Product strategy for profit and growth

Product strategy for profit and growth

Product strategy for profit and growth 19-20 November 1979, Institution of Electrical Engineers, London The main objectives of this meeting were to fo...

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Product strategy for profit and growth 19-20 November 1979, Institution of Electrical Engineers, London The main objectives of this meeting were to follow up in more detail the Corfield Report which emphasized the need for design to be closely linked both with the market and with main corporate decision makers, by bringing home to those in large companies the importance of design and by providing moral support for small companies. In terms of attendance the meeting was successful, some 150 people being there for a great deal of the conference. Further, the conference organizers saw this as the beginning of a series. A detailed analysis shows that some ten percent of the attendance came from parts of GEC and that about one-third of the participants came from just four large companies, the extra three being ITT and associates, Philips and associates, and Plessey. Discussion with participants showed that they were largely already 'converted' and that to them the value of some of the 'strategy-is-good-foryou' papers came from the association of speakers with specific companies. In reporting back to their own firms it was possible to advocate certain lines of action because 'Philips were doing it'. Such people were neither the powerful decision-makers nor the small company directors. More particularly it was notable how much the case histories were appreciated. There were, perhaps, the equivalent of five case histories, of varying degrees of sophistication, all substantially 'sanitized'. Lengthy abstracts were printed in advance and the programme allowed a reasonable amount of time for discussion. The size of the meeting may have been a shghtly depressing influence on discussion. The 'preaching' papers came from Lord Brown (Brunel University)'The need for a corporate product policy'; E Braun (University of Aston)'Requisites for successful innovation'; B Twiss (University of Bradford)'R & D strategy', J W Fairclough (IBM)'New product innovation'; R L Lickley

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hexafluoride as atmosphere for quenching. Models were introduced in successive steps to provide market needs and, (Consultant)- 'Design management'; arising from the work, came the notion A E Pannenborg (Philips)-'Design of total switching section enclosure management in multinational companies'. with a substantial reduction in space. Of the case histories those by In addition to the above papers Sinclair and Mueller gave the most there was a contribution by D M Leakey interesting information overall although (GEC Telecommunication) on the S Toy's account of the Fiesta launch problem of specifications. This arose should not be overlooked. Here with a from a general study of factors which new kind of model for Ford was a consume excessive skilled labour in the determined attempt to avoid the fiasco development of a product. Because of of the Edsel which almost wrecked the the introduction of computer aids and company. good documentation the number of From Sinclair, who has a wellpeople engaged in design has been known record in the design and producreduced compared with those engaged tion of miniaturized equipment, came in specification. Up to the present no his emphasis on the way in which suitable scientific basis for specification market size can be dramatically enlarghas been established. Leakey develops ed by two features: the shift from a ideas on the subject of specification 'household' concept for equipment to languages and their use. a 'personal' concept. (Hence his conOverall, this was an interesting nection with, first, tiny radios, then meeting which was outward looking calculators, watches, and tiny TV sets; in character. Future developments the way in which low price, arising should be watched. from low cost, makes for more buyers. To achieve his TV design required subSydney Gregory stantial R&D as well as fewer components in the set (to reduce the cost) and effort at packing the parts into a restricted space. His story here is the story of much of modern consumer electronics equipment: integrated circuits, in particular, reduce the number of components (items to be handled) 11-13 July 1979, University of and reduce the size needed. Southampton, UK Sinclair seemed to lay great This series of symposiums took root in emphasis upon the insight to be gained 1971, the first of which was entitled from a market size/price relationship. Information systems for desiqners, and This appeared to be very like the old was directed at engineering designers. minus four-tenths law of the textThe success of this showed the need for books rather than a Boston learning curve. Whatever the nature of the curve, information systems in areas not necessarily related to engineering. It also Sinclair assumed its robustness as a predictive aid, found one point on it, showed that not only were information with a launch selling price of £200 and systems important but also the inforan ascertained sales quantity and thence mation itself. In the field of information systems based his pohcy assuming a sales price there is a danger of acquiring informaof £100. tion for its own sake; information is useMueller dealt with capital equipless unless it is accurate, relevant, up to ment. Analysis of sales trends showed date and capable of being acted upon. that prior designs were running out of potential. This was at a time when their The latter aspect raises other important activities were still profitable. The issues- communication and the use of mechanized or electronic systems such company substantially stepped up its as computers. research expenditure to provide a new The 1979 Symposium, perhaps kind of high-voltage, high-capacity switchgear involving the use of sulphur more than the others, cast a wider net

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