Innovation Management 2012 Stefan Wuyts Concept generation Innovation Management 2012 Stefan Wuyts

Agenda From idea to product concept Lead User analysis Problem-based concept generation

Required Inputs to the Creation Process Form (the physical thing created, or, for a service, the set of steps by which the service will be created) Technology (the source by which the form is to be attained) Benefit/Need (benefit to the customer for which the customer sees a need or desire) Technology permits us to develop a form that provides the benefit.

Possible patterns Customer need  firm develops technology  produces form Firm develops technology  finds match to need in a customer segment  produces form Firm envisions form  develops technology to product form  tests with customer to see what benefits are delivered Third route is most risky one, sometimes works but not recommended (e.g. Dupont with Kevlar fiber)

What is a Product Concept? Statement of what is going to be changed and how the customer stands to gain or lose. Needed to judge whether it is worthy of development Potential customers do not have enough information to judge the worthiness of an idea: the product concept gives them the required information. Rule: You need at least two of the three inputs to have a feasible new product concept, and all three to have a new product.

Example: Decaf espresso Benefit: “Consumers want decaffeinated espresso that tastes identical to regular.” Form: “We should make a darker, thicker, Turkish- coffee-like espresso.” Technology: “There’s a new chemical extraction process that isolates and separates chemicals from foods; maybe we can use that for decaffeinating espresso coffee.” Why would each of these taken individually not be a product concept?

Example: Toilet Brush Idea: A new and improved toilet brush. Concept: A toilet brush that contains detergent, refillable, and easy for the customer to attach to the handle. Product (executions of this concept): Lysol Ready Brush Scrubbing Bubbles Fresh Brush Clorox Toilet Wand

Good concepts? “Learning needs of computer users can be met by using online systems to let them see training CDs on the leading software packages.” Good concept: need and technology are clear “A new way to solve the in-home training or educational needs of PC users.” Not a concept, need only “Let’s develop a new line of instructional CDs.” Technology only, lacking market need and form

Lead user analysis Lead users are users whose present strong needs will become general in a market-place months or years in the future (Von Hippel) Mostly used in technology-intensive markets; informed way to listen to the customer (recall the problems with listening to customers for creative solutions) Why lead user analysis? Lead users help identify future needs; Lead users provide useful data regarding product concept and design. https://www.youtube.com/watch?v=tNKrX1QxN6U

3 important traits of good lead users 1. … face needs well before the marketplace does; 2. … would benefit significantly from solution to these needs; 3. … are knowledgeable and innovative.

Steps in Lead User analysis

Problem-based concept generation Customer need  firm develops technology  produces form Sources and methodologies Experts (internal & external) Published sources Internal records Contacts with customers Interviewing Focus groups Observation

Applications: cell phones Keeping the unit clean. Breaks when I drop it. Battery doesn’t stay charged long enough. Finding it in dark. Battery dies in mid- conversation. Who “out there” hears me? Dropped calls. Looking up numbers. Voice fades in and out. Hard to hold. Health risks? Can’t cradle between ear and shoulder. Antenna breaks off. Flip cover breaks off. Disruptive instrument. Can’t see facial/body language. Rings too loud/too soft. Wrong numbers. Fear of what ringing might be for.

Applications: pet owners’ problems

Applications: Dyson’s Air Multiplier Fan Conventional fan problems: Spinning blades chop airflow Hard to clean Blades can be dangerous to children Fan tips over Energy inefficient Air Multiplier: bladeless (uses technology adapted from hand dryers), and attractively designed. Airstream is smooth and danger is eliminated Low center of gravity eliminates tipping Much more effective and efficient cooling No blades to clean

Brainstorming Group Creativity Method Principles of Brainstorming: Deferral of Judgment Quantity Breeds Quality Rules for a Brainstorming Session: No criticism allowed. Freewheeling -- the wilder the better. Nothing should slow the session down. Combination and improvement of ideas. Brainstorming techniques Brainstorming circle Reverse brainstorming Phillips 66 groups (buzz groups) Delphi method Electronic brainstorming

Online approaches Listening-in Build electronic communities Listen to the voice of the customer Monitor public communities and blogs to spot new trends and opportunities Build electronic communities Establish rapport with customers and enable customer support Build emotional bonds with the customer

Online approaches: Del Monte Pet Food Division Working with MarketTools, analyzed data from millions of blogs, forums, and message boards, Identified biggest concerns of pet owners. Identified new customer segment (“Dogs Are People, Too”) Created invitation-only online community to encourage customer innovation (500 consumers) Community generated and refined ideas for new breakfast product. New product, Sausage Breakfast Bites, launched in half the normal time.

Online approaches: drawbacks of communities They are hard work Costly and time consuming (hire moderators and facilitators) Takes time for the community to mature Organizing the content so it is easy for the members to find Member privacy, confidentiality, content ownership, and other legal issues