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Lecture 5

Lecture 5. Product and Technology life Cycles April 12, 2012. Design Development Process. Market Needs. Product Concept. Systems Design. Detailed Design. Integrate and Test. Technology Readiness. Transition to Manufacture. Manu- facture. Support. Research.

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Lecture 5

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  1. Lecture 5 Product and Technology life Cycles April 12, 2012

  2. Design Development Process Market Needs Product Concept Systems Design Detailed Design Integrate and Test Technology Readiness Transition to Manufacture Manu- facture Support Research

  3. Product Life Cycle Maturity Decline Growth Sales Volume Intro Time

  4. Product Life CycleIntro, Growth, Maturity, Decline • Where is the investment highest? • Where does manufacturing process change the most? • Where should you invest in a new product? • Wherearethe largest profits earned? • Where are there the most competitors? • Where should you get out of the business (kill the product)? • Where is cannibalization (replacing an “obsolete” product) a good idea? • Where is it a bad idea? A

  5. Question: How do you make “predictable” increases in sales if any product has a finite lifetime?

  6. Add new products at the right time Product C Product B Volume Product A Time

  7. Product Life Cycle OK you add new products, but this generates new uncertainties

  8. Product Life Cycle Challenges • Timing of these introductions • Market acceptance • Costs

  9. Product Life Cycle Consider timing • Introduce new products too quickly • Introduce new products too slowly

  10. Product D Product/Technology PlatformsTo lower cost of introduction, introduce a lot of products from the same technology Product C Product B Product A Technology

  11. Product D Product Introduction Product C Product B Product A

  12. Technology and Market Acceptance • Because something can be made does not mean that it should be made or that anybody will buy it

  13. How do you know if someone will want to use your technology?

  14. Technology driven vs Market driven • Technology Driven- we have a technology- now what do we do with it. What examples can you think of. • Market driven- we have a need- what is the best way of satisfying it, i.e. what is the solution (partial or complete) to a problem • A good company has a great knowledge of market needs

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