I JUST NEED A 150 WORD RESPONSE FOR MY PEERS DISCUSSION QUESTION...
There is a vast difference between thinking up a new product idea and actually designing and manufacturing the product. Explain the nature and importance of this difference. Why do you think this task is more difficult than anticipated?
1) So you have an idea for a better mouse trap? What does it actually take to get this idea to market? In a recent article in Forbes the process of bringing an invention to market is discussed at length. When an idea is in its infancy the first step is to find out if it is unique and patentable. This task is actually more difficult than it sounds considering there are over seven million patents for products that already exist. (Bennett, 2010) There are patent search attorneys that range anywhere from $250 to $1000, but it is well worth the cost instead of spending hundreds of thousands of dollars on a product that someone else has a patent for. If the idea is original spend the money to get a provisional patent. (Bennett, 2010) The next step recommended by the class text is to get a prototype. Without a working prototype of the idea it would be very difficult to source financing or partners. There are many ways to obtain a prototype of a design. The Thomas Register (http://www.thomasnet.com) contains a list of manufacturers in the US. Another cheaper alternative is to create virtual prototype or a 3D computer model. (Barringer, 2009) next you have to find out if anyone will buy the invention the Forbes article suggest visiting trade shows for the industry and shopping other inventions to see if there is market for your invention. Once you have potential sales then the manufacturing process must be started. The most expensive is tooling which is creating the machines that will make your item. This can run tens to hundreds of thousands of dollars. (Bennett, 2010) Most small item manufacturing has moved to China and other Asian markets and while this can be a cheaper alternative, it can be a cultural nightmare. It is recommended to find an American company that has offices in the Us and in Asia to help the manufacturers better understand exactly what you want made. (Bennett, 2010) In many cases instead of manufacturing an item oneself it can be very beneficial to license an idea to an established company that will take on the tooling and manufacturing costs and share in the profits. (Bennett, 2010) It is great to come up with an idea that is going to be the next big thing but is takes a lot of time and effort to actually get that idea into stores. The key is patience and dedication.
2) This task is somewhat difficult because of a number of operational and managerial implementation in which it occurs during a brainstorming session, we come across lots of business ideas which are at sometimes very idealistic, manufacturing, or designing the same might not be possible. For example, scientists believe that it would be great if we could commute people to Mars and other planets and arrange trips, and having accommodation for people trying to get closer and closer too those planets. Though idea looks great and appealing, but practically this is very difficult at least under the current circumstances in this world today. Though, scientists are working on this concept and might be able to innovate something which could make this idea possible, but this would certainly take time, energy and financial resources(Griffin, 2014). Likewise, car manufacturers may want to design cars which are low cost and can fly in the air, but that is not possible, at least as of today. Although, one of the manufacturers designed two- seater car, but there are lots of issues with that car and which it is not ready to be marketed by 2018. It is assumed that engineer might need 3 to 4 years to overcome these issues surrounding it (Admin, 2015). So there could be many other ideas which are very idealistic in nature and difficult to be given in real life shape. Giving shape to every task is really difficult than anticipated because everything of which can be perceived cannot be fulfilled due to limitation of science and technology. Though science has made lots of innovations and things possible, but still there are things which are difficult to be managed or given its practical shape. So with that being said, thinking about an idea and giving it a practical shape are two different concepts.
Why do you think an operations model can serve as the cornerstone of the success of a new venture? Identify one company that has developed a unique operating model (as an example, Dell developed a very unique operating model to sell customized computers online).
3) Operations model gives direction on how the business should be run and the process in which it will run so that everyone is on the same page. This cornerstone is important because it is the foundation of a business. It shows how the company plans to provide service to its consumers and the order that it plans to do it in. This not only helps investors see that there is an understanding of the path the company plans to take, but it shows them exactly how the company plans to get there. This will also be the base model for expansions and franchises. Consumers like to know that no matter what state or demographic the fundamentals of a business remain the same and that way businesses can help to retain their customer base, because they know what to expect from the company they choose to do business with.
One company that comes to mind is GEICO Insurance Company whose operations model is direct marketing to their targeted consumers. This has been the way they have done it since the beginning because they know that with direct marketing they can keep costs down and premiums lows by driving down operating cost and then passing those savings on to their consumers. This model has allowed GEICO to become the first and second largest insurer in the country.
4) An operations model can be very helpful when starting a new business for the first time because it lays out every detail. Although all businesses may not feel the need to utilize an operations model, an operations model can be the leading cause of success. An operations model gives a description of the major items within the business and how it is important to the business (Barringer, 2009). An operations model is important for the business owner and/or investors because it gives everyone an idea of how every little or major part will impact the business. A great example of how utilizing an operations model can be beneficial for a business success is Ford. In 2006, Ford was facing financial issues and decided to “diversify noncore brands, such as Aston Martin and Volvo, and accelerate development of fuel-efficient cars and common vehicle platforms for global markets”( Blenko et. al., 2014, p. 2). They went from a regional business to a global functional model. As a result of a global head of product development, Ford was able to reduce the number of vehicle platforms from 40 to 10 (Blenko et. al., 2014, p.2). With each regional unit having their own responsibilities, the business eliminated redundant activities. In addition, ineffective meetings and unproductive hours were also cut out. This allowed the business to focus on new and innovative ways to be more successful and allowed time used to be concentrated on the vehicle instead of other miscellaneous activities. Ford is just one of many companies that found fault within their businesses and realized how an operations model could be useful for success. The operations model for Ford’s company allowed the company to save money and the end result was better productivity for the company and its employees.