1. Carnegie Mellon University ©2006 - 2008 Robert T. Monroe 45- 827 Phase 1: Identify The Opportunity Robert Monroe March 27, 2008

2. Carnegie Mellon University ©2006 - 2008 Robert T. Monroe 45- 827 Phase 1: Identify The Opportunity Goals: –Identify and evaluate a set of promising POG’s –Choose the most appropriate POG to move forward with Primary results: –Product opportunity statement (hypothesis) –Initial scenario that illustrates the opportunity Methods –Brainstorming, observing, researching SET factors –Generating POGs based on SET factors –Evaluating and filtering POG ideas generated –Scenario generation, feedback, and refinement Realize Conceptualize UnderstandIdentify Source: Cagan and Vogel, Creating Breakthrough Products, Chapter 5.

3. Carnegie Mellon University ©2006 - 2008 Robert T. Monroe 45- 827 Phase 2: Understand The Opportunity Goals: –Much deeper understanding of customer and customer’s Value Opportunities (VO’s), translated into product criteria Results: –In-depth understanding of the customer/user, captured through refined customer scenarios and VOA’s –List of product characteristics and constraints Methods –Primary research: observe, interview, listen, task analysis, stakeholder analysis –Secondary research: human factors, lifestyle reference, dive deeper on SET factor changes Realize Conceptualize UnderstandIdentify Source: Cagan and Vogel, Creating Breakthrough Products, Chapter 5.

4. Carnegie Mellon University ©2006 - 2008 Robert T. Monroe 45- 827 Phase 3: Conceptualize The Opportunity Goals: –Turn Value Opportunities into product concepts that are perceived as useful, usable, and desirable –Generate many concepts, evaluate, refine, iterate, reduce to a single concept to move to stage 4 Results: –Clearly articulated product concept –Clear market definition –Visual, and/or physical prototypes that can be shown to and evaluated by potential customers –Demonstration or belief that product is technically feasible Realize Conceptualize UnderstandIdentify Source: Cagan and Vogel, Creating Breakthrough Products, Chapter 5.

5. Carnegie Mellon University ©2006 - 2008 Robert T. Monroe 45- 827 Phase 4: Realize The Opportunity Realize Conceptualize UnderstandIdentify Source: Cagan and Vogel, Creating Breakthrough Products, Chapter 5.

6. Carnegie Mellon University ©2006 - 2008 Robert T. Monroe 45- 827 SET Factors Experiment: Late ’90s Social: Environmental concern  Urban renewal Traffic congestion  SUV’s increasingly popular Car safety awareness  Technology: Improved airbags Auto computing capabilities  Improved small, powerful and efficient electric motors Improved software for control systems Instant-on gasoline engines Economic: Cheap gas Strong economy (jobs, wealth) Average car price  Time-in-traffic/time moving 

7. Carnegie Mellon University ©2006 - 2008 Robert T. Monroe 45- 827 SET Factors Experiment: Early ’00s Social: Environmental concern  Urban renewal Traffic congestion  SUV’s increasingly popular Car safety awareness  Delayed marriage/family Retro-style is big Car purchase decisions are very image-driven Technology: Improved airbags Improved dynamic safety Auto computing capabilities  Improved software for control systems Instant-on gasoline engines Economic: gas prices  Weaker economy (jobs, wealth) Average car price  Time-in-traffic/time moving  SUV’s become more expensive to operate

8. Carnegie Mellon University ©2006 - 2008 Robert T. Monroe 45- 827 SET Factors Experiment: Mid ’00s Social: Environmental concern  Urban renewal accelerates Traffic congestion  SUV backlash Car safety awareness  Delayed marriage/family Retro-style is big Car purchase remains image- driven but different image More communal model of living, working, creating Technology: Mobile-net increasingly pervasive (wifi, cell phones) Net-driven scheduling more common GPS broadly used Economic: gas prices  Weaker economy (jobs, wealth) Average car price  Time-in-traffic/time moving  Cars becoming more expensive to operate

9. Carnegie Mellon University ©2006 - 2008 Robert T. Monroe 45- 827 Exercise: Identifying SET Factors Identify some of the SET factors that drove the adoption and success of the RIM Blackberry

10. Carnegie Mellon University ©2006 - 2008 Robert T. Monroe 45- 827 Exercise: Identifying SET Factors Identify some of the SET factors that drove the adoption and success of Google’s keyword advertising system

11. Carnegie Mellon University ©2006 - 2008 Robert T. Monroe 45- 827 Exercise: Identifying SET Factors Identify some of the SET factors that drove the adoption and success of hands-free bluetooth integration between cell phones and car audio systems

12. Carnegie Mellon University ©2006 - 2008 Robert T. Monroe 45- 827 Exercise: Identifying SET Factors Identify some of the SET factors that drove the adoption and success of YouTube

13. Carnegie Mellon University ©2006 - 2008 Robert T. Monroe 45- 827 Exercise 2: Using SET Factors To Find POG’s You are in charge of new product development at Box.net – a company that provides online storage and sharing of files. Box.net has offerings for individual users as well as individual professionals and (small) enterprises You have been assigned to identify at least three product opportunity gaps that box.net might be able to fill using the platform that they have already built as a basis for future products Break into groups and brainstorm on SET factors that might be relevant to box.net. Try to identify at least 15 each of S, E, and T factors From these SET factors, identify at least three initial POG’s

14. Carnegie Mellon University ©2006 - 2008 Robert T. Monroe 45- 827 Scenario Example Mildred, 80 years old, lives alone in a retirement community. Her husband of 50 years died about 3 years ago and she has mostly adjusted to living on her own in that time. In the past year, security agents at her retirement community have twice found her wandering alone at night in complex, confused and lost. After the second incident, her doctor diagnosed her with early stage Alzheimer’s. Mildred’s children live far away and are very concerned about their mother’s wandering and confusion. Both Mildred and her children want her to be able to live by herself for as long as she is able to do so, but the children are increasingly concerned about her ability to do so and the safety of her doing so.