Making SMaL Big: SMaL Camera Technologies

Nermin Ibrahim Kevin HamiltonRula ShraydehHolly MacLeod

Overview of Smal CameraMaking SMaL Big: Camera TechnologiesCompetitorsPHASES IN MARKET LIFE CYCLE AND INNOVATION BASIS OF COMPETITION TIME OF ADOPTION OF INNOVATION (Roberts) TECHNOLOGY ADOPTION LIFE CYCLESELECTED INNOVATION MODEL DISCONTINUOUS INNOVATIONINNOVATION STRATEGIESCompany timelineFeatures of cameraComponent kit featuresManagement problems/issuesOptionsRecommendations and discussion

Overview of Presentation

SMaL Camera overview CMOS (Complementary

Metal Oxide SEMI-Conductor): small, inexpensive to manufacture

Autobrite: technology allowed higher quality pictures in brightly lit conditions

Making SMaL Big: Camera Technologies

•2002: SMaL sold ½ million kits to manufacturers•Improve technology for the current consumer market (copycats competitor)•Security & surveillance Mkt•Automotive Mkt •New Imaging technology new market: Cellphone

Competitors

Pixim: CMOS low cost + CCD performance. Disruptive technology?Casios’s Exilim $300Foveon: X3 sensorchip Sigma first Foveon based camera $1800

PHASES IN MARKET LIFE CYCLE AND INNOVATION BASIS OF COMPETITION

Functionality: Picture Resolution Always with you

Sales

Early Growth Mature Time

Functionality Reliability Convenience Price

TIME OF ADOPTION OF INNOVATION (Roberts) TECHNOLOGY ADOPTION LIFE CYCLE

In Camera, Automotive Cell phone

ConservativePragmatistVisionary

Innovators Early Early Majority Late Majority Laggards Adopters

2.5% 13.5% 34% 34% 16%

SELECTED INNOVATION MODEL

I TP Imaging Technology

Technology Product

Market Manufacturing

IV Interactive NetworkingCell phone-Expert

II MP Always with youIII Simultaneous, Automotive

DISCONTINUOUS INNOVATION

Market Knowledge

Scientific & Technical Knowledge

W E: Camera-consumer mkt

W E: Autobrite Imaging sensor CMOS

Option 1

Pc Tc Mc

MnTc

Security, Automotive

Improved Camera

Cell phone

Mn Tn

Option 2, 3

Option 4

INNOVATION STRATEGIES

• Option 1: Improvement. Higher resolution 1.3 megapixel + Flash, same price but thicker

• Option 2: Security: Capture moving image, wide panoramic image, stationary ‘moving” camera

• Option 3: Automotive adaptive cruise control, intelligent mirrors

• Option 4: Camera in phones embedded or add on (to design something new)

• Option 5: Market Innovation (Police recognition)

Cell phone , Recognition

Target zone: new technology, latent need

Wall of Experience

Wall of Expectations

Scientific & Technical Knowledge

Market Knowledge

SMaL Technologies Timeline

SMaL Camera Features

Component Kit Features

SMaL switched their focus from selling finished cameras to selling components in a kit

For discussion:Why did SMaL chose to build “Kits” to sell

to OEMs rather than components or complete Cameras?

Why did SMaL chose to build “Kits” to sell to OEMs rather than components or complete Cameras:

For discussion:

•To focus on areas where they could build a strong competitive advantage•Kits are better than selling individual parts since:

If the customer knows what technology you’re using, they know exactly what it’s worthIf they do, they can control the price and you lose the competitive advantage

Management Problems/IssuesManagement Problems/IssuesManagement Problems/IssuesHigh customer power (demanding OEMs)New market entrants into SMaLs “territory”Lack of resourcesSegmented market (SMaL needs to choose)

Possible Alternatives: Moving on up Step up security and surveillance efforts Speed up the automotive efforts Cameras in phones Making a left turn

Moving On Up

• ProsOEM customers

showing a demand for better product

Technology is already established

Cons• Highly competitive market• Would cause cameras to become thicker to match the market needs

Security and Surveillance• ProsAlready created

successful prototypes

Security industry would require fewer cameras and fewer people to monitor them

Cons• Hard to conform with existing industry infrastructure• Had to convert back from digital to analog

Speed Automotive Efforts• ProsCompetition in the

industry is lowHave an existing

agreement with a leading supplier to make smart applications

Cons• Long development time required to be competitive• Would not see profit for at least 2-3 years

Camera Phones• ProsSize and battery life

of technology is a great fit for phones

Proven in Japan that there is a huge demand

Many interested customers

Cons• Many competitors developing in the market• Existing component kit not good enough, new development would be required

Making a Left Turn• Pros• New market

potential• Low competition

if the right opportunity is discovered

Cons• High resources required for custom development• Opportunities hard to find•Lack resources they need

Suggested Course of Actions:Suggested Course of Actions:• 1. Develop camera for cell phones, webcams

for laptops-Safe emerging market

• 2. Develop products with disruptive potential ◦ Use funding generated from camera phones to get the

human and other resources they need to develop innovative products for the security industry

Discussion Questions:Are the SMaL Ultra-Pocket camera along

with the component kits a disruptive or sustaining technology?

• http://doi.contentdirections.com/mr/hbsp.jsp?doi=10.1225/603116

• http://www.biu.ac.il/soc/ec/students/teach/554/data/SMaL%20Big.ppt

Reference