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LC Business WWW - Thebusinessguys.ie: Gavin Duffy

The document discusses internal and external sources of new product ideas for technology companies like Google. It outlines that internal sources include brainstorming sessions between employees from different teams, as well as research and development departments. External sources mentioned are monitoring competitors, attending trade shows, and getting customer feedback. The document also provides examples of how these sources could generate new ideas for a company like Google.

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Rydel Cuachon
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91 views5 pages

LC Business WWW - Thebusinessguys.ie: Gavin Duffy

The document discusses internal and external sources of new product ideas for technology companies like Google. It outlines that internal sources include brainstorming sessions between employees from different teams, as well as research and development departments. External sources mentioned are monitoring competitors, attending trade shows, and getting customer feedback. The document also provides examples of how these sources could generate new ideas for a company like Google.

Uploaded by

Rydel Cuachon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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LC Business www.thebusinessguys.

ie

Chapter 14 – Business Ideas (Internal/External Sources; New


Product Development)
2013 Q6 (A) Google’s ‘20 Percent Time’ strategy gives engineers time and
space to work on their own projects.
Outline the internal and external sources of new product ideas for
technology companies like Google. (20 marks)
MS: 2 internal sources @ 5 marks (2+3) 2 external sources @ 5 marks (2+3)
Internal: Brainstorming
This involves people from different areas of the business coming together
and creatively thinking up new ideas.
Diverse ideas and approaches will lead to more creative ideas being offered.
Companies like Google could have regular meetings between different
members of teams e.g. sales, IT development etc.. to brainstorm new ideas.

Internal: Research and Development Department


The R&D department may work on discovering a new product or work on
improving an existing product to extend it’s product life cycle.
Companies like Google spend billions each year on their R&D.

Others: Sales Personnel (interacting/observing customer);


Suggestion box/internal staff competitions (intrepreneurial culture)

External: Competitors
A business could monitor close competitors and look at copying some of
their product ideas, without infringing on their patents/copyright.
Companies like Google must constantly see what their competition is doing
e.g. Yahoo! To look for new ideas so they don’t fall behind competitors.

External: Trade Shows


Business would regularly attend trade shows such as the Dublin Web Summit
to inspire them to make a new product for the domestic market or search for
gaps in the market.
Companies like Google could travel to America to attend trade shows over
there to see if there is an opportunities for an alliance on a new product etc…
Others: Customer Complaints/Feedback; Market Research; Import
Substitution.

Gavin Duffy 1
LC Business www.thebusinessguys.ie

2011 Q6 (C) - Read the information supplied and answer the questions
which follow.

Kilronan Ltd produces a range of chilled food products. Made from natural
ingredients, the firm’s award winning products have become household
names. It is now one of the leading brands in Ireland and supplies all the
major supermarket chains. Kilronan Ltd is considering either a ‘merger’ or a
‘takeover’ as a method of expansion within the Irish market. It is also
considering how it will finance growth.

Outline internal and external sources of product innovation for Kilronan


Ltd. (20 marks)

*Same as per 2013 but with a link to the text given about
Kilronan.*

Gavin Duffy 2
LC Business www.thebusinessguys.ie

Stages in New Product/Service Development appear frequently,


often broken up and asking you to refer to a product of your
choice. We will look at 2009 Q7 (A) to see what key words are
important and how to link to a product. All this information can
then be used for any question related to this topic.

2009 Q7 (A) Olympian Ltd is a company that produces a range of high


quality branded sportswear. Following a lengthy market research process,
the firm is now expanding its business to include a new range of Hoodie
Tracksuits, aimed at the teenage market.
Outline the stages involved in the development process of the new range of
Hoodie Tracksuits. (20 marks)
MS: All stages needed 6 @ 3 Marks (1+2) 2 Marks
Idea Generation

This identifies various product ideas. This can result from brainstorming,
market research or using staff suggestions.

Olympian may have done brainstorming and came up with lots of sports
related clothing ideas.

Product Screening (Ideas)

A SWOT analysis (identifying the product’s Strengths,


Weaknesses, Opportunities and Threats) should be applied to
identify ideas with commercial potential, and the ideas with no potential
should be dropped.

Olympian dismissed all other ideas as the hoodies was the one with most
potential for sales

Concept Development

A detailed version of a new product idea should be developed into


something real. This should identify features including its unique selling
point, design, form, packaging, branding etc..

Olympian devised a USP of a half zip on the front of the hoodie

Feasibility Study

This is done to check that the new product is viable.


A break-even analysis is done to check if the product can earn profit.

Gavin Duffy 3
LC Business www.thebusinessguys.ie

Other areas would include financial (do we have enough capital),


commercial (is there a big enough market), environmental (does it break
any laws) and productional feasibility (is it possible to make).

Desk research was done by Olympian on the internet based on similar


premium hoodies and the prices they were selling at to see if profit was
possible from projected sales

Prototype Development

An original working sample of the product is developed and tested.


This can highlight defects, problems with the product/production and
allow to business to improve on it before full production.

A hoodie was produced that Olympian employees modelled, then


modified

Test Marketing

A small amount of the product is produced and sold to a segment i.e. the
target market.
Consumer feedback is gathered at this stage before deciding to launch
the product.

Hoodies were given to 10 people in the target market and Olympian got
feedback from them

Full Production and Launch

The product is made using Job/Batch/Mass production.


It is usually accompanied by a product launch by the PR department
and an advertising campaign or sales promotion to get the product
known.

Olympian launched a billboard ad with their product that they made using
Batch production.

*These steps MUST appear in order for full marks*

Gavin Duffy 4
LC Business www.thebusinessguys.ie

2015 Q5 (B) Feasibility Study, Test Marketing, Product Screening and


Prototype Development are stages in the new Product Development
Process.
(i) List the four stages above in the correct order.
(ii) Outline your understanding of any three of these stages. (20 marks)

2014 Q4 – Short
Column1 Column 2
Business Terms Explanations
A. It involves developing a sample or 'mock-up' of a
1. Idea Generation
product.
2. Concept Development B. Brainstorming is one of the methods used.
C. Is carried out to assess if a product has profit
3. Product Launch
potential.
4. Prototype Development D. The product is made available to the market.
5. Feasibility Study E. Unworkable ideas are dropped.
F. A unique selling point (USP) is identified.

2012 Q6 (B)
“The process of introducing new products on a consistent basis is important
to the future success of businesses.”
Idea Generation and Feasibility Study are important stages before a new
product or service is launched onto the market.

Discuss the stages underlined above, referring to a product or service of


your choice. (20 marks)

2010 – Short Q2 Distinguish between ‘Prototype Development’ and ‘Test


Marketing’ as stages in the development process of a new product.

Both questions above can be answered from the keywords given


in 2009 Q7 (A) above, linked to a real or created new product of
your choice.

Gavin Duffy 5

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