Professional Documents
Culture Documents
TECHNOLOGY PRODUCTS
CHAPTER 7
Product Development and Management
Issues in High-Tech Markets
Introduction
• Used for:
• Commitment to new product development
• Allocation of resources
1. Technology Identification
• Continuum of options
• Additional expenditures customers must incur to derive the intended
benefits of the technology
Offer
Components incompatible with
industry standards
Complete
Solution
Offering technology to competitors Commer-
may encourage industry cialize
standardization License
Skills in only some market
and...
segments
“What to sell” decision
• Profit sharing
• Realistic/accurate value
• Intellectual property rights
Technology Map
4. Ongoing Management
• Partition information
Microprocessors, Cars
Product Architecture - Platforms
• Unit-one cost
• The cost of producing the first unit is very high relative to reproduction
Family 3
Performance
Family 2
Family 1
Time
Platforms and Derivatives
Family 4: Intel
Core 2 Extreme
Conroe XE
2.93 GHz
Family 3: Intel Core 2 Kentsfield XE
2.67 GHz
July ’06)
Family 2: Pentium D
840
3.2 GHz
830 (May ’05)
820 3.0 GHz
2.8 GHz (May ’05)
(May ’05)
Family 1: Itanium 2
Montecito
1.4 GHz
Madison
(July ’06)
1.3 GHz
McKinley
1 GHz (July ’03)
(July ’02)
Time
Making decisions about Platforms and Derivatives
Escalation of commitment
• Product champions/technology enthusiasts are perennial
optimists
Disadvantages:
• Costly!
Intellectual Property: Patents
• Provisional:
• $160, 1 year time frame to “hold”, do further research
• Establishes a “priority date” of invention
• Utility:
• $750 for examiner to render a decision
• Granted or denied; applicant can appeal or re-file (another $750)
Intellectual Property: Patents
• Term
• Easy to obtain
• Secret
• generally unknown
• Noncompete Agreements
• Signer will not establish/join a competitor’s firm within a given time
frame/territory