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In today’s smartphone market if I say “powerful high end phone” what do you think?

I bet you thought about either the new iPhone or a Samsung, HTC, or LG Android phone. These phones are indeed powerful, high end, premium, and fast and have all the latest features. What else do they have in common? Huge screen sizes. The iPhone 6 is the smallest of the bunch and still usable in one hand however on the Android side it seems that every flagship phone is over 5 inches now. This makes it very difficult for individuals with petite hands to handle these large phones.

Is there a market for the small Android smartphone? I believe so. Per our in class discussion regarding new product opportunities one of the many ways to enter the market place is by “Understanding the customer.” Companies recognize that people want smaller phones so companies make “mini” versions of their flagship phones, this is only done within the Android camp; however, these mini smartphones are underpowered so they are not a flagship any longer. There are many articles online about how there should be more small smartphones for customers that don’t sacrifice power and premium feel.

There is a new phone that was just released called the Sony Xperia Z3 Compact that I believe meets the needs of many consumers in the US market. The phone is small and does not compromise on power or premium feel. I think Sony did a great job with the phone because it fills a gap in the smartphone market. Looking at this situation using a hypothetical QFD approach Sony identified a need for a small no compromise smartphone. Sony filled that need by developing a phone with great battery life, a small form factor and high end specifications. Sony related customer wants (small form, performance) to its product how’s by pairing the phone with a powerful battery, great camera, small size and other premium specifications. Sony looked at the requirements of the phone and tried to find relationships between the firms “how’s” so that they could build a phone consumers want. Sony could pair its energy saving software with a powerful battery for better battery life or use its display (TVs) expertise to develop a low energy vibrant display for the phone. Sony had to make some compromises in order to keep the cost and size within reason so Sony had to develop some customer importance ratings such as small size, screen pixel density, battery life, camera, etc. and rate them. Sony then could evaluate competing products against the Z3 compact and see how it compares. Finally, to complete its QFD analysis Sony would compare the performance of the product to the desirable technical attributes. This would mean testing for battery life, screen quality, camera quality and performance, bendiness, etc. Once Sony determines its phone meets the specifications it desires it can then release it to the public.

Going through this QFD approach for a new ‘standard challenging’ product helped me understand the process greatly and really appreciate the effort that goes into developing a new product and building a QFD house of quality.

What you do you think about the trend in smartphone sizes?

Are you for or against the increasing size of smartphone screens? Why or why not?

 

Sources:

http://www.theverge.com/2014/10/3/6887063/sony-xperia-z3-and-z3-compact-review

http://online.wsj.com/articles/how-to-find-the-phone-that-fits-your-hand-1395795606

http://techland.time.com/2013/07/18/the-htc-one-mini-is-yet-another-compromised-small-android-phone/

http://androidandme.com/2014/10/opinions/dear-google-please-make-a-smaller-nexus-6/

https://gigaom.com/2014/10/13/best-phones-under-5-inches-2014/

Razr WAS the New IPhone

moto-razr-luk-hot-pink

 

A couple years back in 2004 when the Mortorola Razr was first introduced, it caught everyone’s attention. The razr’s unique, thin and light design made it stand out from other flip-phones. It varied in many colors, including a very popular hot pink color and everyone wanted one. Over time, new technology had introduced smart phones and this is where Mortorala ran into a huge issue.

When the razr hit the growth stage of the product cycle; they kept the same design but would add to it. It was a flip phone that had a camera, was able to send and receive emails, and although a bit slow you could surf the web. The reason they kept the design the same was because it was known for its design. People loved the Razr for that reason and it was known for being the best flip-phone out there.

As this product matured there was fewer changes made because there was not much that could be changed with the design since it was known for its cool look. This is where the issue was because touch screen phones were now a hot product for consumers and Motorola was behind. “We didn’t look at what’s going to disrupt [the RAZR],” Wicks says. “Someone else was. We didn’t invest in disrupting our own leadership.” And even when Motorola did try to evolve and improve, it met resistance from the all-powerful carriers. “We got caught in that bad spot where we were locked into our next-generation product lines and specs based on everyone saying ‘we want the same thing,’ and once we were locked in everyone started to say ‘yeah, but that looks just like the RAZR.’ Then the iPhone came out, and marked another shift in the phone industry.”(“Status Symbols: Motorola RAZR.” ). Motorola was not prepared for the introduction of smart phones and did not know how to approach the situation. While Motorola attempted to change the Razr people kept saying they want the same thing and when they got the same thing they were not satisfied. Motorola was stuck in place and people started switching over to other companies. I believe that it was contradicting information for Mortorola because when they tried to compete with other companies and also satisfy consumers it didn’t work. Consumers did not like the fact that the new Motorola phone looked the Razr but yet were buying smart phones from Apple and Samsung.  “A 2008 report revealed that 24 percent of new iPhone owners in the U.S. switched from the Razr.” (“Remembering the Razr: The Device That Snapped Shut the Era of Flip Phones”). Consumers were clearly interested in trying a new product that did not resemble the Razr. This is where Motorola should have come up with a plan that would lure back their loyal consumers who indeed loved the Razr. They should have strategized in a way to target their loyal customers as well as new consumers. They were at a great advantage because the Razr was a hit a point and their next product could have also succeeded if it were marketed the right way.

In 2011, Mortorola had introduced the Droid Razr Maxx and it failed. They did not do a great job of marketing and trying to get consumers to switch over because I haven’t even heard of it before. They did not market themselves well and were competing against Samsung and Apple both major companies. “Motorola learned that companies have to excel at engineering, design, and marketing, he says, or they’ve got nothing.”(“Status Symbols: Motorola RAZR.” ). It’s true, in order to succeed you must do well at the engineering, design, and marketing part which Mortorla did not do and for that reason they declined.

 

Have you heard of the Driod Razr Maxx when it came out? How could have Motorola marketed to attract consumers?

 

 

Sources:

“Remembering the Razr: The Device That Snapped Shut the Era of Flip Phones.” Digital Trends. N.p., n.d. Web. 23 Oct. 2014.<http://www.digitaltrends.com/mobile/ghosts-of-christmas-past-the-original-motorola-razr/>.

“Status Symbols: Motorola RAZR.” The Verge. N.p., n.d. Web. 23 Oct. 2014. <http://www.theverge.com/2013/10/3/4798828/status-symbol-motorola-razr>.

 

Apple’s Ruthless Supply Chain Management

For the loyal Apple customer, Apple can do no wrong. Apple reported Four million iPhone 6 and iPhone 6 plus’ pre ordered in the first 24 hours. Last year Apple sold over 150 million phones.(Satariano and Burrows) The company’s success is attributed to their innovative products which have superior functionality and exceptional user experience. Second to the product is the supply chain management that allows Apple to deliver the high demand products on time to the users.

The iPhone is the most popular phone in the world, in order for Apple to produce and deliver the sheer volume of phones to meet the demand they must create exclusivity agreements with suppliers in exchange for volume guarantees. Working with its supply chain partners, Apple helped develop new manufacturing processes, some of which have been the subject of patents filed by the company.(Apple’s process,pars 5)

Apple is always innovating their products and they do it at no cost and without any consideration of the suppliers. Suppliers of Apple sometimes come out winners and sometimes losers. The iPhone alone has components that come from dozens of different companies. Apple has a reputation as a brutally tough negotiator with companies in its supply chain, demanding advanced technology at razor-thin margins, and it doesn’t hesitate to drop longtime suppliers with little notice, says Francis Sideco, a senior manager at market researcher IHS (IHS). At least nine publicly traded companies get more than 40 percent of their revenue from Apple, data compiled by Bloomberg shows.

blog pic

Audience, a mobile audio processor maker saw their stock plummet from a high of $22 a share to about $8.50 a share when their parts were left out of the iPhone 5 in 2012.(Satariano and Burrows) Peter Santos, chief executive officer of Audience says they struggled to replace lost orders with business from other phone makers because he had no notice. Apple didn’t tell him his company was cut out, and he only knew for sure when his engineers bought an iPhone 5 and took it apart.

What makes Apple great is also what gives them the reputation of being ruthless. Apple is very involved in all aspects of the supply chain management and it’s been that way since late Steve Jobs return in 1997. Apple has a lot of power and leverage when they negotiate the terms on parts, manufacturing and transportation, this in large is what allows Apple to make a superior product to its competitors at a price that is hard to rival and still make a 25 percent profit margin. The bottom line is the company is highly regarded by the end user. Apple’s ruthlessness is what gives them the advantage and keeps them in the green year after year. Some suppliers have begun to reduce their dependence on Apple.

Is the old idiom, business is business, always true? Is it okay for a company to have a ruthless mentality? When the end-users are happy and the company sees huge profits, is it all that matters?

http://www.businessweek.com/articles/2014-09-18/some-apple-suppliers-get-cut-off-must-scramble-for-new-business

http://www.usanfranonline.com/resources/supply-chain-management/apples-process-improvements-make-it-a-global-supply-chain-leader/#.VDjg8mddV_B

https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=apple%20operations%20management

Google Now Knows What You Did Last Summer!!!

Heavy.com

Google Now is now a direct competitor to Apple’s Siri. Google Now is an intelligent virtual personal assistant similar to Siri. Recently Google Now became available on iOS for iPhones and iPads.

Google Now access a lot of personal information on someone’s iPhone/iPad. There are many privacy issues related to the use of Google Now. Google Now analyzes your browsing history, mail, calendar events, and other activity on your iOS device to “predict” information that you will need before you even think about needing it.

In order to begin using Google Now and iOS, you must first open Google Search, where Google Now appears at the bottom of the screen as a stack of cards. You swipe the stack of cards in order to access the main feature of Google Now, the “cards.”

Here is an example of how Google Now is your personal assistant: You have meeting scheduled for later today in Aurora. The meeting is scheduled in your Calendar app. Google Now accesses your calendar and from the information that it obtains, it creates a “card” that gives you map, directions, and current traffic conditions to the meeting. When you repeatedly search for a particular sports team’s score on the internet, Google Now automatically displays the previous night’s final score on a “card.” If Google Now detects that you are in a foreign country, it will provide a “card” with a translator and a currency convertor.

Readwrite.com
Google Now does allow you to select what information you share with Google Now. However, the less information you provide to Google Now, the less useful, reliable, and efficient it becomes.

Google Now can be a very convenient tool for everyone. However, Google Now on iOS does not allow you to send e-mails using only your voice and you cannot access with the push of the “Home” button like you can with Siri. Google Now also only works with other Google products, such as Google Calendar. It was also released with glitches and users have complained of battery problems when using Google Now.

While I can see how Google Now can be a great convenience for me, I cannot get past the fact of how much information it will obtain from my iPhone. That information could be stored on Google’s server for years and it could sell that information to advertising firms that would creep me out with very personalized ads. Perhaps if my information was kept on my phone and it never went through Google’s servers, I would be more open to using it.

Would you be willing to provide extensive amounts of information in order to use Google Now? Are you concerned with your privacy in this technological world? What can Google do to alleviate the privacy concerns of its customers? Should Google be competing directly with Apple’s Siri on Apple’s own products? Is this Google’s strategy to win over Apple consumers? Did Google release Google Now on iOS prematurely since it still has bugs and is only compatible with Google services?

 

Sources:

Google Now Takes On Apple’s Siri by Rich Jaroslovsky: http://www.bloomberg.com/news/2013-05-08/google-now-takes-on-apple-s-siri-rich-jaroslovsky.html

(Image) Google Now Opens Up To iPhone And iPad Users by Taylor Hatmaker: http://readwrite.com/2013/04/29/google-now-ios-iphone

Google Now for iOS: 5 Fast Facts You Need to Know by Karen Tumbokon: http://www.heavy.com/tech/2013/03/google-now-for-ios-5-fast-facts-you-need-to-know/

Lapka, the next big thing?

Have you heard of Lapka yet? “Lapka is a personal environment monitor that connects with your phone to measure, collect, and analyze the hidden qualities of your surroundings” (1).  It is a new innovation coming out of Russia. It looks sleek and high tech with a wooden finish. You can now measure your surroundings for yourself and not have to wait for the environmentalists to do it. “Its four sensors analyze and report on radiation, electromagnetic fields, humidity, even the level of nitrates in food” (2). Each sensor plugs into an iPhone’s headphone jack to feed its data into software that comes in a form of an Apple App. This new high tech personal gadget will cost you about $220. But is it worth it?

It has its positives and negatives. To me, I feel like a negative would be the paranoia that it will cause some people. To have the ability to actually measure the radiation in the air around you can sometimes put you in a state of worry. We don’t realize how bad the environment is around us, but having the “tools”, so to speak, to measure the levels yourself can show you the true reality of the situation. On the other hand, is it better to know and try to do something about it? Or is it better to be ignorant to the level of radiation your neighborhood has and not think too much about it? I’ve watched a documentary about radition and how bad it can effect you if you live near by a plant or something of the sort, I feel like it’s something people want to look into when moving to a new city or neighborhood. Especially if they have little children who will be outside playing and exposed to it. A positive could be that people will find out the levels of radiation on their own by using this gadget and pressure politicians to regulate more when it comes to radiation, electromagnetic fields, and such. According to the article, officials already have records of the radiation, pollution, and other levels for each city. This just gives consumers the opportunity to measure it themselves using this sensor and their iPhone. Another negative  I see in this would be maybe the loss of future jobs for some environmentalist due to this new, easy way to produce information. Technology seems to be taking over the job world and this might affect it. But at the same time I would like to argue that an educated environmentalist is a much better source than the Lapka and an iPhone.

 

Do you think this will attract consumers and be successful? Or is it another wasted gadget?

Sources:

(1) https://mylapka.com

(2) http://www.businessweek.com/articles/2013-04-18/the-good-and-scary-possibilities-of-monitoring-your-personal-space#r=nav-r-story

The Fall of Apple?!?!?

There has been tons of speculation recently about the way the most interesting company in the world, known as Apple, is headed. Stock prices fell below $400, an over 40% decline since an all time high last September. The company has not introduced a new product in over six months and it will be at least another three by the time a new one is available in the marketplace. Lastly, competition is rising as the  HTC One and Galaxy S4 are slated to be on the market soon which could lead to a decrease of sales of the iPhone. Apple will release its quarterly results next Tuesday April 23rd and the numbers are expected to fall short of Apples quarterly forecast, which will decrease the stock price even more.

While there is cause for concern, as with any major corporation, Apple does have many thing to look forward to with one of them being customer loyalty, great management, and near future product releases.

There is not a consumer base out there that are as loyal as Apple consumers. An easy way to prove this is look around any DePaul classroom. First of, the vast majority of students have some a Macbook as their laptop. A greater portion of these students also have an iPhone as their phone. Finally, I would bet that these students also listen to iPods on their morning commutes to school or work. To truly find a company that has better customer loyalty would be a task in itself.

Another reason that Apple will rebound is because they have great management. Many people say that Steve Jobs made the company what it is today. That is true in a way but the support and management around Jobs had to be up to his level as he could not control every part of the company. Apple did not become one of the most valuable companies in the world because of one person.

Many investors proclaim that the reason the stock price is falling is because Apple has not released any new products. That is about to change in the upcoming months as there are speculations the new version of the iPhone is slated to come  out late this summer. When Apple states the new iPhone release date, that alone will boost stock price. As shown by the image to the right, stock prices increase significantly when a product is released.

 

 

 

As we know, Apple has been one of the most dominating and valuable companies in the world. Recently stock prices have dropped over 40% and sales are predicted to fall short of the quarterly forecast. Many loyal consumers are waiting for the next big thing from Apple but the company is not delivering. What do you think about Apples recent struggles? Has Apple really lost its touch in the market as competition is constantly increasing or will the release of the new iPhone restore Apples value and investor confidence in the company?

 

Sources

http://theweek.com/article/index/242933/apples-stock-price-reaches-new-low-why-are-investors-so-jittery

http://www.forbes.com/sites/gregsatell/2013/04/17/whats-going-on-with-apples-stock/

http://www.pcadvisor.co.uk/news/mobile-phone/3436742/iphone-6-release-date/

http://www.forbes.com/sites/rogerdooley/2012/07/17/apple-enemy/

Blackberry is losing out to iPhones

Research in Motion (RIM) is the company that makes Blackberry phones.  Blackberry mobile phones are going downhill.  The phones that sell the most are iPhones and Androids.  These are dominating the world market.  This is the future of the world market as well.  So people are going for these phones and they don’t like Blackberries as much.

 

RIM is losing jobs and revenue as well.  There have been 5,000 layoffs for this company because the company is losing money.  Their net sales went down by 42% a year ago to $2.8 billion.  The CEO Heins chose to cut costs and downsize but this is not enough for the company.  It must find innovative ways to sell their products in the global market.  The CEO is not doing the best job as well.  He needs to find creative ways to sell the product to gain more of a market share in the phone market.

 

The Blackberry was first a business phone.  Many business people, lawyers, consultants and other people who are in organizations had Blackberrys. This wasn’t enough for the RIM so they had to expand to the regular consumer.  They made it more user friendly so the average person could use it, not just corporate people. They gave the phone a music player which most people do not know about.

 

They should have set up an office inSilicon Valleybecause this would have given them an opportunity to see what other companies are doing. It would have made them compete more with these companies.

 

In 2010 they set a plan to make a touch-screen rival to iPhone. They came up with the Blackberry Torch which did not do too well. RIM needs to learn to discontinue products and make new ones.  Many tech companies have bad products but they are discontinued and the company learns from their mistake. Companies such as Microsoft had Zune and Apple hadNewton.  Both of these companies did not do well but they reset and brought out better products.  RIM did not make a new innovative product.  Their product called playbook did not do too well and they lost a lot of money on unsold playbooks.

 

There is still hope for RIM to succeed though.  They have over $2 billion is cash on hand.  The bottom side is that the cash can go away due to costs.  Also many of the people who left blackberry for iPhone are not coming back anytime soon. So they have to find innovative ways to get people to subscribe to Blackberry.

 

He should invest in developing countries as well because there would be a market for the phones.  The price is what is most important to know.  There is an elite in the developing world that will buy the phone because they need it.  The problem will be setting up the infrastructure in the developing world to make it be efficient.

 

http://nymag.com/daily/intelligencer/2012/07/how-the-blackberry-died.html

 

http://www.theatlanticwire.com/technology/2012/06/rim-dying-because-it-got-future-phones-completely-wrong/54031/

Forecasts vs. rumors

Corporations like Apple, Samsung and Motorola; we hear rumors about them all the time. Like Apple with the iPhone 5, and Samsung with the new S3 and Motorola with the new Atrix 3.

I still can’t forget when everyone I know didn’t buy their iPhone 4 waiting for iPhone 5 and they were disappointed with the iPhone 4s. And now, the same thing is happening, people who are about to upgrade their phones and didn’t buy the S2 saying they’ll wait for the new Galaxy S3 and or iPhone 5.

Since I am obsessed with technology, and I keep up to date by buying the latest gadgets in the market. And while doing this course, during class when we were talking about product cycles and inventory management, I began wondering. At that very moment, I remember when I was thinking in my own world, when my teacher asked me a question that I didn’t pay attention to, and I had to ask her to repeat the question again. It was about the product life cycle and how short it is with technology.

Then during class, we started looking at the forecasting time horizon, during this part of the discussion; I was wondering what is their forecast period? Short?

We move on to the forecast methods, and during that very specific part I was trying to see which method they could possibly use? I know as the Professor said, forecasts are seldom perfect. However, they need some kind of forecast to keep the inventory right.

Immediately two blog posts of my colleagues came to my mind. First, Car dealerships with zero cars to sell. Corporations like Apple and Samsung do not want to be like those dealerships.

Second, Why Guess When You Can Forecast?

I quote from my colleague post:

“The mistake our team made was to purchase the product inventory from manufacturing companies without accurately forecasting the demand for those products.

The result? We ended up with far more inventory than we could sell. Food products are perishable; their expiration deadlines are much shorter than for other consumer goods. As those expiry dates approached, a considerable percentage of the inventory we had bought was wasted in our own warehouse. Needless to say, the company suffered some heavy losses.”

I think those corporations deal with this situation very frequently, in fact, the news of the S3 affected the iPhone 4s sales in some regions specifically in Bahrain. I do not have data to back my theory but I have seen this happening.

I wonder how does corporations like Apple deal with those rumors? How can they forecast the demand on the existing products when there is a rumor about a new product? I believe those corporations are living on the edge with their products and forecasts. They probably calculate the risk and add it to the product price to cover the forecast loses? I don’t know. But I can tell you this, it must be really hard.