A guide on how to win CapSim and understand all of its parts and win the simulation in MBA course

R&D Strategy in Capsim – The Costs of R&D and Developing new product

In another post I have covered some basic knowledge of R&D strategy in Capsim. And this post is about the costs of repositioning – time and money

So basically, you want your products to be smaller but perform better. Repositioning products would move to the bottom right corner of the Perceptual map. However, upgrading your products will costs money and time and Material cost will be higher. You want to look at the Industry Condition Report for customers’ requirement for each segment of market and upgrade your team’ products accordingly. Changing size and performance cuts the product’s age in half while changing MTBF does not.

1. Low end segment customers want low prices product and the age can be a bit high – at 7 years

2. High end customers want the best technology in products and new design every year.

Looking at these cases I would not upgrade my Low end very often while the High end sensor need better specifications every year. I did not upgrade the original low end product until Round 3 or 4 and it was the best source of Net income to my company with its low production costs and the largest number of sales.

Another important thing is the time it would take to upgrade or invent new sensors, which is as important as the specifications of sensors. I would need more posts to cover this in the future but in short just make your revision dates before October. The reason is the new designs will be produced after the revision date and if it is too late your sensors are not going to sale very well. In the first 3-4 rounds it would be difficult to keep up with Customers’ buying criteria but you will have a module called Total quality management (TQM) in round 3 and this will help shorten the R&D cycle time by around 30-40%.

R&D strategy to win Capsim
Revision date of Eat and Edge and Ebb1 are good, while you should lower specs for Echo and Egg.

For example, High end sensors will need to be 1.0 point smaller in size and 1.0 point better in performance. In the first two rounds you can only make it closest to the criteria as you can, probably 0.7 point each.

Also, when developing a new sensor, you should plan ahead and make sure its specifications will be in Buying criteria by the time it is released. And remember to set the capacity and automation level for it in the Production module at least one year in advance.

In summary, the key to win Capsim – R&D module is to upgrade your sensors to the Customer buying criteria but not too much, you really need to find the balance between the criteria and the time it take for revision.

In the next post I will help you do the Finance module. R&D part is probably the easiest in Capsim while Finance is one of the hardest parts. You need to understand it thoroughly to not get into some financial trouble – Emergency Loan for example – that can damage you result.