The Concept Lifecycle


The new products process essentially turns an opportunity (the real start) into a profit flow (the real finish). It begins with something that is not a product (the profit). The product comes from a situation and turns into an end.

What we have, then, is an evolving product, or better, an evolving concept that, at the end, may become a product. There are stages, like individual frames in a movie film:

  • Opportunity concept-a company skill or resource, or customer problem.
  • Idea concept-the first appearance of an idea.
  • Stated concept-a home or technology, plus a clear statement of benefit.
  • Tested concept-it has passed an end user concept test; need is confirmed.
  • Full screened concept-it passes the test of fit with company situation.
  • Protocol concepts-a statement (product definition) of the intended market user.
  • Prototype concept-a tentative physical product or system procedure, including features and benefits.
  • Batch concept-first full test of fit with manufacturing; it can be made. Specifications are written, exactly what the product is to be, including features, characteristics, and standards.
  • Process concept-the full manufacturing process is complete.
  • Pilot concept-a supply of the new product, produced in quantity from a pilot production line, enough for field testing with end users.
  • Marketed concept-output of the scale-up process either for a market test or full scale launch.
  • Successful concept (new product)-it meets the goals set for it at the start of the project.

Some firms have as many as three production models or prototypes. So, the idea that a new product suddenly “emerges” from R&D-like a chicken from an egg-is simply incorrect.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Subsistence Economy


In such an economy, each family unit produces everything it consumes. There is no need to exchange goods and services. Each producer-consumer unit is totally self-sufficient, although usually its standard of living is relatively low. No marketing takes place because marketing doesn’t occur unless two or more parties are willing to exchange something for something else.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Compliance and Integrity


In the earliest stages, organizational ethics centered on the narrow perspective of ethics—the notion of compliance. Are we following the laws? Are we at risk from litigation? If so, how do we minimize that risk?

Ethics programs matured and ethics officers, most of whom are selected from the managerial ranks with little, if any, special preparation, developed increased sophistication regarding the challenges facing their organizations. Both the ethics officers and their organizations began to embrace personal and corporate values in decision making (value-based decision making) as the logical expansion of the definition of what it means to be ethical. What has emerged is what many ethics officers today characterize as the “best practices” model of the ethics office and of a values-based corporation.

But change continues. What is emerging today is a more holistic definition of what it means to be a “good” corporation. This new, global view will again help to reshape the responsibilities and focus of the ethics officer.

The shift to a global perspective means another broadening of the definition of ethics. “Global Integrity” is the latest descriptor, and it embraces both compliance and ethics. It also adds concern for rule of law, human rights, good governance, labor/child labor concerns, anti-corruption/anti-bribery, concern for the environment, safety, social responsibility, good corporate citizenship, and respect for the whole diverse array of local cultures to the definition. This increases the organization’s obligation to reach beyond traditional company boundaries to consider how decisions would affect the surrounding community. One consequence of this new global definition of the organizational ethics is increased scrutiny by stakeholders, especially advocacy groups and the media.

Corporate ethics officers, especially those in multinational corporations and/or corporations with global suppliers/markets, are being challenged with fundamental questions in this expanded integrity area. Perhaps the most common, and most challenging, is how the corporation will balance the desire for global standards (consistency) against the need for local application of standards.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Not-for-Profit Marketing


Non-for-Profit organizations encounter a special set of characteristics that influence their marketing activities. Like profit making firms, not-for-profit organizations may market tangible goods and/or intangible services. One important distinction exists between not-for-profit organizations and profit oriented companies. Profit-seeking businesses tend to focus their marketing on just one public—their customers. Not-for-profit organizations, however, must often market to multiple publics, which complicates decision-making regarding the correct markets to target. Many deal with at least two major publics—their clients and their sponsors—and often many other publics, as well. Political candidates, for example, target both voters and campaign contributors. A college targets prospective students as clients of its marketing program, but it also markets to current students, parents of students, alumni, faculty, staff, local businesses, and local government agencies.

A second distinguishing characteristic of not-for-profit marketing is that a customer or service user may wield less control over the organization’s destiny than would be true for customers of a profit-seeking firm. A government employee may be  far more concerned with the opinion of a member of the legislature’s appropriations committee than with that of a service user. Not-for-profit organizations also often possess some degree of monopoly power in a given geographic area.

Perhaps the most commonly noted feature of the non-profit-organization is its lack of a bottom line—business jargon referring to the overall profitability measure of performance. Profit-seeking firms measure profitability in terms of sales and revenues. While not-for-profit organizations may attempt to maximize their return from specific services, they usually substitute less exact goals, such as service-level standards, for overall evaluation criteria. As a result, it is often difficult to set marketing objectives that are aligned specifically with overall organizational goals.

A typical aspect of a non-for-profit organization is the lack of a clear organizational structure. Not-for-profit organizations often respond to constituencies that they serve, but these usually are less exact than, for example, the stockholders of a profit-oriented corporation. Not-for-profit organizations often have multiple organizational structures.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Market-Driven Management


Market-driven management is a cross functional effort involving all levels of the organization. Properly followed, it ensures all activities are coordinated to meet the specific needs of target customer groups. All R&D projects are focused on developing solutions to identified customer problems, manufacturing is committed to meeting cost targets, quality standards, and delivery cycles, and sales focused on identifying and interpreting customer problems and then selling them solutions. If someone ask the individual managers within any of these functional areas how they operate, they would most likely say, “just as you described.” It is unlikely, however, that their counterparts in other functional areas would agree, and even more unlikely that there would be a consensus among all managers at all levels. Achieving this market driven focus with fully agreed upon objectives and priorities in each functional area requires the complete support of everyone in the organization. Market-driven management is much easier said than done because it flies in the face of the attitudes and actions of most managers.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Monopoly Regulation


Monopoly is usually considered to lead to economic inefficiency. Excessive monopoly profits are commonly regarded as unfair to consumers. Policies for dealing with monopoly range from laissez faire or toleration at one extreme to “trust-busting” at the other. Another possibility is to put monopolistic enterprises under government ownership, as is commonly done in Europe for railroads and telephone service. Regulation of the monopoly’s price and quantity or quality of service by a government agency is important. In the US regulation is standard practice for privately owned ‘public utilities’ providing goods and services such as electric power, water and gas, telephone, and transportation—usually thought to be natural monopolies.

The standard philosophy of regulation aims at limiting the monopolist to a ‘normal profit.’ Normal profit is supposed to be just adequate to attract needed capital and other resources into the business, but not so high as to represent exploitation of consumers. Normal profit in the accounting sense corresponds to zero economic profit. Zero economic profit characterizes long-run equilibrium in perfect competition. In a sense regulation achieves the result that may occur if competition is possible.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

International Codes of Environmental Conduct


A number of business organizations have developed codes of environmental conduct. Among the most important ones are the following:

  • International Chamber of Commerce (ICC): The ICC developed the Business Center for Sustainable Development, 16 principles that identify key elements of environmental leadership and call on companies to recognize environmental management as among their highest corporate priorities.
  • Global Environmental Management Initiative (GEMI): A group of over 20 companies dedicated to fostering environmental excellence, GEMI developed several environmental self assessment programs, including one that helps firms assess their progress in meeting the goals of the Business Center for Sustainable Development.
  • Keidanren: This major Japanese industry association has published a  Global Environmental Charter that sets out a code of environmental behavior that calls on its members to be “good corporate citizens.”
  • Chemical Manufacturers Association (CMA): The U.S. based industry association developed Responsible Care: A Public Commitment, which commits its member-companies to a code of management practices, focusing on process safety, community awareness, pollution prevention, safe distribution, employee health and safety, and product stewardship. The group is working for the international adoption of these principles.
  • CERES Principles: These are 10 voluntary standards developed by the Coalition of Environmentally Responsible economies that commit signatory firms to protection of the biosphere, sustainable use of natural resources, energy conservation, risk reduction, and other environmental goals.
  • International Organization for Standards (ISO): ISO 14000 is a series of voluntary standards introduced in 1966 by the ISO, an international group based in Geneva, Switzerland, that permit companies to be certified as meeting global environmental performance standards.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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