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Case Study 2-5

Case Study 2-5. Bush Boake Allen Case Customers as Innovators. Good Practice: Listen to Customers and Exceed Their Needs. Carefully study and listen to what customers want through market research (“voice of the customer”).

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Case Study 2-5

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  1. Case Study 2-5 Bush Boake Allen Case Customers as Innovators

  2. Good Practice: Listen to Customers and Exceed Their Needs • Carefully study and listen to what customers want through market research (“voice of the customer”). • Translate their needs into product requirements (e.g., using tools such “quality function deployment” or QFD). • Design and develop products using concurrent engineering processes (“time-to-market”). • Work hand-in-hand with manufacturing to ensure smooth transfer and rapid production ramp-up. • Delight customer with finished product.

  3. Flavor Design at Bush Boake Allen: Being Close to Customers Is Costly

  4. Different Industry, Same Problem: The Development of Custom Chips • Prior to 1981: custom integrated circuits available only to large customers with high volume needs (similar problem as Bush Boake Allen). • Market leaders were reluctant to change their business and development model (Fujitsu, IBM, Fairchild). • “Custom chips: the big guys don’t want to mess with them, the customers need them, yet there don’t seem to be any viable source of increasing demand.” -- Wilf Corrigan, LSI CEO and Founder • High design cost moves many customers out of reach for companies.

  5. How “Best Practice” Moves Big Markets Out of Reach for Companies

  6. Shifting Experimentation to Customers via Design Toolkits

  7. LSI Logic (1981): A Radical Approach to A Costly Problem

  8. The Solution: LSI’s Development Toolkit

  9. From Innovation Toolkits to New Markets: The New LSI Model

  10. The Pattern is Repeated: The Rise of Field Programmable Technologies

  11. An Industry Transformation: Creating Value with Customers As Innovators

  12. Creating Value with Toolkits: Experiences at GE Plastics

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