Individual Assignment

Course : Innovation Management and New Product Development

Course code : BM050-3-3-IMNPD
Due Date : 22th October 2018
Lecturer : TAJUDDIN BIN A. RASHID

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MARKING SCHEME

No Criteria Marks Allocation

1 Originality & Innovativeness

2 Application of Levitt’s concept

3 Product Platform Justification

4 Product competitive strategy

5 Application of Ansoff’s growth matrix

6 Reference

Total

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Executive Summary

The use of smartphones has grown rapidly with time and technology. Nowadays, people
are using different types of smartphone brands. Most of the company are focusing new
technology and technique to develop devices which can provide people with advanced features
and attract customer to buy the newest products. As the result, Apple and Samsung have ruled
the high-end phone market and other company like Huawei, Sony, Xiaomi, LG, Oppo and more
are keep improving the mobile phone to satisfy the customer needs and requirements.

However, one Chinese phone manufacturer has found out a new technology which can
change the phone market and it called Huawei. Therefore, Huawei is going to become the
world’s third largest smartphone maker and it has the advantages to challenge with the Apple
and Samsung in the smartphone market. The company has invested over a million dollars in a
university in Canada because it wants to build a research lab to develop the cloud computing
services and it also sponsors some program such as MIT’s Communications Future Program
that studied about the telecommunications industry of future (AA, ANDROID AUTHORITY,
2016).

In order to capture the sales and demand of the smartphone in the USA and European
markets, we are required to develop and introduce new smartphones for Huawei. The new
smartphone will add some new features which can support the Huawei Artificial Intelligence
(AI) processor become more performance and experience. The new features for improvement
in the AI processor will be divided into two parts which have Huawei AI smartphones have
developed that called as “AI Accelerated Translator” and added new features for the 3D Qmoji.

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Table of Contents
Executive Summary .............................................................................................................................. 3
“Newness” of the new product ............................................................................................................. 5
Innovation of the new product ............................................................................................................. 6
Problem addressed ............................................................................................................................ 6
Opportunity ....................................................................................................................................... 7
Benefits or impact created................................................................................................................ 8
Uniqueness ......................................................................................................................................... 9
Commercial viability (Market demand & revenue model) ........................................................... 9
Discuss the application of Levitt’s idea in product development ................................................... 11
Core Level ........................................................................................................................................ 11
Actual Level ..................................................................................................................................... 11
Augmented Level ............................................................................................................................ 11
Discuss the platform option used to develop new product .............................................................. 12
Discuss competitive strategy of new product .................................................................................... 13
Differentiation & Positioning ......................................................................................................... 13
New product growth strategy using Ansoff’s growth matrix.......................................................... 14
Market Penetration ......................................................................................................................... 15
Market Development ...................................................................................................................... 15
Product Development ..................................................................................................................... 15
Diversification ................................................................................................................................. 16
Conclusion ........................................................................................................................................... 16
References ............................................................................................................................................ 17

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“Newness” of the new product

The new smartphone for Huawei will come with two new features but the features have existed
in the market, so it improves the existing features which contain two new features such as real-
time voice call translator and using GIF include with the facial camera system to provide user
could understand the power of the AI processor. The AI system can learn from our human
activities and react like humans. The AI smartphone will be more meaningfully to help people’s
lives better.

Real-time voice call translator: The apps is provided by Microsoft that runs the cloud
processing for the neural machine translations which include 60+ languages that come from
different country (Patel, 19). The application could translate voice, text, images and more to
provide user could travel the journey without worry about the language disability by
communicate with other people (Allan, 2016). Therefore, people who are improficiency in
language should express the meaning become misunderstanding and lack of confident. It could
download the languages for online and offline use. As this new features, it use voice translation
to voice call which means people could call people with translation by different language so
both of the user will understand the conversation.

3D Qmojis with AR versions: As the technology has keep improving, more user are using the
social media in the mobile phones. User will use some application such as WhatsApp, WeChat,
LINE, Facebook and more to chat with friends and family. The Apple and Samsung company
have developed the own emoji which called as Animoji (Animated Emoji) and AR Emoji
(Augmented Reality Emoji).

Since the Huawei smartphones has set its sights on competing with Apple and Samsung so it
should improve the 3D Qmojis which is created by Huawei. Huawei has created new features
which is called as 3D Qmojis but it just released out within two months. Besides that, Huawei
has developed the Camera AI Scene Recognition to identify the object and effect. This new
feature is based on this Camera AI technique to add in 3D Qmojis which can make a AR
versions so user could choose the animate versions or AR versions to generate as a GIF into
the emoji.

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Innovation of the new product

Problem addressed

The Huawei Company have faced the problem in the smartphone sales market which is located
in the USA and European markets. The problem addressed is provided a new smartphone for
Huawei that required the existing performance but added few features to upgrade the
smartphone. Huawei is creating the AI processor and implement the AI chip into the
smartphones. Besides that, the AI system could improve the technology for the future
smartphone be more flexibility and increase the efficiency of use to people.

Huawei still investigate the AI function and developed smartphone on some Android phones
that called Huawei Mate 10 Pro (Foley, 2017). The AI smartphones have limited in the phone
market, so the AI features will be improving in the future. The Microsoft Translator app will
be available on the Android and IOS phones. If the translation app has added to the phone that
supported the neural processors, so it will be enabling to expand the capabilities of the
application (Tung, 2018).

The new features for the real-time voice call translator are upgrading the neural processors and
Microsoft application to give people use for phone calls could translate the voice and
understand the meaning. Example, a user could add the phone number to the application then
settings the specific people who speak in Thai and choose the language translation which is
suitable to the user. When people call to the user, the apps will automatically translate the voice
call that set by the user.

The next of new features for the 3D Qmojis are provided one more version which is AR
versions. Although it is created new features for the animated version, it should provide another
option for the user could identify and select the suitable options. Example. Some people like to
use animate to create own emoji, but few people like to use AR features to show the facial
expressions. This is because AR face expression looks real than animate and animate will
provided by Huawei which means that the animate is limited to choose from the features, so
the AR version could create by the user itself.

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Opportunity

The opportunity for Huawei is focused on the Artificial Intelligence (AI) which implement the
capabilities into the mobile devices. The company also look for the cloud that could secure the
amount of big data. Nowadays, AI technology is hot and famous in the world. Huawei aimed
the AI technology and invest in the software and chipset. For this purpose, it has created the
own which is different from the Snapdragon platform. The computing platform is called “Kirin
970” that has tested into Huawei mobile devices. It has a power of AI features and great
performance like Neural Processing Unit (NPU) and Image Processing Unit (IPU) that could
make the mobile devices more perfect and fast processing for the image and data (IANS, 2017).

Additionally, Huawei is going to release the generation network that is 5G technology around
2020. If this 5G technology has success to work in the world, Huawei will become the world’s
leading technology company (Huawei, 2018). The 5G technology will be used in the next
generation of mobile networks. It has provided the faster speed, more reliable connection, more
secure between 3G and 4G. It still under development progress so it need take some time for
testing and make sure the network is stable to run for it. If the 5G network is successful work
on the world, the 5G network will drive the growth of the Internet of Things (IoT) technology
(Moore, 2018).

Emotion UI (EMUI) is an android operating system that developed for Huawei mobile devices
(Barraclough, 2017). The EMUI versions have updated and added new features which are the
AI capabilities such as AI Real-Time Scene and Object Recognition, AI Smart Tips, AI Smart
Screen and more (ANI, 2018). The latest version was EMUI 8.0 could provide more efficient,
user-friendly and useful features (Jeet, 2017). It will improve the smartphone performance to
satisfy the user requirements and enhance the user experiences. The user can go Settings screen
for find out more options of features and create own user interface design. The company also
supported the user guide to make sure the user will understand each of the features and guide
the user to learn and use for it.

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Benefits or impact created

The benefits of Huawei Company have developed the AI software and features to give user
have the interest to know more about Huawei smartphone. The Huawei smartphone has added
some hidden features that could be edited by the user. Example, App drawer, Floating dock
and more.

From the new additional features, the benefits for the Real-time voice call translator and 3D
Qmoji with AR versions will be shown out at the new Huawei smartphone. Below are examples
of information that could provide the benefits and impact of Real-time voice call translator:

 The company would not need to hire a translator for helping translate the voice call
because hire a translator need to pay the salary and it quite expensive.
 People could avoid spending money on learning the new languages course because it
will be difficult and spend the time to learn a new language.
 This voice call translation will make communicate well for both users and increase the
chance for business to success the business deal.

The 3D Qmoji with AR versions will be listed at below:

 The face expression will be recorded and created own AR versions to give user have
more than one options to design the emoji
 Upgrade the AR versions to satisfy the user requirements
 Give user to experience and express in the fun ways

As a result, these two features will impact the mobile technology and the technology for mobile
phones and networks will be changed or developed more rapidly over this few years. It will be
going to become more fantastic and interesting to embed in our daily life.

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Uniqueness

The Huawei smartphone has developed a new concept design and offered the type of colours
could be chosen such as Dazzling Gold, Mystic Silver, Twilight, Pink Gold and more. The
company is also responsible for developing the product which can compare with other company
to deliver better mobile design and provide exclusive colour for the Huawei smartphone to get
interact with the user.
Real-time voice call translator will be unique because nowadays the technology hasn’t
supported this function in mobile phones. Although, Huawei AI work with Microsoft translator
apps will increase the languages package and added the features which are the offline use so
the user no need to connect the internet for using the application (Lardinois, 2018). This
features also need to download the language package and save the phone number in this
application and set the languages to make sure when the user calling, it will automatically run
the application then translate the voice into the user specific.
3D Qmoji with AR versions will be added more options to give user could select one of them
to do the sticker and edit with GIF to make it more real and funny to express the user’s feeling
and emotions. This feature will give the user to create or design the sticker and upload as GIF
so sticker will be saved and the user can choose it from the gallery.

Commercial viability (Market demand & revenue model)

Huawei shows the possibility of low price with a high spec of the smartphone to fulfil the
consumer requirements. It has changed the market strategy from telecoms firms to a hardware
company (Walker, 2016). It also creates and spread the products across the world to reach
new audiences. Huawei has established a research department which focuses on consumer
insights and captures new opportunities in the marketplace.

For Example, Huawei is concerned about the demand of female user for the market. It is
because men buying the smartphone is focusing on design and quality. Specifically, men will
research the smartphone reviews, news and specifications and more. The user will compare the
smartphone specs and brands to identify which product is reliable, good review and acceptable
price.

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However, women are focusing on the fashion and style of the smartphone. Therefore, Huawei
has referred the consumer research and feedback to decide which develops a P10 smartphone
that required a dual camera with high-end camera-maker to allow female user could take selfie
clearer and beautifully (YOO, 2017). That is the reason why women have a good impression
and goodwill for this product.

Huawei Company will hold a competition for the user to participate like provide feedback of
product or user opinion to improve the product quality. The user who gives the good feedback
will be rewarded such as Amazon Gift Card or Smartphones.

Huawei company has mentioned about the revenue has increasing 15% in 2018 of first half
year (Tao, 2018). Huawei has two types of smartphone brands which are Huawei and Honor.
Two of the brands has expand the market share and earn income from the consumers to invest
the AI technology. Huawei has managed to sell the new flagship of smartphone which is
Huawei P20 Pro with triple cameras to beat the rivals such as Apple and Samsung (Sijia Jiang,
2018). Huawei smartphone shipments in China has increased so it could generate profits from
smartphone and spend the money for new technology such as 5G mobile technology.

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Discuss the application of Levitt’s idea in product development

Core Level
The core level of a product is a concept that describes the consumer has frequently using the
product. It has met the main requirements of product manufacturing.
Based on the core product of the smartphone. The basic functions will be shown as below:
 Voice communication
 Text messages
 Quality of image
 Speed and efficiency
 Web browsing

Actual Level
The actual level of the product is the actual physical product that people can touch and feel
(Bhasin, 2017). The actual product has involved manufacturing, packaging and display.
Based on the actual product of the Huawei mobile phones. It will show as below:
 Types of colours
 Design Pattern
 Packaging design
 Smartphone accessories
 Product features

Augmented Level
The augmented level of products has included core value and actual product. It has offered the
customer service, support, benefits when consumer purchase the product. Below will show the
augmented level of product (Claessens, 2015).

 Warranty
 Rebate cash
 Charge less rate of interest
 Product Support
 After sales services

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Discuss the platform option used to develop new product

Platform Types of new product

Operating System Android is the mobile operating system based on the Linux kernel
and it also developed by Google (TechTerms, 2016). Most of the
company are using the Android operating system in the mobile
phones and tablets. Example, Samsung, Huawei, Sony and more.
The smartphones that run in android could provide user easy to
download the application like APK apps and different android
version will show different results.
IOS is also the mobile operating system which is created by Apple
Inc that only supported for Apple products (Rouse, 2017). For
Example, iPod, iPhone and more. The IOS application and features
is provided people who are using the Apple products. IOS is secure
than Android because the company want to protect the privacy
information and user information. Each of the versions of IOS will
be given new features and design of user interface.
Windows OS is the series of operating system that developed by
Microsoft and Nokia has launched the windows phones in markets
(Beal, 2018). The graphical user interface for windows will be
allowed user could view the files and folder (TechTerms, 2012).
Chipset Example of Apple Chipset: Apple A11 Bonic
(TechTankUP, 2018) Example of Huawei Chipset: Hisilicon Kirin 970
Example of Samsung Chipset: Exynos 9810 Octa – EMEA
Example of Sony Chipset: Qualcomm SDM845 Snapdragon 845
CPU Apple – Hexa-core
Other Brands – Octa-core
GPU Apple – Apple GPU (three-core graphic)
(BENCHMARKS, Huawei, Samsung - Mali-G72 MP12
2018) Sony – Adreno 630

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Discuss competitive strategy of new product

Competitive strategy for a new product is suitable for long-term which means the plan could
help a company get the competitive advantages in the market. Huawei wants to develop a new
product and sold the product into the marketplace to seek deeper contribution. Example, A new
product like Huawei P20 will affect the company to make the decision for the future
smartphone. Some of the problems that haven’t found out from the manufacturer, a user will
test the smartphone and found out the new problem of the product. When the problem is been
shown on the smartphone, the company will check and fix the problem then upload the new
version to the operating system and inform the consumer to update it.
It doesn’t mean a new product should not be using the existing product. A new product can be
developed within same, related or new technology areas. For Example, Huawei Mate 10 and
Huawei P20. Both smartphones are developed under by Huawei, the features and hardware are
quite similar but some of the design is different such as Huawei P20 have triple camera array
and Huawei Mate 10 don’t have required it (Kidman, 2018). Each of the smartphones could
add some new features or hardware and create a new product.
Huawei wants to capture the sales in the USA and European markets to seek new customer
segments and traditional customer base to buy the new smartphone. The product development
could be radical by using a few techniques such as marketing, development, and testing to
improve the production of the smartphone.

Differentiation & Positioning

The differentiation of the Huawei products is the technology of Artificial Intelligence.

Nowadays, Huawei and Honor are the value for money proposition because the company who
are developed the AI smartphone is only Huawei Company (Service, 2016). The Huawei
smartphone has offered the superior quality of the hardware to handle and control the AI
technology. Example, Huawei’s Kirin 970 Processor is the hardware of Huawei (Boxall, 2017).
The Huawei AI smartphone could support better material of the hardware to produce out better
performance and quality of the products. However, the new features of the real-time voice call
translator and 3D Qmoji with AR versions will help the user to speak fluently in the different
language and enhance the user experience of the 3D Qmoji. Huawei will survey the markets
and calculate the number of users who like most of the series of Huawei products in the year.

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The main purpose is analysis the market sales and service to make sure provide the availability
of better service for consumers.
A product positioning could impact the consumer perceptions about the product. The customer
will identify based on the product such as innovative, functional, fun and fashioned (Conran,
2014). The selecting positioning will affect the success or failure. It has determined how and
what the organization wants to tell the market about the product. For Example, marketers will
explain and describe well the products to the customers about the difference between other
company’s products to fulfil the customer needs (CFI, 2018). It wants to make sure customer
can understand the product attributes and information.
The difference between other competitors are Huawei hardware specs will get the best results
between Apple and Samsung. For Example, Huawei mobile phone has required the excellent
hardware specs than other competitors don’t exist it. One of the hardware specs in Huawei is
best for the battery long life and reduced overheat. The Apple and Samsung Company has
developed the smartphones that supported the new features and function but the hardware
failure has made an issue out. Such as, there have some reports and cases over the years have
faced the problem of the smartphone exploded because of the battery.
The famous reports in the world are Samsung Galaxy Note 7 has increased the phone exploding
and the airport has banned this phone model is not allowed on planes (Costello, 2018). The
Apple phones also have exploded in this few years but Huawei has got this kind of problem
but the company has produced out the safety battery for the user can charge safely and swiftly.
Huawei could support the longest battery life with 4000 mAh battery included supercharging
and holds power for more than 15 hours with regular use (AA, ANDROID AUTHORITY, 21).

New product growth strategy using Ansoff’s growth matrix.

The new product growth strategy using Ansoff’s growth matrix could provide a chance for the
opportunity to grow the business. The four of the benefits are increasing market and product
opportunities. The below will list out the four main points of the new product growth strategy.

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Market Penetration

Huawei sub-brand smartphone, Honor has achieved to increase the volume of sales by selling
the Honor 10 smartphone (Sohail, 2018). The growth of sales has provided opportunities for
Honor could success to expand the business’s existing market and increase the market share.
For Example, Honor has announced to launch more various kinds of Honor 10 to improve the
growth of sales. Honor has found out that the market sales rapidly increase by a few months
after the release date. There have two advantages in Honor 10 which are AI-powered dual-
camera system and a 3D glass back with a stunning Nano-scale optical coating combined of 15
layers of shining colours (George, 2018). The Honor 10 smartphone has provided low price
with high-spec to promote all over the world. There have few of country is the sales well of
Honor 10 mobile phones such as Malaysia, Russia and more.

Market Development

Huawei had a company headquartered in China, Shenzhen and it has established the phone
manufacturer in the world and started to expand the business in China markets (Shepard, 2016).
Although, the Huawei had the position in China phone market then making more products
available for new markets such as the Canada, Sweden and more. The company maintains the
security for the existing products at the same time try to enter the new markets. The company
has decided to enter the USA and European markets to open the new segments and need to use
the existing products or services for selling in new markets. The main purpose is converting
the non-users to users for increasing the number of users. If the usage of users is increasing in
the world, the company could take over the competitors’ markets and become the world’s
second largest smartphone vendor in the world (CNBC, 2018).

Product Development

Huawei has the position in the smartphone marketplace that could offer as a phone
manufacturer. Huawei is produced new or improved products to existing markets for getting
the growth opportunities. Example, Huawei Nova 2i to Huawei Nova 3e is the process of the
improvement products (Canete, 2018). The company wants to ensure the products could
compete with competitors like Apple and Samsung by improving the product quality and
update the new features to the existing products. Most of the company are focusing on product
development to enable earn the profit from the market share and consumer.

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Diversification

Huawei could consider expanding types of product of technology such as AI Camera, AI Smart
Speaker, AI TV and more. Example, Sony has developed different types of products to gain
the opportunities for growth exist that is outside of the business’s existing product and markets.
Huawei should move away from the smartphone areas and existing markets to know more
products still can be use the AI technology to improve it. Besides that, Huawei has success to
develop the AI camera techniques and it could acquisition from other company which is
working on camera manufacture to produce the new products like AI camera. However,
Huawei has announced a new product which is called as Huawei AI Cube in IFA 2018 (Bray,
2018). This is the first smart speaker that implement the latest smartphone chip and 4G
capabilities. Example, Huawei AI Cube has work as a speaker at the same time also can be
work as mobile wireless router because it has a function for insert the SIM card (Savov, 2018).

Conclusion

The conclusion is Huawei has found out the AI technology will be famous and useful in future
that gets a chance to implement and develop out a smartphone running the operating system
with AI system. That’s why the Huawei can grow fast in the phone market could expand the
market share and business to all the world. It supports the cheapest price with excellent products
and services for the user can purchase high quality and produce high-end features which are
the AI technology.

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