Transcript IB Design and Technology

IB Design and Technology
Product Innovation
Designers and the product Cycle
What is the Product Cycle?
A new product progresses through a sequence of
stages, from introduction to growth, maturity and
decline. This sequence is known as the
product cycle.
Products tend to go through 5 stages:
1. New product development
2. Market introduction
3. Growth
4. Maturity
5. Decline or stability
What is the Product Cycle?
 Products tend to go through five stages:
New product development stage
 very expensive
 no sales revenue
 losses
Market introduction stage
 cost high
 sales volume low
 no/little competition - competitive manufacturers
watch for acceptance/segment growth
 losses
 demand has to be created
 customers have to be prompted to try the product
Growth stage
 costs reduced due to economies of scale
 sales volume increases significantly
 profitability
 public awareness
 competition begins to increase with a few new players in
establishing market
 prices to maximize market share
Mature stage
 costs are very low as you are well established in market
& no need for publicity.
 sales volume peaks
 increase in competitive offerings
 prices tend to drop due to the proliferation of competing
products
 brand differentiation, feature diversification, as each
player seeks to differentiate from competition with "how
much product" is offered
 very profitable
Decline or Stability stage
 costs become counter-optimal
 sales volume decline or stabilize
 prices, profitability diminish
 profit becomes more a challenge of
production/distribution efficiency than increased sales
 consumer demand for spare parts, maintenance and
or product servicing
Video clip – Dyson 2.mpg
The roles in the product cycle
The product cycle encompasses the work of:
Distributors
Retailers
Accountants
Production Engineers
Designers
All of whom have an influence over the
cycle.
The role of the Designer
Designing is part of the product cycle
(New product development stage). It is
essential that the designer generate and
develop innovative ideas that can be
developed into a final product.
Video Clip– What if?
Designer role in the Product Cycle
The designer has an important role in the product
cycle; as a need is generated, a product is
designed, made and sold, eventually becoming
obsolete.
Although the designer is an integral part of the
process she or he is not necessarily in control
(unlike in the design process, where the
designer is in control).
The use of CAD/CAM, where a prototype is
produced by the designer from his or her
personal computer, blurs this distinction.
Stages of the Product Cycle
 The IB Guide simplifies the product cycle
and breaks the stages down to three:
1. Early – Many changes to the product
take place until it develops.
2. Mature – Where it is diffused into the
market, gains acceptance and sells well.
3. Late - The product begins to decline in
need and therefore sale.
Early, Mature and Late stages of the
Product Cycle.
Identify the stages of the product cycle
from the following.
Video clip – Carbon fibre bicycles.
Video clip – Sinclair Zike.
Early, Mature and Late stages of the
Product Cycle.
 Video clip – Carbon fibre bicycles.
 Video clip – Zinclair Zike.
Mature
Late
Mature
Mature – sells well
although the design
does not change
much
Late – it has been
overtaken by
successive
generations of
products.
Early - Many
changes to the
product take place
until it develops
Aims of the Design Cycle.
The design cycle/ the design process is
aimed at producing a suitable solution to a
problem.
THEN .....
Aims of the Product Cycle.
The product cycle puts the
design solution into commercial
practice.
Discuss why for many products the
product cycle has shortened.
Laptop computers are
an intensely competitive
market with size and
power being key issues.
Ball point pens – The needs of
the ball point pen do not change
so the product cycle is longer
Task: Discuss why for many products the product cycle has shortened.