The New Product Development Process

1. The New Product Development Process Class 5 Opportunity Identification Concept Generation

2. Phase I: Opportunity Identification

3. The trouble with the future is that there are so many of them. -John R. Pierce (Bell Labs)

4. Scenario Planning

5. Challenging Inertia • Do an assumption analysis • List key uncertainties • Opportunities appear • Embrace the uncertainties with Scenario Planning • 1980’s example

6. Example:Global Uncertainties (mid-80’s) • Key Uncertainties • Trade conflict between USA and Japan • Arms negotiations between USA and USSR • Spread of AIDS • Impact of Europe 1992 • Deterioration of ozone layer and hole • Continuation of Apartheid

7. Combining 2 Key Uncertainties USA / Japan Accomodation Trade Conflict Arms Race Imperial Twilight X USA/ USSR Detente Industrial Renaissance Protracted Transition

8. A Scenario Planning Exercise • Objective • To sketch out strategically different futures that your team may have to operate in • Inside these different futures, focus on the concrete detail in order to identify new product opportunities

9. A Scenario Planning Exercise • Scenario Planning Stages • I) If you could consult the oracle at Delphi, what 3 questions would you ask? • II) Identify other key uncertainties • III) Pick the 2 most important and dichotomize them (vote) • IV) List the main stakeholders & their interests/positions • V) List the main long-term trends and assess the impact of each trend on this organization (+, 0, -, ?) • VI) Fill in the matrix, pick one cell to examine in depth

10. Opportunity Identification • Scenario Development • Have the group members take on the roles of the different possible players in the scenario & discuss details of the situation (how specifically would your party be impacted) • What new opportunities or needs emerge in this new “world”?

11. Identifying and/or Interpreting Needs

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

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

14. 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

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

16. 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.”

17. 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.”

18. 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.

19. 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?

20. 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!”)

21. Delighter (D) Linear Satisfier (L) Requirement Not Fulfilled Indifferent (I) Requirement Fulfilled Must Have (M) 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 Mgmt

22. Phase II: Concept Generation

23. 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

24. No Situation Effects Some Situation Effects Strong Situation Effects 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

25. 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)

26. Analytical Strategies • Perceptual Mapping (Gap Analysis) Crunchiness • Fritos High • Raw Vegetables • Potato Chips • Pretzels • Apple • Popcorn • Granola Bar • Cookies • Candy Bar • Raisins Nutritional Value Low High • Cake • Pie • Banana • Cheese • Donuts • Yogurt • Ice Cream • Fruit Juice • Soda Low

27. Analytical Strategies • Perceptual Mapping • Relationship Analysis Event Insured Against Person/Animal Insured New- borns Dogs/ Cats Tropical Birds New Jobholders Newlyweds Geniuses Injury from Fire Getting Lost Normal Death Kidnapping Being Insulted

28. Analytical Strategies • Perceptual Mapping • Relationship Analysis • Morphological Matrix Dimension 2: Ingredients Dimension 3: Object to be Cleaned Dimension 4: Package Dimension 5: Substance Removed Dimension 1: Cleaning Instrument 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

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

30. 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.

31. Some Interpreted Needs

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

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