a. Explain the technology or innovation introduced in the cases. Cannon knew that his compact echo machine, which he carried under his arm by a single handle, would have to perform competitively in a room full of cutting-edge echo machines made by long-standing competitors such as Hewlett Packard - every machine weighing more than the average NFL linesman and costing nearly a quarter of a million dollars. To visualize how the heart was working, the face of the transducer, which was usually no more than 9 square centimeters, was placed on the patient's chest at different angles. The transducer delivered ultrasound waves into the body and these waves were reflected back to the transducer when they passed through interfaces of different acoustic impedance. More simply, the ultrasound bounced off the body's internal structures and returned to the transducer. The transducer converted the returned sound into electronic signals that were processed by the instrument's internal computers, to create an image of the body's internal tissues. These images were then displayed on the screen to the user and recorded on video for storage and analysis of the line.b. Would demanding customers view innovation performance as inadequate? But he worried about how he could penetrate a market that seemed to have been held so closely for so long by competent, well-established competitors - and what combination of product and service features could attract the market. customers he had to target. Often, the need to move the instrument and a technician to other locations in the hospital can disrupt patient flow in the cardiology department's echo lab. Other areas of the hospital where echocardiography equipment could be used...... middle of paper ......markets. This was accomplished by focusing on design and engineering. However, without strong sales, marketing and production resources, the company will not be able to capture these alternative markets. Since the product is almost complete, Ecton should stick to its original plan. This would allow Ecton to benefit from its first-to-market position when negotiating with a potential buyer. By selling the business now, Ecton could avoid having to forgo additional equity to obtain additional financing. This would give initial investors (including founders) the best return on investment. Michael Cannon has already developed an exit strategy in his Phase III plan. This plan must be followed to the end. As Ecton is on the verge of perfecting its product, now is the right time to make the best possible deal for an acquisition..