taylor dawson firstbuild (1) - cimdata

A  New  Age  of  Product  Development

Aims of Lean Product Development

• Need for more innovative solutions• Long development cycle times• Many redevelopment cycles• High development costs• Long production cycle times• High production costs

Trends

• Future of work• The maker movement• Retail Innovations• The Lean Startup Mindset

The Future of Work

• Open• Intrinisically Rewarding• Fast vs. Secret

Maker Movement Evolution

Individual Tinkerers

Makerspaces

Hardware accelerators

Products

The Lean Startup

Validated LearningCustomer DevelopmentMinimum Viable Product

The untold story

LVL1 Makerspace

A new reality:Knowledge and passion for products are abundant outside our walls

• What if everyone COULD see?• What if anyone could influence

the development of a product?• Manufacturers and consumers

experience products together

Invent a new world of home appliances

by creating a socially-engaged community of

home enthusiasts, designers, engineers, and makersthat will share ideas, try them out, and

build real products to improve your life.

Micro-Factory

Market Insight

Technical Specification

Engineering / Evaluation

Consumer Testing

Mass Production

Traditional Product Launch

Time / Money

Mass Production

Years to marketRare product launchLimited innovation

Micro-FactorySale

s Qua

ntity

Barrier 3: Selection Bias

100,000+100,000+

Time to Market

Traditional Production

Barrier 2: Production Cost

Barrier 1: Confidentiality

______________________

Risk Assessment

Uncertainty

High Cost

SOUND FAMILIAR?

Full-scale production

11-100

101-1000 Low-Volume Production

Minimum Viable Product1-10

Market Validation

Micro-Factory

First Sale in 3-6 months

Sale

s Qua

ntity

Time to Market

MicroFactory Production

100,000+Mass Production

Building an Innovation Engine

DESIGN12 new products per year

BUILDCustomer Ready from Unit 1

SELL3 months from concept to sale

+Focus on Making

Products are meant to be experienced

Always design a thing by considering it in

its next larger context. A chair in a room,

a room in a house, a house in an environment,

an environment in a city plan.

Why the Maker Movement?

Eliel Saarinen

The things we make aren’t merely specs

on a sheet or prototypes in a lab. They are meant

to be companions in everyday life. The context in

which we, as makers, experienceappliances is the home.

It’s about the user experience!

Me

Butter Conditioner

Butter Conditioner

INCLUSIVE

INCLUSIVE

Shifting to a making mindset

INTERNAL FOCUS Design to pre-determined specifications

MAKE LATERMaking is the last step of the design process

FILTER INNOVATIONUse business processes to filter out ideas

CONSTANT ITERATIONFeedback from consumers and enthusiasts

MAKE SOONERCreate solutions to better understand problems

PURSUE INNOVATIONThink in terms of possibilities, not processes

PRODUCT LIFECYCLE

Imagine you had to start over…

• What would you do differently?• How would that hold you back?• What if you had an entirely new type of organization?

PRODUCT LIFECYCLE

Imagine   you  had  to  start  over…

• What  would  you  do  differently?• How  would  that  hold  you  back?• What   if  you  had  an  entirely   new  

type  of  organization?

CASE STUDIES

Easy Load Double Oven

Hypothesis:  Consumers   will  pay  a  premium   for  ease   of  access

Test:  Build  and  sell   ~100  units   to  sell   at  appliance   dealers

Criteria:  Price  point  and  sales   volume

Easy Load Oven Drawer

Hypothesis:  Makers   and  hackers  will  design   compelling   features  when  software   is  open

Test:  Sell  kits  that  allow  makers  to  developers   to  hack  into  their  appliances

Criteria:  What  do  people   make?

Green Bean

SmartWatch Notifications

ChillHub

Nugget Ice Statistics

3:1_______________________________________________________

Preference over crescent ice

generally

8:1_______________________________________________________

Preference among females in US Southeast

Nugget Ice Lean Development

Hypothesis: Consumers will pay 3x premium to have nugget ice in their homes

Test: Presell through crowdfunding platform

Criteria: Number of units sold

Goal: Validate consumer interest in technology that can be scaled by GE Appliances

Nugget Ice - OPEN INNOVATION

IDEA CHALLENGE PRODUCT

Opal Nugget Ice Maker Indiegogo sales

30 days

6,400 units

$2.5M in sales

$400 price

Thank you!