Case: Concept Development Corporation

Outline
What Is This Case About? General Statement For Evaluating Goods & Services
Scenario That Led To This Statement Checklist, Profiling & Scoring

Initial Is The Most Toughest Phase To Make Decision

Bad Screening Methods Good Screening Methods

Major Difference Between Evaluation Of Tangible Goods & Services

Why These Differences Exist Consequences On Evaluation Techniques

Question & Answer Thank You

What is this case about?

Its about 3 highly qualified friends who share and expand new product & service ideas. They decide to quit jobs and open their own company They rent office and hire staff They generate ideas, evaluate and make money

One general guideline statement of evaluation policy for product & services ideas
Ahmad Ahsan

Scenario that led to this single statement evaluation policy

Product Example: Cocky (Toy) Service Example: Writing

Evaluation Process
Practicality of Idea
Screen Idea against:
Marketing Strategies Sales & Profitability Key customers

Opinions of industry & technology experts

Feature/Benefit analysis Brainstorming Benchmarking (Commercial Literature Review) Market Survey

Criteria's for evaluation

Flexible mind-set: Open to positive criticism

Checklist, Profiling & Scoring

Example of a detailed checklist

Check list suggested: Concept Development Corporation can use the 21-Point Invention Evaluation Checklist. This will thoroughly evaluate the product (Toys) and Service (Writing Service) and find out what are the chances for success.

Criteria General Criteria Is your idea legal? What is its environmental impact? Is it safe? Is it high quality? Will it have wide social acceptance? Will it have any negative impact? Industry Criteria Who is your competition? Does your product require the assistance of existing Is there just one product or a line of products? Will pricing be competitive? Market Criteria Does your idea fit into a trend?

Compliance with Criteria

Is there a need for it?

Is it seasonal? Is it a fad, or does it have long-term value? Who will buy it? Does it need instructions?

Product/Service Criteria
How much will it cost to get your idea to market? Does it require service or maintenance? Is there a warranty? Does it need packaging? Is it the simplest and most attractive it can be?

Proposed General Statement

Definition: Act of ascertaining or fixing the value or worth of. The most serious mistakes are not being made as a result of wrong answers. The truly dangerous thing is asking the wrong question - Peter Drucker First get your facts; then you can distort them at your leisure -Mark Twain "Concept Development Corporation Should adopt ALL the techniques mentioned above in the presentation, for it's Toy and Writing service Concepts."

Initial Is The Most Toughest Phase To Make Decision

Muzzamir

Bad screening
Bad screening methods will results in:
Many good concept lost Lost of feature profit Wastage of organizational resource

Good Screening
Good Screening Methods
It matches the corporate strategy of company Needs of consumer catered Successful lunch of product Save time and company product

Major Differences between evaluation of tangible goods and services

Abu Bakar

Differences between evaluation of tangible goods and services

Goods
Are tangible Has physical dimension Market potential can be projected First produced and then sold Can be envisioned and compared against other similar goods Evaluated quantitatively/qualitatively

Services
Are intangible Cannot be weight or measure Not possible with service First sold and then produced Can be ascertained only after delivery Evaluated qualitatively only

Why these differences exist?

It exists because the two ideas (product and service) have different characteristics of tangibility and intangibility.

Consequences on evaluation techniques

Customers may want to stress-test the product but that is not applicable to service It is far easier to test the toys that the Concept Development Corporation will produce than to test the writing service.

Writing services contain few search properties making its quality more difficult to evaluate than quality of toys.
It is easy to develop a check list and profile of Toys (tangibles) than Writing service, the profile may be too subjective.

Question & Answer

ThankYou