Quiz 9: Managing Research and Development
Blanchard's product life cycle is described below: • It originates from a consumer need. • Then, on the basis of the customers need companies manufacture a product. This stage involves the following functions: • Product planning • Product research • Product design • Production • Product evaluation • At the end of this cycle, consumer uses the product. Betz's technology life cycle is described below: • Here, a new technology is developed first. • Applications are launched to incorporate the new technology. • Use of applications and therefore technology grows. • The technology starts moving towards maturation. • It finally reaches the saturation point, at which the use of the technology starts decreasing. • Finally, technology becomes obsolete and dies out due to the emergence of a better technology. Blanchard's product cycle applies to one particular product created by understanding consumer need. Betz's technology life cycle applies to a technology and its full range of applications.
Net Present Worth (NPW) is calculated using the following formula. Where, i represents the annual rate of return A j is the return from the investment n is the number of years Investment is the amount of money spent As per the question specifications, i = 0.15, A j = $60,000, n = 2, Investment = $100,000 Therefore, The NPW of the proposal is -$2,457.47 This means that the company would be better off without this investment and therefore the proposal should not be funded.
The same kind of leader for a company would not be suitable throughout the Betz's technology life cycle. The cycle consists of different stages, each of which requires a particular leadership style. This will help in optimizing the use of the technology. • For the initial phase of technology and application development, a visionary and innovative leader is needed. He can help to develop the technology to the point that it can create a useful product for mass consumption. • For the next stage of the cycle, the ideal leader would be charismatic who would be capable of creating a customer demand for the technology. The main challenge for this leader would be to increase the market volume for the technology. • Once the technology reaches maturity , a different type of leader is needed. This leader should focus on improving the operations of the company in order to create additional value not from the innovation aspect of the technology, but from a tried and true product.