Opportunity Recognition, Shaping and Re-shaping

1. Opportunity Recognition,Shaping andRe-shaping

2. Idea-to-opportunity transition Seed of idea Idea Viable Opportunity Passion Professional Experience Idea Multiplication

3. Idea multiplication – IDEO technique Gather Stimuli Observe 1 Multiply Stimuli Brainstorm/brain-write 2 Create Customer Concepts Build a simple mock up 3 Optimize Practicality Add/remove features 4

4. The IDEO way

5. Designing a better consumer experience • Observation • Brainstorming • Rapid prototyping • Refining • Implementing

6. Observation Understand the consumer experience by: • Shadowing. Observing people using products, shopping, going to hospitals, taking the train, using their cell phones. • Behavioral mapping. Photographing people within a space, such as a hospital waiting room, over two or three days. • Consumer Journey. Keeping track of all the interactions a consumer has with a product, service, or space. • Camera Journals. Asking consumers to keep visual diaries of their activities and impressions related to a product.

7. Observation • Camera Journals. Asking consumers to keep visual diaries of their activities and impressions related to a product. • Extreme User Interviews. Talking to people who really know – or know nothing – about a product or service, and evaluating their experience using it. • Storytelling. Prompting people to tell personal stories about their consumer experiences. • Unfocus Groups. Interviewing a diverse group of people: To explore ideas about sandals, IDEO gathered an artist, a bodybuilder, a podiatrist, and a shoe fetishist.

8. Brainstorming An intense, idea-generating session analyzing data gathered by observing people. Each lasts no more than an hour. Rules of brainstorming are strict and are stenciled on the walls: • Defer Judgment. Don’t dismiss any ideas. • Build on the Ideas of Others. No “buts,” only “ands.” • Encourage Wild Ideas. Embrace the most out-of-the box notions because they can be the key to solutions.

9. Brainstorming • Go For Quantity. Aim for as many new ideas as possible. In a good session, up to 100 ideas are generated in 60 minutes. • Be visual. Use yellow, red, and blue markers to write on big 30-inch by 25-inch Post-Its that are put on a wall. • Stay focused on the topic. Always keep the discussion on target. • One conversation at a time. No interrupting, no dismissing, no disrespect, no rudeness

10. Rapid Prototyping Mock up working models to help everyone visualize possible solutions and speed up decision-making and innovation. Guidelines: • Mock up everything. It is possible to create models not only of products but also of services such as health care and spaces such as museum lobbies. • Use videography. Make short movies to depict the customer experience. • Go fast. Build mock-ups quickly and cheaply. Never waste time on complicated concepts.

11. Rapid Prototyping • No frills. Make prototypes that demonstrate a design idea without sweating over the details. • Create scenarios. Show how a variety of people use a service in different ways and how various designs can meet their individual needs. • Bodystorm. Delineate different types of consumers and act out their roles.

12. Refining Narrow down the choices to a few possibilities: • Brainstorm in rapid fashion to weed out ideas and focus on the best remaining options • Focus prototyping on a few key ideas to arrive at an optimal solution to a problem • Engage the client actively in the process of narrowing the choices

13. Refining • Be disciplined and ruthless in making selections • Focus on the outcome of the process – reaching the best possible solution. • Get agreement from all stakeholders. The more top-level executives who sign off on the solution, the better the chances of success.

14. Implementation • Unlike most consulting firms, IDEO works with its clients to implement its designs using its engineering, design, and social-science capabilities

16. Learn

17. Learn

18. Look

19. Look

20. Ask

21. Ask

22. Try

23. Try

24. Why?

25. Why?

26. The opportunity space Global Business Environment Competitors Suppliers Your Company Customers Competitors Competitors Government Regulations

27. The customer Target Audience Categories Primary Target Audience Secondary Target Audience Tertiary Target Audience Common Demographic/Psychographic Categories Demographics Psychographics Age Gender Household Income Family Size/Family Lifecycle Occupation Education Level Religion Ethnicity/Heritage Nationality Social Class Marital Status Social group (e.g., white collar, blue collar, etc.) Lifestyle (e.g., mainstream, sexual orientation, materialistic, active, athletic, etc.) Personality Traits (Worriers, Type A’s, Shy, Extroverted, etc.) Values (Liberal, Conservative, Open-Minded, Traditional, etc.)

28. Macro trends Important Trends over the Last 50 Years Trend Impact Baby Boom Generation Pampers, Rock & Roll, Television, Minivans, Real Estate, McMansions, etc. Personal Computing Internet, media on demand, electronic publishing, spreadsheets, electronic communication Obesity Drain on healthcare system, growth of diet industry, changes in food industry, health clubs, home gyms Dual-Income households Child care, Home services – landscaping, house cleaning, prepared foods

29. S-curve Obsolescence Phase New Competitors Enter Market Adoption Window of Opportunity 1 2 3 Time

30. Setting prices

31. Reaching customer – the value chain Example - Value Chain of Gourmet Chili Base Ingredients Food Distributors Grocery Stores Gourmet Chili • Beef, • Sauce, etc. • From Food • Distributor 80% 85% 75% 90% - - - - 30% 30% 25% 35% - - - - COGS 70 COGS 65 COGS 75 COGS 70 GM 20 GM 25 GM 10 GM 15 Example in Excel

32. Opportunity checklist Customer Competition Vendors Government Global Environment Price/ Frequency/ Value Trends Market size Market Growth Distribution Key Success Factors