Technology and information management HW8

Problem 1

1. Intel and Apple Product Platform and Product Lines Read the handout on Apple’s and Intel’s product platform and product lines. Using an appropriate table and/or diagram (or both) summarize Apple and Intel’s product platform/product line strategy, or lack thereof. Fill your table with the appropriate information regarding Apple and Intel. Draw relevant conclusions about each company’s product (platform) strategy. Relate/connect your present analysis of Intel’s product (platform) strategy to previous analyses of Intel (performed in earlier homework sets). If you were in-charge of Apple’s product strategy during the time-period 1976-1999, what would you do differently?

Plan:

1. Read the handout on Apple’s and Intel’s product platform and product lines

2. Create table or diagram to summarize.

3. Draw Conclusions

4. Relate/Connect to present analysis

5. What would you change if you were in charge of Apple’s product strategy?

Execute:

1. Read the handout on Apple’s and Intel’s product platform and product lines

2. Create table/diagram to summarize.

3. Draw Conclusions

Intel

· Until 1982, Intel’s product platform strategy was very limited, they needed to improve

· Because of this, only one product was developed for each platform. They had the potential to create more.

· However, after 1982, Intel started releasing multiple products for each platform. This was a major improvement.

· They introduced the Pentium platform in 1993 where performance was bettered.

Apple

· Apple in the beginning didn’t manage its product strategies explicitly

· (This was in terms of product platforms.)

· Apple 3 was the first major product platform failure

· This was the first major product platform failure which was recalled (for quality problems)

· Apple created multiple platforms from the original Mac platform. This was a good strategy.

· They also created another platform called Newton

· Ended up failing

· Apple has gone through many failures to get to their success today.

4. Relate/Connect to present analysis

Intel and Apple have their own issues and some that overlap. There issues are mainly from the start of their businesses. Intel’s product line strategy had some difficulties from the start. Intel was first a semiconductor company but then became a leading microprocessors manufacturer. Intel implemented new technologies and didn’t give up till they were successful. Similarly, Apple’s product platform was not great at the start, however, it improved as their company progressed.

5. What would you change if you were in charge of Apple’s product strategy?

If I was in charge of Apple’s product strategy I would first make sure that all their product lines made sense for their market and their quality matched the best in the market. Apple is very big on making sure that their customers are always happy, and having failed products because of quality issues was hurting their customers and what their customers think of them. I would make sure that even though products would take a little more time to come out, they would be the best possible because quality is more important than meeting tough deadlines.

Draw Conclusions: This problem helped me understand how Intel and Apple started. It showed me how they were able to implement product lines and product strategies. It showed me how they grew from their mistakes and improved themselves.

Problem 2

2. Product Platform/Product Line Strategy for an indoor mobile robot (continued from Homework # 6, Problem # 2) Develop a simple product platform and product lines based on a well-defined (and product-specific) product (platform) strategy for the indoor mobile robot designed in the previous homework set. This mobile robot should be capable of performing moving indoors, climbing stairs, and performing useful tasks like cleaning.

Plan:

1. Create a product platform and product lines for the indoor mobile robot

a. Relate the aggregate project plan to the product platform/product line strategy

b. Establish product lines to address the different target market segments (conceptual sketch

Execute:

1. Create a product platform and product lines for the indoor mobile robot

After doing HW#6, Problem #2 I decided the best design would be to get a vision sensor (to sense vision) and have a proximity detector (so the robot can detect obstacles and move another way). This robot will serve as a vacuum. The robot will use legs to climb the stairs.

a. Relate the aggregate project plan to the product platform/product line strategy

i. (a) Core or defining elements of the product platform:

1. vision sensor

2. vacuum

3. proximity detector

4. legs

ii. (b) Product platform

iii. (c) Product line: average middle-class household

iv. (d) Product line: businesses and commercial purposes

v. (e) Product line: big households, smaller companies, and small department stores

b. Establish product lines to address the different target market segments (conceptual sketch

Market segments (cleaning robot)

Segment 3

High End

Segment 2 Mid Range

Segment 1 Low end

Product

Line

Supporting

Core

Product platform

Draw Conclusions: This process gave me an understanding of product strategy and product lines. Creating diagrams helped me visualize the process more. This is similar to work I have done for my group project.

3. Financial Modeling for Technology Development (NPV Analysis): This problem is a continuation of HW #7, Problem # 4. First, read the “Getting Started Using Excel” handout on the class website. Using Excel, replicate the “base-case” financial analysis in Step 2 of the “Financial Model for New Product Development” handout on the class website. Then do the following:

· Perform sensitivity analyses with respect to development cost, development time, unit manufacturing cost, and sales volume.

· Provide at least one specific trade-off law, e.g, tradeoff between development cost and NPV.

· If manufacturing cost changes to $500/unit, what sales volume would be required to yield the same NPV? What strategic actions would be necessary to increase the sales volume?

Define: The goal of this problem is to replicate a base case financial analysis of the Financial Model for New Product Development.

Plan:

1. Replicate base case

2. Perform Sensitivity analysis

3. Provide at least one specific trade-off law

4. If manufacturing cost changes to $500/unit, what sales volume would be required?

Execute:

1. Replicate base case

2. Perform Sensitivity analysis

3. Produce trade off: To increase sales volume and reduce development costs.

4. If manufacturing cost changes to 500/unit what sales volume would be required?

Sales volume needed to yield the same NPV would be sales revenue divided by sales volume = 43.75 unit price.

Draw Conclusions: Based the excel guidelines and the financial modeling handout, I was able to follow what to do and create a base case and sensitivity analysis. This helps me understand the factors that go into finance. This will also help me with the final.