Engineering 90: Practical Work Projects in Product Development & Marketing

1. Engineering 90

2. I am somewhere in Africa. Take EN90 because Crawford is really cool! Are we still friends?

3. This class will Focuson practical work projects Product Development Marketing Business Plan

4. Introduction Key Issues in the Information Age

5. Engineering 90 Ways of making effective decisions in managerial situations with a significant technological component. Start-up Corporation Skills and knowledge applicable to both start-ups and large corporate environments. Projects will be more of the entrepreneurial type.

6. IPO’s CEO’s President • Start-ups • Entrepreneurs • Achievements in Corporation Brown University Knowledge Alumni $$$ Remember Engineering 90 Remember your Engineering 90 Professor Hard Work Prosperity • Graduation • Hopes & Dreams • Energy Accomplishment Risk Success Applying Engineering 90 Engineering 90 Payoff Experience

7. We are in the Third Wave The Economic Evolution Information Wave Industrial Wave Agricultural Wave 8000 BC - 1850 1850 - 1960’s 1960’s - present Jeremy & Tony Hope, Competing in the 3rd Wave, Harvard Business School Press, 1997

10. Impact of the Information Age Source: The Internet Society (www.isoc.org)

11. Impact of the Information Age Source: The Internet Society (www.isoc.org)

12. Today’s Competitive Landscape Powerful and unpredictable consequences for countries, businesses and individuals. • Exploding technology • Global market • Government driven (deregulation) • Changing force of competition • Pattern of employment • Rapid pace of knowledge is now the key resource

13. The Impact of Technology • Creating wide range of new business opportunities e.g. internet -- reaches millions of users Electronic banking, education on demand, digital photography, virtual shopping and virtual factories • Technology is creating new forms of organizations Information based networks have changed the economic equation Development of alliances and economic partnerships Fewer mergers, takeovers and conglomerates Use network to coordinate supply and marketing activities without owning them

14. Global Market • Flow of money and information immediately. Corporations of every nationality are buying, selling, and investing in growth regions from around the world from a central computer. • Marketing is leading to homogeneous buying patterns. McDonalds arches are recognized everywhere. Global shipping via internet. • New regions of economic prosperity (East Asia) 1960 4% Malaysia is the largest semi-conductor producer. % world economic output East Asia Today 25%

15. Government Driven Changing Governments • Collapse of communism • China economic power • Emergence of East Asia • Privatization of state-owned industries Billions of new customers in: East Asia India Eastern Europe Deregulation: • Airlines • Telecommunications • Utilities

16. Changing Force of Competition Traditional industrial boundaries are being erased computing software ? Is Microsoft communication Industry consumer electronics information Companies cover large industry spheres through alliances and partnerships AT&T Microsoft E.g. This is an emerging trend! AOL Netscape

17. Changing Pattern of Employment Massification Demassification In the 1970’s, 90% of people worked for organizations, …, career at company was a lifetime commitment. Smaller, more focused companies, entrepreneurs, start-ups, spin-offs. Tightly focused companies.

18. For service and high tech companies 5 - 15 times Knowledge - Key Economic Resource • Creative use of knowledge and technology. ~2000 Intangible assets 2X tangible American Companies ~1980’s Tangible assets 2X intangible Intangible - intellectual assets - skills and capabilities of knowledgeable workers

19. Success in the 3rd Wave World-Class Managerial Performance in Making Knowledge Productive

20. Think Outside the Box 3 Types of Companies in the Third Wave 1. Rule Makers who build the industry (IBM, CBS, United Airlines, Merrill-Lynch, Sears, Coca-Cola) who follow industry (Fujitsu, USAir, Smith Barney, JCPenny) 2. Rule Takers 3. Revolutionaries who rewrite the Rules (IKEA, The Body Shop, Charles Schwab, Dell Computers, Swatch, Southwest Airlines) “Never has the world been more hospitable to revolutionaries and more hostile to industry incumbants” Gary Hamel Gary Hamel, Strategy of Revolution, Harvard Business Review, 70 1996

21. Killer Application (Killer App) A new good or service that establishes an entirely new product category, and by being the first, dominates it, returning several hundred percent on initial investment • CD’s • Personal Computer • Electronic fund transfer • First word processing program The “Holy Grail” of technology investors “Killer apps create wealth and can jump start stale economies, but they can also be destructive by bumping off other technologies and entire companies” Downes and Min, Unleashing the Killer App, Harvard Business School Press, 1998

22. New Product Development Project You will prepare a new product concept/proposal as your first product. Think in terms of the 3rd Wave - unique and creative killer app products in the information age THINK OUTSIDE THE BOX