1. The New Product Development Process Class 4 February 6, 2007 Stage 2: Concept Generation

2. Identifying and/or Interpreting Needs

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

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

5. Empathic Design Empathic design means understanding user needs through empathy with the user world rather from user articulation of needs. Methods used: - Observing users’ behavior. - Interpretation of user’s environment, and extrapolation of trends into the future. - Anthropological exploration - NPD designers live in user’s environment, and consider how to solve unspoken problems.

6. Empathic Design Five types of information acquired from empathic design : 1. Triggers of Use (e.g., Cheerios; PAM) 2. Fit between the product and user’s environment (e.g., Intuit’s “Follow Me Home Program”; venting hood) 3. User customization (e.g., id labels; laundry detergent mixtures) 4. Intangible product attributes (e.g., emotional appeal.. Huggies pull ups) 5. Unarticulated user needs (e.g., surgeon’s camera; Minivan seats)

7. 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

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

9. 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.”

10. 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.”

11. 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

12. 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?

13. 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!”)

14. 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)

15. Stage II: Concept Generation

16. 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

17. Creativity Process What is creative thought?

18. The Process: Creative Cognition Creative accomplishments, whether mundane or extraordinary, are based on ordinary mental processes Our understanding of human cognition can be directly applied to understanding creative thought as well

19. The Process: Creative Cognition Bottom Up: The Geneplore Model Generative Processes Pre-Inventive Structures (Finke, Ward, and Smith 1992) Mental transformation / assimilation to create a structure For example, arrange an 8, a V, and a circle to make a figure or structure Exploratory Processes

20. The Process: Creative Cognition Top Down: The POLR (Path of Least Resistance) Reproductive Thought What pushes you off the POLR?  Constraints

21. Time and Money Constraints Budgetary Constraint ($1,000 per house) Time Constraint (2 days)

22. Input Constraints

23. Creativity Process Outcome How do you measure it?

24. e.g., do you know creativity when you see it?

25. Are these creative new product concepts?

26. What about these?

27. Or these?

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

29. 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

30. Strategy Implications Individual Trait Use Cross-Functional Teams Use Personality Testing in Hiring 9-dot problem Remote Associates Test MBTI

31. 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)

32. Analytical Strategies Perceptual Mapping Determinant

33. Perceptual Mapping: A Determinant Gap Map

34. Analytical Strategies Perceptual Mapping Determinant Attribute Ratings (AR)

35. 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 Obtaining Customer Perceptions

36. 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”

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

38. Factor Loading Matrix Figure 6.7

39. 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. Factor Scores Matrix Figure 6.8

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

41. Analytical Strategies Perceptual Mapping Determinant Attribute Ratings (AR) Overall Similarity (OS)

42. Dissimilarity Matrix Figure 6.10

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

44. 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

45. 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

46. Non-Analytical Strategies Brainstorming Analogical Thinking

47. 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.

48. Some Interpreted Needs

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

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