MANGEMENT OF INNOVATION 301

[Halo Digital Goniometer]Digital Report, semester 1, 2011

Group members:Rehan Butt 14061169Rudo Nyamuda 14193046Fahim Ahmed 14460164Siti Aisyah Othman 7d7a4346

Total file word count 6414Less cover page 14Less table of content 201Less tables and figures 71Less headings 250Less reference list 430Less appendix 200Total net word count 5248

Table of Contents1. Executive summary 1

2. Company Background and Profile 3

3. Establishing an environment for innovation 4

3. a. Question from CEO 4

3. b. IP strategies 5

3. b. 1. Patents and NDAs 5

3. b. 2. Other incentive 5

3. b. 3. Global Electronic Disclosure 6

3. c. Managing organizations knowledge and Innovation strategies 6

3. c. 1. Knowledge management 6

3. c. 2. Gaining competitive Advantages 7

3. c. 3. Innovation strategies 7

3. d. Collaboration strategies 8

3. d. 1 Types of strategic Alliances as an opportunities 9

3. d. 2 Joint Venture 9

3. d. 3 Licensing 9

4. Implementing Innovation 10

4. a. Question from CEO 10

4. b. Managing operation and operation management 11

4. b. 1. Innovation Management 11

4. b. 2. Organic Structure 11

4. b. 3. E-commerce 12

4. c. New product development 13

4. c. 1 Competitive strategies 13

4. d. Managing new product development 14

4. d. 1. Failures in new Product Development 14

4. d. 2. The Conceptual Model 15

Nature of innovation 16

Nature of Market 16

Nature of Technology 16

4.1 Points of ponder 17

5.0 Conclusion and Recommendation 18

6.0 References 19

7.0 Appendix

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1. Executive Summary:

This report is examined the Halo goniometer establishing innovation and

implementing strategies. How Halo can expand its current market share by using the effective

intellectual property strategies to protect the market image and its reputation. While

managing organization knowledge and innovation strategies gives Halo competitive

advantage to compete in the market. We further talk about collaborations and alliances,

managing innovation and different internal operation management, developing new products

and managing the product development process.

Managing innovation boosts company creativity; push the talent of organization to

work at their peak level. It gives operation liberty to employees to enhance their potential

output. The companies choose the organisation structure which best suit their organization

culture. The new product development is essential for companies’ growth. It is really needed

for Halo to bring new application and products release according to customer needs. They

have the potential, ability and technologies to excel in the market. Halo really needs to

collaborate in different markets to expand as much as possible. These collaborations gave

them more resources and funds which they will needed in the developmental process.

Innovation is always helpful source of new product development process.

Although, there are few limitation in the Halo as it is new and really difficult to spend more

and more on the new product development and research. It is always under discussion the

creativity and the efficiency of the work achieve side by side. But if Halo use its competitive

knowledge and advantage effectively they can conquer the market .They need to overview

their mission statement which solely state the eradication of medical issues, they expand in

the other possible markets like manufacturing, military communication and stone cutting

industries as well. It will give halo sufficiency in fund and access to grater part of market.

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2. Company Profile & Background

Background:

Halo Goniometer is digital goniometer used for measuring the angels with great

accuracy. The Goniometer is used in various industries for many years in communications;

manufacturing, military, physic and occupational therapy, but Firstphsio’s Halo goniometer

revolutionized the concept of measuring angles with 100 percent accuracy. The inventor

Hayley Warren, who has 10 years experience in the field of physical and occupational

therapy has recognized the opportunity and come up with realistic model of the current Halo

goniometer. The current Halo digital goniometer is used laser to measure with utmost

accuracy of angels and all the angels can be read in digital format.

The inventor, Hayley Warren, has been working in the field of physical and

occupational therapy for the last 10 years; she recognized the need of a digital goniometer

while using the manual goniometer and facing several difficulties in the process. She is 3 rd

year student of physiotherapy in Curtin university. While talking on her personal

characteristics she is always really independent person and learns from her experiences

thorough out her life. Certainly this independent behavior makes her successful entrepreneur

and enabled her to launch her own product in the market. She started with the vision to

eradicate inaccuracies in physiotherapy, chiropractic and medical practices around the world.

Hayley Warren identified the product’s commercialization potential when she

received the “Innovator of the Year” award for the Halo Goniometer. She realize and start

working on the enhance prototypes and affiliation with different medical association. To get

the market confidence and reliability, the Halo Goniometer received recognition for the

therapist guild in Australia (TGA). The “Innovator of the Year” award and the affiliation with

the TGA demonstrate the potential of the product, and gives support to the inventor to invest

and pursue the product in the future (Psychophysical therapists’ guild of Australia n.d.). After

the 2nd successful prototype Firstphysio build up proper business plan and start setting online

sale option to test the Australia market and the response of the local people. Firstphysio has

given importance to setup the product support .they install the handbook inside the

goniometer so it is easier for user to navigate through the guideline instead of reading the

separate manual book.

Firstphysio is currently attempting to expand in to the international market in 2011.

Currently, they are carrying out market research for major markets such as USA, Canada, Uk

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and Japan .Also, they are in the process of penning contracts with buyers through whom they

can establish proper distribution channels throughout the regions. Firstphyiso is making

arrangement for manufacturing units in the market .they manufactured around 5000 unit in

the year 2011and properly launch in the all over Australia. To increase the awareness and

proper introduction of Halo goniometer, Firstphyiso arrange a lot of trade fairs, seminars and

numerous sessions for professional development.

Currently new Halo goniometer is slim and sleek; you can fit this thing in the pocket

which adds great ease and portability. The price is reasonable as compare to other

competitors. It gives the utmost accuracy and zero point infection. The Firstphyiso has

determined to improve the product in the future as they have in continuous contact with their

technical team in china to improve the product usability. The technology Halo is using

patented technology that grants a major competitive edge in the product .The learning tool

add another unique selling point. The user no need to look into the manual .it teaches you

how to do thing and get the required results.

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3. Establishing an environment for innovation

3.a Questions from the CEO

Complimentary technologies iPod and the Doc –blue tooth. Use pp as feedback, use with

computer for patent to take home.

3.b IP Strategies

Intellectual Property (IP) is a possession of creation based on one’s idea or creativity (World

Intellectual Property Organisation nd). An IP is an asset for the owner; let it be a company or

an individual, compromising four different types; patents, copyrights, registered designs and

registered trademarks (Trott 2008, 147). IP is a single undivided composition of a company,

just as essential as innovation.

Halo has currently exclusive rights in patents, registered designs and trademarks for the

goniometer. Halo has been exceptionally competent in dealing with their IP rights protection,

all across 44 countries worldwide. However, with the commencement of new projects, IP

strategies need to be unabridged as investors find that IP strategies are paramount to a valuing

a company (Managing Intellectual Property 2001, 10). This is due to the fact that, as Halo

intends to broaden their product range, it will inevitably expand the business and increases

exposure to public, mainly concerning competitors. Investors nowadays are more mindful of

the significance of IP for future financial gains and company value (Managing Intellectual

Property 2001, 10). Investors are indeed the major group of people to give assurance to, as

they are the ones funding any innovative process, from creation to commercialization.

Statistically, 97 percent of investors polled agreed that IP protection gives a competitive

advantage and that it would boost profitability (93%) (Managing Intellectual Property 2001,

10). Most believed that it would position the product in the market precisely and carry good

share price in the market (Managing Intellectual Property 2001, 10). Therefore, it is essential

to take heed in generating a solid IP strategy.

3.b.i Patents and NDAs

The initiation of new product development should be immediately protected. As mentioned

by Hayley Warren, Halo is well in collaborating with a patent attorney, a qualified, legal

adviser on laws relating to patents, designs, trademarks and copyrights to protect their

invention. It is vital to protect IP from the initiation of the new product development project

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even though it would steeply cost the company, especially for an international protection. It is

particularly a substantial investment for the company. Regardless of the costs and time,

patents benefit the company with a 20-year protection for an invention, as compared to the

costs that might incur realizing that your invention being copied (Prowse 2007, 30). In

regards to Halo, non-disclosure agreements (NDA), particularly amongst engineers and

designers should be manifested as early as possible to avoid any disputes. NDAs for other

related parties such as beta testers are just as crucial in eliminating infringement issues such

as reverse engineering.

3.b.ii Other Incentives

In respect to related parties in the development team, which include engineers, designers and

beta testers, incentives should be developed in order to motivate them (Holistic IP Protection

2006, 30). Similar to an agency problem, although bound to a NDA, the development team

could have the slightest capability in infringing or provide information for infringement.

Other than a NDA, another strategy avoiding such matters is to show appreciation and

acknowledgment by providing fair monetary incentives, recognition by peers and the head of

departments relating to the innovation of the said product (Holistic IP Protection 2006, 30).

3.b.iii Global Electronic Disclosure System

Lastly, one of the current trends in managing IP strategies is by monitoring it electronically.

The introduction of a Global Electronic Invention Disclosure System could assist in

identifying innovation from its introduction to its end. This system creates a permanent

record of every progress of the invention, specifically in dates, times, creators and

departments (Holistic IP Protection 2006, 30). The owner will be able to monitor the

progression of the product and allows the patent attorney to observe and identify any

innovation that requires patenting through the implementation of this new technology. This

in-house tracking system would keep permanent records that would oppress in the company’s

favor as a result to any gainsay.

3. c Managing organisational knowledge and innovation strategies

3. c.i Knowledge Management

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In the competitive business world of today knowledge is the illusive “Holy Grail” everyone

wants to obtain. According to the Merriam-Webster dictionary knowledge is defined as “the

fact or condition of knowing something with familiarity gained through experience or

association, the understanding of a science, art or technique” (Knowledge Definition in the

Merriam-Webster Dictionary). In this case, the owner has a deep understanding of the

industry in question through several years of experience of working in the industry. It is this

experience that ultimately helped identify a problem and come up with a solution for that

problem. Even though information is easily transferrable between individuals, the sharing is

knowledge is more complicated as the experiences of different people are never the same.

Several complications can occur in the sharing process, for example – certain individuals

might not even want to share their knowledge or perhaps the person the information is being

relayed might have different ideas on the topic. However, as difficult as it may seem

knowledge needs to be distributed between throughout all the members of the firm. To do

that, Knowledge Management (KM) must be put into place.

According to Oshima (2002, 7), Knowledge Management is described as “the systematic

approach which invents, understands, shares creates and utilizes knowledge in order to create

values”, to exploit the knowledge pool of the firm in general. Achieving this would promote

efficiency and innovation within the company through distribution of unique ideas between

individuals. This enables the company to be more competitive and will present the owner

with superior insight when making strategic decisions for the company. In the case of Halo,

the owner Hayley Warren has had to consult with people of different professions such as

Engineers, Designers, Lawyers, etc. This is an example of Knowledge Management, using

information from different knowledge pools, and has no doubt helped her make better

decisions for the company. In reference to the question, Hayley Warren will need to consult

with IT experts who can help her merge Halo with other complimentary. Currently, effort is

being made to connect the Halo Goniometer with the Iphone and via Bluetooth. Perhaps in

the future Wi-Fi can be an option, having the readings on the Goniometer appear on the PC.

3.c.ii Gaining Competitive advangtage

Its important for any business, especially smaller firms, to establish and maintain a

competitive advantage over the market it question. According to Zimmerman and

Scarborough (2005, 69), one of the most significant factors in maintaining the upper hand on

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the competition is for a firm to create an unassailable position for itself so as to reduce the

effectiveness of competing firms in that market. With that in mind, the Halo Goniometer is

perfectly placed in the market to provide a competitive advantage for Firstphysio. It provides

a relatively cheap and very effective option for end users who find standard physiotherapy

expensive.

3.c.iii Innovation Strategies

An innovation strategy enables companies make decisions through collective reasoning

which are practical at the same time, to come up with the kind of innovation that tailor made

for the company to pursue its business goals (Innovation Definition in the Merriam-Webster

Dictionary). Of the different types of Innovations Strategies used by companies throughout

the world, the leader/offensive approach is perhaps most suited to that Firstphysio. Other

Innovation Strategies include Fast Follower/Defensive strategy, Cost minimization/imitative

strategy and the market segmentation specialist/traditional. The reason for the innovation

strategy of Halo being the Leader/offensive approach is because one of the most important

characteristics of Halo is to knock out other similar Goniometers out of the market and

establish a market share for itself. Such is the approach of the Leader/Offensive strategy

(Competitive Strategy n.d.). However, to adopt this strategy significant resources are required

to be exhausted especially on marketing and R&D, the development of Halo and its

marketing has required extensive research of global markets and also a lot money is being

currently spent on the development of the product. As for the defense of Halo, the patent will

allow security for the product to survive in the market as other competitor companies will not

able to release competing products in the market in the near future.

3.d Collaboration Strategies

According to Paul Trott, a strategic alliance is a contractual agreement among organizations

to combine their efforts and resources to meet common goals (Trott, 2008). These strategic

alliances can take place intra-industry or inter-industry. Firms with different capabilities

essential for developing a new technology or enter a new market may form alliances to pool

their resources so that they can collectively develop the product or market faster or less

expensively (Schilling, 2008). By creating alliances globally, Halo will be able to reduce

research and development costs, minimize risks associated with entering new markets, and

attain a competitive advantage through business agility (Liu, 2010).

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As Halo’s vision is to eradicate inefficiencies in Physiotherapy, Occupational Therapy,

Chiropractic, and Medical practices worldwide so as to enable increased quality of care for

patients, strategic alliances will bring several benefits. Since Halo is planning to go global,

collaborating will reduce the products time to market as the time used to raise awareness of

the product to the different countries will be less, improve quality and as well as enable the

company to be flexible and adopt to different environments easily (Liu, 2010).Schilling

(2008, 157) states that High speed technological change causes product markets to rapidly

transform and hence product life cycles are shortened, and innovation becomes the primary

driver of competition. Hayley states in her video that what drives her company is keeping her

competitors at their toes and hence in order for Halo to continue being competitive they may

need to collaborate with other firms so as to keep up with the world and as well as avoid their

products from becoming obsolete as technology keeps increasing. However although

strategic alliances and collaborative arrangements have a lot of benefits they may also be

associated with a number of challenges that may lead failure to collaborate. It is essential that

the company chooses the right mode of collaboration, selects the right partners and as well as

monitor them so as to make the desired alliances work (Schilling, 2008). Studies have

revealed that failure rate in alliances occur anywhere from 30% to 70% and there is no easy

way to establish why certain alliances fall apart. For more information on why some alliances

fail, click here.

Since Halo would like to go global, its management should consider the 3Cs of a Global

Collaboration Strategy and these are:

For more information about the 3Cs of Global Collaboration Strategy, click here

3.d.i Types of Strategic Alliances as an Opportunity to Expand

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In order for Halo to maintain its competitive advantage they have to realize they need access

to new technology so as to create a new technology. Trott (2008, 121) states that strategic

alliances can occur intra and inter industries. For Halo to be able to expand and penetrate the

global market, they can form these strategic alliances in the following ways:

3.d.ii Joint Venture

Joint Ventures are a certain type of strategic alliance that involves significant structure and

commitment (Schilling, 2008). A joint venture can further be referred to as a strategic

alliance where two or more parties more often than not businesses or organizations form a

partnership to share markets, intellectual property, assets, knowledge and as well as profits

(Allan). Halo should consider joint ventures with other companies that will facilitate

innovation to their products. As the company is trying to go global and as well facilitate

improvement of their already existing digital goniometer, we would suggest that to enhance

its features, they may add a micro x-ray tube so as to be able to see the bones and how well,

or fast their developing whilst measuring their angles. Halo could consider going into a joint

venture with Inel, a French company that manufactures neutron dictators, high energy X-ray

sources, radiography and lots more. Together they may perhaps form micro x-ray cylinders

that will be built into the digital goniometer. This will encourage and enable a new

technology whilst enabling Halo to meet its goal of going global. Although Halo is already

participating in other joint ventures, it would not hurt to explore into more joint ventures as it

is true that two heads are better than one and thus the more companies come together, the

more they can achieve together and thus a form win win situation for everyone. Halo and

Intel will hence compliment each other whilst sharing risks.

On the other hand, although joint ventures may have a lot of benefits, they may encounter

some disadvantages and taking into consideration global joint ventures, the greatest

disadvantage that may exist is the culture difference that will make it hard for business to be

conducted.

3.d.iii Licensing

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According to Paul Trott (2008, 222) licensing is a relatively familiar and well-established

method of acquiring technology. Licensing will enable Halo to enter different technologies

fast whilst reducing costs of technology development in the aid of being innovative.

Although licensing may be part of a well informed business strategy, it also has its

disadvantages. If the contract agreement does not specify restrictions and conditions relating

to marketing, advertising and sales, Halo will have very little or no control over how the

second party will sell their goniometer and other products. Due to these misunderstandings,

the product may become a neglected orphan (Gleeson). In order to reduce or eliminate these

inefficiencies, Halo may collaborate with licensing companies such as TLC so as to minimize

risks whilst focusing on attaining their main goal of going global.

4. Implementing innovation

4.a Questions from the CEO

Does Firstphysio need to start new projects now to capitalize on the new market awareness

that our early success will generate or are we content with a “one hit” product?

4.b Managing innovation and operations management

4.b.i. Innovation Management

In order to define Innovation Management, it must be seen from two points of views. In the

first instance the purpose of innovation management is to create systems within the firm

which encourage creativity, it can also be defined as a system ensure the utilization of the

knowledge existing in the company (Igartua et al. 2005). The owner Halo mentioned that it is

very important not to wait on the competition and do research and stay one step ahead of the

game. This requires significant investment into the firm’s R&D. Since Halo is a relatively

new product it is more sensible for the company to adopt a centralized R&D system rather

than a decentralized R&D system. In a centralized R&D system all research are carried out

by the company’s headquarters, whereas in a decentralized system the headquarters assign

certain R&D tasks to different divisions within the company (Trott 2008). As resources are

limited, it would be difficult to carry out research externally since that would drain a huge

amount of resources, thus a centralized R&D system fits Firstphysio better. The owner

Hayley Warren mentioned in her slides that she has the vision to create a Version 2 for the

Halo also the above mentioned questioned for this section asked about the potential to

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develop new products. This will require consistent R&D and Open Innovation will enable the

company to not only upgrade the existing technology but also to create new products.

However, when Halo becomes more established in the market, the company can then branch

out with their R&D and start carrying out more intensive research. Currently intensive

research is being carried out on foreign markets name USA, Canada, China, UK and Europe.

As these markets behave different from each other and also from that of the Australian

market, the research will help in making a solid marketing model for the global release of

Halo.

4.b.ii Organization Structure.

Oft times it is difficult to balance the efficiency and the creativity in a company. Efficiency

requires stable practice of processes set up in the company which are most effective in

slightly strict environments. On the other hand if there is a requirement to develop new

products, ideas must be tried out and to do that a flexible environment needs to exist

beforehand. As the owner is currently considering that Firstphysio attempt to develop new

products a flexible environment must exist in order for employees and other members of the

company to try out different ideas. There are mainly two kinds of organizational structures

for technology intensive firms, the two being the Organic Structure and the Mechanist

structure. According to Schilling (2008) Mechanistic structured organizations are more rigid

in their operations whereas the Organic structured organizations are more “free flowing”

enabling greater innovation although running the risk of lessened dependability in production.

The organic structure allows more efficient idea generation as various sources and

suggestions will be considered which the company can then utilize to further improve the

Halo. The sources include customers, employees, the R&D department, etc. Ideas from

different professionals such as designers, engineers and marketers will help fashion a better

Halo.

4.b.iii. E-Commerce

The internet has become one of the most major for several products with its share increasing

the market every day. From movies to video games and books, and especially with the rise of

websites such as Ebay.com and Amazon.com the internet is becoming the go-to option for

people to buy their products. Recognizing this Firstphysio have already started selling the

Halo Goniometer on the internet. This gives Firstphysio a feel of the Australian market and

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also the feedback from the initial customers will help them understand the needs of the

customers better.

Finally, in order to establish creativity within the company they should consider the several

factor which promote creativity within the organization. As the Firstphysio is a new

company, if they attempt to develop new products they should accept the risks attached to

development of new products and be ready to explore risky opportunities. Also, in the

process of new product development Firstphysio should leave some room for error for

employees which will in turn give the employees more freedom to try new things and be

more bold and creative in the process.

4.c New Product Development

According to Trott, new products are not needed just because they are new products but they

may be essential for a company to gain a competitive advantage (Trott, 2008, p. 360). Since

Halo wants to continue being at the top, it would be essential for them to develop new

products so as to cater for the consumers ever changing needs and so as o keep up with the

rapidly changing technology.

When developing the new product, Halo should take into consideration the opinions of the

stakeholders including the employees so as to arrive at an innovative product that will give

consumers the solution they need and thus maintain a competitive advantage.

In order to successfully develop a new product, Halo will need to come up with an effective

and efficient product development strategy.

4.c.i Competitive Strategy

Competitive strategy may drive new product planning on a short-term or long term basis

(Trott 2008, 360). Michael Porter suggests that there four business strategies that will enable

the business to gain a competitive advantage (Tutors2u).

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Click here for further analysis of the four business strategies.

Since Halo is going global, they may attain a competitive advantage through the

differentiation and the cost leadership as this will pertain to the broad market. Halo can do

this by making their product cheaper than other products whilst it provides high quality. They

can also do this by differentiating their product so that it may be identified easily and not

confused with other products. They selection of differentiation strategy is essential.

Ongoing corporate planning will be taken care of by the owner in a formal way in smaller

companies such as Halo (Trott 2008, 390). Every company is different and it is essential that

Halo understands its strengths and weaknesses well so as to be able to come up with an

appropriate ongoing market plan (Johnson).

Halo’s marketing plan needs to be consistent with its goals so as to be able to maintain it in

the long run. Ongoing market planning is essential because it may prevent organizations from

missing opportunities that we not catered for in previous market plans. Thus if Halo

continues to change it market plan according to product demand, and other variations, they

will be able to achieve a competitive advantage and stay on top.

In addition, ongoing technology management is important as technology is changing rapidly

in today’s world. Proactive technology management will help Halo to focus on strategic

business initiatives by anticipating service events and identifying potential problems in their

earliest stages (Support Services ). Halo should continuously assess they technology aspect so

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as to be able to enable the required changes in technology and maintain the ones that

profitable to the organization.

4.d Managing New Product Development Process

En route to implementing innovation, the process of managing new product development

(NPD) has to be systemized to avoid failures. There are many perspectives that analyses the

development of new products, which are marketing, economics, production management,

research and development, design and engineering (Trott 2008, 389). These disciplines

provide contrasting perspectives on the affectivity on concerns regarding production

management. The synthesis of these disciplines could triumph a new product in fostering

economic profit.

4.d.i Failures in New Product Development Process

An NPD process is very broad, subjective to the innovation created. Studies show that

failures exist from 33 percent to 60 percent of all new products in terms of generating profit

(Schilling and Hill 2008, 67). In order to ensure success for new product development,

appropriate management approach has to be instilled at the early stages of development.

According to Balachandra and Friar (1999, 33), the success in one model of technology does

not imply success when new markets or technologies are explored. This is due to

inappropriate management as the methods and strategies for the current technology or

business does not tailor the new line of business (Balachandra and Friar 1999, 34).

4.d.ii The Contextual Model

Corresponding to Managing New Product Development Processes the Right Way,

Balachandra and Friar (1999, 34) recommends that the management should have a systematic

understanding of the new product development projects. This could heighten the probability

of success as well as promoting finer management practice (Balachandra and Friar 1999, 34).

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New product development projects can be classified in accordance to their contextual nature.

The three contextual natures are market, innovation and technology (Balachandra and Friar

1999, 36) (see Figure 1). As the commencement of new product development project, each of

these natures has to be identified first.

Nature of Innovation

The nature of innovation focuses on whether the technology requirement for the project is

either incremental or radical. An incremental innovation requires structured organization,

from budgeting to scheduling, due to its lack of technical risk in terms of product

configuration and modification. Contrary to that, radical innovation differs from previous

product technologies where it could also be the first of its kind to enter the market

(Balachandra and Friar 1999, 35). A radical innovation is plausibly a suitable nature for

Halo’s new product development. A radical innovation nature is flexible compared to

incremental innovation. This is because although the outline of the technology required is

Figure 1: Contextual Model for NPD Projects

(Source: Balachandra 2000, 317-324) http://www.google.com.my/imgres?imgurl=http://www.emeraldinsight.com/content_images/

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clear, there are many unconventional designs that needs to be integrated ( Balachandra and

Friar 1999, 36).

Nature of Market

The nature of market of a new product is either existing or new. A new product could just be

penetrating through an existing market where the technologies and management methods are

determined, or establishing a new market by trying to establish something novel. It is less

complicated to manage in providing new products to meet existing markets demands as the

market information concerning customers and suppliers are sufficient (Balachandra and Friar

1999, 37). Besides that, the distribution channels and infrastructure are easier to get by.

Nature of Technology

The nature of technology is based on the company’s familiarity with the technology of the

new product. If the company is familiar with the technology that will be applied to the new

product, such as Halo, it reduces technical risks because the new product development

becomes more of an engineering design project rather than a whole new paradigm

(Balachandra and Friar 1999, 37). However, when the technology is unfamiliar and new, the

company has to develop the idea from another firm that has the technology and capabilities to

innovate the idea (Balachandra and Friar 1999, 37). For example, Halo collaborating with

team development engineers and designers alongside other companies such as Bluetooth and

Apple.

For more detailed information regarding the Contextual Model for New Product

Development Process, please refer to this link.

By identifying all three contextual natures of a new product, rapid market penetration will be

effortless as customer requirements, features, quality and product positioning is well

strategized (Schilling and Hill 1998, 69). This would increase the new product’s competitive

advantage and potential in the market, as the competitiveness of the market corresponds to

the difficulties of the company in differentiating cost and quality of the product (Schilling and

Hill 1998, 68).

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4.1 Points to ponder

Halo digital goniometer has great and diverse commercial potential in the market. The digital

goniometer can be applicable in physiotherapy, civil industry, military tasks, manufacturing,

stone and gem industry as well. But Hayley Warren currently limits herself to physiotherapy

and occupational therapy which is not appropriate and against the spirits of entrepreneur. She

really needs to look out of box and explorer the ventures she can avail current market. As she

is looking for further funds and also having desire to develop new products.

Moreover, Hayley should consider wide strategic alliances with other industries and work

out on new product developments. Strategic alliance means combining organization

resources and their effort to achieve the common goal. So Halo can develop the alliance

which will help them to get more resources and access the bigger diversified market. By

diversification in different industries Firstphysio can reduce certain risks and increase their

returns chances .

They need to start working on new product development concept. Having technology need

and form is that all what a new developing concepts require. Halo has technology ,there is

obvious need in the market and they need to work out on the form which their consumer will

require in the future. Halo need to customize the product for manufacturing departments, civil

industry, stone and gem cutting industry. If she open up the market for all the above mention

customers, it will be easier for her to get fund to invest and increase the research and

development efforts. They are certain screening criteria which need to be required while

developing the new application or products. Although she keeping the halo quite secret but it

required penetrate in the market as much as possible, she is already in the market and she has

to take such measures, which make Halo leading all the way in the goniometer market.

5. Conclusion and recommendations :

It is beyond a reasonable doubt that the halo goniometer is one the most unique products in

the physiotherapy market. The way the product is placed in market and especially since its

backed up by the patent it is safe to say that the product’s position in the market will be stable

in the foreseeable future. With the big Australian launch coming up later in the year it is a

very exciting time for anyone who is working on halo. As it is already known by now that

18

extensive research is being carried out in major foreign markets, it is only a matter of time

before the halo becomes recognized as a global phenomenon in the medical industry.

However the company must not stop at the medical industry, they should start expanding into

other markets and begin collaborating with other industries related to stone & gem cutting

and the ones involved with the military. Expanding their market will help the company

become more independent as it will not rely on the success of its product in only one market

but rather several markets. In turn this will also help the company address its financial issues

as further collaboration will bring in a new influx of capital but for the moment the company

should continue what it has been doing over the last few years since it is precisely this effort

that has brought them this far. If all goes well, they should start looking in to developing new

products and keep focusing on innovation.

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7. Appendix (for Multimedia Exhibits)