1. Innovation Leadership Training Day Four Prototype - Pilot February 20, 2009 All materials © NetCentrics 2008 unless otherwise noted

2. Welcome In this section of the innovation process training we’ll examine the steps necessary to build a prototype or a simulation of an idea and to pilot the concept.

3. What We Want to Accomplish

4. Goals for this section Our goal this section – Define the requirements for prototyping – Establish the rationale for a pilot or concept test – Conduct a pilot and review the results

5. Key Points Prototyping may happen in the earlier phases as a rough representation – At this point, however, the prototype should reflect a good approximation of the ultimate product or service The prototype can be used in a customer pilot or concept test to validate the needs and value proposition – We need to understand how to recruit prospects and analyze feedback

6. Prototyping While we’ve created a prototyping phase, it’s very common to develop rough prototypes much earlier in the development of the idea Often evaluators and potential customers need a physical representation or a simulation of a product or service in order to evaluate and provide valuable feedback

7. Prototype / Simulation Clearly it is easier to prototype a physical product or an online service than a customer experience or service delivery For less tangible ideas, you may be forced to mock up interactions or virtual spaces to communicate the value proposition

8. Prototyping Timeline Create a prototype as early as possible once the idea is deemed “feasible” Early prototyping helps shape the idea and identify potential weaknesses Clorox builds rough prototypes based on customer insight and feedback in three to four days after the initial insight, to test with consumer panels Prototyping and idea generation/incubation can be an iterative process

9. Four Phases of prototyping Reaction – Initial reaction to the prototype by the prospect or consumer – Seek honest, top of mind responses – Emotion is as important as logic, especially for a new product or service – Consider the initial engagement, likes and dislikes

10. Next Phase of Prototyping Interaction – After the initial “reaction”, the prospective customer or consumer will interact with the prototype or simulation – This is the time to ask the “what if” questions What if we changed this feature or removed it What if it had a different shape or texture – Be careful to remind the prospect that the prototype is one possible example of the solution – be expansive not contractive

11. Next phase of Prototyping Feedback – Record the feedback carefully. As Yogi Berra said, “You can learn a lot from just observing” – This is an excellent voice of the customer opportunity as well. Observe not just what the prospect says, but how they interact with the prototype, what is said and what isn’t said

12. Final Phase of Prototyping Response – Close the loop with initial prospects and customers by demonstrating an updated prototype or simulation based on the feedback and your observations

13. Piloting Prototypes are used to gain quick feedback and shape the product Pilots are used to provide a broader market test of the proposed product or solution This requires placing the product or solution in “real” environments with a broader group of potential customers

14. Funding Early prototyping or simulation should be rough – we like to call this phase “fast trash” More detailed prototyping can require more resources and assistance A pilot can require extensive funds since a final prototype must be developed and customers or prospects recruited and observed

15. An expected step in the process Prototyping is one of the first instances where the innovation process requires significant funding other than resource hours When you define your innovation process, prototyping should be considered a regular step and the costs included in the request

16. Key Takeaways Start prototyping as early as possible in the innovation process, using the prototypes to obtain insights and requested changes to the idea Prototypes can be physical models, simulations or mock ups of experiences Plan for the time for piloting and the cost as part of your development roadmap

17. Questions?

18. Exercise