IB Design and Technology

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IB Design and Technology

• People and Innovation

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Types of Consumer

• Technophile
• Someone who immediately welcomes technological
  change.
• Technocautious
• Someone who needs some convincing before
  embracing technological change.
• Technophobe
• Someone who resists all technological change.

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Types of consumer

• The 3 broad groupings identified can be applied
  to most consumers. Under different sets of
  circumstances, people will conform more or less
  to each category. When deciding whether or not to
  embrace a technological change in your lifestyle,
  you will be influenced by first order and second
  order influences. For example, when deciding to
  buy a motor car people will way up the benefits
  of owning a car against the costs incurred and
  the environmental impact.

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Corporate Inertia

• Research and development is a very expensive
  activity. Design projects often result in changes
  being required to manufacturing plant, equipment
  and processes. All of which incur large costs. In
  addition to this, innovation produces changes and
  disturb the norm and is often resisted by
  individuals within organisations.
• As a result of this large companies can take a
  long time to adapt to new practices, introduce
  new products or adopt innovations. This is known
  as corporate inertia and the length of time taken
  for the new aerosol spray nozzle, which we have
  looked at before, to reach production is a
  classic example of this.

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Corporate Strategy

• Corporate strategy is the long term aims and
  objectives of a company and the ways of achieving
  them by the allocation of resources.
• Large companies will adopt some form of corporate
  strategy to innovation. These fall into one of
  two main areas either pioneering or imitative.

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The Pioneering Innovation Strategy

• Pioneering means being ahead of competitors by
  introducing a new product first. It is the most
  risky (and costly) strategy but one with the most
  potential for large gains.

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• A Pioneering company requires a strong research
  and development capability (RD) which is
  expensive.
• Needs to be financially secure.
• Requires product champions to push new ideas.
• Good market research can often offset some risk,
  but is problematic for novel products.

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The Sony WalkmanTM

• With the introduction of the Walkman in the
  1970s, Sony demonstrated themselves to be a
  pioneering company. They had a strong record of
  research and development leading to successful
  products. The success of previous products gave
  Sony a secure financial background allowing them
  to experiment with new innovations. Akio Morita
  was also a forceful product champion who was in a
  position to keep pushing the development forward.

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The Imitative Strategy

• The imitative strategy aims to develop a product
  similar to the pioneered product as quickly as
  possible. It takes advantage of research and
  development invested by others and is less risky,
  but it is based on a strong development
  capability.
• Consider the range of products, similar to the
  Walkman, that are available now, and have been
  for a very short time after the Walkman first
  appeared.

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The imitative strategy
Panasonic personal stereo
Sanyo
Personal stereos and miniature headphones allow
listeners to enjoy recordings almost anywhere.
Personal stereos are lightweight and inexpensive,
but still deliver impressive sound quality. This
system plays AM/FM radio and pre-recorded
cassette tapes other portable systems can play
compact discs
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Pioneer or Imitate?

• What are the advantages and disadvantages of each
  strategy?

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Market Penetration

• Increasing sales to existing customers or finding
  new customers for an existing product.
• The use of Biomass fuels produced by developing
  countries such as coconut oil used as car fuel in
  the Solomon islands needs new customers to
  increase sales.

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How can a company enhance market penetration?

• Marketing.
• Brainstorm methods that could be used by the
  Solomon islands to enhance market penetration
  around the world.

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Market Development

• Finding new applications for existing products ,
  thereby opening up new markets. E.G. Nylon was
  originally developed for the making parachutes.

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Product Development

• The creation of new, modified or updated products
  aimed mainly at existing customers.
• Adding variation to a product to develop a range
  of products built on an established design. E.g.
  Cadburys whole milk, Cadburys whole nut, fruit
  and nut.

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Diversification

• Involves a company both in the development of new
  products and in selling those products to new
  companies.
• A company manufacturing 3 pin electrical plugs
  may consider producing them in a range of colours
  or from materials with different textures and/or
  material properties.

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Market Sector and Market Segmentation

• A broad way of categorising the market the
  company is aiming for.
• Markets divided up into smaller segments where
  the purchasers have similar characteristics or
  preferences.
• Markets can be segmented by income, age,
  lifestyle, geographical location.

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Robust Design and Product family

• Flexible designs that can be adapted to changing
  technical and market requirements.
• A group of products having common classification
  criteria. Members normally have common parts and
  assembly.

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Task Nokia are one of the world leaders of
robust designs for mobile phones. Research 4
Nokia mobile phones that you consider belong to
the product family including the N95 mobile
(Theres a thing in my pocket!!!)What
strategies were used to establish market
penetration for each of the mobile phones.What
market developments have taken place on each of
the mobile phones e.g. the integration of the
digital camera.What product developments have
taken place with which target market in mind.
Does the corporate business man have the same
need as the teenager?Produce an A3 story board
and PowerPoint to the rest of the group.