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What is High Technology?

What is High Technology?. What is technology? What is High Technology? Definitions based on R&D spending or intensity Number of technical employees Common characteristics Contribution of new technology to value delivered. Common Characteristics. Technological uncertainty.

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What is High Technology?

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  1. What is High Technology? • What is technology? • What is High Technology? • Definitions based on R&D spending or intensity • Number of technical employees • Common characteristics • Contribution of new technology to value delivered

  2. Common Characteristics Technological uncertainty Market uncertainty Competitive volatility

  3. Common Characteristics • Technological uncertainty • Market uncertainty • Competitive volatility • Others possible: • High first unit costs • Demand side increasing returns • IP • Knowledge spillovers

  4. Key Marketing Ideas • Marketing concept and market orientation • Value and Porter’s Value Chain • Strategic Management Model • Technology Adoption Life Cycle

  5. Marketing Concept A firm will tend to perform well when it: • understands the needs and wants of targeted customers and prospective customers; • delivers superior value by meeting those needs and wants through coordinated activities • does this while working toward organizational goals

  6. Implications of Marketing Concept • Need to target segments • Need to understand motivations and behavior of customers and prospects • Need to create an integrated package of products, services, communications, channels, and prices • Need to manage so that meeting customer needs drives profits

  7. Elements of Market Orientation • Scanning and learning • e.g. market research, evaluation of program results, satisfaction measurement • Information dissemination • e.g. intranet, team meetings, cross-functional team design, informal networks • Enabling / reinforcing structure • e.g. values, policies, reward system

  8. More Market Orientation Elements • Use of information • e.g. strategic thinking, marketing planning, implementation planning, planned adaptation • Execution effectiveness • e.g. programs and tactics done well, activities coordinated, end results pursued and obtained, performance data collected and used

  9. Porter’s Value Chain Offering Target Product Service Image Comm. Channl Utils. Price Support Activities Direct Activities Customers

  10. PORTER’S VALUE CHAIN INFRASTRUCTURE SUPPORT ACTIVITIES HUMAN RESOURCES & DEVELOPMENT TECHNOLOGY & DEVELOPMENT PROCUREMENT DIRECT ACTIVITIES INBOUND LOGISTIC SERVICE SALES & MARKETING OUTBOUND LOGISTICS OPERATIONS

  11. Value Concepts • Value = sum of benefits minus sum of costs • Implication: value can be increased by raising benefits or reducing costs • Value is Perceived Value in the eyes of prospects and customers • Implication: vendor’s view of value may be different than prospects’ / customers’ view • A Reality: perceptions may be malleable, but ultimately rely on experienced performance

  12. Implications of Value Chain + Definitions • Segments exist • Value comes from more than product • Markets change concurrently with technology change => uncertainty • Marketing must be involved in product design and strategy • Best technology does not always “win,” but • Technology can be the reason you lose

  13. Partner Customer Segment Vendor Partner Partner Value Network

  14. Technology Adoption Life Cycle # New Users conservatives CHASM pragmatists Skeptics - laggards technophiles visionaries Time

  15. Segments in Adoption of New Technologies # OF NEW ADOPTERS PRAGMATISTS OF DIFFERENT TYPES; SOME CONSERVATIVES? CHASM TECHNOPHILES FIRST PRAGMATISTS VISIONARIES TIME

  16. Strategy Dev Product Dev Customer Value Dev Organization Dev Financing Concurrent Processes in a Technology Startup Initial ValueProposition Initial Product Concept Initial choice of target segments Build the Team Initial businesspitch prepared Validate I D E A

  17. Concurrent Processes, continued Init. Bus. Model Simple. Strategy Elaborated Model & Strategy Strategy Dev Product Dev Customer Value Dev Organization Dev Financing Test, validate,revise Test, validate,revise Prototypes Dev. customer 1st customer(s) Test, validate,revise Test, validate,revise Customer info Target & recruit Translate to next segs. Test, validate,revise Test, validate,revise Early hires Build strengths Early co-ord. procedures Test, validate,revise Test, validate,revise Early money Bus. Plan More formal $ Test, validate,revise Test, validate,revise

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