Technology and information management HW3

Ronald Morris

Team 9

Subhas Desa

10-11-16

HW3

Today's Date: Friday 11th

· Schedule:

· Friday - Place SPS on document for the 4 problems @ 4:00pm

· Saturday - Complete problem Number 1 (3.5 hours)

· Sunday - Meet with team to do large company analysis ( 3.5 hours)

· Monday - Read and complete problem number 2 @ 4:00pm (3.5 hours)

· Tuesday - Make sure all questions are answered

· Wednesday - Make any revisions to HW#3 and #1 (1 hour)

· Thursday - Turn in during class

Problem 1

1. Define the problem

Clearly define the problem(s) you are attempting to solve. Identify the real problems that need to be solved.

P1: How has Intel’s Technology strategy, Product/Market strategy, and developmental goals changed from its inception (1968) to 2004.

P2: What were the key driving forces that triggered these changes?

P3: What do you think are the three key technology/product initiatives that the CEO Craig Barrett should pursue during the next year (2005)?

2. Plan the treatment of the problem, i.e., the way in which you going to structure your analysis of the given information in order to solve the problem. Define the process (logical set of steps) for solving the problem by carefully addressing the following questions:

· What information is available for solving the problem?

“Intel 2004” 3 handout that is on class website

· What assumptions need to be made to make the solution process manageable?

Assuming that the only source for information needed has already been provided

· What is the issue tree, if any, for the problem?

No issue tree necessary

· What analysis needs to be performed to resolve the issues defined in Step 1?

I must read the “Intel 2004” handout and find the answers to:

SP1) - “How has Intel’s:................................changed from its inception (1968) to 2004.”

SP1.1)Technology strategy,

SP1.2)Product/Market strategy,

SP1.3) Developmental goals

SP2) - “What were the key driving forces that triggered these changes? “

SP3) - “What do you think are the three key technology/product initiatives that the CEO Craig Barrett should pursue during the next year (2005)?”

3. Execute the plan:

SP1) “How has Intel’s:................................changed from its inception (1968) to 2004.”

SP1.1) Technology Strategies (further explained in P/M Strategy and SP2)

· WiMax

· Intel Everywhere

· Media Players

· Cellular Phones

SP1.2) Product/ Market Strategy

· Intel Everywhere - To expand Intel’s micro processing chip into more markets, such as consumer electronics, communications and entertainment, by developing ten new products . Not just the PC industry

· Raise their market percentage from 6% to 10%

· Keep driving the microprocessor technology further to create demand for products that use the chip

SP1.3) Developmental goals

· Make cheaper products for new markets similar to WiMax as it is nearly ten times cheaper than fiber cable used in the communications market.

· Rather simply creating the best chips, Intel produces what the customer wants by establishing more connections with other companies in other markets

SP2) “What were the key driving forces that triggered these changes? “

· Major failed investments in 2003

· Everything was turning digital as the technology became available

· Company’s desire to expand into foreign markets

SP3) “What do you think are the three key technology/product initiatives that the CEO Craig Barrett should pursue during the next year (2005)?”

· Improve the performance and efficiency of the 64 bit chip, is viable since the company’s 32 bit chips retains 95% of the market

· Continue Intel Everywhere by expanding into many other markets by

· Put production into servers as its rival AMD already has the head start. And because I know today that servers is the future back then

4. Check your work

· Is the work correct in every detail?

I belive so. Then again all my information is based off of someone elses research and I know nothing of their own sources.

· Are my assumptions reasonable?

They are reasonable. All assuming that the information provided for the assignment is correct

· In terms of the things I know, do the results make sense?

Yes the results make sense and follow accurately with what I know today.

5. Learn and Generalize

· What have I found out? What does the result mean?

· How may the result be affected by my assumptions?

· Are the results good enough to act on, or must I refine the solution?

I believe my results are good enough to act upon. I learned that Intel actually pushed industries into the digital age by constantly improving their own technology.

Problem 2

Define the problem:

1. I need to do a Sensitivity Analysis for the Umbrella Problem

Plan the treatment of the problem, i.e., the way in which you going to structure your analysis of the given information in order to solve the problem. Define the process (logical set of steps) for solving the problem by carefully addressing the following questions:

· What information is available for solving the problem?

All information needed to solve this problem can be found in class notes from lecture on Tuesday (10/11)

· What assumptions need to be made to make the solution process manageable?

Only the assumption that the lecture notes will provide all the answers

· What is the issue tree, if any, for the problem?

The tree needed for this problem is the is the Decision Analysis Tree. Which will consist of the Decision, Uncertain Events, and Objective.

· What analysis needs to be performed to resolve the issues defined in Step 1?

SP1) Draw the decision tree

SP1.1) Build Influence Diagram

SP1.2) Convert Influence Diagram into Decision Tree

SP1.3) Compute the payout (Minimized Cost ) of each decision

SP1.4) Plot both decisions

SP2) Make a decision

SP3) Determine how sensitive my decision is to a 10% change

SP3.1) Perform sensitivity analysis, adding and subtracting 10% of rain chance

SP4) Determine how sensitive my decision is to a 20% change

SP4.1) Perform sensitivity analysis, adding and subtracting 20% of rain chance

Execute the plan:

SP1) Draw the decision tree

SP1.1) Build Influence Diagram

TIME 0 (Present)

TIME 1 (Tomorrow)

TIME 2 (Future)

Buy An Umbrella?

Rain?

Minimize Costs

(Note: Buying an umbrella is not related to rain as it rain is independent from the purchase of an umbrella)

SP1.2) Convert Influence Diagram into Decision Tree

TIME 0 (Present)

TIME 1 (Tomorrow)

TIME 2 (Future)

Buy An Umbrella?

Rain?

Rain?

Yes

No

$25

$25

$75

$0

Yes 40%

Yes 40%

No 60%

No 60%

SP1.3) Compute the payout (Minimized Cost ) of each decision

PAYOFF(yes) = $25(0.40) + $25 (0.60) = $25

Buy An Umbrella?

Rain?

Yes

$25

$25

Yes 40%

No 60%

PAYOFF(no) = $75(0.40) + $0(0.6) = $30

Buy An Umbrella?

Rain?

No

$75

$0

Yes 40%

No 60%

SP1.4) Plot both decisions

$25

$50

$75

Payoff

Chance of Rain

20%

40%

60%

80%

100%

Payoff(yes)

33.3%

Payoff(no)

Buy Umbrella

Do Not Buy Umbrella

If the percentage of rain is above 33.33% then buying the umbrella is the decision with lowest cost. If chance of rain is below 33.33% then not buying the umbrella is the decision of lowest cost.

SP2) Make a decision

Since the chance of rain is 40% the decisions with least cost or best payoff is to buy the umbrella

How robust is my decision?

SP3) Determine how sensitive my decision is to a 10% change

SP3.1) Perform sensitivity analysis by adding and subtracting 10% of rain chance.

10% of 0.4 is 0.04. SO 40% +- 10% gives the range 36% to 44%. Since this percentage is still above 33%, according to the graph, the decision to buy the umbrella remains the same

SP4) Determine how sensitive my decision is to a 20% change

SP4.1) Perform sensitivity analysis adding and subtracting 20% of rain chance

20% of 0.4 is 0.08. SO 40% +- 20% gives the range 32% to 48%. I would say that the decision should remain the same because only a 1% chance that it is only a 1.33% chance that is is incorrect with a 20% change in probability

My decision is robust.

Check your work

· Is the work correct in every detail?

Yes I belive so. This was done in class

· Are my assumptions reasonable?

Yes they are

· In terms of the things I know, do the results make sense?

Yes it does

Learn and Generalize

· What have I found out? What does the result mean?

· How may the result be affected by my assumptions?

· Are the results good enough to act on, or must I refine the solution?

I learned that when determining the robustness of a decision you have to multiply the change in probability by the given probability. Then use the new range in order to determine if the decision is susceptible or strong

Problem 3

1. Define the problem

Perform a large company analysis on Whirlpool, which involves:

· SP1) Establishing the business goals and objectives (ROI, %market share, revenue, and growth aspirations).

· SP2) Determining the technology strategy and product market strategy for the company.

· SP3) Defining the overall development goals and objectives to align business goals, technology, and market strategies.

· SP4) Developing the functional evolutionary maps of the markets and industry in which the company is embedded; creating functional maps (time-based evolutionary maps) for technology, product market, and manufacturing strategy of the firm. These maps will be useful in the process of assessing and creating competitive strategy.

2. Plan to solve the problem.

· What information is available for solving the problem? We will use the internet to perform research on the company of interest, Whirlpool.

· What assumptions need to be made to make the solution process manageable?

· Who am I ?

CTO at Smart Frost Corporation

· Who is the solution for?

The product development team

· What analysis needs to be performed to resolve the issues defined in Step 1?

· SP1) Establish the business goals and objectives (ROI, %market share, revenue, and growth aspirations).

· Look up this information about Whirlpool.

· SP2) Determine the technology strategy and product market strategy for the company.

· Technology Strategy

· Determine what the core technologies give Whirlpool a technological advantage over its competitors.

· Determine what Whirlpool’s approach to product and technology development is.

· Product/Market Strategy

· Determine what differentiates Whirlpool’s product from its competitors.

· Determine the market that the company serves.

· SP3) Define the overall development goals and objectives to align business goals, technology, and market strategies.

· Look up this information about Whirlpool.

· SP4) Develop the functional evolutionary maps of the markets and industry in which the company is embedded.

· Collect as much relevant data about Whirlpool.

· Create a crude (rough) map.

· Refine.

3. Execute the plan:

http://investors.whirlpoolcorp.com/

· SP1) Establish the business goals and objectives (ROI, %market share, revenue, and growth aspirations).

Vision	Mission
The Best Branded Consumer Products … in Every Home Around the World	Create Demand and Earn Trust Every day
Business Goals
Market share	· Targeting 90% of consumers across the globe 1
Return on Investment	10.90% 1
Profit Margin	18.6%
Business Priorities
Revenue growth and margin expansion	Drive growth through innovative new products
Continued ongoing cost productivity programs	Growth in adjacent businesses 1

· Achieving the vision: EXPLAIN

· SP2) Determine the technology strategy and product market strategy for the company.

· Technology Strategy

· Determine what the core technologies give Whirlpool a technological advantage over its competitors

Product	Description
Liquid Blowing Agent	Whirlpool to reduces energy consumption and improves performance by getting rid of commonly used hydrocarbons and incorporating a new liquid blowing agent for insulation in U.S. made refrigerators
Hybrid-Care Dryer	This dryer has a ventless heat pump technology to regenerate energy during the drying cycle for greatly reduced energy consumption
Smart Top Load	Washer and dryer are connected to a mobile device for remote control of loads on mobile device.
SWASH	A small wash system designed to refresh clothes in 10 minutes and serve as an alternative to traditional laundry that saves time and money

· Determine what Whirlpool’s approach to product and technology development is.

· Whirlpool has an intricate strategy of many structures and processes to manage how innovation works

Step / Strategy	Description
1) idea generation	This stage is when new ideas are formed. Whirlpool starts their idea generation with “discoveries” that are from consumer insights, competitive information, or technology developments. They then “idea smash” these discoveries into project domains to explore.
2) Basic business case information	If there is a interesting enough domain, they create a migration path. A migration path is where the business is sorting out short term incremental steps , mid level step and long term steps to determine the domain of the project
3) Competition for development of the idea	This is the stage where the Whirlpool has their innovation board members look over a rigorous set of criteria to evaluate the innovative ideas. The three criteria are the the product is unique aligned to the company brands , sustainable and creates a differentiated shareholder value
4) Testing and experimentation of these ideas	When projects pass the criteria, they go through the primary development process “Concept to Consumer” (C2C) with team members from marketing, technology and finance. Her in C2C the team evaluates on typical tollgates such as concept lockdown, investment decision and product launch
5) Large Scale Commercialization	In commercializing the product, the project goes through extensive market research, prototyping and basic market experimentation.

· Product/Market Strategy

· Determine what differentiates Whirlpool’s product from its competitors.

· Product Leadership, Brand Leadership, Operating Excellence, and People Excellence (Whirlpool’s focus)

· Easy to use machines

· Reliability (Ranked for high reliability on consumer report)

· 24 hr customer service

· Leading in energy efficiency (Meets Energy Star qualifications)

· Products have low operation costs

· Community service and focus

· Determine the market that the company serves.

· Households, customers, homeowners

· Different brands

Determine differentiates Whirlpool’s product from its competitors	“Product Leadership, Brand Leadership, Operating Excellence, and People Excellence” (Whirlpool’s focus) · Easy to use machines · Reliability · Focus on customer service · Community involvement · Low operation costs of products · All products meet Energy Star qualifications
Determine the market that the company serves	· Households, homeowners · Household appliance brands

· SP3) Define the overall development goals and objectives to align business goals.

· Overall Development Goals

· Improve Supply Chain Efficiency -

· Develop better supply chain dynamic with wind energy, engineering and robotics

· Training employees to increase efficiency

· Objective to Align Business Goals

· Market Share

· Factory Distribution Center Expansion - 40 million dollar expansion in Ohio Greenville as an investment for future expansion globally

· ROI - Shorten cycle time by initiating SIx Sigma and Lean Manufacturing

· Profit Margin

· A greener factory will diminish factory's fixed costs - Windmill Energy 80 million investment in local Ohio

· Operation Excellence - training that cuts costs, shortens cycle-times while increasing quality and productivity.

· Provided by Six Sigma and Lean Manufacturing

· SP4) Develop the functional evolutionary maps of the markets and industry in which the company is embedded.

· Collect as much relevant data about Whirlpool.

· Create a crude (rough) map.

· Refine.

RESOURCE:

4. Check your work

· Is the work correct in every detail?

· The work is based off information provided by Whirlpool and should be correct.

· Are my assumptions reasonable?

· Yes they are reasonable

· In terms of the things I know, do the results make sense?

· Yes they do make sense

5. Learn and Generalize

· What have I found out? What does the result mean?

· How may the result be affected by my assumptions?

· Are the results good enough to act on, or must I refine the solution?

· The results are good enough to act on