1. Concept Generation/Ideation
Marketing 4250
February 1, 2007

2. 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

3. 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.”

4. 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.”

5. 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.

6. 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?

7. 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!”)

8. 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

9. 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.

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

11. Phase II: Concept Generation

12. 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

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

14. 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

15. 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.

16. But, do you know
creativity
when you see it?

17. Are these creative new product
concepts?

18. What about these?

19. Or these?

20. 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

21. 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

22. 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

23. 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
, Desktop Publishing
Sports Bra

24. 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

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

26. 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

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

28. 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.

29. 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.

30. Results Teams of 2 Designers Texas Instruments TXS Industrial Design
Ignition

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

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

35. A Determinant Gap Map

36. A Determinant GAP map exercise
Sandwich shops in Boulder
Make a list of 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?

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

38. 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”

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

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

41. Factor Loading Matrix
Figure 6.7

42. 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, …, 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 ) + … + (3.77 x )
= Similarly, its score on Factor 2 can be calculated as All other brands’ factor scores are
calculated the same way.

43. 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

44. 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)

45. Dissimilarity Matrix
Figure 6.10

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

47. 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

48. 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