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?

It’s 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 ideasAhmad Ahsan

Product Example: Cocky (Toy)

Service Example: Writing

Scenario that led to this single statement evaluation policy

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 Compliance with 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?  

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 DecisionMuzzamir

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 servicesAbu Bakar

Differences between evaluation of tangible goods and services

Goods Services Are tangible Are intangible

Has physical dimension Cannot be weight or measure

Market potential can be projected Not possible with service

First produced and then sold First sold and then produced

Can be envisioned and compared against other similar goods

Can be ascertained only after delivery

Evaluated quantitatively/qualitatively 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