Concept Generation/Ideation Marketing 4250 February 1, 2007

Translating Observations into Interpreted Needs (Empathic Design) Capture “data” - use video or still pictures, don’t write Show “data” to people who didn’t observe first-hand and discuss observations Brainstorm for solutions

Translating Verbatim Statements into Interpreted Needs Identify the benefit and not the function (what the product does, not how it should/must do it). “I want a 1/4” hole, not a 1/4” drill bit.” Describe an attribute of the product or the user If possible, avoid words like “must” and “should.”

Designing a Kitchen Tool Customer Comment Interpreted Needs “It hurts my hand.” “The tool is comfortable.” “It only does one thing.” “The tool can peel, gouge, cut, etc.” “It is not very attractive.” “The tool looks stylish.”

Designing a Coffee-Making Machine Verbatim Needs Interpreted Needs “I would like it to remind me of an English butler.” ”I hate it when it drips if I pull out the pot or the filter.” “I don’t like having the cord stretched all over the counter.” “I just want a good tasting cup of Joe.” The product is elegant and unassuming, with clean lines. The product keeps itself and the area around it clean. The product has good cord management. The product makes good coffee. The product heats and keeps water at the appropriate temperature.

Structuring the Interpreted Needs Categorize the interpreted needs into a smaller number of categories. What “primary interpreted needs” labels should we attach to these categories?

Prioritizing Interpreted Needs Kano Classification (one approach) L = Linear Satisfiers (“The more the merrier.”) N = Neutral/Indifferent (“No big deal.”) M = Must Haves (“I won’t buy without!”) D = Delighters (“What an unexpected treat!”)

Kano’s Model of (Non-Linear) Customer Satisfaction Delighter (D) Customer Satisfied Linear Satisfier (L) Requirement Fulfilled Not Fulfilled Must Have (M) Indifferent (I) Customer Dissatisfied See (1) Matzler, et al.., 1996, Journal of Product & Brand Mgmt (2) Matzler and Hinterhuber, 1998, Technovation (3) Center for Quality Mgmt

EMPATHIC (OBSERVATION) VS. USER ARTICULATION (INQUIRY) Strengths Weaknesses - Technique relies upon well- trained observers who can convert observations to innovative solutions. - Inability to measure attitudes. - Innovation possible beyond what users are able to tell you. - Technique relies upon real actions. Empathic (Observation) User Articulation (Inquiry) - Users may be unable to articulate needs (e.g unnoticed workarounds). - Interview/interaction process may bias response. - Information can be acquired on attitudes and reasoning from users. - Easy to acquire information.

Translating the “Voice”-of-the-Customer Verbatims Observations Interpreted Needs Product Specifications Product Concepts Scenario Planning Or Market Driving Forecasting

Phase II: Concept Generation

What is a Product Concept? A concept includes: a specific product form (the attributes) a specific technology (the source of the form) a specific benefit for a particular usage situation see Page and Rosenbaum (1992), “Developing an Effective Concept Testing Program for Durables,” J Product Innovation Mgmt

Definition of a Creative Concept: One that is both original AND useful

Creativity: is it an individual trait or is it situation-driven? Both Individual Trait: Scientific Creativity (Engineer, Chemist) Artistic Creativity (Painter, Composer) Combo (Inventor) -- rare Situation-Driven: No creative ability Low creative ability Some creative ability No Situation Effects Some Situation Effects Strong Situation Effects

Strategy Implications Individual Trait Use Cross-Functional Teams Use Personality Testing in Hiring Situational Effects Culture/Processes (3M, TI, IDEO, Kellogg’s) “No more mistakes and you’re through!” - John Cleese Reward Structures (IBM, Campbell’s) Ideation Strategies (Analogies) Analytical Strategies (Perceptual Mapping, Relationship Analysis, Morphological Matrix) Strategies for leveraging creativity: Culture Processes: 3M -- Chairman: “We do expect mistakes as a normal part of running a business, but we expect our mistakes to have originality.” They have a lab where workers can spend time playing outside of their regular work. One worker started a pet project on tiny glass beads. Those beads became the reflective material on road bridges & safety signs. 3M now awards “genesis grants” of up to 30,000 dollars to fund new projects that don’t fit in the business culture. TI -- It had a program called IDEA (identify, develop, expose, action). 60 IDEA representatives throughout TI could dole out funds (without higher approval) for projects proposed by personnel who lacked the influence to get them through the proper channels. Speak & Spell and Magic Wand were 2 notable ones that resulted from such funds. IDEO -- arguably one of the most innovative and influential industrial design consultants in the world. their entire culture encourages creativity. I’ll talk about them in a minute Kelloggs -- even this “staid” co. is learning how to do this. Hand out article. Rewards -- IBM (Tom Watson handing out cash to individuals); Campbells -- Presidential Awards for Excellence. Cash bonuses for people who obtained patents during the year.

But, do you know creativity when you see it?

Are these creative new product concepts?

What about these?

Or these?

Concept Generation / Ideation Step 1: Clarify the Problem Step 2: Search Externally Step 3: Search Internally Step 4: Explore Systematically Step 5: Reflect on the Results and the Process

Concept Generation / Ideation Step 2: Search Externally Experts - Lead User Analysis Lead Users - experience the need ahead of the mass market; not the same as early adopters

General Principle of Lead User Research Extreme versus Means Identification of functionally novel products and service concepts should be done at the leading edge of markets and applications Evaluation of commercial potential should be done at the “means” of markets and market segments

Important Innovations by Consumers Category Health Products Personal Care Sports Food Office Computers Apparel Example Gatorade Protein-based Shampoo Mountain Bike Chocolate Milk White-out Liquid E-mail, Desktop Publishing Sports Bra

Benefiting from Lead Users Lead User innovations form the basis for new products and service of value to manufacturers. Lead Users Have new product or service needs that will be general to the marketplace, but they face them months or years before the bulk of the market Expect to benefit significantly by finding a solution to those needs

Adopter Categorization on the Basis of Innovativeness Lead users are not the same as “early adopters”

Concept Generation / Ideation Step 2: Search Externally Experts - Lead User Analysis Lead Users - experience the need ahead of the mass market; not the same as early adopters Interviewing Observation - Empathic Design Focus Groups

Concept Generation / Ideation Step 3: Search Internally Analogy Near Vs. Far Relations Vs. Attributes

Exercise A recent article in the Wall Street Journal identified the difficulties and problems inherent in eating in a moving vehicle. “Automotive dining” has created a new opportunity for an innovative product introduction. You are asked to develop a new product concept that will meet the needs/solve the problems of the commuting diner.

Some Interpreted Needs Assuming you’ve watched people do this (or have done it yourselves) be an use the empathic design skills you read about to come up with a list of interpreted needs Take overhead and have them list. Get paper as well.

Results Teams of 2 Designers Texas Instruments TXS Industrial Design Ignition

Results from comprehensive study Number of benchmarks or no benchmark Design Strategy - use many vs. few analogies Results:

Concept Generation / Ideation Step 4: Explore Systematically GAP Analysis with Perceptual Maps Determinant GAP Maps

A Determinant Gap Map

A Determinant GAP map exercise Sandwich shops in Boulder Make a list of 10-12 sandwich shops in Boulder Include: Deli Zone Half Fast Subs on the Hill Jimmy Johns Snarfs Subway Silvermine Subs Think about the shops and use your judgement to identify the two most important factors that differentiate them from each other. Use those factors as axes Place all of the shops on your list onto the map Are there any noticeable gaps? How do you interpret them?

Concept Generation / Ideation Step 4: Explore Systematically GAP Analysis with Perceptual Maps Determinant GAP Maps Perceptual Maps based on Attribute Ratings (AR)

Data Reduction Using Multivariate Analysis Factor Analysis Reduces the original number of attributes to a smaller number of factors, each containing a set of attributes that “hang together” Cluster Analysis Reduces the original number of respondents to a smaller number of clusters based on their benefits sought, as revealed by their “ideal brand”

Obtaining Customer Perceptions Rate each brand you are familiar with on each of the following: Disagree Agree 1. Attractive design 1..2..3..4..5 2. Stylish 1..2..3..4..5 3. Comfortable to wear 1..2..3..4..5 4. Fashionable 1..2..3..4..5 5. I feel good when I wear it 1..2..3..4..5 6. Is ideal for swimming 1..2..3..4..5 7. Looks like a designer label 1..2..3..4..5 8. Easy to swim in 1..2..3..4..5 9. In style 1..2..3..4..5 10. Great appearance 1..2..3..4..5 11. Comfortable to swim in 1..2..3..4..5 12. This is a desirable label 1..2..3..4..5 13. Gives me the look I like 1..2..3..4..5 14. I like the colors it comes in 1..2..3..4..5 15. Is functional for swimming 1..2..3..4..5

Selecting the Number of Factors The Scree Percent Variance Explained No. of Factors

Factor Loading Matrix Figure 6.7

Factor Scores Matrix Figure 6.8 Sample calculation of factor scores: From the snake plot, the mean ratings of Aqualine on Attributes 1 through 15 are 2.15, 2.40, 3.48, …, 3.77. Multiply each of these mean ratings by the corresponding coefficient in the factor score coefficient matrix to get Aqualine’s factor scores. For example, on Factor 1, Aqualine’s score is (2.15 x 0.145) + (2.40 x 0.146) + (3.48 x -0.018) + … + (3.77 x -0.019) = 2.48. Similarly, its score on Factor 2 can be calculated as 4.36. All other brands’ factor scores are calculated the same way.

The AR Perceptual Map Gap 1 Islands Molokai Splash Sunflare Gap 2 Aqualine Islands Splash Molokai Sunflare Gap 1 Gap 2 Fashion Comfort Figure 6.9

Concept Generation / Ideation Step 4: Explore Systematically GAP Analysis with Perceptual Maps Determinant GAP Maps Perceptual Maps based on Attribute Ratings (AR) Perceptual Maps Based on Overall Similarities (OS)

Dissimilarity Matrix Figure 6.10

The OS Perceptual Map Aqualine Molokai Islands Sunflare Splash Comfort Figure 6.11 Aqualine Islands Splash Molokai Sunflare Comfort Fashion

Analytical Strategies Step 4: Explore Systematically GAP Analysis with Perceptual Maps Relationship Analysis Event Insured Against Person/Animal Insured New- borns Dogs/ Cats Tropical Birds New Jobholders Geniuses Newlyweds Injury from Fire Getting Lost Normal Death Kidnapping Being Insulted

Analytical Strategies Step 4: Explore Systematically GAP Analysis with Perceptual Maps Relationship Analysis Gap Analysis Morphological Matrix Dimension 1: Cleaning Instrument Dimension 2: Ingredients Dimension 3: Object to be Cleaned Dimension 4: Package Dimension 5: Substance Removed Aerosol Bag Bottle Can Tube Broom Brush Sponge Steel Wool Vacuum Alcohol Ammonia Disinfectant Pine Oil Air Boat Carpet Floor Fence Blood Dirt Mildew Paint Rust