Innovation Part 2: Innovation in Action By: Tom Gorman 7 7 Designing & Testing 8 8 Rolling out New Products

7 7 Designing & Testing INNOVATION is the physical form of an idea. DESIGN is the determination of how it will look, feel, and work. DESIGN affects cost, materials, safety, manufactrability, storage, distribution and delivery. DESIGN = underlying plan for structure and function. The Snot Spot®

Design Example: The Puzzle Alarm wakes you up by firing four puzzle pieces up in the air, then it is your mission to get the pieces and put them back in the alarm clock or it won’t turn off until then. Price:$52 [via Gizmodo]Puzzle AlarmGizmodo

Design Example: Holofiber® is embedded with microscopic mineral crystals that harness certain wavelengths of light as well as the body's radiant energy and redirect them into the body. This relaxes the capillaries in the skin, increasing blood flow and oxygen delivery to the tissues EcoSpun fiber - made from 100% post consumer recycled plastic bottles. Recycling saves energy, reduces oil consumption and waste in our landfills. Two new fibers combined

Design Example: Strain-Reducing Wheeled- Leverage Snow Shovel scoops snow and allows you to throw it into piles as high as 4', greatly reducing strain on your back. can be adjusted for various body heights and snow levels Item $ SOLD OUT Due to the popularity of this item.

7 7 Designing & Testing Customers’ expectations & desires Cost of materials, assembly, packaging, transportation & storage, & installation Durability, maintenance, repair, parts availablility, technical service skill Customization factors Getting Design Right:

7 7 Designing & Testing It does what it is supposed to do and performs to expectations It is safe & easy to use Has the parts needed to perform its function; no more / no less Form follows function. Aesthetics still count FUNCTIONALITY

Design Example: Cell towers needed to maintain your cell phone signal are polluting our landscape. Ericsson has started creating designs for cell phone towers that aren’t nearly as ugly as some the ones we are accustomed to seeing.

7 7 Testing Product Testing Product Testing determines how well the product or service works for the customer Test design, usage, instructions, quality, performance, durability.

7Product Testing 7 Product Testing Know what you want to test. Develop ways to measure those thing,capture information For B2B products & services, test for compatibility with current operations and client customization If products are complex, guage instructions, training & support needed. Note features users like/dislike Note misuse & danger

7Testing 7 MARKET Testing Market testing is used for assessing buying behavior Best used to assess - PRICING DECISIONS & SALES FORECASTS (Purchase Volume estimation & Price Sensitivity) Cost and skills needed for statistically significant samples just isn’t practical for many products. PRICING DECISIONS & SALES FORECASTS

8 8 Rolling out New Products the actions necessary to produce at a larger volume, plan and execute marketing, hire & train sales and support personnel, select distribution channels, and prepare to sell and support the product. PRODUCT LAUNCH: Go to Market Strategy

8 8 Rolling out New Products PRODUCT LAUNCH: Go to Market Strategy Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers (1991, revised 1999), is a marketing book by Geoffrey A. Moore Emphasize Early Adopters

8 8 Rolling out New Products Product Price Packaging Place Promotion. Attend to the 5 “Ps” of Marketing

8 8 Rolling out New Products Find first buyers (innovators & early adopters) Consumers: target demographics – Socio-economic characteristics B2B: rapidly growing or established companies with excellent reputations

Value Proposition – Unique Selling Proposition Why the customer should buy the product Distinguishing or unique benefits of the product or service Competitive advantages and high performance 8 8 Rolling out New Products Example from Outsourcing IT Services

8 8 Rolling out New Products. Tackle SALES CHALLENGES Find the right retailers, wholesaler, OEM (original equipment mfgs.) and other middlemen to help bring product to customer

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