1. Innovation Management 2012 Stefan Wuyts
Concept generation
Innovation Management 2012
Stefan Wuyts

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

3. 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.

4. 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)

5. 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.

6. 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?

7. 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

8. 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

9. 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.

10. 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.

11. Steps in Lead User analysis

12. 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

13. 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.

14. Applications: pet owners’ problems

15. 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

16. 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

17. 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

18. 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.

19. 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