ENTREPRENEURSHIP FOR SCIENTISTS AND ENGINEERS
CHAPTER 7
HIGH TECHNOLOGY PRODUCT DEVELOPMENT STRATEGIES
LEARNING OBJECTIVES
After studying this chapter, students should be able to
2. Discuss metrics for success
4. Understand outsourcing for innovation
5. Discuss how to develop a regulatory strategy
CHAPTER OVERVIEW
The product development process has undergone a number of important changes in the past
decade including a new emphasis on business growth through R&D, market capitalization of
companies now based principally on intangible assets, more R&D resources being allocated to
The product development process is nonlinear and iterative beginning with the discovery or
recognition of an opportunity. This activity is followed by a period of technology screening and
platform identification to determine which project the company intends to undertake. Once the
technology is identified, technical and business feasibility activities take place simultaneously
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CHAPTER OUTLINE
1. Entrepreneurial product development model
a. Factors that affect the NPD process
2. Measuring success and risks
a. Managing the risk of R&D
i. Technology risk
3. Outsourcing technology innovation
4. Developing a regulatory strategy
5. Summary
END OF CHAPTER QUESTIONS
1. As a new product developer, what are the three most important things that should be
remembered when formulating a product development strategy?
In the section on Increasing R&D Effectiveness, the text points to
2. In what ways can a company increase its chances of designing right the first time?
Entrepreneurs can increase their chances of designing right the first time by getting
Entrepreneurship for Scientists and Engineers
3. Every R&D project carries with it some degree of risk. Suppose an entrepreneur is proposing
to develop a wearable PDA that is unobtrusive and responds to voice commands. What are
some of the risks in the development of this product? How should they be managed?
Risk #1: There is no market for the product
Some ways to reduce cycle time include 1) documenting the workflow associated with the
4. What are the major advantages and disadvantages of outsourcing innovation?
Advantages of outsourcing include:
a. Sharing the risk of product development with others
5. What are the unique challenges facing entrepreneurs in highly regulated industries such as
biotech?
The highly regulated nature of the biotech industry poses risks for product developers in the
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CASE STUDY SUGGESTIONS
The case study on IDEO offers the opportunity to address several concepts in the chapter.
• One of the core themes in product development is how to accelerate the new product
design and development stage so that products get to market faster. IDEO is a company
that has focused on that and made it their core competency. A good discussion might
center on the ways that IDEO speeds the process.
ACTIVITY
The Great Product Development Companies
It might be interesting for students to search for examples of great product
development companies like IDEO. They can start with a few sites listed below that
talk about companies and their best practices. Have the students choose a company
and evaluate the ways that company stimulates innovation, deals with failure,
accelerates the product development process, and creates and environment for
innovation.
Entrepreneurship for Scientists and Engineers