Concept Generation/Ideation

Marketing 4250February 1, 2007

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

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.”

Describe an attribute of the product or the user

If possible, avoid words like “must” and “should.”

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.”

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 Needs Interpreted Needs

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?

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!”)

Kano’s Model of (Non-Linear) Customer Satisfaction

Customer Satisfied

CustomerDissatisfied See (1) Matzler, et al.., 1996,

Journal of Product & Brand Mgmt (2) Matzler and Hinterhuber, 1998, Technovation (3) Center for Quality Mgmt

Must Have (M)Must Have (M)

Delighter (D)Delighter (D)

Linear Satisfier (L)Linear Satisfier (L)

RequirementFulfilled

RequirementNot Fulfilled

Indifferent (I)Indifferent (I)

EMPATHIC (OBSERVATION) VS. USER ARTICULATION (INQUIRY)

Empathic (Observation)

User Articulation(Inquiry)

- Innovation possible beyond what users are able to tell you.

- Technique relies upon real actions.

- Users may be unable to articulate needs (e.g unnoticed workarounds).

- Interview/interaction process may bias response.

Strengths Weaknesses

- Technique relies upon well- trained observers who can convert observations to innovative solutions.

- Inability to measure attitudes.

- Information can be acquired on attitudes and reasoning from users.

- Easy to acquire information.

Translating the “Voice”-of-the-Customer

CustomerVerbatims

InterpretedNeeds

Observations

ProductConcepts

ProductSpecifications

Scenario PlanningOr Market Driving Forecasting

Phase II: Concept Generation

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

One that is bothOne that is both

originaloriginalANDANDusefuluseful

Definition of a Creative Concept:

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

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)

But, do you know creativity

when you see it?

Are these creative new product Are these creative new product concepts?concepts?

What about these?What about these?

Or these?Or these?

Concept Generation / Ideation

Step 1: Clarify the Problem Step 2: Search Externally Step 3: Search Internally Step 4: Explore Systematically Step 5: Reflect on the Results and the

Process

Concept Generation / Ideation

Step 2: Search Externally Experts - Lead User Analysis

Lead Users - experience the need ahead of the mass market; not the same as early adopters

General Principle of Lead User Research

Extreme versus Means Identification of functionally novel

products and service concepts should be done at the leading edge of markets and applications

Evaluation of commercial potential should be done at the “means” of markets and market segments

Important Innovations by Consumers Category

Health Products Personal Care Sports Food Office Computers Apparel

Example Gatorade Protein-based Shampoo Mountain Bike Chocolate Milk White-out Liquid E-mail, Desktop

Publishing Sports Bra

Benefiting from Lead Users

Lead User innovations form the basis for new products and service of value to manufacturers.

Lead Users Have new product or service needs that will be

general to the marketplace, but they face them months or years before the bulk of the market

Expect to benefit significantly by finding a solution to those needs

Adopter Categorization on the Basis of Innovativeness

Lead users are not the same as “early adopters”

Concept Generation / Ideation

Step 2: Search Externally Experts - Lead User Analysis

Lead Users - experience the need ahead of the mass market; not the same as early adopters

Interviewing Observation - Empathic Design Focus Groups

Concept Generation / Ideation

Step 3: Search Internally Analogy

Near Vs. Far Relations Vs. Attributes

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.

Some Interpreted Needs

Results

Teams of 2 Designers Texas Instruments TXS Industrial Design Ignition

Results from comprehensive study

Number of benchmarks or no benchmark

Design Strategy - use many vs. few analogies

Results:

Concept Generation / Ideation

Step 4: Explore Systematically GAP Analysis with Perceptual Maps

Determinant GAP Maps

A Determinant Gap Map

A Determinant GAP map exercise

Sandwich shops in Boulder Make a list of 10-12 sandwich shops in Boulder

Include: Deli Zone Half Fast Subs on the Hill Jimmy Johns Snarfs Subway Silvermine Subs

Think about the shops and use your judgement to identify the two most important factors that differentiate them from each other. Use those factors as axes

Place all of the shops on your list onto the map Are there any noticeable gaps? How do you interpret

them?

Concept Generation / Ideation

Step 4: Explore Systematically GAP Analysis with Perceptual Maps

Determinant GAP Maps Perceptual Maps based on Attribute Ratings (AR)

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”

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..57. Looks like a designer label 1..2..3..4..58. Easy to swim in 1..2..3..4..59. 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 PerceptionsObtaining Customer Perceptions

Factor Eigenvalue Percent VarianceExplained

1 6.04 40.32 3.34 22.33 0.88 5.94 0.74 4.95 0.62 4.26 0.54 3.67 0.52 3.58 0.44 3.09 0.40 2.7

0

5

10

15

20

25

30

35

40

45

1 2 3 4 5 6 7 8 9 No. of Factors

Pe

rce

nt

Va

ria

nc

eE

xp

lain

ed

The Scree

Selecting the Number of FactorsSelecting the Number of Factors

Attribute Factor 1 --“Fashion”

Factor 2 --“Comfort”

1. Attractive design .796 .0612. Stylish .791 .0293. Comfortable to wear .108 .7824. Fashionable .803 .0775. I feel good when I wear it .039 .7296. Is ideal for swimming .102 .8337. Looks like a designer label .754 .0598. Easy to swim in .093 .7939. In style .762 .12310. Great appearance .758 .20811. Comfortable to swim in .043 .75612. This is a desirable label .807 .08213. Gives me the look I like .810 .05514. I like the colors it comes in .800 .06115. Is functional for swimming .106 .798

Factor Loading MatrixFactor Loading Matrix

Figure 6.7

Attribute Factor 1 --“Fashion”

Factor 2 --“Comfort”

1. Attractive design 0.145 -0.0222. Stylish 0.146 -0.0303. Comfortable to wear -0.018 0.2134. Fashionable 0.146 -0.0175. I feel good when I wear it -0.028 0.2016. Is ideal for swimming -0.021 0.2277. Looks like a designer label 0.138 -0.0208. Easy to swim in 0.131 0.2169. In style -0.021 -0.00310. Great appearance 0.146 0.02111. Comfortable to swim in -0.029 0.20812. This is a desirable label 0.146 -0.01613. Gives me the look I like 0.148 -0.02414. I like the colors it comes in 0.146 -0.02215. Is functional for swimming -0.019 0.217

Sample calculation of factor scores: From the snake plot, the mean ratings of Aqualine on Attributes1 through 15 are 2.15, 2.40, 3.48, …, 3.77. Multiply each of these mean ratings by the correspondingcoefficient 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 MatrixFactor Scores MatrixFigure 6.8

Aqualine

Islands

Splash

Molokai

Sunflare

Gap 1

Gap 2

Fashion

Com

fort

The AR Perceptual MapThe AR Perceptual Map

Figure 6.9

Concept Generation / Ideation

Step 4: Explore Systematically GAP Analysis with Perceptual Maps

Determinant GAP Maps Perceptual Maps based on Attribute Ratings (AR) Perceptual Maps Based on Overall Similarities

(OS)

Aqualine Islands Sunflare Molokai SplashAqualine X 3 9 5 7Islands X 8 3 4Sunflare X 5 7Molokai X 6Splash X

Dissimilarity MatrixDissimilarity Matrix

Figure 6.10

Aqualine

Islands

Splash

Molokai

SunflareC

omfort

Fashion

The OS Perceptual MapThe OS Perceptual Map

Figure 6.11

Analytical Strategies Step 4: Explore Systematically

GAP Analysis with Perceptual Maps Relationship Analysis

Event InsuredAgainst

Person/Animal InsuredNew-borns Geniuses

Dogs/Cats

Tropical Birds

NewJobholders

Newlyweds

Injury from Fire

Getting Lost

NormalDeath

Kidnapping

Being Insulted

Analytical Strategies Step 4: Explore Systematically

GAP Analysis with Perceptual Maps Relationship Analysis Gap Analysis Morphological Matrix

Dimension 1:Cleaning Instrument

Dimension 2:Ingredients

Dimension 3:Object to beCleaned

Dimension 4:Package

Dimension 5:SubstanceRemoved

BroomBrushSpongeSteel WoolVacuum

AlcoholAmmoniaDisinfectantPine Oil

AirBoatCarpetFloorFence

AerosolBagBottleCan Tube

BloodDirtMildewPaintRust