The New Product Development Process Class 5 Opportunity Identification Concept Generation

Phase I: Opportunity Identification

The trouble with the future is that there are so many of them. -John R. Pierce (Bell Labs)

Scenario Planning

Challenging Inertia Do an assumption analysis List key uncertainties Opportunities appear Embrace the uncertainties with Scenario Planning 1980’s example

Example: Global Uncertainties (mid-80’s) Key Uncertainties Trade conflict between USA and Japan Arms negotiations between USA and USSR Spread of AIDS Impact of Europe 1992 Deterioration of ozone layer and hole Continuation of Apartheid

Combining 2 Key Uncertainties USA / Japan USA/ USSR Arms Race Detente AccomodationTrade Conflict Imperial Twilight Industrial Renaissance Protracted Transition X

A Scenario Planning Exercise Objective To sketch out strategically different futures that your team may have to operate in Inside these different futures, focus on the concrete detail in order to identify new product opportunities

A Scenario Planning Exercise Scenario Planning Stages I) If you could consult the oracle at Delphi, what 3 questions would you ask? II) Identify other key uncertainties III) Pick the 2 most important and dichotomize them (vote) IV) List the main stakeholders & their interests/positions V) List the main long-term trends and assess the impact of each trend on this organization (+, 0, -, ?) VI) Fill in the matrix, pick one cell to examine in depth

Opportunity Identification Scenario Development Have the group members take on the roles of the different possible players in the scenario & discuss details of the situation (how specifically would your party be impacted) What new opportunities or needs emerge in this new “world”?

Identifying and/or Interpreting Needs

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

Empathic Design... Customer Verbatims Interpreted Needs Observations Product Concepts Product Specifications Scenario Planning Or Market Driving Forecasting

Translating Observations into Interpreted Needs (Empathic Design) Observation 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

Depth Interviews... Customer Verbatims Interpreted Needs Observations Product Concepts Product Specifications Scenario Planning Or Market Driving Forecasting

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.” If possible, avoid words like “must” and “should.”

Designing a Kitchen Tool Customer CommentInterpreted 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 “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. Verbatim NeedsInterpreted Needs

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

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

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)

Analytical Strategies Perceptual Mapping (Gap Analysis) Crunchiness High Low Nutritional Value HighLow Raw Vegetables Banana Cheese Yogurt Fruit Juice Granola Bar Candy Bar Popcorn Pretzels Donuts Ice Cream Soda Cake Pie Cookies Potato Chips Fritos Raisins Apple

Analytical Strategies Perceptual Mapping Relationship Analysis Event Insured Against Person/Animal Insured New- borns Geniuses Dogs/ Cats Tropical Birds New Jobholders Newlyweds Injury from Fire Getting Lost Normal Death Kidnapping Being Insulted

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

But, do you know creativity when you see it?

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

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: