19 The Management of New Product Development, and Entrepreneurship CThe McGraw-Hill Companies, Inc, 2000
19-1 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 The Management of New Product Development, and Entrepreneurship 19
Innovation, Technological Change an(5-2 三 Competition Technology refers to the skills, knowledge, experience, body of scientific knowledge, tools, computers, machines used in the design and production of goods and services. Ouantum technological change: fundamental shift in technology that results in innovation. o The Internet and genetic engineering are examples Incremental technological change. refinements of current technology over time o Most firms seek incremental product innovations which allows constant, but small, improvements win/MeGraw-Hill CThe McGraw-Hill Companies, Inc, 2000
19-2 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Innovation, Technological Change and Competition Technology refers to the skills, knowledge, experience, body of scientific knowledge, tools, computers, machines used in the design and production of goods and services. Quantum technological change: fundamental shift in technology that results in innovation. ◆The Internet and genetic engineering are examples. ◼ Incremental technological change: refinements of current technology over time. ◆Most firms seek incremental product innovations which allows constant, but small, improvements
19-3 Effect of Technological Change o Many products undergo constant change and improvement Electronic products provide a great example This change can be a threat to firms that are slow to improve but provides benefits to firms that adjust o Technological change is both a threat and an opportunity a Smith Corona typewriter company missed out on word processing and is now out of business a Microsoft was quick to embrace graphic user interface programs and now is dominant in the software business " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000
19-3 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Effect of Technological Change ⚫ Many products undergo constant change and improvement. ◆Electronic products provide a great example. ◼ This change can be a threat to firms that are slow to improve but provides benefits to firms that adjust. ◆Technological change is both a threat and an opportunity. ◼ Smith Corona typewriter company missed out on word processing and is now out of business. ◼ Microsoft was quick to embrace graphic user interface programs and now is dominant in the software business
19-4 Product Life Cycles Refers to demand changes for a product over time o Embryonic stage: product is not widely accepted and has minimal demand o Growth stage: many consumers seek out the product and buy it for the first time Mature stage: demand peaks since most buyers already have the product and only buy replacements o Decline stage: demand falls off perhaps since the product Is obsolete " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000
19-4 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Product Life Cycles ◼ Refers to demand changes for a product over time. ◆Embryonic stage: product is not widely accepted and has minimal demand. ◆Growth stage: many consumers seek out the product and buy it for the first time. ◆Mature stage: demand peaks since most buyers already have the product and only buy replacements. ◆Decline stage: demand falls off perhaps since the product is obsolete
19-5 Product Life Cycles Figure 19.1 Demand Embryonic Growth Mature D ecline Stage Stage Stage Stage T Ime " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000
19-5 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Product Life Cycles Embryonic Stage Growth Stage Mature Stage Decline Stage Time Demand Figure 19.1