The Textbook Model Access to Customer Identification of Need Creation/Discovery of Technology channel brand existing customers Ulrich

Technology Push via partner, OEM customer, or (rarely) on own… Creation of Technology Identification of Need Access to Customer channel brand Ulrich

Product Development Process

Concept Development Process

#66 2 – Location Reporting Fish Tape Fish tape with tip that tells you where it is Uses RF Exterior hand held sensor like stud finder locates it Could have sensor on second fish tape and auditory feedback that tells you when one approaches the other $

Initial Concepts Best Ten Best Three Final Name AstroPong Catapong Catapulooza Experipult FlingThing Fooz Funpult Hurlicane Hurlitzer LearningLever PennPong Physazz PingFling Pongit Slingcat Swish TheCatapult Varipult Xpult

The Statistical View of Opportunities

Expected Quality of Best Idea as Function of Number of Ideas Source: Approximation based on calculations from distribution of 247 venture ideas from 47 individuals.

Quality of Output q q q

West Philadelphia X-Prize Team http://www.rollingstone.com/news/story/24044267/boyz_under_the_hood

N Fraction of Ideas Singletons 197 68% Pairs 22 8% Triples 12 4% Clusters of 4 16 6% Clusters of 5 5 2% Clusters>5 38 13%

Fraction of Opportunities Identical (50% threshold) New Ventures Web-Based Products New Products I New Products II Classroom Technologies N Fraction of Ideas Singletons 139 60% 175 70% 197 68% 165 58% 78 25% Pairs 30 13% 40 16% 22 8% 14% 6 2% Triples 12 5% 4% 27 9% Clusters of 4 16 6% 4 1% 0% Clusters of 5 10 5 Clusters>5 39 17% 38 45 221 71% 25

Ulrich

What should be the shape of the funnel?

Tournaments Tend to be Combinations of “Cascades” and “Whirlpools”

Cascades and Whirlpools Calendar time is critical. Raw opportunities are abundant and inexpensive. Learning. The process of developing opportunities leads to an increased ability to identify good opportunities.

How Important is the Raw Idea? A hot-shot race-car named Lightning McQueen gets waylaid in Radiator Springs, where he finds the true meaning of friendship and family.

Project Mission Statement Assume you work within a company with a strong focus on selling and marketing to college students. Your senior management has asked your team to develop a new product to address a product category in the college student market. The constraints on your project are: The product is highly likely to require fewer than 10 custom components. The product is highly likely to be sold to the end consumer for less than $49.99. The product could be sold through a specialty retail channel near the Penn Campus (EMS, The Bookstore, Urban Outfitters) The product is a physical good and not software or a service. Some existing products: (clip-on fender) (shoelace clip) iPod case Ulrich

Urban Cart The cart hauls gear efficiently in urban settings. Market Urban dwellers who transport stuff on streets and sidewalks via foot and/or bicycle. Suburban dwellers who transport stuff more than 50 meters from the car. 100% of Penn Students (N=20,000) engage in transporting stuff. Unmet Needs the cart is the “one” device I need for all my hauling. the cart hauls my groceries over tough urban terrain. I can use my cart with my bike. Some Existing Solutions Three Possible Concept Directions 1. Bin Cart 2. Tray Cart 3. Convertible gear/bag cart convertible from hand to bike mode hangs shopping bags stackable/nesting bins minimal cart frame 300mm pneumatic tire tray contains all cart parts stores under bed

Innovation Process – OPIM/MEAM/IPD 415/515 N (?) profitable products ~30 teams of 2 ~15 teams of 4 ~15 products offered for sale at Design Fair ~60 opportunities developed by individuals concept prototypes and purchase-intent survey opportunity pitches and multivote Darwinator system ~600 opportunities identified by individuals ~300 opportunities submitted by individuals Ulrich