Now, I want to talk about concept value life cycle. But actually, you heard about product life cycle. Now what is product life cycle? Product life cycle is widely known concept, especially marketing, right? So the product follows a certain, cycle. And then it says that the product usually goes through multiple stages. First it is introduction stage, and then it will grow fast. So, growth stage. And then it is mature, so, maturity stage and finally it may decline. So that's product life cycle. You probably learn about product life cycle. And now I want to talk about value life cycle. Value life cycle actually is integration of new product innovation as applied to management. Traditionally, I think that supply chain management is closely related with product life cycle. In other words so project management is about how to prepare for this growth. In other words the company should prepare for mass production, and as the product reaches maturity and declining probably efficiency becomes more important and therefore, the company has to design this whole supply chain in a way to measure that the, the company can make those products in a most efficient way. In a most cost and saving way and so on and so forth. So I think that traditionally supply chain management is very closely related to the product life cycle and how to manage this product life cycle in an efficient way. That's an important issue in supply chain management. What about this new product development, the new product innovation. Well, first of all, new product innovation is very important. If the company wants to have sustainable competitive advantage. Where does the competitive advantage come from? Only when the company has certain, you know, products and services that are valued by customers more than those produced by the company's competitors. So without developing new products on a continuous basis, the company cannot sustain its competitive advances in the long run. We can think about many examples in the real world. We know that there are some companies that were enjoying high profit and high market share. But suddenly, those companies just disappeared from the market. When something like that happen, usually that's because the company failed to develop the next generation product. So, developing new product on a continues basis, in other words, the new product innovation, is serve, is a very important condition. For the form it's competitive advantage in a sustainable manner. So I will just say that the new product innovation is essential condition for sustainable competitive advantage. But very unfortunately although there are many areas in business, new product development was not really started by you know, particular business function. Sometimes folks in marketing started new product development. Or sometimes people in operations management look at the issues of a new product development. So somehow it was treated as a separate issue and maybe the research was done in a little bit informal way or haphazard way. And as I already told you supply chain management traditionally focused on existing products and services and it is related to it product life cycle. So basically these two areas, although they look very, very much related with each other, unfortunately these two areas were started separately. At this you know, not in a thoroughly formal way. In other words these two subjects sometimes you know, some researches look at these two issues, but not in a formal way. But anyway, you know that was a duality. New product innovation was one thing and supply chain management was another. But the thing is that we now should integrate these two topics, these two you know, approaches, these two subject together. You know, that to create a value, in a new dura sense. So, that's the concept of integration of new product innovation and supply management. By doing so, what I want to do is, I want to look at the entire cycle from new product development to the end of product life cycle. So firm, or the company must understand the value life cycle. Including new product innovation and supply chain management. If it, if it, if it really wants to achieve competitive advantage in the global market, especially on a sustainable basis. Look at this one. As I said, product life cycle starts with new product introduction. In other words, this is a introduction stage. And then growth follows. And then maturity and eventually in might decline. So, when the new product is transferred from R and D environment or development, environment to manufacturing or implementation environment. We call that as initial transfer or initial transition. So usually pilot production is done, and then there is some fine tuning before ramp up production or large quantity, 'kay? Mass production. After that following the product life cycle that is going to be on going production activities. So this is product life cycle and more traditional supply chain management was focused on this product lifecycle. How we can design is also prinatural? How we can identify suppliers? So that we can enjoy this you know economies that was scared or we can enjoy efficiency; when our product reach this maturity and declining stage. But think about this, you know, introduction period. Introduction period just starts when new product is actually developed, or the new product is done, or new product development is completed. Then, if we go a little further back in this whole timeline. In other words, if we, if we want to have a new product developed for this introduction stage for product life cycle, that means that there gotta be some steps, there gotta be some stages. Through which the new product is actually conceived and designed and developed and tested and so on and so forth. Another is we have to look at the life before the starting of product life cycle. And then we can think about at the very beginning probably there was concept development, maybe voice of a customers, the marketing function heard about the voice of customers and you know try to actively, actively identify voice of a customers, that's concept development. And there was, the concept is the evolved. Then there are some processes, maybe all this functions get involved, and then eventually they develop new product. [SOUND]. And this is an example of the patterns, in terms of a number of alternatives. In other words, at the very beginning, or, you know, there are multiple concepts available. And as time goes on, probably more alternatives are found. But as we approach the starting point of a product life cycle the number of alternatives were reduced and eventually there'd be only one final prototype or one final type of product. Then must be transported to the introduction stage of a, for the life cycle. And there we stop. Nowadays, what is important is not just managing this you know, product life cycle without paying attention to how we developed the new product. That's kind of a risky. And because now a days we have to think about design for manufacture ability. What does that mean? When we conceive, when we develop the concept of the product. When we design the products at that time you already must of think about what's going to happen in our product life cycle. In other words, when we design our product, we already think about what kind of a suppliers we use. What kind of a distribution channels we use and what kind of customers we're going target at. In other words when we design this new product we already have to think about what are the supply chain management factors? How we should design this product, so as to be very effective in later stage? In other words, when we actually manage the product life cycle, how can you make sure that we manage it, we coordinate all these functions and activities very efficiently and also very effectively. In order to do that, we have to design the product, with thinking about the issues already. And therefore for the firm to have sustainable competitive advantage, it must pay attention to not only product life cycle is there, but also all new product innovation, new product development as well. So in this course when we think about supply chain management issues, we want to look at new product development issues at the same time. In sum or in effect, we want to look at this entire cycle encompassing new product development cycle and product life cycle. So when we look at this entire cycle, from the concept development of new product to, the decline of or to the end of product life cycle. We call that as value life cycle, which I believe is going be a very important concept in our course, so product management. [BLANK_AUDIO]
