MN5563 Global Manufacturing [Part A] Section 1: Innovation & market measure 1.

Definition of Innovation (Trot, 2008) Innovation is the management of all activities involved in the process of ideas generation, technology development, manufacturing and marketing of a new product. 2. Types of Innovation i. Introduction of a new product ii. Introduction of a new production method iii. The opening of a new market iv. The creation of new organizational structure in industry and breaking the monopoly position. 3. Innovation S Curve

5. Unique Selling Point (USP) Definition: USP is the factor or consideration presented by a seller as the reason that one product or service is different from and better than other competitor - This can help cust. To save time when considering buying a product by clearly state the differences between each available product. - For new business start-up they may have limited resources in marketing thus require to set-up their USP for their product quickly. 5 Step to determine USP: i. List all the feature and benefits that are unique ii. Decide what emotional need is being specifically met by your product iii. Identify aspects of your product that competitor can not imitate. iv. Create phrases about your product v. Answer customer primary question Section 2: Innovation & marketing Factors enable manufacture to succeed in global market i. Management makes the difference ii. A holistic perspective is essential iii. Customer value and competitive advantage should be pursued iv. Continual learning and improvement is the objective

Customer Segment - Marketers will often break down into groups of customer with similar characteristic known as segments. - For ex: A student will look for different product attribute for home computer compare to different segment of business person seeking for compact laptop. Stakeholder - Stakeholders are the various people who may be impacted by the involved project. - Stakeholder concern can be various from their different role in the project such as the Decision maker, distributor responsible for the supply chain, and the customer/consumer that are expose to the risk of using the product. Research approach There are 2 main research approaches: Deductive This is where a model is developed from theory which is then tested (quantitative data) - Scientific principles - Moving from theory to data - collection of quantitative data - High structured approach Inductive Theory is developed from observation

- Gain understanding from ppl interaction to the product. - Collection of qualitative data - Flexible structure to change research emphasize

4. What firm can do with resources? - With the sufficient amount of resources, an eng. Firm can develop and produce products that customer will be interested in purchase which are better than the competitor. - To have better resources will determine a stronger market position which will result better financial performance. - Shown below is the factor that drives firm competencies.

Push vs Pull 1. Technology Push

Consumer adoption curve

*Product and innovation may come as a result of a firm developing new technology which they then PUSH out to the market. 2. Market Pull i. *Product or innovation may come out as a market need is recognized (ex: online checking for flight) and then a solution is developed to meet that need. *This is where the solution is PULLED from a firm by the market. Innovation consumer People who are keen to try new product. ii. Early Adopter People who are keen to try new product but prefer that the product have been proven in the market. iii. Early Majority/Late Majority Majority of the population are more caution in adopting new innovation. iv. Laggards People who are most reluctant and very late to adopt new technology.

Section 2: Innovation & marketing (cont) Technology & Growth Productivity 1. Technology Acceleration - It is the rate advancement of a technology that is stable over long period of time. - Technologies should grow in a constant proportion over period of time which is one of the bases of industry rules of thumb such as Moore Laws: which predict a doubling of semiconductor chip performance to price every 18 month. 2. Organizational Scaling - Automation, global transportation and communication network has brought the fundamental changes in restructure the organization by substituting existing jobs with machine or outsourced labour. - Technology acceleration plays important role were technologies once were expensive are now improving their performance and the gradually drops of price has help org to replace human labour. 3. Geographical Scaling - In today market, person-to-person selling is considered to be expensive for many products. - With new communication technologies it has help to open new unavailable markets and this help to reduce the cost of selling through person-to-person. - And with the internet selling, it provides a new and existing ways of entering products in the market. ** Benefits of new channel: Breaking bulk, create assortment, reutilization of transaction, and efficient search. **Impact that influence graphical scale: Globalization, speed, service orientation, worker dispersion, and virtual organization. 4. Alliances - Relationship enterprise creates value by entering into alliances with beneficial firms or individuals and leverage from this complementary. - Through these relationships, they share information, knowledge and learning and then attempt to reduce risk and increase profit across the supply chain. - As a result, competition decline across individual firm and increase the value of entire supply chain.

Chapter 13 - There are some trends that some societies are more innovative than others this is because the world is clustered around creative centre. - At these centres are culture and lifestyle that foster innovation. - These centres are also where the world wealth is created. ** Having creativity by individuals and team alone does not guarantee great innovation if you fail to fill the opportunity to register with that new idea. **What most certain is that lack of creative people will assure that innovation will not happen in an organization.