Question

“Making SMal Big: SMaL Camera Technologies” is an innovative product that made significant profits in the first year but then quickly was attacked by competitors. The evolution and technology of the product in detail. It ends with five different options for technological and business strategy, along with pros and cons of each strategy.

During the period of Carlyle's ownership, SMaL Camera Technologies, Inc. was a developer of CMOS imaging sensors and camera modules. In February 2005, the company was acquired by Cypress Semiconductor (Carlyle.com, n.d.). SMaL Camera Technologies has a turbulent technological aspect; the management made some bad decisions that caused in falling revenues due to lack of product marketing. Their marketing abilities were not correctly built, and instead, they decided against in-house manufacturing and distribution. Startups must be managed very differently, and their management has to make meaningful choices in the first few years of operation that determines the firm’s direction. Though startups are at a disadvantage (resources, visibility, and age) when it comes to commercializing a disruptive technology, they also have significant advantages over critical and stronger firms, who rarely go disruptive and prefer market-pull strategies. They can maintain low visibility till they have all the resources, manufacturing and distribution facilities in place, then hit the market; first entering a niche market making fewer profits and then going mainstream.

-The dream of annual revenues past $100 million can dilute its research-oriented approach to a market-oriented approach. The organization was focusing more energies and resources on branding and promotion without building their marketing capabilities. The commercialization and launch of the product were not well executed. The competitors jumped in before the company could start consolidating making revenues. The options offered by competitors had many new add-ons though was not as slim and small as the SMal, the technology was superior regarding having better picture quality, flash, etc.
-The SMal camera units were easily copied as many new competitors quickly entered the segment within one year of its launch in the market. SMal could not efficiently commercialize their product also due to lack of marketing capabilities. They were also late in giving the facilities which the competitors added to their products as the competitors had the advantage of copying, improving and adding innovations. The second year could not generate the same revenues as the customers’ demands changed and the company could not adapt fast enough due to lack of workforce and resources.
-Going to the CES show was a wrong decision as it got the competitors on a high alert and they immediately starting developing similar products. The option of maintaining low visibility while they had consolidated their resources of manufacturing and distribution should have been followed. They should have done the market launch with full preparation and proper market research.
-The strategy of having an external marketing setup did not go in favor of SMal camera as it was not good for their brand image. Further, the SMal had lost touch with the customer who wanted better facilities like a flash and better quality of the picture which was not possible with the current credit card size camera. There go to market approach lacked the facility to get customer, competitor and market feedback. The time lag to innovate and adapt was slow due to lack of input and resources.
-The idea of having only external manufacturing facility again created a negative for the organization as it was dependent on a third party for its supplies, the technology became vulnerable and accessible to the competitors, the external manufacturer cannot innovative and has time lags so new ideas could not be executed immediately.

CES 2001: The Ultra-Pocket credit card sized digital camera from SMaL Camera Technologies is just 6 mm thick, it can take VGA (640 x 480) images and can be connected to a PC via a USB cable. Other features include a viewfinder, rechargeable battery, 35mm (equiv.) F2.0 fixed lens, and MMC card storage (8 MB supplied). Oh, and it weighs just 63 g (2 oz).

LAS VEGAS, NEVADA, USA – January 6, 2001 – SMaL Camera Technologies, Inc., a developer of low power CMOS imagers and intelligent cameras for a variety of markets, including low cost consumer cameras, handheld electronics, intelligent transportation systems, and surveillance, introduced today at the International Consumer Electronics Show 2001 in Las Vegas, Nevada the Ultra-Pocket™, a digital still camera that re-defines the affordable, compact digital camera.

The Ultra-Pocket is the perfect entry-level digital camera for individuals and families who desire a true pocket camera without sacrificing affordability and quality. "When people see and use the Ultra-Pocket, it is common for them to react with a 'Wow!' at least twice," said Keith Fife, Vice President, Engineering, SMaL Camera Technologies. "The first 'wow' is a reaction to the camera's ultra-thin size – literally the size of a credit card and only 0.2" (6 mm) thin. The second occurs when they see how the Autobrite™ technology clearly captures the dark details of a scene while ensuring that the bright regions never saturate."

The Ultra-Pocket boasts durability and a sleek silver contour. Its VGA resolution (300,000+ pixels) is ideal for sending images via e-mail or for posting on the web. The included 8 MB MultiMediaCard removable memory can hold up to approximately 40 images. USB connectivity ensures fast downloading and connectivity with Windows. The camera fits easily in your pocket, goes virtually everywhere you go, and offers simple point-and-click use. With the Ultra-Pocket, it's never been more convenient to capture and share life's images.

SMaL Ultra-Pocket Digital Camera Specifications (Preliminary)

Imager	VGA CMOS device
Image sizes	640 x 480
Viewfinder	Optical
Lens	35mm equiv., F2.0
Aperture	Fixed, F2.0
Focus range	91cm (36") - Infinity
Exposure	Auto
Shutter Speed	1/10 to 1/1000 sec
Storage	MultiMediaCard (8 MB supplied - approx 40 images)
Interface	USB
Power	Lithium-Ion rechargeable
Dimensions	85.6 x 54 x 6 mm (3.4 x 2.1 x 0.2")
Weight	63.3g (2.23 oz)

In Management Criteria for Effective Innovation, rate SMaL camera innovation with respect to traditional 1990s digital consumer cameras. Address the following:

QUESTION

a. Regarding each component of the camera, what technical constraints were lifted relative to the traditional 1990s digital cameras?

b. Regarding each component of the camera, what technical constraints were added relative to the traditional 1990s digital cameras?

c. Is the end product enhanced by additional technology and components required to make use of the innovation?

d. Is the inventive concept itself diluted or enhanced by the embodiment required?

e. Does the additional embodiment offer opportunity for further inventive enhancement?

?I don't know the answer, you are the Expert Q&A that is why I was aking the Question. Thank you.

Answer 1

a Regarding the components of the nw SMal camera innovation relative to the traditional 1990 digital camera the techinical constaints ie limitations that were lifted was that of

1.better picture quality

2.flash

3faster connectivity and downloading with Windows

4covenient capturing of image

5 memory to hold more images

6 its a camera sleek that can be carried in pockets

7 viewfinder

b.Th technical contraints that were added relative to the traditional 1990 digital camera

image processing algorithms in digital still camera is very demanding as far a quality is concerned]

changing product features and infrastructure availibility

c.yes the end product is enhanced by additional technology and components and new innovation

d.yes the inventive concept itself is diluted due to lack of focus on marketing and enhanced by the embodiment in the form of new novel features ie autobrite technology,better resolution etc.

e yes the additional embodiment ie better respresentation of the compact camerA in the form of a digital camera and offers opportunity for more enhancement and stellar invention innovation and novelty.