a. Explain the technology or innovation introduced in the cases. Cannon knew that his compact eco machine, which he carried under his arm with a single handle, would have to perform competitively in a room full of cutting-edge eco machines made by longtime major competitors like Hewlett Packard: Each machine weighs more than the average NFL lineman and costs nearly a quarter of a million dollars. To observe the functioning of the heart, the front part of the transducer, which was usually no larger than 9 square centimeters, was placed on the patient's chest at various angles. The transducer sent ultrasonic waves to the body, and these waves were reflected back towards the transducer as 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 returning 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 video recorded for line storage and analysis.b. Would demanding customers consider the performance of the innovation inadequate? But he was worried about how he could penetrate a market that seemed to have been held so tightly for so long by capable, entrenched competitors — and what mix of product features and services might appeal to consumers. the customers he had to address. Often, the need to move the instrument and a technical device to other locations in the hospital could disturb the flow of patients through the cardiology department's ultrasound laboratory. Other areas of the hospital where echocardiography equipment could be used... in the middle of the paper markets. This was achieved by focusing on design and engineering. However, without strong sales, marketing and manufacturing resources, the company will not be able to secure these alternative markets. Since the product is almost completed, Ecton should stick to the original plan. This would allow Ecton to take advantage of its first-to-market position when negotiating with a potential buyer. By selling the business now, Ecton could avoid the need to forgo further equity capital to secure further funding. This would give the original investors (which include the founders) the maximum return on their investment. Michael Cannon has already developed an exit strategy in his Phase III plan. This plan should be followed. As Ecton is close to perfecting its product, now is the time to make the best possible acquisition deal.