Chapter 4 High.pptVIP

Marketing of High-Technology Products and Innovations Chapter 7: Product Development and Management Issues in High-Tech Markets Chapter Overview Technology development “What to sell” Product modularity, platforms, and derivatives New product development teams “Stopping” rules in new product projects Developing services Intellectual property Technology Maps Define a stream of new products breakthrough + incremental company plans to develop over time. Used for: Commitment to new product development Allocation of resources A flexible blueprint that must be updated regularly Technology Map 1. Technology Identification Inventory of firm’s valuable know-how that may be sources of revenue generation Products Processes Such as superior manufacturing skills Management practices Such as knowledge management e.g., Technology map of mobile standard evolution e.g., Technology map of telecom services Identify technology landscape Scanning the important technology entities 2. Decide on needed additions What technologies does firm need to round out its offering? “Make vs. buy” decision Internal development External acquisition Partnering Adding New Technology: Focus on Development Risk Internal Development New development close to existing skills Confidentiality reasons “NIH” not invented here : Good technology can be developed only internally. External Acquisition Someone else has already developed Save time and effort Let others take risks first Keep up with competitors Use existing brand name/marketing resources Commercialization Decision: “What to sell?”Focus on Marketing Risk Continuum of options, based on the additional expenditures customers must incur beyond the cost of the purchase to derive the intended benefits of the technology Know-how only “Proof of concept” Components to OEM Final products to end-user End-to-end solution, service bureau Appropriate conditions for technology licensing Network externalities: more value as more customers