eCommerce- who benefits? Who loses? Insider communications from Twitter indicate that revenues for 2010 will be $140m up from $4.4m in 2009. MySpace membership increased from 100m in August 2008 to 250m one year later. Revenues, however, will drop by 15% over that time. Facebook’s value is estimated at $6.5b by one recent large investor. Second Life now has no more than 83k atavars on-line at any given time.Pre-teens, however, seem to love virtual world sites like Club Penguin and Habbo Hotel. Gaia Online offers virtual visits from Magna Comic characters.Some sites exist by creating virtual economies; Gaia Online users spend $1m per month in virtual currency. “ Tweeting All the Way to the Bank,” The Economist. July 25, 2009, 61-62. What is the product that social networking networks sell? Yadong Yin of the University of California at Riverdale led research on magnetochromatic microspheres. These are mixtures of iron oxide in polymer that can be magnetized to change colors. They also have the ability carry a charge that will heat or cool. That allows them to change from a liquid to a solid or the reverse. So what? Usually we encounter technology after it has been made commercially. This week we will consider how and why technology makes the leap from a “good idea” to a money maker. “ But what about Dr. Yin’s little magnetic color dots?” you ask. After scientific research came market research. Magnetochromatic microspheres can change the color or the content or advertising media. It might replace neon flashing signs.It might also change the message on a billboard from a safe remote location. The dots offer environmentally safe and flexible materials for inks, cosmetics and textiles. The color of paint can be established by microspots added to a non-toxic substance (Ward’s wild musing: Could the paint on your wall be changed on a whim?). (“Spots of Innovation.” The Economist. June 27, 2009, 85.)
What does this mean? In 1869, John Wesley and Isaiah Hyatt entered a contest to invent a billiard ball from a synthetic rather than ivory. The composition they invented was called celluloid. Their entry did not win the contest. Later they tried celluloid as a substitute in dental plates and piano keys before it finally became the media for photographic film. From: Smithsonian. June, 2009. 27. Do we find the solution to a problem? Do we find a solution first and then seek a problem? One of the wealthiest people I ever met, invented the laser-cut surgical glove. Prior to his invention, surgical gloves were made of hard rubber. They were sterilized after use rather than disposable. The new invention was a boon to the medical profession. The problem was: the only way to sell a medical product is through a medical supply house. The solution was to send the disposable glove to the office secretary and suggest that she use the glove to change the typewriter ribbon. If she liked the glove, she should show it to the doctor. A new problem had to be invented before the solution to the old problem could be introduced. When Bill Gates told his father he was leaving Harvard to build a personal computer, his father asked,”Why would anyone need one?” Businesses actually encouraged employees to play computer solitaire to acclimate them to using computers and the mouse for navigation.
Sometimes a product is physically ready but no one wants it. American Telephone and Telegraph introduced the Picturephone at the New York World’s Fair in 1964. It drew crowds at the exhibition but no one wanted to own the product. At the time it seemed to be an invasion of privacy to a conservative, private and modest population. Sometimes a product is technically capable but still unusable. One of the earliest hand held computers was marketed by a company called Sinclair in the 1980s. It was roughly the size of a cell phone. Time Magazine was able to purchase the company to use the device as a give-away for purchasing a magazine subscription. Programming was complex. It required knowledge of the BASIC programming language. It also had to be keyed using a stylus on the tiny keyboard. Sometimes a product is physically ready, but support for the product is not available. Service, peripherals, software and interfaces might keep a good product from becoming a part of your technical life-- at least for now. Status seekers and trend setters (different groups) look for “Leading Edge” technology. Sometimes they find themselves on the “Bleeding Edge” having made a commitment to an unsupported product. What was the original purpose of the internet? What was its purpose become by 1980? In 1990? In 2000? Today?
NASA, The Department of Defense and other Government entities fund or directly develop research. Some of the research is undertaken to develop a particular product, to satisfy a particular need. Sometimes that research produces something that is obviously good. The agency may not know how that “good” can satisfy a need. Kevlar is a good example. This ultra-strong plastic , developed by NASA, is good at deflecting, slowing and catching bullets before they can penetrate the body. Yes, a bullet-proof vest. Universities are veritable factories of Intellectual Property. Some Instructors, instruct; others research.Wake Forest and Harvard were among the first universities to leverage business schools to find markets for the pure research that comes from the laboratory. Wake Forest was not particularly successful at selling its products. Other universities and NASA have turned to corporate non-profit entities such as RTI to find practical applications for intellectual products. Technical industries like telecommunications have a long history of technical development. When A.T.&T. stood for American Telephone and Telegraph, Bell Laboratories was charged with developing science for Western Electric- the manufacturing entity for AT&T. Among the pure research developed by Bell Labs was the sound systems that were used in film production. AT&T’s monopoly status forced the company to give away this copyright under government pressure. Each of these agencies exists in part to bring technology to market.
Deming's fundamental beliefs are: That management systems are the cause of most defects That customer perspective is the only way to define quality Post-war Infrastructure The Japanese were able to learn from poorly made products- &quot;Made in Japan” used to mean poor quality to the American consumer. Management systems actually create defects. (http://www.poppendieck.com/measureup.htm) Deming introduced a number of quality improvements… &quot;Consistency of Purpose&quot; and Customer Focus Quality Circles Kaisan Total Quality Management v. Quality Control Statistical Process Control, the Taguchi Method (also known as Six Sigma) for designing tests and experiments, system failure analysis and problem solving. The focus is on defect prevention rather than correction. This process looks for key stress points for construction, testing, analysis and trouble-shooting errors. Universal Responsibility [Edward Deming and the Japanese Economic Boom Deming's fundamental beliefs are: That management systems are the cause of most defects That customer perspective is the only way to define quality After the Second World War the Japanese Infrastructure required complete reconstruction. This had some advantages since the entire economy would be current.The economy needs to learn to use the new infrastructure.The initial production delivers poorly made products- &quot;Made in Japan”- but these are tests and trials for a learning experience. Management systems create defectshttp://www.poppendieck.com/measureup.htm Edward Deming was an American who worked for AT&T's Bell Laboratories. AT&T delivered a telephone system that could withstand a cataclysm. This seemed unnecessary and expensive to Deming. He urged his superiors to let the customer decide what level of quality was needed. His superiors refused, so Deming set off to share his ideas with the new economy rising from the postwar rubble of Japan. Among the principles that Deming preached were: &quot;Consistency of Purpose&quot; - Quality must always be the first priority. If quality can be put aside for a single day in deference to a single corporate emergency, the quality program has failed. Customer Focus- The marketplace will make every important decision about the product. Quality Circles- Workers who build the product can tell management how a product might be improved. Kaisan- Products should not be perfect when they are introduced. They will never be introduced under those conditions. But they must be continuously improved after they are introduced. Total Quality Management v. Quality Control Statistical Process Control, the Taguchi Method (also known as Six Sigma) for designing tests and experiments, system failure analysis and problem solving. The focus is on defect prevention rather than correction. This process looks for key stress points for construction, testing, analysis and trouble-shooting errors. Universal Responsibility Deming’s Tools: Statistics Empowerment Formal Processes Focus on Root Causes Evaluate Solutions as Well as Problems &quot;Needs&quot; Prioritization Taguchi Method (after about 1956) Just-in-Time Provisioning Value Improvement v. Cost Reduction Supplier Involvement]
Deming's Tools: Statistics Empowerment Formal Processes Focus on Root Causes Evaluate Solutions as Well as Problems &quot;Needs&quot; Prioritization Taguchi Method (after about 1956) Just-in-Time Provisioning Value Improvement v. Cost Reduction Supplier Involvement
Create constancy of purpose. Employees must be prepared to exercise quality even in the face of deadlines and market competition. If Quality is treated like a fad, improvement will cease and all quality processes will eventually disappear. Deming says,” Organizations that are not constant will flip-flop from management fad to management fad. They will wobble between worrying about quality and shift over to worrying about costs and then back again. Without constancy of purpose, people won't take chances because they will be afraid the rules will change again next year.” Adopt the new philosophy. Managers and hourly workers alike must be willing to live by the quality process. Cease dependence on inspection to achieve quality. Deming says,”Eliminate the need for inspection on a mass basis by creating quality into the product in the first place. For manufacturers, inspection is clear. It takes place at the end of the process and is used to insure that a faulty product isn't shipped to a customer. The only reason that inspection takes place is that enough defects have been discovered in the past so that processes can't be trusted….For educators, inspection is the Final Exam. At the end of the semester, it is too late to help the student. The only purpose for the Final is to decide which students are to be &quot;rejects.&quot; In all these cases, inspection is used because experience has indicated a high error rate for the underlying processes. If the error rate is reduced sufficiently, it will no longer be necessary to inspect every action. Unfortunately, when error rates or quality deteriorates, the first impulse of traditionally trained workers and management is to spend more time checking for errors instead of attempting to improve the underlying processes: ‘We need to do a better job of catching these errors!!&quot; versus, &quot;We need to figure out a means of reducing the number of errors in the first place.’” Armand Feigenbaum coined the term: &quot;The hidden plant&quot; to describe that part of overall work efforts that consist of hunting for mistakes, audits, rework, duplication of efforts, and the performance of unneeded tasks. For the typical American organization, this is about 25% to 40% of all efforts. This is the &quot;buried treasure&quot; that Deming is addressing in this point. 4. End the practice of awarding business on the basis of price tag. Minimize total cost. Use one suppler per item. Build supplier trust. Deming says, ”Time is worth money. Time spent standing in line, time spent waiting for a product to arrive, and time spent shopping for the best deal are a waste. The costs of this lost time needs to be added to the price tag in order to determine the true cost of a product. On top of this, there are costs for repairs and for making-do with inferior products that need to be added to the price tag before making purchasing decisions. Perhaps most importantly, total cost must take into account the opportunity to get a product or service improved over time. Buying cheap from a supplier who won't work to improve a product is really more expensive than paying a little extra but getting a supplier who commits to continuous improvement. “ 5. Improve constantly and forever. Constantly decrease costs. 6. Institute training on the job. Un-train old employees, re-train managers. Deming said:”Training is typically abysmal in the United States. Too frequently, people are shown how to do something, once, and then let loose. Training is often not standardized meaning no two employees are taught in the same manner or even in the same details.” 7. Institute leadership (see point 12.) Deming wanted supervisors to stop be leaders. Leaders are different than managers. He says:”Leaders are coaches rather than cops. Coaches develop people. Cops enforce the rules. Coaches attempt to help people live up to their full potential. Cops attempt to catch people doing things wrong. Too often, supervisors with a traditional outlook ask people to &quot;keep quiet&quot; about problems for the sake of the team. These managers resolve conflict either through coercion or compromise. A leader on the other hand gets conflict out into the open so that differences can be addressed and win-win solutions can be pursued in place of win-lose hierarchical decisions. Leaders understand the difference between special causes and system causes. If there is any area of gravest supervisor weakness, it is this. Too many supervisors hound people to try harder when the cause of mistakes is not worker attitude but rather the system with which the workers are stuck. It is a leader's responsibility to attack system caused problems by getting people to examine and improve the underlying system, not by falsely blaming people for situations that are out of their control. “ 8. Drive out fear so that everyone may work effectively for the company. 9. Break down barriers between departments. Every business process is interdepartmental. No individual will understand everything about a process. Teams representing every step within a process are necessary to understand if your process is good for the company -- or just good for you. Deming says:”Evaluation systems that treat department performance separately will encourage departments to stop thinking globally in terms of what is best for the organization as a whole and instead focus on making their part operate ‘best’ even though that may injure some other department. When there are strong barriers between departments, there are frequent unintended consequences for other departments. These unintended consequences can be devastating, yet no one making the changes may even be aware of them if there is insufficient communication between departments. 10. Eliminate slogans. Deming specifically targeted (but without naming it) Crosby's Zero Defects Program. Crosby proscribed a &quot;Quality Day&quot; once per year. Deming believed the system causes errors not workers. 11a. Eliminate work standards (quotas) on the factory floor. Substitute leadership. 11b. Eliminate management by objective. MBO creates a competitive atmosphere among employees. Poorly constructed objectives will drive behavior in ways that are undesirable. MBO encourages short-term thinking. 12a. Remove barriers to pride of workmanship. 12b. Remove barriers that rob people in management and in engineering of their right to pride in workmanship.. Deming called pride in workmanship, a &quot;birthright&quot; of workers. He said that money, time off, and all the other traditional &quot;carrots&quot; that management offers are pale in comparison to the sense of pride and accomplishment that comes from feeling like you made the world a better place in which to live. A principle task of leadership is to remove barriers. 13. Institute a vigorous program of education and self-improvement. Point #6 referred to training of new people and managers. Point #13 refers to educating everyone in the organization no matter how long they have been there. 14. Put everybody in the company to work to accomplish the transformation. The emphasis of TQM is the word, &quot;Total.&quot; Deming’s SEVEN DEADLY DISEASES Lack of constancy of purpose to plan product and service that will have a market and keep the company in business, and provide jobs. . Emphasis on short-term profits: short-term thinking (just the opposite of constancy of purpose to stay in business), fed by fear of unfriendly takeover, and by push from bankers and owners for dividends. . Personal review systems, or evaluation of performance, merit rating, annual review, or annual appraisal, by whatever name, for people in management, the effects of which are devastating. Management by objective, on a go, no-go basis, without a method for accomplishment of the objective, is the same thing by another name. Management by fear would still be better. Mobility of management; job hopping. Use of visible figures only for management, with little or no consideration of figures that are unknown or unknowable. Excessive medical costs. Excessive costs of liability.
Today a nuclear reactor cannot be built without a $150M part made from a single 600- ton ingot. Only a single Japanese company makes these components. Shimino makes 60-70% of all the bicycle gears in the world earning $1.5b YKK makes half the world’s zippers Nidec makes 75% of the world’s motors for PC hard drives Mabuchi makes 90% al all rear view adjustment motors This was done by -first producing superior quality components -then incorporating superior technology to meet customer specifications -finally integrating suppliers into the companies process (usually through acquisition) These are all reflections of Deming’s principles “ Invisible But Indispensable” The Economist. 07 November 2009. 64-6.
Building the customer into the development process can employ: Focus groups Surveys Customer involvement in product development (as in Beta Trials) Usability Testing Prototyping Modeling This represents a combination of skills, organization and attitudes. New artifacts are increasingly becoming a part of the development process. Timberland makes hiking and running shoes. In the past, it took a week and cost about $1200 to build a prototype to see what the sole of such a shoe would look like and to see how well it would fit together with the other components. Z Corporation of Burlington, MA is changing all that. Using a device not very different that the laser inkjet printer that you might use at home, foam plastic is sprayed at the proper thickness and colored to produce a prototype of the component. The prototyping takes about ninety minutes and costs about $35. These 3-D printers can share a product with a potential customer in a way that is more meaningful than any list of specifications could be. “ A Factory on Your Desk.” The Economist. 05 September 2009. 26-9.
Hum110 wake tech week 2 tech goes to market 3
Technology and Society Week 2 Processes Go To Market
What came first the gadget or the need? <ul><li>Nathan Rosenberg: "The idea that an invention reaches a </li></ul><ul><li>stage of commercial profitability first and </li></ul><ul><li>is then "introduced" is, as a matter of fact, </li></ul><ul><li>simple minded. It is during a (frequently protracted) </li></ul><ul><li>shakedown period in its early introduction that it </li></ul><ul><li>becomes obviously worthwhile to bother making the </li></ul><ul><li>improvements." </li></ul>
Products before Their Time <ul><li>The New York World's Fair of 1964-65: The picture phone </li></ul><ul><li>The Sinclair hand-held computer </li></ul><ul><li>The leading edge/bleeding edge </li></ul><ul><li>Vaporware, market research and usability testing </li></ul><ul><li>What came first the internet or the e-conomy? </li></ul>
Who Does Pure Research? <ul><li>Government Agencies (Like NASA) </li></ul><ul><li>Universities </li></ul><ul><li>Industry </li></ul>
Deming’s Fourteen Principles <ul><li>1. Create constancy of purpose. </li></ul><ul><li>2. Adopt the new philosophy. </li></ul><ul><li>3. Cease dependence on inspection to achieve quality. </li></ul><ul><li>4. End the practice of awarding business on the basis of price tag. </li></ul><ul><li>5. Improve constantly and forever. </li></ul><ul><li>6. Institute training on the job. </li></ul><ul><li>7. Institute leadership. </li></ul><ul><li>8. Drive out fear. </li></ul><ul><li>9. Break down barriers between departments. </li></ul><ul><li>10. Eliminate slogans that ask for zero defects and more productivity. </li></ul><ul><li>11a. Eliminate work standards (quotas) on the factory floor. Substitute leadership. </li></ul><ul><li>11b. Eliminate management by objective. </li></ul><ul><li>12a. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. </li></ul><ul><li>12b. Remove barriers that rob people in management and in engineering of their right to pride in workmanship. </li></ul><ul><li>13. Institute a vigorous program of education and self-improvement. </li></ul><ul><li>14. Put everybody to work to accomplish the transformation. </li></ul>