innovation

Quality And Innovation – The Rat Race!!!

Posted on by f1213araza

The electronics world has changed rapidly in the last few years. Some companies pioneered the changes, while others were too slow to adapt to the fast changing trends and requirements. Not long ago, Japanese companies ruled the market like lions in the jungle. Companies like sharp, Sony, Panasonic and Nintendo were the biggest and unbeatable brands in the entire industry. Now, on the contrary these market kings have lost their market share drastically.

What could be the reason behind their downfall? I have noticed a similar trend in Japanese companies and in someway have the same characteristics. However, these well known companies still follow the highest quality standards and produce highest-quality hardware devices. But the market demand now is not limited to quality only. Japanese companies were slow to catch with competitors with regards to design, operating system and software technology. For instance: Sony was the market king in 1990 when it introduced ‘The Walkman’. At one time, was the ‘must have’ gadget for everyone like the apple iPods currently.  Just in a couple of years Apple managed to shake off and challenge Sony’s position in the market with their IPhones and iPods. Sony’s fell, profits shrunk and once one of the best image in the world is battered.

I believe the major downfall of Japanese brands is due to the fact that they were slow to realize the changing demands and the need to improve software rather than only focus on quality hardware.  From a technological perspective, the explanation of how that happened is straightforward and that apple always was, is very good at software and Sony never was. Sony understood music technology but they were bad at software and they didn’t do what apple did. That is making use of computers and Internet. They created ITunes which made accessing and syncing music to apple devices easily. The Walkman was a success in their era when it did not have to interact with computers.

As discussed in class, acquiring Six Sigma, ISO or other quality certification does not guarantee profits. These methodologies are used to help businesses reduce failures in quality. Talking about Sony, they also had obtained certification under ISO 9001 for all sites manufacturing electronic products yet faced backlash from competing brands. Fast pace dynamic fulfillment of consumer market should be a big factor of management department to maintain the success of a company. Big portion of company’s budget should be allocated for R&D while maintaining the quality of their current successful products.

Do you agree that Sony was too slow to adapt to the fast changing trends?

PS: I think Apple is also slowing down its innovation pace. Watch the video and share your views. http://www.youtube.com/watch?v=RyWSEwKPo8s

Is Apple losing its mojo?

Posted on by f1213nshah

Apple has been at the top of its game for over ten years now. Apple has had great success with its invention and especially with the Iphone. The Iphone was the top selling phone each year that it came out.  Even though it’s been the top selling phone for years, Google’s Android platform is starting to make its way up. According to recent polls and editorials, the Iphone is starting to slip away and more people are starting to prefer Google’s Android platform.

  • The Android platform now accounts for 75% of the smartphone market, which is up from its last quarter’s 68%. Apple’s Iphone dropped from being 17% of the market to 15%. This shows us that people are slowly starting to make the switch from an Iphone to phones with an Android operating system.
  • Apple is known for having loyal customers. Each year there newly innovative Iphone hits the top of consumers’ wish list. It seems like that is starting to change. According to Strategy Analytics 88% of U.S Iphone users said they would stay with the IOS for their next smartphone. That number has dropped from 93% from the previous year. In Europe the numbers dropped from 88% to 75%. This shows that people all around the world are starting to switch from IOS to another operating system.

There must be a reason why Apple fans are starting to slowly switch to Android phones. A big problem that Apple ran into was with the quality of its newest Iphone the Iphone 5. There were many complaints by consumers that there new Iphone 5 came out of the box with scratches or dents. Apple is known for making top quality products, and to produce thousands of Iphone 5 with quality defects is unacceptable. There were reports that this was due to the high demand and that they could not be made in time. It seems like Apple was choosing quantity over quality.

Is Apple starting to lose its touch? Do you think that Apple will be able to recover from the bad rep it got for the quality issues with the Iphone 5?

http://news.yahoo.com/4-signs-iphone-no-longer-smartphone-king-103200005.html

 

 

 

Shell or Shock? Possible Redesign of Toyota Prius

Posted on by f1223jkundrat

Toyota Motor Company is considering a complete redesign of its iconic economy car, the Prius. After 15 years in production, with only very subtle design changes as seen in the design evolution pictures below. It would be a big risk for Toyota to drastically change the proven design of the Prius, but it could also open it to a large new consumer base. Since its original debut in 1997, the Prius has epitomized the movement towards environmentally friendly hybrid vehicles that run on both gasoline and electricity. The Prius has experienced record sales in 2012, with sales increasing 60 percent over last year.  The main driving factor for the possible shift to a new design is to move away from the awkward shell type platform that has reigned since its initial debut. Although the shell is an incredibly aerodynamic style, it has traditionally been seen as something of a “geek mobile” and was often ostracized by most car enthusiasts.  By shifting to a more generally appreciated design, Toyota would see its target market grow substantially, since most car buyers are always looking for the best mix of fuel economy and design appeal.

It is slightly surprising that Toyota is considering such a drastic redesign, since it is currently in the growth stage of the product life cycle. As stated in class, the growth stage is when a manufacturer needs to focus on competitive product improvements, which are needed to help it stay current with the recent  introduction of new competitors such as Ford, and the continuing rivalry with Honda. However, Toyota Prius has managed to follow one characteristic of  the  product life cycle, and that is to enhance distribution and capacity. It has managed to increase capacity from only a few thousand units in its initial introduction, to nearly 700,000 through only the first 9 months of this year. By designing a new generation of Prius to appeal to more style conscious consumers, Toyota may end up gouging its current market, since many of the current buyers appreciate the iconic shell shape. At this point it is impossible to predict the exact fate of the Prius, since the new design has yet to be finalized. However the question arises of what possible design attributes can Toyota maintain from the current model to retain current customers, and what can they change to help attract new buyers?

 

 

http://www.bloomberg.com/news/2012-11-04/toyota-mulls-whether-to-change-prius-look-to-widen-appeal.html

 

 

First Time for Everything: NYC Marathon Cancelled

Posted on by f1233bnikolova

Due to the horrific damage that Hurricane Sandy has done to New York this past week, ING, the marathon’s leading sponsor since 2003, has been forced by the city of New York to cancel the long-awaited marathon that has held over 40,000 runners and 500 sponsors every year since it began. This will be the first time that the marathon has been canceled in over 70 years and has caused outrage among sponsors and consumers alike.

Although ING was originally planning on continuing to have the marathon even with the unbelievable damage that New York has experienced, public outcry about the unethical issues that ING as well as other sponsors are getting themselves into by ignoring the hurricane’s damage and continuing the marathon has been abundant. Because of this, ING has been forced to cancel the marathon and has put itself in a sticky situation when it comes to the revenue and promotion they and other sponsors will be losing because of it.

As we learned in class, the project triangle consists of time, cost, and performance. The time it took to plan a New York City Marathon is over a full year. The cost to get the over 500 sponsors to sponsor the event is over 1 million dollars, and performance is based on how smoothly the marathon runs. With these three contributing factors as well as many others, I understand why ING was hesitant to cancel the NYC marathon, but understand why the public was outraged as well. The amount of money and planning that went into making the NYC marathon what it is every year means that a lot of people are counting on it, and I believe this is why ING was reluctant to cancel it right away.

Furthermore, in a desperate final effort to save themselves from looking unethical, ING decided to donate $500,000 dollars to aid victims of the hurricane, and donate the generators that were going to be set up around the marathon for the runners, to the millions of people who need help in New York. While this was the right decision, thousands of runners, both from the U.S. and internationally, who have been training for this marathon for over a year, are devestated and feel disrepected that they were told about the cancellation last minute. As customers of the marathon for a number of years, the customer expectation for most of the runners is that they would be running no mater what.

Overall, I believe that this was the right decision to make and while people are still so angry at ING for not canceling it right away, I understand why ING didn’t.

How do you think this will affect ING’s future revenue? Do you think ING made the ethical choice to cancel the marathon? What would you do as president of ING to please both the runners and the people of New york that were affected by the storm?

 

http://www.businessweek.com/articles/2012-11-02/as-sponsor-of-new-york-city-marathon-ing-comes-under-fire#r=hpt-ls

It’s not an uphill battle that Microsoft is losing, it’s a mobile one

Posted on by f1223aperry

Microsoft recently revealed a revamped version of its Windows Phone software, appropriately deemed ‘Windows Phone 8.’  According to the company, which grabs slightly more than 3% of the international mobile market, the app store has been greatly augmented, though some of the applications will not be available until next quarter.  The article notes that Microsoft presenters mentioned their competitors several times during the unveiling.  It is apparent that Apple and Google-powered phones dominate this space and are setting the benchmark for competitors.  Realistically, however, is there anything to compete against?

Microsoft is, in general, good at what they do; they have a solid product, market awareness, and substantial resources.  This does not necessarily mean they are meant to operate in the mobile phone market, alone at least.  It’s becoming clear that they cannot compete with Apple or Google; consider the app stores: Microsoft now has 120,000 compared to Apple’s 700,000.  While Microsoft has stepped up its game and market share, they are nowhere near the size of the competition.  It is difficult to gain much traction with companies of that size working against Microsoft’s advances.  There is an alternative to the constant, losing battle: if you can’t beat them, join them.  It seems like Microsoft could benefit greatly from a partnership with a large competitor and they should consider exploring the possibility.  To do this, the larger player would have to get something out of the agreement – which might be Apple in this case.  Compatibility, as well as ease of use, between Microsoft and Apple software continues to be an issue, but a partnership could be a game changer in the mobile market.

There are a number of functions that I’m sure many Apple customers wish they had on their iPhones, namely the Microsoft Office product suite.  Business is partial to PowerPoint, Excel, and Word, not Pages or Keynote.  This is problematic for iPhone users when sending these types of documents.  Word becomes a pdf, Excel has limited functionality, and it appears that an independent app is necessary to view a PowerPoint presentation.  Consumers would likely agree with the added value if Apple and Microsoft could work together to solve this issue.

Link to article: http://online.wsj.com/article/SB10001424052970204789304578087062149274482.html?mod=googlenews_wsj

Knowing the Future, for the Stability of Present

Posted on by f1222sghatila

Knowing the Future, for the Stability of Present

Everything in our daily lives requires a form of forecasting for us to be able to predict what to wear, consume, and safety. Hurricane Sandy, which is forecasted to hit the East Coast, helps people with their safety and precautions we  have to take to secure their lives, family, and home. Many people are planning to evacuate because of the information given about the hurricane in advance. We depend on these types of information for our health and safety. Depending on whether the weather channel says if it will rain or snow, we all dress according to that. Due to the current weather situation, many fliers have to consider their delay and canceling of flights. This delays a lot of business process and other situations and airlines have to consider this when rescheduling flights for the process to run again. Forecasting is a major aspect of our life and the information is depended upon for the present to be as smooth as possible.

Most retailers have already forecasted for the sales of fourth quarter, holiday season. They want to produce as much as the demand is suggested for, their revenue depends upon it. Forecasting is a major  aspect of any job. It tells you how many to hire to produce a certain amount, how much of the product will be sold, and this information is critical because competitors thrive on an advantage to do better than you do. Halloween season creates a high demand for candy, which if forecasting did not occur either we would not have enough candy or surplus or either situations have negative consequences on the revenue and growth of the company.

Apple is on top of the technology world right now. Their products are sold and back ordered for months because their demand is incredible. Currently IPad mini in white are completely sold out and even though black ones are still available, their inventory does not have enough for those who demand it. They are losing on business for those that could have been sold if availability was an option. Having a demand forecasted accurately would help the business grow and keep consumers happy. Loyal customers will always stay as long as possible but those who are indecisive about a brand will potentially lose a customer if forecasting is not done accurately.

In what other ways do we use forecasting for our daily lives?

http://www.chicagotribune.com/business/breaking/chi-airlines-ask-fliers-to-reschedule-due-to-big-storm-20121026,0,3996884.story

http://www.chicagotribune.com/business/breaking/la-fi-tn-apple-white-ipad-mini-20121026,0,4979541.story

GNC and Vitamin Shoppe: Controversy of Bodybuilding drugs

Posted on by f1232ggmitrovic

http://online.wsj.com/article/SB10001424052702303644004577525201570340094.html

As we all know, GNC (General Nutrition Center) and Vitamin Shoppe are two of the largest over the counter supplemental manufacturers and carriers; but some of us may not know that they are being targeted by the FDA (Food and Drug Administration) since they began carrying something called DMAA (DMAA is found in Geranium oil, which is found in flowers). (Lahart) The bodybuilding world is always looking for new and improved products to create high adrenaline, intensity, and energy. Most people that come to GNC are searching for something to either get them bigger with muscle mass or smaller to look more chiseled and defined. The DMAA ingredient can do both of those, its that type of uniqueness that will separate it from other drugs by spiking up the energy and adrenaline through the roof whilst narrowing your blood vessels and increasing the blood flow to the muscles. And it has helped GNC and Vitamin Shoppes stocks skyrocket.

The issue comes in the fact of natural occurrence. GNC and Vitamin Shoppe are claiming that DMAA  (1,3-Dimethylamylamine- also meaning Geranamine) is a naturally occurring substance that is found in a Geranium oil in a flower base. (Lahart) The FDA is cracking down on GNC and Vitamin Shoppe for carrying the suppliers (such as USPlabs, Muscletech, Cellucor, and etc.) that have no evidence that it is a safe product and that it is actually found in flowers. (Lahart) USPlabs went out of there way to create a website saying that DMAA is safe and naturally made (the website can be found at http://usplabsdirect.com/dmaa-research) I know that it might not sound like a big deal, but you need to understand that if a dietary supplemental is not found to be created naturally, the FDA can say that it needs their approval since it is a ‘pre-market product’ and not a dietary ingredient. Once that takes place they can take over that product and recall it from all shelves in the nation since it is a ‘pre-market product.’

The FDA did research in four different labs (3- domestic and 1-international) and found no traces of DMAA in multiple samples of Geranium oil. (Lahart) A lot of the suppliers that GNC and Vitamin Shoppe are carrying have rebelled against the FDA by providing their own research taken from their labs.  But for now, the FDA is just frowning on the product (which I have to say to most of my customers at GNC if there hesitant on getting one of the awesome products that carry DMAA).  Unfortunately, I feel that most products that still carry DMAA at GNC or Vitamin Shoppe (Especially at my GNC store) are in the decline period of of the product life cycle. I don’t believe that it’s in its decline because it can’t offer the organization anything anymore, but the FDA is pressing down so hard on any DMAA products that it’s getting harder to carry them with all the rules and regulations.(Operation’s Management textbook, CH. 5 Figure 2.5) (PPT Ch.5 Slide 11)

Do you think the FDA is doing right by pressing down on an active ingredient just because they suppliers cant claim that it is naturally made? Would you take a product that wasn’t naturally made? Even if it is not naturally made, do you think it should still be on the market and not taken off like ephedrine and steroids were? Do you agree with the fact that it should be kept on the market and that it should be left up to the people to take it or not? Is GNC, Vitamin Shoppe and the FDA being ethical and moral about this issue?

Taking Online Shopping Offline

Posted on by f1234erose
Online Shoppers who choose to forgo shipping chargers visit Walmart to pick up items ordered online.Link to NYTimes article “Luring Online Shoppers Offline”

Online shopping has caused retailers such as Macy’s, Best Buy, Sears and The Container Store to loose millions in sales. Consumers have had such a profound obsession with purchasing a product at the lowest price possible that almost every product sold at traditional retail stores is constantly being matched up with prices online. Currently, Best Buy is even going to the extent of customizing the bar codes on their products so they cannot be scanned by consumers so they are able to look up online prices from sites such as Amazon.

To avoid having in store sales reach an all time low, retailers are attempting to lure consumers into the store by promoting their own online operations on site. Walmart has made an effort to add Web return centers, pickup locations, free shipping outlets, payment booths, and drive-through customer service centers for online sales to appeal to the growing amount of online shoppers.

Retailers like Walmart believe that they could potentially have an advantage over their online retail competitors due to the fact that shopping offline eliminates the expensive shipping fees. Walmart gives customers a variety of options such as being able to order products from their online website and then being able to pick it up and pay for it at the store, thus appealing to customers who have a trend of preferring to pay cash for products.

From focusing on the cash option, Walmart has seen a dramatic rise in demand due to promoting online pickup at their stores, which now accounts for half their sales. As a whole, Walmart has the advantage of appealing to customers that do not have a bank account of credit cards. In addition, the in store pickup also appeals to consumers that favor to buy items in bulk that do not qualify for online purchases.

Fellow retailers of Walmart such as The Container Store and Sears have taken on site purchasing to a new level by promoting a drive-through service that allows for consumers  to get what they need on the go. This service has also seen great success because it appeals to the consumers who shop online because they do not have the time to navigate their way through the retail store to purchase the products they need. Recently, a new trend has shown that customers who used this pick up  service have caused them to visit 50% more than customers who regularly shop in the store.

The competition between traditional retailers and e-commerce companies will continue to exist, but the efforts made by the traditional retailers to keep up with online shopping have been greatly significant. With all the new bells and whistles added to their offline services, will retailers truly be able to take shopping offline for good?

Source: http://www.nytimes.com/2012/07/05/business/retailers-lure-online-shoppers-offline.html?_r=0

Ford, a New Leader in the Hybrid Vehicle Market?

Posted on by f1234swatch

Ford C-Max Hybrid, Ford’s first hybrid-only line of vehicles that was only available in Europe, has now introduced a 2013 C-Max Hybrid model in the United States, which was released in September 2012. Ford invested a huge amount of money in research and development in hybrid technology with an aim to become “America’s most affordable hybrid utility vehicle.” The hybrid model is developed to compete with Toyota Prius, the world’s best-selling hybrid car. The hybrid model base 2013 retail pricing starts at $25,995, including destination and delivery charge. The price is $1,350 below the Toyota Prius v, a van-like vehicle.

A federal government fuel economy rates C-Max Hybrid at 47/47 mpg city/highway while Toyota Prius v and Honda Civic Hybrid were rated at 44/40 mpg and 44/44 mpg. This shows that Ford is able to deliver better fuel economy, which allows it to beat its competitors in the industry. Even though Toyota Prius is the first mover an the largest producer of hybrid vehicles and gain competitive advantage in the market, Ford challenges the “plain styling” of Prius with its “fresh” and “modern looks.” Ford believes that it has developed a better vehicle. Ford C-MAX Hybrid “Says Wheeee” Commercial

The features of C-Max hybrid are shorter at14.5 feet long, bumper to bumper than a regular Prius. Moreover, it has comfortably raised driving position, optional high-grade amenities and smart tech displays. C-Max Hybrid is designed to have more space with the extended cabin and tall rear. A driver does not plug in the C-Max Hybrid, because electric power is generated onboard, stored and then routed out of the onboard battery pack. Another development is that C-Max has a maximum horsepower of 141 while Prius and Prius v have only 98 horsepower. This is enough for a travel range of more than 500 miles.

As I read the article, I can relate it to our recent class lectures. Ford applies many concepts we learned in order to stay in a competitive market. Ford uses a low cost of the product strategy to enter the market. It uses reverse engineering by inspecting competitor’s product to improve its products. It is able to translate customer needs in a current economy when gas prices are high into the product by using quality function deployment. Lastly, it focuses on hybrid vehicles by reducing the use of fuel. This shows that Ford is concerned about sustainability and environmentally-friendly production. Because C-Max Hybrid is more fuel efficient, roomier, cheaper, and faster, I think that it is possible that Ford C-Max Hybrid will be able to beat Toyota Prius, a top-selling hybrid car.

 

Questions:

– Do you think that Ford C-Max Hybrid would be able to launch successfully in hybrid vehicle market?

– What do you think would prevent C-Max Hybrid to gain market share of  hybrid segment from Toyota Prius?

 

Sources:

http://abcnews.go.com/US/wireStory/max-hybrid-ford-challenges-prius-17443886#.UHm1chzgzBD

http://en.wikipedia.org/wiki/Ford_C-Max

Image source:

http://www.ford.com/cars/cmax/features/

 

iPad’s Little Brother

Posted on by f1223hlodhia

Apple Inc., one of the world’s largest innovators, has, once again, announced the launch of a new product: a smaller version of their best-selling iPad Tablet. Once again, early adopters and loyal customers flock to see the newest hype that the company has to offer.

After being under the scope of the public for their iPad, Apple Inc. has decided to take on the challenge of creating a product that can compete with Amazon’s Kindle Fire HD, Google’s Nexus 7, and others. Previously, many customers had complained that the iPad itself was very large and heavy compared to its competitors., as well as being very costly. Although Apple has not commented about any specific features about the product itself, many excited and loyal Apple customers have come up with their own list of potential features and rumors of production that Apple may consider when creating the mini iPad since the company is known to put customer satisfaction at the top of their priorities.

First, a “major Apple investor” has publicly claimed that the iPad mini will be unveiled on October 17th, 2012 and that the official launch date of product will be November 2nd, 2012, which gives customers plenty of time to obtain the new creation for the upcoming holiday season.

Second, rumor has it that the iPad mini will have a 7.85 inch liquid crystal display (LCD) with a 2,048-by-1,536 pixel resolution, although the screen will not have the same retina display of the original sized iPad. This may be to simply keep the cost of the product lower and more affordable to the public.

Since the cost in the market is a major driving factor behind this new product, there has been some speculation that the cost and price was also very important to Apple. There were many concerns that the iPad was priced too high for many people, which is why Apple decided to come out with a newer, more cost effective alternative for those people who do not want to spend $399-$499 on the iPad. Instead, it is expected that the iPad mini will retail for about $249, which is slightly higher than the prices of its major competitors.

Along with the rumors of its features and displays, there have been some claims that people have obtained leaked photos of the final product. Some of the physical attributes that can be seen in the final product are:

  • Wi-Fi adaption
  • nano SIM tray for cellular connectivity (thought to be for a pricier model)
  • An 8-pin “Lightning” connector found
  • A microphone jack in the same upperleft corner as current iPads
  • Aluminum backing
  • volume buttons on the right side of the tablet with a switch
  • rear-facing camera
  • two speaker grilles at the bottom

The last major rumor about the iPad mini is the location of production. Although nothing has been confirmed by Apple, production has been thought to be in China and Brazil.

 

Potential leaked photo of the new iPad mini

More information about can be found at http://shopping.yahoo.com/blogs/digital-crave/ipad-mini-almost-know-162420535.html