RED TEAMFelix HabermeyerMarie-Theres Heß

Maxim PahterYuval Borenstein

Steve WolfsohnUjin Kim

Session A5-20-13

GLOBAL INNOVATION PROCESS

Professor'Stephen'Lu'Viterbi'School'of'Engineering'

University'of'Southern'California'Los'Angeles,'CA'90089@1453'U.S.A.'

!*"Lecture"notes!for!“Principles!and!Prac3ce!of!Global!Innova3on”!(a!USC/PKU/KAIST/Technion!iPodia!class,!spring!semester!2013)!

Sunday, May 19, 13

AGENDA

I. IntroductionII.Market Research & BCG: Israel Germany USAIII. R+D Technology & Product DevelopmentIV. Innovation Practices

Professor'Stephen'Lu'Viterbi'School'of'Engineering'

University'of'Southern'California'Los'Angeles,'CA'90089@1453'U.S.A.'

!*"Lecture"notes!for!“Principles!and!Prac3ce!of!Global!Innova3on”!(a!USC/PKU/KAIST/Technion!iPodia!class,!spring!semester!2013)!

Sunday, May 19, 13

INTRODUCTION

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INTRODUCTION

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GERMANY

USA

ISRAEL

MARKET RESEARCH

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ISRAEL Market Research: Analysis

Profitable variants: TI1, TI3, TI7, TI8, TI9

Selected Variant: TI8

Capacitance: Most important (4 slot)Cancel Control: Handy for busy multi-tasker

NO Bun Warmer: KISS (Keep It Simple Stupid)Plastic: Quality design, no preference for material

Short Slot: Israeli consumer prefer long

2nd largest revenue & larger market share than first (invest in R+D > Marketing)

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LONG TERM: TI3 to transform from STAR to CASH COWSHORT TERM: Most profitable

Selected Variant: TI82nd most profitable in the SHORT TERM & as market grows ? to STAR to CASH

COW

Gain brand recognition for customer value satisfaction (TI8) by meeting all latent market needs while aiming for two CASH COWS.

ISRAEL BCG PORTFOLIO

?: TI1, TI8, TI9Star : TI3Dog: TI7

Cash Cow: N/A

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Market Research: Analysis

Profitable variants: TD1, TD3, TD4, TD5, TD7, TD8, TD11

Selected Variant: TD1 & TD8

GERMANY

TD1 TD 8Popular Profitable

Bun Warmer: important feature for the German market, because it makes the toaster useful for any kind of bread

Brushed Stainless steel: High quality design

Cancel Control: Secure for our customers and easy to handle. Eliminated every variant without this feature.

Short Slot: Prefer long slot as more versatility, but less profitable.

Price: 23 Euro in the price range No Bun Warmer: Unfavorable, but cheaper.

Plastic: Cheaper material cost & easier to clean and move as lighter than steel. Product adjustable (color match kitchen).

Cancel Control

Capacity: 4 slices of toast.

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BCG PORTFOLIO

?: TD7, eventually TD1 and TD8Star : TD4, TD5, TD11

Dog: TD3, eventually TD1 and TD8Cash Cow: N/A

GERMANY

LONG TERM: TD5 & TD11- Market growth >5% and relative market share >40%. - Invest in STAR for CASH COW

Selected Variants: TD1 & TD8 are between POOR DOGS AND ?, some risk.

TD4: “Star of Stars” but not meet customer requirements.

Note: The data for the variant TD 11 was missing, so we had so estimated its potential market share and its market growth. - Most profitable (market profit of 24,402 euros)- Long Slot and flexible design capabilities with plastic- No bun warmer + no cancel control

Sunday, May 19, 13

Market Research: Analysis

Profitable variants: TU1, TU3, TU5, TU8, TU12

Selected Variant: TU3 & TU8

USA

No cancelPlastic: Americans prefer steel, but plastic is more cost effective and flexible. No bun warmer2 sliceShort slot

Affordable at € 25 with market profit of € 14,960

Cancel controlPlasticNo bun warmer4 slice: Capacitance was major concern. Short slot

Affordable sales price € 30 with market profit at €18,819.

More expensive cost per variant than TU3, higher sales price, cancel option for diversified control options

TU3 TU8

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BCG PORTFOLIO

CASH COWS: TU12STARS: TU3, TU5QUESTION MARKS: TU1, TU8POOR DOGS: N/A

LONG TERM: TU5SHORT TERM: TU3 &TU8

Note: TU12 (CASH COW) is not offered as a profitable variant especially during the short run as may not have much market growth.

STARS (TU3 & TU5) should have R+D investment. TU5 is biggest star with highest forecast value (9%) and market share (73%).

TU8 is leading profit generator. Close to line between ? and STAR with adequate 7% growth but slightly insufficient market shares (38%). However, highly valued by American consumer.

USA

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R+D Network

Between US and Germany, we will place resources in Germany for lower costs and similar high performance. Germans speak more languages, which is helpful in communication with research units in Israel and USA. Advantage of one time zone. R+D NETWORK: According to the “Relational based view” by Dyer and Singh CLEANDEVTECH able to develop network with other enterprises, as many kitchen supply producers (Siemens, Severin, etc) are based in Germany which will provide more SYNERGY!

SYNERGY- EFFECT

Rise in productivity from better communication with same language and time zone

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Cost Overview

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IsolationMany customers where complaining about the temperature of the toaster while working. A hot external surface is a safety risk and a proper isolation would prevent that.

Mobile Phone AppMany features + novelty of mobile experience from smart phone (i.e. remote control, when toast is ready, visual feed of toast). Smaller scale app idea for a toasting guide (bread types and toasting level, etc).

Window/see-through cover

Warming functionKeep the toast warm after it is finished but NO MORE TOASTING. This eliminates the problem of setting the toaster, letting it run, and forgetting about it, only to return to cold toast. This would also let you eat your first piece of toast while the second stays warm.

Folded toasterThe toaster could be made more compact for simple movement and storage when not in use.

INNOVATION PROPOSALS

D12; first successful electrical toaster

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INNOVATION PROPOSALS

Toast removal system Implement a basic system to get the toast out of the toaster and on the plate in a way without burning you fingers or needing to reach in dangerously with a form.

Changing colors while workingAesthetic and practical appeal as toaster is normally stored on counter at all times. Colorful lights would be attractive for younger customers and distinguish our particular model.

8 slice toaster America's number one complaint was the lack of toaster capacity and efficiency.

Slot Control A toaster with several slots which can be controlled independently

Crumb slotEasy to clean crumbs by base slot that is removable.

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Team Red signing out...

Thank you. תודה רבה. Danke.Sunday, May 19, 13

QUESTIONS?

Sunday, May 19, 13