Product Development with a New Technology:. Lessons from the America′s Cup
| Date | 01 September 1994 |
| Published date | 01 September 1994 |
| DOI | https://doi.org/10.1108/10610429410067423 |
| Pages | 39-50 |
| Author | Lawrence C. Rhyne |
| Subject Matter | Marketing |
VOLUME 3 NUMBER 3
1994
39
The light and shifting winds off San Diego
are an apt metaphor for the difficulty of
forecasting the direction of product
development which incorporates a new
untested technology. The America’s Cup
involved 12 entries from ten countries and
used a new class of boats which incorporated
high technology materials into a totally new
set of specifications. Competitors and their
designers were not limited to a single design
but had leeway to develop superior products
that would affect the outcome of the race.
Designers had come to feel they knew 98
percent of what there was to know about the
12-meter boats that had contested the Cup for
the last 30 years. However, the new boats
were constructed of space-age carbon fibers,
equipped with the latest high technology
gadgetry, ten feet longer at the water line,
about 30 percent lighter, and carried about 40
percent more sail than the previous boats. The
campaign took place over a three-year period
during which thousands of people were
involved. Total expenditures were estimated
at $2 billion. The heads of many of the
syndicates were business leaders in their
home countries. While applying sports
analogies to business competition is
dangerous, the importance of the technology
development process, the size of the
investment and the length of the America’s
Cup campaign make it a dynamic case study
of patterns of international technology
competition from which useful insights can
be drawn.
The design challenges for the America’s
Cup were analogous to product development
with new industry standards. Standards for
the competition boat were set, but the best
design within those standards had yet to be
determined. In developing their products, the
boat designers had to not only fulfill
“industry specifications” but also meet the
goals of their customers – the skippers and
crews – to finish first. They were charged
with the demanding task of converting written
standards into a yet-to-be tested product that
could beat world class competition. In
addition, a skilled skipper and well-trained
crew were necessary to utilize the high
performance product once it was designed.
Designers of America’s Cup boats are not
alone in trying to meet and sometimes predict
the needs of their customers. Standards of
success in today’s business environment are
increasingly uncertain and competitive. The
Product Development with a
New Technology
Lessons from the America’s Cup
Lawrence C. Rhyne
Journal of Product & Brand Management, Vol. 3 No. 3, 1994, pp. 39-50
© MCB University Press, 1061-0421
To continue reading
Request your trial