MANGEMENT OF INNOVATION 301
[Halo Digital Goniometer] Digital Report, semester 1, 2011
Group members: Rehan Butt Rudo Nyamuda Fahim Ahmed Siti Aisyah Othman
Total file word count Less cover page Less table of content Less tables and figures Less headings Less reference list Less appendix Total net word count
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Table of Contents 1. Executive summary
2. Company Background and Profile
3. Establishing an environment for innovation
Question from CEO
3. b. 1. Patents and NDAs
3. b. 2. Other incentive
3. b. 3. Global Electronic Disclosure
Managing organizations knowledge and Innovation strategies
3. c. 1. Knowledge management
3. c. 2. Gaining competitive Advantages
3. c. 3. Innovation strategies
3. d. 1 Types of strategic Alliances as an opportunities
3. d. 2 Joint Venture
3. d. 3 Licensing
4. Implementing Innovation
Question from CEO
Managing operation and operation management
4. b. 1. Innovation Management
4. b. 2. Organic Structure
4. b. 3. E-commerce
New product development
4. c. 1 Competitive strategies
Managing new product development
4. d. 1. Failures in new Product Development
4. d. 2. The Conceptual Model
Nature of innovation
Nature of Market
Nature of Technology
Points of ponder
Conclusion and Recommendation
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 companiesâ€™ 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.
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 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.
3. Establishing an environment for innovation
3.a Questions from the CEO Complimentary technologies iPod and the Doc â€“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 oneâ€™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.
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 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.
Managing organisational knowledge and innovation strategies
3. c.i Knowledge Management 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 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.
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). As Haloâ€™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.
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
Types of Strategic Alliances as an Opportunity to Expand
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 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 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 â€œfree flowingâ€? 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 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).
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). Haloâ€™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 todayâ€™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 as to be able to enable the required changes in technology and maintain the ones that profitable to the organization.
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).
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/fig/0291000703001.png&imgrefurl=http://
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 Haloâ€™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
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 companyâ€™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 productâ€™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).
17 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
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 productâ€™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 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)