000 Class, this is Dr. Peter Trzop and I wanted to welcome .docx

0:00
Class, this is Dr. Peter Trzop and I wanted to welcome you to
Unit VIII. And in this
0:06
Chapter, we talk about looking at innovation versus invention.
And so a lot of
0:12
times the terms are interchangeably used, and that's not very
accurate. Now they
0:16
are closely associated. Someone may invent a product, but then
be innovative
0:22
and change it to a different way. For example you can look at
say technologies
0:26
of circuit boards and how they were used for watches, or maybe
they were
0:30
transformed into iPads, or tablets, or personal laptops. So
there's a lot of
0:36
different uses for things. Or maybe we say, well I made this
keyboard for the
0:40
Computer, but then I changed it this way to make it better, and
that might be an
0:44
invention of the keyboard which was then later changed to
innovation. It's an area
0:50
that you can look at, a lot of tech companies especially because

they always
0:53
are talking about how to be creative by inventing things or
possibly even
0:59
Innovative. And you can fill it in a multiple number of
companies that do this.
1:04
Having said that, there is information or reading sources that
you can read in
1:09
order to explore this topic more. The biggest thing here in this
Unit VIII is the
1:14
PowerPoint presentation. In PowerPoint presentations I always
like to say they are
1:21
amazingly powerful, but they can also be very negative, if
certain things are
1:26
not done. So what I would suggest to you, are several things
that may help you do
1:31
better. Remember it is a presentation, but it's an academic
presentation. Meaning
1:38
that when we look at it a slideshow or PowerPoint show, we
want to make sure
1:43
that we're using sources to support our work. So if we first open
up and we can
1:48
always, I tell students, imagine that you're looking at it on the
projector and other
1:52
people are watching it or reading it. You have to always open

up with say, a cover slide,
1:58
or your introduction title page. And that allows people to say
ok, this is what
2:03
it's about maybe, there's a picture there, and this is who's
writing,
2:08
and what it's for. I would suggest people use a template, and
that helps unify all
2:13
the slides. It also creates more of a optically appealing look. So
be very careful
2:19
with type of structure, what type of slide formats you're going
to use. Another thing
2:27
to is each slide should have a title, and then I always suggest
that
2:32
you should use the picture on the left side, or right side, and use
bullet points
2:36
on the opposite. This has the effect of allowing you to limit
what you write, so
2:41
it's not boring, with a lot of cut and paste, or a lot of text. But
at the same time it
2:47
allows the reader something visual to look at, that's
2:50
applicable to what you're writing about. It's also good to cite in
them, it allows people

2:55
to see things and understand that it is academic and supported.
Some people
3:01
use writing notes underneath, you can always turn that feature
on, and your
3:05
professor can look at that, there's nothing wrong with that.
3:08
Having said that, remember, people are going to be looking at
these slides, and
3:13
you're doing it for an audience. And so you want to make sure
that you covered
3:16
all the points to it, which this format talks about doing multiple
slides, and
3:21
specifically what slides. But also at the end having some type of
conclusion and
3:28
some type of list of sources. If you have any questions on how
to do this, please reach
3:33
out to your course professor, or you even have the CSU Student
Success Center.
3:37
There's a lot of ways to do quality PowerPoints, but what we
want to avoid is the
3:43
idea of death by PowerPoint. And, if we all, if anyone has ever
been through a PowerPoint
3:49
presentation that's not visually stimulating, or academic, or
properly done it can be
3:54

literally death by PowerPoint. So there's a lot of good ideas here
to do better, and
3:59
stronger work, just make sure that you really take the time to do
that. If you
4:03
have any questions at all,
4:05
always feel free to reach out and get support.
4:07
Thank you, and best of luck.
Reproduced with permission of the copyright owner. Further
reproduction prohibited without permission.
Benchmarking for quality
Shah, Deven;Kleiner, Brian H
Industrial Management; Mar/Apr 2011; 53, 2; ABI/INFORM
Collection
pg. 22

News & Trends
NEWSLINE...
Continued on page 12
Processors Improve Profits with Benchmarking
D
airy processors can ask a lot of questions. For example:
How can I know if my dairy operations are cost competi-
tive? What areas should I focus on to improve margins
and profits? How can I gain a market advantage on
my competitors? These are a few questions that are likely to be
answered with the use of benchmarks.
Staying competitive means keeping one eye on your own
company’s operational costs and the other on the costs of your
peers in your industry.
Financial and non-financial benchmarks
A business benchmark is any type of measurement used to

compare some quantifiable component of a company’s activ-
ity or performance. These benchmarks can be financial such
as plant cost per gallon of milk, manufacturing cost per pound
of cheese, distribution cost per case, EBITDA (earnings before
interest, tax, depreciation and amortization) and so on.
Benchmarks can also be non-financial such as inventory
out-of-stock rates, gallons processed per hour and product
yields. Business benchmarks provide valuable intelligence to
help an enterprise make more enlightened business decisions.
Benchmarks can be used to shape an enterprise’s business strat-
egy by setting specific and quantifiable goals and monitoring
the company’s performance relative to those goals.
Benchmarking is also the process of using comparable data to
determine who or what is the very best and what that standard
is.
The key to using benchmarks is gathering relevant comparable
information to determine an average or best practices standard
and then comparing your information to that standard. Sounds
easy, but how do you gather the benchmark information?
Some practical ways of securing this information in the dairy
industry include:
• Active involvement in industry trade organizations where
information is shared
• Review of available public company information
• Engaging an industry consultant that has access to compa-
rable information
• Review of information available through the U.S.
Department of Agriculture
To make benchmarking beneficial, the development of the stan-

dards must use information that is truly comparable. Since many
dairy products are somewhat homogeneous, benchmarking for
the dairy industry can be very helpful. However, comparing
infor-
mation from a fluid plant that primarily bottles gallons and half
gallons serving large grocery chains to a fluid plant producing
large half-pint quantities serving schools may not be very
helpful.
To benefit from a benchmarking study, the key component is to
obtain the most comparable company information. Strategies
and
decisions could be misdirected if the right information is not
used.
Companies with multiple locations producing similar products
should also consider comparing benchmarks for each location.
Detailed benchmarking information will produce more
insightful results. Many companies know total plant costs, but
it is more valuable to know unit costs for cost centers or depart-
ments within the plant and even more valuable to know unit
costs
for expense categories with those departments. To illustrate the
levels of detail, see the following example of a fluid milk plant:
Best practices in a milk plant
An example of best practice benchmarks for a fluid milk plant
using cost center levels are:
A fluid milk plant comparing its costs per gallon to the bench-
marks in the table above would identify opportunities for
improve-
ment, whether it is process redesign, cost-cutting measures or
pro-

ductivity reviews. Such an analysis provides management with
the
insight to focus in the areas more likely to produce positive
results.
Benchmarks can also be used as goals for managers to achieve,
often tied to employee incentive plans.
Costs Plant Cost Center Expense
Total plant costs per gallon $.40
Bottling costs per gallon $.19
Bottling wages per gallon $.06
Bottling supplies per gallon $.03
Bottling repairs and maintenance $.02
Utilities $.04
Insurance $.01
Source: Herbein + Co.
Cost Center Cost Per Gallon
Receiving $.036
Pasteurization .044
Bottling .140
Cold Room .116
Plant Subtotal $.336

Selling .084
Delivery .332
Total Cost $.752
Source: Herbein + Co.
Dairy Foods | October 201110
Newsline.indd 10Newsline.indd 10 9/27/11 11:38
AM9/27/11 11:38 AM
News & Trends
GELITA USA · Sioux City, IA · www.gelita.com ·
[email protected]
GELITA® Collagen Proteins. Innovative and Healthy Ideas.
The VITARCAL® concept consists of
a holistic range of collagen proteins,
specifi cally optimized for reducing
energy density in calorie management
products.
Geliko™ Kosher gelatine products are
certifi ed Kosher pareve by the Orthodox

Union. Health-conscious consumers know
the OU logo stands for quality beyond
question.
The collagen peptides comprising
FORTIGEL® are scientifi cally proven to
stimulate joint cartilage regeneration.
Financial benchmarks can also be useful in analyzing raw prod-
uct and packaging costs. In a federally regulated market, class
price
differences based on location are readily determinable.
However,
financial benchmarks for other costs of milk procurement, such
as
premiums paid, could also prove beneficial. Benchmarking milk
shrinkage amounts and fat content in the product are often
enlight-
ening. Benchmarks for the cost of containers and ingredients
would
indicate if you are purchasing these items at the best price.
Data for butter, cheese plants
You can find costs for butter, cheese and powder plants online.
The
U.S. Department of Agriculture (USDA), Washington, D.C.,
accu-
mulates cost data from plants in California to establish and
moni-
tor allowances within the federal order pricing system.

Once the most relevant comparable data are obtained and
the findings are analyzed in a benchmarking exercise, you will
often realize your areas of strengths and weaknesses. Then, you
determine ways to close any gap between what you and others,
including competitors, are doing. For example, you may design
a more efficient process to cut costs or explore ways to stream-
line certain processes and functions.
The ultimate goal is to bring your operation up to the stan-
dard considered the best in your industry, likely to result in
productivity gains and increased profitability. �
By Carl Herbein, a certified public accountant and CEO and
founding partner of Herbein + Co., Reading, Pa. He leads a
team
serving clients nationwide, including large multi-plant and
small
niche dairy processors.
Giffords Dairy, Babcock Hall
Named Grand Champions
at World Dairy Expo
Babcock Hall Dairy Plant, Madison, Wis., was selected as the
Cheese and Butter Grand Champion, while Gifford’s Dairy,
Skowhegan, Maine, was chosen as the Grade A & Ice Cream
Grand
Champion in this year’s Championship Dairy Product Contest,
sponsored by the Wisconsin Dairy Products Association
(WDPA)
and Dairy Foods magazine.
The contest received a record number of 705 entries for cheese,
butter, fluid milk, yogurt, cottage cheese, ice cream, sour
cream,
sherbet, cultured milk, sour cream dips, whipping cream, dried
whey and creative/innovative products from throughout the

United States.
Judging was held Aug. 16 at UW-Madison’s Babcock Hall and
Aug. 17-18 at the Madison Area Technical College (MATC)
Culinary
School, Madison, Wis.
On Oct. 4, the contest’s auction was held at World Dairy Expo
in
Madison, Wis., where all category first-place winners were
auctioned
off. A portion of the proceeds went to fund the Dr. Robert
Bradley
Scholarship Fund, which is awarded annually to a deserving
student
pursuing a career in the dairy industry.
Go to www.dairyfoods.com /Articles/Dairy_News to see a list
of all
of the first-place winners.
Dairy Foods | October 201112
Newsline.indd 12Newsline.indd 12 9/27/11 11:38
AM9/27/11 11:38 AM
Copyright of Dairy Foods is the property of BNP Media and its
content may not be copied or emailed to
multiple sites or posted to a listserv without the copyright
holder's express written permission. However, users
may print, download, or email articles for individual use.

MBA 5101, Strategic Management and Business Policy 1
Course Learning Outcomes for Unit VIII
Upon completion of this unit, students should be able to:
1. Compare and contrast different strategic models.
1.1 Choose among traditional measures, such as ROI, and
shareholder value measures, such as
economic value added, to properly assess performance.
1.2 Identify the differences between successful and
unsuccessful innovations.
1.3 Choose an appropriate structure and culture to support
innovative ideas and products.
4. Analyze the processes for formulating corporate strategy.
4.1 Apply the benchmarking process to a function or an activity.
4.2 Explain the importance of lead users and market research as
sources of new ideas.
5. Evaluate methods that impact strategy implementation, such
as staffing, directing, and organizing.
5.1 Discuss the impact of problems with measuring
performance.

5.2 Assess the importance of product and process R&D for
success within an industry.
5.3 Apply appropriate techniques and measures to manage new
product development.
Reading Assignment
In order to access the following resource(s), click the link(s)
below:
College of Business – CSU. (2016, January 12). MBA5101 Unit
VIII lesson video [YouTube video]. Retrieved
from
https://youtu.be/nvSmWApvFbE?list=PL08sf8iXqZn54RIuJs-
skgp4omxG-UOu5
Click here to access a transcript of the video.
Shah, D., & Kleiner, B. H. (2011). Benchmarking for quality.
Industrial Management, 53(2), 22-25. Retrieved
from
https://libraryresources.columbiasouthern.edu/login?url=http://s
earch.proquest.com.libraryresources.c
olumbiasouthern.edu/docview/1197690924?accountid=33337
Processors Improve Profits with Benchmarking. (2011). Dairy
Foods, 112(10), 10-12. Retrieved from
earch.ebscohost.com/login.aspx?
direct=true&db=bth&AN=67253161&site=ehost-
live&scope=site

Unit Lesson
Innovation is the key to a company’s sustained competitive
advantage (Malone, 2009). In a world of intense
global competition, quickly improving or bringing new products
to the market is more important than ever.
Most managers know this, but many also feel as though their
performance needs to improve even though
they know the real challenge for strategic management is
sustained innovation (Valikangas & Merlyn, 2002).
Developing a culture of innovation, adaptability, and flexibility
is very important for a company. Several
technology-driven companies, such as Zappo’s, Google,
Microsoft, and Amazon.com, incorporate innovation
into their daily processes. The process of kaizen, process
improvement, was made famous by Japanese
automobile manufacturers.
UNIT VIII STUDY GUIDE
Product Innovation
Management
https://youtu.be/nvSmWApvFbE?list=PL08sf8iXqZn54RIuJs-
skgp4omxG-UOu5
https://online.columbiasouthern.edu/CSU_Content/Courses/Busi
ness/MBA/MBA5101/15M/UnitVIII_LessonVideoTranscript.pdf
earch.proquest.com.libraryresources.columbiasouthern.edu/docv
iew/1197690924?accountid=33337
earch.proquest.com.libraryresources.columbiasouthern.edu/docv

iew/1197690924?accountid=33337
earch.ebscohost.com/login.aspx?direct=true&db=bth&AN=6725
3161&site=ehost-live&scope=site
UNIT x STUDY GUIDE
Title
Innovative companies have some common characteristics.
According to Carl Roger’s famous book, Diffusion of
Innovations, positive attitude toward change, decentralized
decision-making, complexity, informal structure,
interconnectedness, organizational slack (unused resources),
large size, and system openness are all common
characteristics of innovative companies (Rogers, 1995). This
is not to suggest this list is comprehensive or applicable to
every company or organization, but this list does give some
ideas and insight into innovative companies.
Despite common belief, innovations and inventions are not
the same. An invention is a product that is unique in its form,
function, or formulation, making it patentable in many cases.
On the other hand, an innovation refers to the overall process
whereby an invention is transformed into a commercial
product that can be sold profitably (Crawford & Di Benedetto,

2008). Innovation can also be the creative use of an
invention, development of a version of an invention, or
change in function or synthesis of processes to obtain more
changes. An example would the microprocessor being an
invention, but the personal home computer being
an innovation of the initial invention.
In new product management, organizations complete a cycle
called diffusion of innovation. In this cycle, a
person or organization becomes aware of the existence of an
innovation, makes a decision to try the
innovation, acquires the innovation, and then comes to a level
of success with the innovation. If this level of
happiness is achieved, they chose to adopt or repeatedly use the
innovation (Crawford & Di Benedetto,
2008). As time goes on, this cycle must be repeated due to
competition of rival products and services. One
could consider the innovation of the Apple line of products,
such as the home computer, the iPod, the iPhone,
and then the tablets. Now there are watches based on the same
innovation cycle.
Many managers believe that new product management is a
combination of art and science. The art is
essentially based on intuition, experience, hunch, or gut feeling.
While debatable, many people see science
fiction writers as a great source of inspiration for a vision of
future products. This can be seen in the writing of
Jules Verne, H. G. Wells, and Gene Roddenberry. These writers
created a vision for future inventors and
innovators.
The science supports the art by using three tests critical to
product innovation. The first test is the concept

test—to determine if the intended user really needs the proposed
item. The second test used is the product
test—to see if the item developed actually meets the need.
Finally, the market test is used to see if there is an
effective marketing plan. “These techniques and tools of
marketing science were developed by marketing
academics. They are currently used by some of the best firms in
the world, yet they are not used nearly as
much as they should be” (Crawford & Di Benedetto, 2008,
p.18).
Managers have a challenge to maintain sustained performance
over time. Yet, they recognize that products
mature and revenues decline. They also know that in order to
replace those declining revenues, it is important
to have a regular and steady stream of new products to
introduce into the marketplace. Adding to the
challenge, when the economy is good and profits are up, there is
little interest in adding new products and
innovations. In difficult times, when the economy is poor,
companies typically are not able to spend the
resources necessary to generate new products and innovations.
“Therefore, the only way a corporation can
maintain its growth is by launching new growth businesses
when the core units are strong” (Robles, 2015, p.
123). Growth can take place with products, customer base,
services, and new markets, both domestically and
internationally.
Launching new growth businesses when the core units are
strong requires a great deal of discipline and
strong leadership. It also requires caution for companies to
analyze what will complement their business and
what may not. Those firms who have an active and disciplined
planning process developed as a core
competency tend to reap the benefits. Through active SWOT

analysis activities, internal and external
environmental scanning, and customer and stakeholder
engagement, companies can manage in the present
while simultaneously preparing product innovations for the
future.
Solar Junction, in partnership with NREL, has
developed solar cells that reach a record-breaking
44 percent efficiency— meaning that more than
40 percent of the sunlight is converted into
electrical energy. In this photo, an operator
inspects a photolithography tool used to
manufacture these solar cells (Solar Innovation, 2012).
UNIT x STUDY GUIDE
Title
An innovative strategy is a timed sequence of internally
consistent and conditional resource allocation
decisions that are designed to fulfill an organization’s
objectives. Implementation of an innovative strategy
requires a company to have the unique characteristics of an
innovative company. The areas in which a firm
defines itself as innovative are through its implementation of
three main components: risk taking, pro-
activeness, and persistent commitment to innovation (Adams,
Bessant, & Phelps, 2006).

The leadership of an innovative company has consistently been
shown to have a strong vision. In
implementing its strategy, senior leadership has shown itself to
be flexible and tolerant. This is important
because as new ideas are generated in the course of continuous
internal and external environmental
scanning, managers may find themselves at odds with resource
allocation strategies identified in their initial
planning. An innovative company’s leadership will weigh the
advantages of this new information or ideas
against the company vision and mission to determine if that
resource allocation should be changed. They do
this in a manner in which managers do not feel threatened. All
managers know they have their chance to be
heard, and that their ideas about new information will be
seriously considered and sometimes implemented.
Again, in an innovative company, the chief executive sets the
vision for the firm's future. That vision is
translated and maintained throughout the company by senior
leadership in functional managers enabling all
employees to understand and embrace that vision alongside the
daily implementation of the strategic and
operational plans.
Managerial tolerance creates the right climate for the
implementation stage of innovation where conflict
resolution might be necessary. Successful innovative companies
manage to effectively balance their ability to
provide freedom to explore creative possibilities, but maintain
sufficient control to manage innovation in an
efficient fashion (Adams et al., 2006).
Finally, once the company's corporate performance is measured,
top management can decide if it should
reformulate strategy, improve its implementation, or gather

more information about its competition (Wheelen,
Hunger, Hoffman, & Bamford, 2015). This process should be a
consistent and routine event.
References
Adams, R., Bessant, J., & Phelps, R. (2006). Innovation
management measurement: A review. International
Journal of Management Reviews, 8(1), 21-47.
Crawford, M., & Di Benedetto, A. (2008). New products
management (9th ed.). New York, NY: McGraw
Hill/Irwin.
Malone, M. S. (2009, May). Which are the most valuable
companies in the new economy? Forbes ASAP,
212-214.
Robles, E. (2015). How to identify disruptive new businesses.
Review of Business & Finance Studies, 6(1),
121-130.
Rogers, E. M. (1995). Diffusion of innovations (4th ed.). New
York, NY: The Free Press.
Solar Innovation. (2012). Solar innovation (8228992797)
[Image]. Retrieved from
https://commons.wikimedia.org/wiki/ File:Solar_Innovation
(8228992797).jpg

Valikangas, L., & Merlyn, P. (2002). How market-based
organization sustains organic innovation. Business
Strategy Review, 3(13), 3-6.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C.
E. (2015). Concepts in strategic management
and business policy: Globalization, innovation, and
sustainability (14th ed.). Boston, MA: Pearson.
UNIT x STUDY GUIDE
Title
Suggested Reading
In order to access the following resource(s), click the link(s)
below:
These articles provide further information regarding strategic
management.
Ahuja, V., Yang, J., & Shankar, R. (2010). Benchmarking
framework to measure extent of ICT adoption

for building project management. Journal Of Construction
Engineering & Management, 136(5),
538-545. Retrieved from
earch.ebscohost.com/login.aspx?
direct=true&db=bth&AN=49193808&site=ehost-
live&scope=site
Fombelle, P., Jarvis, C., Ward, J., & Ostrom, L. (2012).
Leveraging customers' multiple identities: Identity
synergy as a driver of organizational identification. Journal Of
The Academy Of Marketing Science,
40(4), 587-604. Retrieved from
earch.ebscohost.com/login.aspx?direc
t=true&db=bth&AN=75231245&site=ehost-live&scope=site

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