
Discuss why it is becoming increasingly difficult to be a successful lone inventor. 3 Most products are now extremely complex
and rely on expertise from various disciplines. Most designs are developed by multidisciplinary teams.
2.2.12
Explain why lone inventors often
often find it difficult to work in the design departments of large companies.
companies They are often used
to setting their own targets rather than working as members of teams. They can be dogmatic in their methodology and less
flexible than team workers.
2.2.14
Define product champion.
champion.
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2.2.15
Compare the lone inventor with the product champion. The lone inventor may lack the business acumen to push the
invention through to innovation. The product champion is often a forceful personality with much influence in a company. He or
she is more astute at being able to push the idea forward through the various business channels and is often able to consider
the merits of the invention more objectively.
2.2.16
Explain why innovators may have difficulty in obtaining financial
financial support for an invention . Most people with money to invest
will be inclined to wait until it is clearer whether an invention is going to be successful before investing: the problem is to get
them to take the risk.
2.3 People and markets
2 hours
2.3.1
Define technophile,
technophile, technocautious and technophobe.
technophobe.
2.3.2
Explain how people can be broadly classified according to their reactions to technological change. People’s reactions to
technological change vary depending on their values and personal circumstances. First-order effects and second order
effects should be taken into account, for example, personal gain in owning a car versus social and environmental
considerations.
2.3.3
Define corporate strategy.
strategy.
2.3.4
Describe the corporate strategy referred to as
as ‘‘pioneering
‘‘ pioneering’’
pioneering’’.
’’ . Pioneering means being ahead of the competitors by introducing
a new product first. It is the most risky (costly) strategy but one with the potential for the largest gains. A pioneering company
requires a strong research and development (R&D) capability, which is expensive. A pioneering company needs to be
financially secure and requires product champions to push new ideas. Consider the Sony or Apple companies and their
various pioneering developments. Good market research can offset some risk, but is problematic for novel products.
2.3.5
Describe the corporate strategy referred to as ‘‘imitative
‘‘ imitative’’
imitative’’.
’’ . The imitative strategy aims to develop a product similar to the
“pioneered” product as quickly as possible. It takes advantage of R&D invested by others, and is less risky, but is based on a
strong development capability.
2.3.6
Explain the benefits for a company of using a hybrid strategy.
2.3.7
Define market penetration.
penetration.
2.3.8
penetration.
on. Consider product promotion through
Describe a strategy that a company would use to enhance market penetrati
marketing.
2.3.9
Define market development.
development.
2.3.10
Describe how a company would undertake market development. The identification of new markets for products, for example,
nylon was originally developed for parachutes.
2.3.11
Define product development.
development.
2.3.12
Describe one example of how a company undertakes product development. Consider adding variations to a product to
develop a range of products building on an established brand, for example, ice cream, snack food products, chocolate
products (Kit Kat, Mars bars).
2.3.13
Define diversification.
diversification.
2.3.14
Describe one example of diversification. For example, a company manufacturing three-pin electrical plugs may consider
producing them in a range of colours or from materials of different textures and/or material properties.
2.3.15
Define market sector and market segmentation.
segmentation.
2.3.16
Outline two ways in which markets may be segmented.
segmented Consider income, age, lifestyle, geographical location, and so on.
2.3.17
Define robust design
design and product family.
family.
2.3.18
Discuss an example of a robust design that evolved into a product family.
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