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Case Studies in Strategic Marketing Planning for Radically New Products

Case Studies in Strategic Marketing Planning for Radically New Products. Lee Cooper Anderson School at UCLA Intel Corporation Colloquium July 13, 1999. Intel Prototype Project. Six Planning Stages. The first step involves articulating the goal as simply and comprehensively as possible.

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Case Studies in Strategic Marketing Planning for Radically New Products

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  1. Case Studies in Strategic Marketing Planning for Radically New Products Lee Cooper Anderson School at UCLA Intel Corporation Colloquium July 13, 1999

  2. Intel Prototype Project

  3. Six Planning Stages • The first step involves articulating the goal as simply and comprehensively as possible. • The top-level objectives that flow from that goal should also be developed at this stage. New Product Success Value

  4. 2. Fill out the Critical Issues Grid • Develop a general description of the product or service. • List the key issues and assumptions coming from political, behavioral, economic, sociological, or technological sources. This becomes an outline for short written statements about the critical issues. • Share this document within the planning group (find out if there is agreement on the critical issues). Regulatory Issues Strategic Partners Inside Intel End-User Acceptance TALC Threat Competitive Threat Future Technology

  5. 3. Mapping the Critical Issues into a Bayesian Network • What affects what is the central issue at this stage. • Since the network can be progressively refined, the preliminary work is just in seeing what issues are interconnected. • Finding the nodes that are the key to decision making is an important part of this step. Regulatory Issues Strategic Partners Inside Intel New Product Success TALC Threat End-User Acceptance Value

  6. Prototypical Intel Project Regulatory Issues Strategic Partners Inside Intel Future Technology New Product Success TALC Threat End-User Acceptance Competitive Threat TALC Loss Value

  7. Prototypical Intel Project Proof of Concept PoC Costs IHVs OSVs OEMs ISVs Regulatory Issues Strategic Partners Inside Intel Future Technology New Product Success TALC Threat End-User Acceptance Competitive Threat TALC Loss Value

  8. Prototypical Intel Project Proof of Concept PoC Costs End-User Test IHVs OSVs OEMs ISVs Regulatory Issues Strategic Partners Inside Intel Future Technology New Product Success Test Results TALC Threat Test Costs End-User Acceptance Competitive Threat TALC Loss Value

  9. Prototypical Intel Project OEM Costs IHV Costs OSV Costs ISV Costs OEM PoC IHV PoC OSV PoC ISV PoC End-User Test IHVs OSVs OEMs ISVs Regulatory Issues Strategic Partners Inside Intel Future Technology New Product Success Test Results TALC Threat Test Costs End-User Acceptance Competitive Threat TALC Loss Value

  10. 4. Knowledge engineering / specification of research projects. • The rough network at this stage contains nodes and arcs. Each connection between two nodes represents something that is either known by the planning group or researchable. • This step fills in the known conditional relations and sets up the research projects to fill in the rest.

  11. Inside Intel Performance Tech elegance Investment issues Current methods work Engineers accept Managers accept Risks New_skill_struggle Assess benefits Op. to innovate Lowers costs

  12. OSV Interaction Fear-control/integrity MS adopts by T-0 Sun adopts by T-0 SCO adopts by T-0 MS adopts by T-1 Sun adopts by T-1 SCO adopts by T-1

  13. Final Stages • Run scenarios. • Test the sensitivity of the key nodes to changes in the underlying assumptions. • Revise and refine the network, as new knowledge becomes available. • The ability to dynamically update the network is a key asset.

  14. Costs OEM Costs IHV Costs OSV Costs ISV Costs Test Costs TALC Loss

  15. Value Value

  16. Basic Probabilities Future Technology Competitive Threat Regulatory Issues Inside Intel IHVs OSVs ISVs OEMs

  17. Conditional Probabilities Future Technology TALC Threat Competitive Threat

  18. Probabilities for Strategic Partners

  19. Probabilities for New Product Success

  20. Default Probabilities

  21. Default Decision Utilities

  22. Impact of Positive User Test

  23. Impact of Agreement Inside Intel and Positive User Acceptance

  24. What you gain • Explicit, rather than implicit assumptions • A visual overview of how assumptions and empirical evidence interconnect • A roadmap showing what research will reduce uncertainties • A quantitative method for integrating subjective estimates and objective findings. • A Bayesian tool for showing how changes in assumptions impact important planning events.

  25. Tour of the Project Action Website http://164.67.164.88

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