Management Consulting/Please give the answers of the following questions.
1. (a) What are the factors which impinge heavily on the growth and quality of life in India ? What is the Japanese model of technology and technological innovation ?
(b) Elaborate your understanding about major issues related to the nature of technological change.
2. (a) Explain the relationship between design, innovation and market. Why is design important in the market context ?
(b) Discuss the various issues related to technology sourcing.
3. (a) Discuss the rationale of partnership in innovation and R and D. Why is the need for partnership in innovation felt more strongly today ?
(b) Define innovation. What are the distinctive characteristics of innovative persons ?
4. (a) What is the genesis of Team Concept ? How do individuals convert themselves into a team ?
(b) What is a learning organisation ? Describe the process of learning in an organisation.
5. (a) Elaborate your views on the causes of failure of R and D projects.
(b) Discuss the salient features of the technology policy of India. What have been the achievements and failures of the technology
6. (a) What do you mean by Patent Trade mark and Copyright ? Suggest various measures for the protection of these rights.
(b) How do we manage the funds for R and D and technology development ? Also discuss briefly the role of government in R and D
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(b) Elaborate your understanding about major issues related to the nature of technological change.
Most technological innovations spread or disappear on the basis of free-market forces—that is, on the basis of how people and companies respond to such innovations. Occasionally, however, the use of some technology becomes an issue subject to public debate and possibly formal regulation. One way in which technology becomes such an issue is when a person, group, or business proposes to test or introduce a new technology—as has been the case with contour plowing, vaccination, genetic engineering, and nuclear power plants. Another way is when a technology already in widespread use is called into question—as, for example, when people are told (by individuals, organizations, or agencies) that it is essential to stop or reduce the use of a particular technology or technological product that has been discovered to have, or that may possibly have, adverse effects. In such instances, the proposed solution may be to ban the burial of toxic wastes in community dumps, or to prohibit the use of leaded gasoline and asbestos insulation.
Rarely are technology-related issues simple and one-sided. Relevant technical facts alone, even when known and available (which often they are not), usually do not settle matters entirely in favor of one side or the other. The chances of reaching good personal or collective decisions about technology depend on having information that neither enthusiasts nor skeptics are always ready to volunteer. The long-term interests of society are best served, therefore, by having processes for ensuring that key questions concerning proposals to curtail or introduce technology are raised and that as much relevant knowledge as possible is brought to bear on them. Considering these questions does not ensure that the best decision will always be made, but the failure to raise key questions will almost certainly result in poor decisions. The key questions concerning any proposed new technology should include the following:
• What are alternative ways to accomplish the same ends? What advantages and disadvantages are there to the alternatives? What trade-offs would be necessary between positive and negative side effects of each?
• Who are the main beneficiaries? Who will receive few or no benefits? Who will suffer as a result of the proposed new technology? How long will the benefits last? Will the technology have other applications? Whom will they benefit?
• What will the proposed new technology cost to build and operate? How does that compare to the cost of alternatives? Will people other than the beneficiaries have to bear the costs? Who should underwrite the development costs of a proposed new technology? How will the costs change over time? What will the social costs be?
• What risks are associated with the proposed new technology? What risks are associated with not using it? Who will be in greatest danger? What risk will the technology present to other species of life and to the environment? In the worst possible case, what trouble could it cause? Who would be held responsible? How could the trouble be undone or limited?
• What people, materials, tools, knowledge, and know-how will be needed to build, install, and operate the proposed new technology? Are they available? If not, how will they be obtained, and from where? What energy sources will be needed for construction or manufacture, and also for operation? What resources will be needed to maintain, update, and repair the new technology?
• What will be done to dispose safely of the new technology's waste materials? As it becomes obsolete or worn out, how will it be replaced? And finally, what will become of the material of which it was made and the people whose jobs depended on it?
2. (a) Explain the relationship between design, innovation and market. Why is design important in the market context ?
Explain the relationship between design, innovation and market.
The relationships among marketing, innovation, and design have become increasingly important over the past decade. This upward trajectory has led to recognition of the link between innovation and design, and companies have found that they can develop a competitive advantage by fostering this link. Despite the advantages that these companies may obtain, it is quite difficult to define the strategic actions that take place. Furthermore, the relationship between design and innovation is especially difficult to define because design encompasses a wide range of areas: architecture, fashion design, interior design, graphic design, industrial design, and engineering design. In addition, the concepts of design and innovation partially overlap . Indeed, the basic term “design” is quite broad and has diverse meanings .
The majority of product innovation research has focused on the specific functional aspects of a product that are not found in previous products. However, the importance of product design has increased in today's competitive markets. argued that the huge success of the iPod was not only a result of its superior technology but also a result of its advanced product design. Previous research has noted that design can lead to a distinct competitive advantage and that the absence of innovation is a primary reason for firm failure in competitive markets These findings indicate that successful firms must maintain a high level of innovation while providing cutting-edge design; however, it is difficult to achieve such innovative design in a dynamic, changing environment. Managing innovation in a turbulent environment, where market uncertainty and complexity exist, is one of the biggest challenges that firms face in building and maintaining success.
Despite this general agreement on the importance of design and innovation, the precise role of design innovation in marketing has received little attention. Therefore, this paper seeks to define design innovation. The majority of papers that mention design and innovation fail to provide insight into the important link between design innovation and marketing competences. Thus, this paper also seeks to describe the key factors in the relationship between design innovation and marketing competences.
Design and Innovation
Product design can be used by firms to create brand recognition and increase firm value . Successful firms are able to communicate their increased value to their customers through cutting-edge product design .In addition, product design can serve as a cost-saving method because unique product design can result in decreased advertising costs. emphasized the role of design by mentioning that the producers of traditional and high-tech consumer durables obtain their competitive advantage through product design. Despite the wide range of design concepts, the one commonality across the spectrum of design is the use of creative visualization in concepts, plans, and ideas, and the transmission of those ideas into the construction of something that did not previously exist.
Previous discussions on design have offered some definitions that are derived from the idea of innovation. defined design as “the very core of innovation, the moment when a new object is imagined, devised and shaped in prototype form.” stated, “Design is the idea so as to provide the instructions for making something that did not exist before or not in quite that form.” defined design as “the synthesis of technology and human needs into manufacturing product.” defined design as being crucial to innovation not only because it is the domain of creativity where ideas are devised but also because design fills a pivotal role by connecting technical possibilities and market demand. described the relationship between incremental innovation and design improvements as the “bread and butter” in developing new products within the firm. Based on these definitions, it is clear that design and innovation share some common concepts. The connections between design and innovation are clear; however, when describing the importance of innovation, it is necessary to consider the separate impacts of design and innovation on firm success. Marketing managers achieve differentiation through the creation of valuable designs that set products apart from the competition.
Innovation, defined as the process of bringing new products and services to a target market, is a necessity for firms to succeed in the business world today .Successful innovation is achieved by placing customer needs first, and satisfying these needs through the development of innovative products .Despite the relative simplicity of defining innovation, it is difficult to apply the notion of innovation equally to all types of firms .
defined five types of innovation: introduction of a new product or a qualitative change in an existing product; process innovation that is new to an industry; the opening of a new market; development of a new source of supply for raw materials or other inputs; and changes in industrial organization.. The Oslo manual based its definition on the first type of innovation identified by Schumpeter, suggesting that technological product innovation involves either a new or improved product whose characteristics differ significantly from previous products Innovation is a powerful, revolutionary tool in new markets, and it is often responsible for the production of new, high-quality products offered at low prices.
The topic of innovation encompasses a variety of fields, including marketing, quality management, technology management, product development, strategic management, and economics .Although research on innovation has progressed within many academic fields, there are incomplete links across those fields ). For example, research on market pioneering does not connect with the diffusion of innovations or the creative design of new products .As a result, it is very difficult to find a link between different research areas, such as design and innovation. This difficulty explains the lack of research that specifically involves design innovation.
What is the best way to define design innovation? There are very few studies that offer a definition of design innovation. It is difficult to define design and innovation because both terms vary depending on the situation. By combining design and innovation, this paper attempts to provide a definition where other research has fallen short.
The other common conceptual connection between design and innovation is customer need. --design as “the synthesis of technology and human needs into manufacturing product.” successful innovation relies on first understanding customer needs, and then satisfying those needs through the development of products. This paper attempts to find a link between design innovation and marketing to define design innovation. Customer need is key in connecting both dimensions. One of the most important marketing goals is to satisfy customers. Therefore, this paper defines design innovation as new or substantially improved product design and product features that are created to satisfy customer needs.
the concept of “user-centered design,” which describes how companies can utilize design to improve their relationships with users and develop a better understanding of user needs.. Therefore, this research utilizes homegrown theory to define design innovation and its effect on improving customer value to improve the marketing performance of companies.
design innovation has three dimensions: aesthetic attributes, feature attributes, and emotional attributes.
-Aesthetic attributes focus on the product design itself, and
-feature attributes focus on the product features and functional aspects that are required to satisfy customer needs.
-Emotional attributes focus on how the customer feels when they purchase some product or service to satisfy their needs.
The aesthetic appeal of a product is an important contributing factor in the customer's purchase decision (
-aesthetics and psychology believe that human aesthetic responses are influenced not only by the form or the apparent surface attributes, but also by the content or the symbolic meaning of the stimuli.” This suggests that aesthetic attributes are strongly related to the shape and content of a product. Considering the importance that customers place on aesthetic attributes when purchasing products, it is essential that firms develop good-looking products with a high overall quality to attract customers in rapidly changing environments .
Therefore, designers should have a strong understanding of the aesthetic attributes that customers prefer
). Designers must understand how the visual aspect of a product affects the customer's perception of product design innovation.
two hypotheses regarding the aesthetic attributes of design innovation.
• H1: Aesthetic attributes will positively affect humanistic design value.
• H2: Aesthetic attributes will positively affect technical design value.
two hypotheses regarding design innovation and feature attributes.
• H3: Features' attributes will positively affect humanistic design value.
• H4: Features' attributes will positively affect technical design value.
identified prepurchase affect factors (PPA) that affect how customers feel before they decide to purchase a cellular phone. These factors are amazement, optimism, satisfaction, and positive enthusiasm. The more a product design satisfies the emotional needs of consumers, the more it will generate consumer interest in purchasing the product ). This leads to the following hypotheses:
• H5: Emotional attributes will positively affect humanistic design value.
• H6: Emotional attributes will positively affect technical design value.
Previous literature posits that firms satisfy customer needs through improved design and product features. Based on the literature, we utilized some common factors, such as aesthetic attributes, feature attributes, and emotional attributes, to define design innovation. As mentioned previously, design innovation refers to a new or substantially improved product design (aesthetic attributes) and product features that are introduced to satisfy customer needs. The product must contain characteristics that fulfill the customer's desire for aesthetic and feature attributes to satisfy customer demands. In addition, the presence of a high number of PPA indicates that customers are highly motivated to purchase the product. Design value is created from these attributes through design innovation. We continue with the basic assumptions that the creation of design innovation affects design value, and that there is a relationship between design value and customer value. This paper will next discuss the impact of design value.
four factors that determine marketing values: target market, customer needs, integrated marketing, and profitability. Customer needs are much more important than firm needs, and they play an essential role in the relationship between design innovation and design value ).
values are provided by individuals with strong preferences and that design values apply human values through the use of product design. Design value is created when the customer feels a design preference for a product based on its shape and features. This design value is created by the preferred product shape and features when they lead the customer to purchase the product. Therefore, in this study, design value is defined as a value that reflects customers' preferences based on improved product shape and features that satisfy their needs.
There are two design values that designers control: humanistic values and technical values (Beverland, 2005). The goal of design innovation is to satisfy the customer, and a design should therefore create values that satisfy the customer. In other words, design can create humanistic value. The main design trend in today's economic environment is to consider human safety and convenience (Chang, 2008). This trend has created a focus on maximizing efficiency, safety, comfort, and accuracy, which in turn has placed increased importance on the study of the relationship between humans and products (Corsini, 2002). Humanistic design value can be created through factors such as aesthetics. However, most traditional studies of design and human factors have paid less attention to the aesthetic aspects of design (Liu, 2003). Liu (2003) emphasized that it is time to consider aesthetics as an important dimension of humanistic design value research. This suggests that aesthetic attributes have the potential to create humanistic value in product design. In response to Liu's recommendation, we present three hypotheses regarding humanistic aspect as a measure of design value.
• H7: Humanistic design value will positively affect product-related customer value.
• H8: Humanistic design value will positively affect service-related customer value.
• H9: Humanistic design value will positively affect promotion-related customer value.
Product innovation consists of the following three aspects: new feature/function, new look/feel, or new technologies (Gautam and Singh, 2008). As technology changes, products are redesigned to incorporate the new technology (Gautam and Singh, 2008). This means that innovation through product design change and feature or functional change can create value. For example, it can lead to the development of technology that results in a competitive advantage. Technical design value is achieved through economic competence, efficiency, technical virtue, and excellence (Beverland, 2005). If design innovation is created through the development of product features and functions, design value can be created via efficiency and cost savings. For example, the majority of cellular phones have a calculator. Customers can save time and costs by using this cellular phone calculator feature. This suggests that technical features can create design value through improved technology. We hypothesize that technical features can affect customer value in the following ways.
• H10: Technical design value will positively affect product-related customer value.
• H11: Technical design value will positively affect service-related customer value.
• H12: Technical design value will positively affect promotion-related customer value.
Beverland (2005, p. 196) stated, “Designers note that marketing is necessary for success because marketing provides an ongoing customer interface and ensures that design innovation delivers value that customers find appealing.” In this view, designers believe that creating design value is required to achieve marketing success through design innovation. According to Butz and Goodstein (1996, p. 65), “a management expert defines customer values as the customer's perception of specific need fulfillment.” Customer need is a common factor shared by the variables of design innovation, design value, and customer values. These different constructs are connected to satisfy customer needs. We suggest that design innovation creates customer value by creating design value.
Although there are many definitions of customer value, two definitions frequently used in the marketing realm are customer perceived value and customer lifetime value (Mishra, 2009; Woodall, 2003). In this paper, customer value is defined as the difference between what customers receive relative to what they give up (Zeithaml, 1988). The value created by a firm can be measured by the amount that customers are willing to pay for a product (Mishra, 2009; Park and Park, 2006). Value can be created through activities that result in lower buyer cost and increased buyer performance (Mishra, 2009). The creation of design value, through improved performance and efficiency, increases customer value, leading to lower cost and improved performance.
Ulaga and Chacour (2001) define customer value as the trade-off between the costs and benefits that occur when customers purchase a product or service from a supplier. They presented three dimensions of customer value: product-related components, service-related components, and promotion-related components. Product-related components are intrinsic product characteristics. Service-related components include all aspects of service associated with the product. Promotion-related components include all items used to promote the product to the customer.
Ulaga (2003) proposed the following eight categories to define relationship value in the business area: product quality, service support, delivery, time to market, direct product costs (price), process costs, personal interaction, and supplier know-how. Ulaga (2003) proposed that the companies refer to product quality when they seek out technical performance and reliability. The creation of technical design value, therefore, stimulates the creation of positive customer value in product quality. Ulaga (2003) also argued that tools to measure customer value are still in their infancy. Most research on customer value emphasizes a transactional approach that focuses on product-related issues while neglecting relational dimensions of customer-perceived value (Dwyer and Tanner, 2002; Parasuraman and Grewal, 2000). We focus not only on the product-related issues but also on the relational dimensions of customer-perceived value, such as service-related customer value and promotion-related customer value in this study.
Ulaga (2003) identified product quality as a key driver of relationship value. Based on previous research, Ulaga and Chacour (2001) defined product quality as the extent to which the supplier's product meets the customer's specifications. Key aspects of product quality are performance, reliability, and consistency over time. In addition, Jarvenpaa and Todd (1997) suggested that customer value is composed of both product value and service value, and that it can be improved by increasing quality, variety, playfulness, and service quality, and by reducing price, inconvenience, and risk. Ulaga (2003) presented service support as a second key dimension of relationship value. In addition to providing product-related services, suppliers create value in service support areas. Suppliers need to provide the right information at the right time to create excellent service for customers (Ulaga, 2003). Diverse service components play an important role in differentiating a supplier's offering (Anderson and Narus, 1996). Qualls and Rosa (1995) asserted that it is necessary to assess the perceived customer value for all purchasing processes, such as service quality and promotional quality.
For Butz and Goodstein (1996, p. 75), “nothing is so critical to organizational success as increasing the net value that we provide to the customer.” Measurement of customer value is one method of determining how likely customers are to be satisfied by a product or service that the firm provides. Customer value is created through the presentation of new styles, fashions, and images, or through the improvement of products via increased functionality (Walsh, 1996). Butz and Goodstein (1996) defined customer value as an emotional bond established between the customer and the provider when the customer perceives added value from a high-quality product or service. Value can be created in the following three dimensions: suppliers, alliances, and customer. Value creation through the customer is most important in the marketing realm because customer satisfaction is the primary goal of marketing. Ulaga and Chacour (2001) stated that customer value could be an important strategic marketing tool to clarify a firm's proposition to customers because the firm can thereby determine the particular area they must focus on to satisfy the customer.
People perceive product form and functional evaluation differently depending on their culture (Seva and Helander, 2009). Filson and Lewis (2000) defined culture as a major barrier to greater design integration. Based on this research, we posit that culture has a strong influence on product design evaluation. This idea is presented in the following hypothesis.
• H13: Design value will positively affect customer value, but its result will be moderated by cultural differences.
The results of the data analysis have several managerial implications for the more effective creation of product design innovation. The innovation of superior aesthetic design characteristics has a positive effect on humanistic design value in both countries. This suggests that firms will have greater customer satisfaction if they provide an aesthetically pleasing product design and shape. The effect that feature design innovation has on technical design value indicates that some product feature aspects are related to technical design value but not to humanistic design value. This suggests that feature design innovation is created through the improvement of product technology. Firms must devote greater resources to research and development to improve both aesthetic attributes and technical design value. Emotional design innovation attributes positively affect humanistic design value in both countries but not technical design value. This suggests that customers are more attracted to product purchase through innovative product shape than through technical product characteristics. To successfully attract customers, firms must focus not only on providing an innovative product shape but also on offering a product with a high technical design value.
Humanistic design value positively affects product-related customer value and promotion-related customer value in both countries. This suggests that the humanistic design value created by the aesthetic aspect of the product and by emotional attributes is related to the product shape. Technical design value positively affects service-related customer value in both countries. This suggests that technical design value created by feature design innovation is related to elements of service-related customer value, such as offering a high quality of service support. The results showed that these attributes have a greater impact in Korea than in the United States. Based on these findings, we believe that Korean customers are prone to seeking out fashionable product design innovation through humanistic and technical design values to satisfy their needs.
Our measures of the indirect effects of design innovation through humanistic and technical design values to customer values also have managerial implications. The total effect of aesthetic design innovation attributes more strongly affected customer value attributes in Korea than in the United States. This means that Korean customers are more sensitive than customers in the United States to product shape and attractive design. The total effect of feature design innovation attributes also more strongly affected customer values in Korea than in the United States, suggesting that Korean customers are more interested in seeking product features to satisfy their needs than customers in the United States. However, the total effect of emotional design innovation more strongly affected customer values in the United States than in Korea, meaning that customers in the United States rely more on emotion than Korean customers when they make purchase decisions concerning a product. These findings are especially important when considering the cultural differences of the markets that were examined. The results indicate that customers in the United States are primarily concerned with product shape, but Korean customers are concerned with both product shape and the technical aspects of the product. Firms must recognize the cultural differences that exist and provide products that are specifically designed to satisfy these particular needs. These findings are consistent with the results of the hypothesis tests.
In summary, both aesthetic and emotional design innovation attributes are related to humanistic design value attributes and product-related customer value. Feature design innovation attributes are related to technical design value attributes and service-related customer value. These findings suggest that customers are prone to purchase products based on their emotions and aesthetic product design that is created through humanistic design value. In addition, feature design innovation can create technical design value attributes, satisfying customer needs through service-related customer support. Therefore, firms should consider focusing on aesthetic product design to satisfy customer needs through the creation of humanistic design value and product-related customer value. In other words, firms should consider feature design innovation to satisfy customer needs by creating technical design value and service-related customer value.
There are two paths from aesthetic design innovation to product-related customer value through humanistic and technical design values. The total effect of aesthetic design innovation on product-related customer value is stronger in Korea than in the United States. However, the direct effect of humanistic design value on product-related customer value is stronger in the United States than in Korea. Accordingly, customers in the United States may not be interested in creating product-related customer value through technical design value. They may not care about premium technical product features but only about good-looking product shape. This indicates that some companies should
Why is design important in the market context
Good business outcomes treat design as a holistic process that pulls in savvy marketing and research, as well as smart ideas.
Good design does not always equal good business. But good business outcomes—especially when the goal is to create new sources of value in the world—are most often achieved through a well-structured design process that is more holistic and inclusive than the notion of good design. All of the energy fed into the debate about the value of good design to the world of commerce would be better spent building ways to make holistic design a routine activity in business—and society. Here are three ways to get us there: Stop Treating Design as A Noun When we talk about it as such, the world stops listening and starts wondering which color the designers are going to pick for the drapes. Unfortunately, good design has come to stand for something akin to "style," largely a relativistic judgment of aesthetics and semiotics informed by a constantly shifting zeitgeist. I'm as much a fan and consumer of aesthetically pleasing things as the next guy, but I fear that much of what passes for good design is actually a class of shallow luxury goods aimed at a specific set of market demographics and psychographics. And these goods don't represent the creation of lasting value in the world: In the parlance of soul group Tower of Power, what is hip today quickly becomes passé. Instead, we would all be better off treating design as a verb, a process, a way of approaching challenges which designers and nondesigners alike can learn to use to create positive change in the world. Throughout history design as a verb, also known these days as design Thinking, has created things of enormous value to humanity. The Bill of Rights, the Aravind Eye Care System, Medecins Sans Frontières, and the Marshall Plan will never show up in a Design Within Reach catalog. And yet each of these amazing achievements of humanity was designed. Rethink the Relationship between Design and Market Success Success in the marketplace is a complex endeavor which requires methods of creation that go beyond the limited scope of good design. Apple (AAPL), a company justifiably known for its design, must be applauded for the way it lets its designers and engineers design things to the hilt. But how Apple has created and captured shocking amounts of market value in the music (iTunes + iPod) and telecommunication (iPhone) industries is due as much to skillful systems engineering and infrastructure development as it is to compelling aesthetics. Success has many parents, and good design is only one of them. For every success like the iPod, there are scores of beautiful market offerings that failed because no one bothered to think about how to manufacture, deliver, sell, support, and retire them in ways that met people's needs. Since market success depends on the complex interaction of so many variables, it is silly—even naive—to try to pin it all back to just good design. Use Business Constraints as Inspiration Potential market value creation should be treated as a generative part of the design process, not as a post-rationalized output with suspect causality. At any given time, a team using design thinking should be able to give a sense of how strong a business they are creating. Let's take the essay about the U.K's National Health Service that prompted this Bloomberg/BusinessWeek special report. Before blowing cash on a logo redesign, a team using design thinking would quickly test the relationship between brand recognition and the ability of the service to help individuals reach healthy outcomes. They would run a series of quick experiments to generate evidence, and only then embark on a full rebranding initiative—if that turned out to be the way to create the most value from scarce resources. This approach fundamentally shifts the dialog away from a reactive posture of "how much value did design create?" to an expansive notion of "how much value can we create?" as well as "how might we maximize the odds of that potential value coming to fruition?" This systemic view of the creative challenge is the signature characteristic of design thinking. When we use design thinking to balance desirability, feasibility, and viability, we unlock the measures of value creation so desperately sought after by the world of good design. Impact in the world becomes the focus of designing. Whether or not you call yourself a designer, when you work to relate people's needs to broader webs of individual, social, and economic factors, and pour your energy into creating better outcomes via an evidence-driven process, you're using design thinking to increase your odds of success in the world. That sounds like good business to me.