1. ANALYZING PRODUCT/SERVICE RISKS AND BENEFITS
CHAPTER Seven

2. The New Product Development Success Curve
Based on the research of Greg A. Stevens and james Burley in “Piloting the Rocket of Radical Innovation,” Research Technology Management, 46(2):16-26.

3. From Idea to Market

4. New Product Checklist

5. New Product Development: Implications of Resource Shortfalls
Poor New Product Performance

6. Product/Service Development
Strategies to consider when competing effectively in product development:
Design products right the first time
Shorten the time to market
Outsource some product developments tasks
RBV framework
Manufacturing, or
Service

7. Resource Based View Evaluation Criteria – What a Firm Does –
Capabilities Represent - the firm’s capacity or ability to integrate individual firm resources to achieve a desired objective.
Criteria in determining the degree to which a Firm’s Capabilities are Strategically Valuable
Rare
Valuable
Inimitable
Non Subtitutable

8. Resource Based View
Valuable: Capabilities that either help a firm to exploit opportunities to create value for customers or to neutralize threats in the environment
Rare: Capabilities that are possessed by few, if any, current or potential competitors
Inimitable: Capabilities that other firms cannot develop easily, usually due to unique historical conditions, causal ambiguity or social complexity
Non-substitutable: Capabilities that do not have strategic equivalents, such as firm-specific knowledge

9. Technological Development Human Resource Management
Value Chain
Support
Activities
Primary Activities
Technological Development
Human Resource Management
Firm Infrastructure
Procurement
Inbound
Logistics
Operations
Outbound
Marketing
& Sales
Service
MARGIN

10. Outsourcing Product Development
Areas suitable for outsourcing that require engineering analysis, design and expertise:
Component design
Materials specifications
Machinery to process
Ergonomic design
Packaging design
Assembly drawings & specifications
Parts and material sources (suppliers)
Operator’s and owner’s manuals

11. Value Chains are part of a Total Value System
Supplier Value Chain
Firm Value Chain
Channel Value Chain
Buyer Value Chain
Upstream Value
Each firm must eventually find a way to become a part of some buyer’s value chain
Perform valuable activities that complement the firm’s activities
Ultimate basis for differentiation is the ability to play a role in a buyer’s value chain
This creates VALUE!!
Value chains vary for firms in an industry, reflecting each firm’s unique qualities:
History
Strategy
Success at Implementation 73

12. Intellectual Property
Definition of Intellectual Property Rights:
The group of legal rights associated with patents, trademarks, copyrights, and trade secrets.

13. Patents
Patents are the primary means of protecting an original invention.
Designed by Thomas Jefferson in 1790 to provide a brief legal monopoly to give the inventor an opportunity to get the invention into the market and recoup development costs before competitors entered the market.
USPTO criteria for patentability

14. Types of Patents
Utility: Protect functional part of machines/processes
Design: Protect new, original ornamental designs for manufactured articles
Business Methods: Protect fundamentally different ways of doing business whereby the embedded process must produce a useful, tangible, and concrete result.

15. The Patent Process Process: Patent Infringement
File a disclosure document
File a provisional patent
File a non provisional patent application
Patent Infringement
Patents give the holder right to enforce the patent
Defense costs in time and money make it difficult for small business to enforce.

16. Foreign Patents
Patent rights granted to an individual extend only to the borders of the United States.
Every country has different laws regarding intellectual property.
Hire a knowledgeable intellectual-property attorney!
Key Question: Legal Infrastructure of country of interest

17. Trademarks Trademark: It has a longer life than a patent.
A symbol, logo, word, sound, color, design, or other device that is used to identify a business or a product in commerce.
It has a longer life than a patent.
It grants a business exclusive rights to a trademark for as long at it is actively using it.
® Registered trademark
™ Intent to use application filed for product
SM Intent to use application filed for services

18. Registering a Trademark
Methods:
If the mark already is in use
If the mark has not yet been in use
If the international agreement permits
Not trademarkable:
Anything immoral or deceptive
Anything that uses official symbols of the US or any state/municipality such as the flag
Anything that uses a person’s name or likeness without permission ™ SM

19. Trademark Infringement, Counterfeiting, and Dilution
Infringement- A mark that is likely to cause confusion with a trademark already existing in the marketplace
Counterfeiting- The deliberate copying of a mark
Dilution- The value of the mark is substantially reduced through competition or through the likelihood of confusion from another mark.

20. © Copyrights Copyright:
protects the form of the original works of authors, composers, screenwriters, and computer programmers
does not protect the idea itself
lasts for the life of the holder + 70 years
Expired copyrights cannot enter the public domain until 2019
Works for hire-works published anonymously have copyrights of 95 years from date of publication

21. Copyrights (continued)
The Digital Millennium Copyright Act 1998
Prohibits the falsification, alteration, or removal of copyright management data on digital copies
The special case of software
Federal copyright protection covers published software
Obtaining copyright protection
Federal protection is available if the work is in a fixed and tangible form; contains a copyright notice and year, and the full name of the responsible person.
International protection
The Berne Convention gives protection for the life of the author +50 years

22. Trade Secrets A trade secret consists of
a formula, device, idea, process, pattern, or compilation of information that gives the owner a competitive advantage in the marketplace,
a novel idea that is not common knowledge and is kept in a confidential state.
A trade secret is not protected by federal law