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Open FloorOpen Floor
Midterm I in Two Weeks Chapters 1-7 In Class 50 Questions/200 points One Hour
Project I Discussion On Website Due Oct 23 (Three Weeks) Questions and Comments at End of Class
Information ExerciseInformation Exercise
Think of Your Product (Service) Concept/Idea…
What Information Do You Need? Where in the OSU Library System
Can You Get It? How can You Use the OSU Library
System to Leverage Your Information Requests?
Guest Speaker Update…Guest Speaker Update…
John Jolliff (Services, Oct 23)
SVP Country Insurance and Financial Services Focus on How Services are Developed
Simon Luthi, PhD (NPD Firm Principal, Oct 30)
i-Generator Partner Developed UnderArmour Footwear and
Footwear Department Mike Brown (NPD Technology Focus, Nov 6)
NPD Consultant Water Quality Project Compaq and HP for Years
PART TWOPART TWO
CONCEPT GENERATIONCONCEPT GENERATION
McGraw-Hill/Irwin Copyright ©2006 The McGraw-Hill Companies, Inc. All right reserved.
Concept GenerationConcept Generation
Figure II.1
CHAPTER 4CHAPTER 4
PREPARATION AND ALTERNATIVESPREPARATION AND ALTERNATIVES
McGraw-Hill/Irwin Copyright ©2006 The McGraw-Hill Companies, Inc. All right reserved.
Genius Thinking StrategiesGenius Thinking Strategies
Geniuses find many different ways to look at a problem. Einstein, for example, and da Vinci, were well known for looking at their problems from many different perspectives.
Geniuses make their thoughts visible. Da Vinci’s famous sketches, and Galileo’s diagrams of the planets, allowed them to display information visibly rather than relying strictly on mathematical analysis.
Geniuses produce. Thomas Edison had a quota of one invention every ten days. Mozart was among the most prolific composers over his short life.
Geniuses make novel combinations. Einstein found the relationship between energy, mass, and the speed of light (the equation E=mc²).
Geniuses force relationships. They can make connections where others cannot. Kekule dreamed of a snake biting its tail, immediately suggesting to him that the shape of the molecule he was studying (benzene) was circular.
Geniuses think in opposites. This will often suggest a new point of view. Physicist Neils Bohr conceived of light as being both a wave and a particle.
Geniuses think metaphorically. Bell thought of a membrane moving steel, and its similarity to the construction of the ear; this led to the development of the telephone earpiece.
Geniuses prepare themselves for chance. Fleming was not the first to see mold forming on a culture, but was the first to investigate the mold, which eventually led to the discovery of penicillin.
Source: Michael Michalko, “Thinking Like a Genius,” The Futurist, May 1998, pp. 21-25.
Figure 4.1
““Killer Phrases:” Killer Phrases:” Roadblocks to CreativityRoadblocks to Creativity
It simply won’t work. Are you sure of that? You can’t be serious. It’s against our policy. Let’s shelve it for the
time being. That won’t work in our
market. Let’s think about that
some more.
I agree, but… We’ve done it the other
way for some time. Where are you going to
get the money for that? We just can’t do that. Who thought of that? It’s probably too big for
us. I believe we tried that
once before.
Figure 4.3
Historic Roadblocks to Historic Roadblocks to CreativityCreativity
“I think there is a world market for maybe five computers.” Thomas Watson, Chair, IBM, 1943.
“Computers in the future may weigh no more than 1.5 tons.” Popular Mechanics, 1949.
“I can assure you that data processing is a fad that won’t last out the year.” Business books editor, Prentice-Hall, 1957.
“So we went to Atari and said, ...’We’ll give it to you. We just want to do it. Pay our salary, we’ll come work for you.’ And they said no. So then we went to HP, and they said ‘We don’t need you, you haven’t got through college yet.’” Steve Jobs, co-founder, Apple Computers.
“640K of RAM ought to be enough for anybody.” Bill Gates, Microsoft, 1981.
Historic Roadblocks to CreativityHistoric Roadblocks to Creativity
“Who the hell wants to hear actors talk?” H.M. Warner, Warner Bros., 1927.
“Stocks have reached what look to be a permanently high plateau.” I. Fisher, Prof. of Economics, Yale, 1929.
“We don’t like their sound, and guitar music is on the way out.” Dick Rowe, Decca Records executive, rejecting the Beatles’ demo tape, 1962.
“This ‘telephone’ has too many shortcomings to be seriously considered as a means of communication [and] is inherently of no value to us.” Western Union, 1876.
“Heavier-than’air flying machines are impossible.” Lord Kelvin, President, Royal Society, 1895.
“Everything that can be invented has been invented.” C. H. Duell, Commissioner, U.S. Office of Patents, 1899.
Barriers to Firm CreativityBarriers to Firm Creativity
Cross-functional diversity: Diversity leads to more creative stimulation but also to problem solving difficulties.
Allegiance to functional areas: Team members need to have a stake in the team’s success, or won’t be loyal to the team.
Social cohesion: If interpersonal ties among team members are too strong, candid debate may not occur, resulting in less innovative ideas.
Role of top management: Management should encourage the teams to be adventurous, otherwise only incremental changes will occur.
Figure 4.4
Required Creation Process Required Creation Process InputsInputs
Form the physical thing created, or the set of
steps by which the service will be created
Technology the source by which the form is to be
attained Benefit/Need
benefit to the customer for which the customer sees a need or desire
Technology permits us to develop a form that provides the benefit.
Some Patterns in Concept Some Patterns in Concept GenerationGeneration
Customer need firm develops technology produces formFirm develops technology finds match to need in a customer segment produces formFirm envisions form develops technology to product form tests with customer to see what benefits are delivered
Note: the innovation process can start with any of the three inputs.
What is a Product Concept?What is a Product Concept?
A product concept is a verbal or prototype statement of what is going to be changed and how the customer stands to gain or lose.
Rule: You need at least two of the three inputs to have a feasible new product concept, and all three to have a new product.
Why Do You Need a Product Why Do You Need a Product Concept and Not Just an Idea?Concept and Not Just an Idea?
Needed to judge whether it is worthy of development
Potential customers do not have enough information to judge the worthiness of an idea: the product concept gives them the required information.
Ex.: Would a taxi operator like cars with a 10 cents per mile operating cost? (need)
Not if it used Caterpillar tractor technology instead of wheels! (need plus technology)
New Product Concepts and the New Product Concepts and the New ProductNew Product
NeedNeed FormForm
TechnologyTechnology New Product
“C”=Concepts
CCCC
CC
Figure 4.4
Need-Form-Technology Need-Form-Technology ExampleExample
Break into Small Group… Identify two examples of a
product/service Need Form Technology
The Designer Decaf ExampleThe Designer Decaf Example
Benefit: “Consumers want decaffeinated espresso that tastes identical to regular.”
Form: “We should make a darker, thicker, Turkish-coffee-like espresso.”
Technology: “There’s a new chemical extraction process that isolates and separates chemicals from foods; maybe we can use that for decaffeinating espresso coffee.”
Why would each of these taken individually not be a product concept?
What a Concept Is and Is NotWhat a Concept Is and Is Not
“Learning needs of computer users can be met by using online systems to let them see training videos on the leading software packages.” (good concept; need and technology clear)
“A new way to solve the in-home training/educational needs of PC users.” (need only; actually more like a wish)
“Let’s develop a new line of instructional videos.” (technology only, lacking market need and form)
Methods for Generating Product Methods for Generating Product ConceptsConcepts
Two Broad Categories of Methods: Gathering Ready-Made Product
Concepts
Using a Managed Process Run by the New Products Team
Best Sources of Ready-Made Best Sources of Ready-Made New Product ConceptsNew Product Concepts
New Products Employees Technical: R&D, engineering, design Marketing and manufacturing
End Users Lead Users
Resellers, Suppliers, Vendors Competitors The Invention Industry (investors, etc.) Idea exploration firms and consulting engineers Miscellaneous (continued)
Best Sources of Ready-Made New Best Sources of Ready-Made New Product Concepts Product Concepts (continued)(continued)
Miscellaneous Categories Consultants Advertising agencies Marketing research firms Retired product specialists Industrial designers Other manufacturers Universities Research laboratories Governments Printed sources International Internet
Lead UsersLead Users
An important source of new product ideas.
Customers associated with a significant current trend.
They have the best understanding of the problems faced, and can gain from solutions to these problems.
In many cases, have already begun to solve their own problems, or can work with product developers to anticipate the next problem in the future.
CHAPTER 5CHAPTER 5
PROBLEM-BASED IDEATION: FINDING PROBLEM-BASED IDEATION: FINDING AND SOLVING CUSTOMERS’ PROBLEMSAND SOLVING CUSTOMERS’ PROBLEMS
McGraw-Hill/Irwin Copyright ©2006 The McGraw-Hill Companies, Inc. All right reserved.
Problem-Based Concept GenerationProblem-Based Concept Generation
Figure 5.1
Problem Analysis: General ProcedureProblem Analysis: General Procedure
1. Determine product or activity category for study.
2. Identify heavy users.3. Gather set of problems associated with
product category. Avoid “omniscient proximity” -- rate
importance of benefits and levels of satisfaction.
4. Sort and rank the problems according to severity or importance.
Problem Analysis Applied to the Cell Problem Analysis Applied to the Cell PhonePhone
Keeping the unit clean. Breaks when I drop it. Battery doesn’t stay charged
long enough. Finding it in dark. Battery dies in mid-
conversation. Who “out there” hears me? Dropped calls. Looking up numbers. Voice fades in and out. Hard to hold.
Health risks? Can’t cradle between ear
and shoulder. Antenna breaks off. Flip cover breaks off. Disruptive instrument. Can’t see facial/body
language. Rings too loud/too soft. Wrong numbers. Fear of what ringing might
be for.
The Bothersomeness Technique of The Bothersomeness Technique of Scoring ProblemsScoring Problems
Figure 5.3
List of pet owners' problems: AProblem Occurs
Frequently
BProblem is
Bothersome
A x B
Need constant feeding 98% 21% .21Get fleas 78 53 .41Shed hairs 70 46 .32Make noise 66 25 .17Have unwanted babies 44 48 .21
Problem Analysis: Sources and Problem Analysis: Sources and Methodologies Methodologies
Experts Published Sources Contacts with Your Business
Customers or Consumers Interviewing Focus groups Observation of product in use Role playing
Typical Questions for Problem Typical Questions for Problem Analysis Focus GroupsAnalysis Focus Groups
What is the real problem here – what if the product category did not exist?
What are current attitudes and behaviors of focus group members toward the product category?
What product attributes and benefits do the focus group members want?
What are their dissatisfactions, problems, and unfilled needs?
What changes occurring in their lifestyles are relevant to the product category?
Observation and Role Playing in Observation and Role Playing in Problem AnalysisProblem Analysis
Carmakers send their designers out to parking lots to watch people and how they interact with their cars (Ford called this “gorilla research”).
Honda got insights as to how large the passenger compartments of their SUVs should be by observing U.S. families.
Bausch and Lomb generated ideas on making contact lenses more comfortable by getting pairs of executives to act out skits in which they played the eyeball and the contact lens.
Scenario AnalysisScenario Analysis
“Extending” vs. “leaping” Using seed trends for an “extend“
scenario Techniques:
Follow “trend people”/”trend areas” “Hot products” Prediction of technological
changeover Cross-impact analysis
Wild Card Events and Their Wild Card Events and Their ConsequencesConsequences
No-Carbon Policy: Global warming may cause governments to put high taxes on fossil fuels, shifting demand to alternative sources of energy. This changes the allocation of R&D investment toward alternative energy, possibly causes new “energy-rich” nations to emerge, and ultimately may lead to a cleaner environment for everyone.
Altruism Outbreak: This is the “random acts of kindness” movement – solve social problems rather than leaving it up to the government. Schools and other institutions will revive due to community actions, and perhaps inner cities would be revitalized.
Cold Fusion: If a developing country perfects free energy, it becomes prosperous overnight. It gains further advantages by becoming an energy exporter.
Solving the ProblemSolving the Problem
Group Creativity Methods/Brainstorming Principles of Brainstorming:
Deferral of Judgment Quantity Breeds Quality
Rules for a Brainstorming Session: No criticism allowed. Freewheeling -- the wilder the better. Nothing should slow the session down. Combination and improvement of ideas.
Brainstorming TechniquesBrainstorming Techniques
Brainstorming circle Reverse brainstorming Tear-down Phillips 66 groups (buzz
groups) Delphi method
CHAPTER 6CHAPTER 6
ANALYTICAL ATTRIBUTE APPROACHES: ANALYTICAL ATTRIBUTE APPROACHES: INTRODUCTION AND PERCEPTUAL INTRODUCTION AND PERCEPTUAL
MAPPINGMAPPING
McGraw-Hill/Irwin Copyright ©2006 The McGraw-Hill Companies, Inc. All right reserved.
What are Analytical Attribute What are Analytical Attribute Techniques?Techniques?
Basic idea: products are made up of attributes -- a future product change must involve one or more of these attributes.
Three types of attributes: features, functions, benefits.
Theoretical sequence: feature permits a function which provides a benefit.
Gap AnalysisGap Analysis
Determinant gap map (produced from managerial input/judgment on products)
AR perceptual gap map (based on attribute ratings by customers)
OS perceptual map (based on overall similarities ratings by customers)
A Determinant Gap MapA Determinant Gap Map
Figure 6.2
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
Figure 6.4
1
1.5
2
2.5
3
3.5
4
4.5
5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Snake Plot of Perceptions Snake Plot of Perceptions (Three Brands)(Three Brands)
Aqualine
Islands
Sunflare
Attributes
Ratings
Figure 6.5
Data Reduction Using Multivariate Data Reduction Using Multivariate AnalysisAnalysis
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”
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
Figure 6.6
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
Aqualine
Islands
Splash
Molokai
Sunflare
Gap 1
Gap 2
Fashion
Com
fort
The AR Perceptual MapThe AR Perceptual Map
Figure 6.9
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
Failures of Gap AnalysisFailures of Gap Analysis
Input comes from questions on how brands differ (nuances ignored)
Brands considered as sets of attributes; totalities, interrelationships overlooked; also creations requiring a conceptual leap
Analysis and mapping may be history by the time data are gathered and analyzed
Acceptance of findings by persons turned off by mathematical calculations?
E. & J. Gallo ExampleE. & J. Gallo Example
Attributes
Perceptual Maps
MDS Graph
CHAPTER 7CHAPTER 7
ANALYTICAL ATTRIBUTE APPROACHES:ANALYTICAL ATTRIBUTE APPROACHES:TRADE-OFF ANALYSIS TRADE-OFF ANALYSIS
AND QUALITATIVE TECHNIQUESAND QUALITATIVE TECHNIQUES
McGraw-Hill/Irwin Copyright ©2006 The McGraw-Hill Companies, Inc. All right reserved.
Trade-Off (Conjoint) AnalysisTrade-Off (Conjoint) Analysis
Put the determinant attributes together in combinations or sets.
Respondents rank these sets in order of preference.
Conjoint analysis finds the optimal levels of each attribute.
Thickness Spiciness Color ActualRanking*
Ranking asEstimatedby Model
Regular Mild Red 4 4Regular Mild Green 3 3Regular Medium-Hot Red 10 10Regular Medium-Hot Green 6 8Regular Extra-Hot Red 15 16Regular Extra-Hot Green 16 15Thick Mild Red 2 2Thick Mild Green 1 1Thick Medium-Hot Red 8 6Thick Medium-Hot Green 5 5Thick Extra-Hot Red 13 13Thick Extra-Hot Green 11 11Extra-Thick Mild Red 7 7Extra-Thick Mild Green 9 9Extra-Thick Medium-Hot Red 14 14Extra-Thick Medium-Hot Green 12 12Extra-Thick Extra-Hot Red 17 18Extra-Thick Extra-Hot Green 18 17
* 1 = most preferred, 18 = least preferred.
Conjoint Analysis Input: Salsa ExampleConjoint Analysis Input: Salsa ExampleFigure 7.2
Regular Thick Ex-Thick
UT
ILIT
Y
2
1
0
-1
-2
Mild Medium-Hot Ex-Hot Red Green
Thickness Spiciness Color
0.161 0.913 -1.074 1.667 0.105 -1.774 -0.161 0.161
Conjoint Analysis: Graphical OutputConjoint Analysis: Graphical Output
Figure 7.3
Conjoint Analysis:Conjoint Analysis:Relative Importance of AttributesRelative Importance of Attributes
0 20 40 60 80 100 %
Spiciness
Thickness
Color
59.8%
34.6%
5.6%
Some Qualitative Attribute Some Qualitative Attribute Analysis TechniquesAnalysis Techniques
Dimensional Analysis Checklists Relationships Analysis
There are many others.
A Dimensional Attribute ListA Dimensional Attribute List
Weight Rust resistance Length Color Water resistance Materials Style Durability Shock resistance Heat tolerance
Explosiveness Flammability Aroma Translucence Buoyancy Hangability Rechargeability Flexibility Malleability Compressibility
An Idea Stimulator Checklist for An Idea Stimulator Checklist for Industrial ProductsIndustrial Products Can we change the physical/chemical properties
of the material? Are each of the functions really necessary? Can we construct a new model of this? Can we change the form of power to make it work better? Can standard components be substituted? What if the order of the process were changed? How might it be made more compact? What if it were heat-treated/hardened/cured/plated? Who else could use this operation or its output? Has every step been computerized as much as possible?
Templates for CreativityTemplates for Creativity
Attribute Dependency: Find a functional dependency between two attributes. Ex.: color of ink on coffee cup is sensitive to heat and can reveal message if coffee is too hot.
Replacement: Remove a component and replace with one from another environment. Ex.: antenna is replaced by headphone cord on Walkman.
Displacement: Remove a component and its function to change the product. Ex.: Removing floppy drives resulted in ultra-thin PCs.
Component Control: Find a new connection between a component internal to the product and one external to the product. Ex.: Toothpastes with whiteners, suntan lotions with skin moisturizers.
Figure 7.6
Source: Jacob Goldenberg and David Mazursky, Creativity in Product Innovation, Cambridge University Press, 2002.
Relationships AnalysisRelationships Analysis
Force combinations of dimensions (features, functions, and benefits) together.
Techniques: Two-dimensional matrix Multidimensional (morphological) matrix
Two-dimensional example: person/animal insured and event insured against.
Household cleaning products example used six dimensions: Instrument used, ingredients used, objects cleaned, type of
container, substances removed, texture or form of cleaner
Another Form of Dimensional Another Form of Dimensional AnalysisAnalysis
Two key dimensions for winning new product ideas:
Utility lever: How the product will affect the customer’s life (such as simplicity, fun/image, environmental friendliness, reduced risk, convenience, and productivity).
Buyer’s experience cycle: The stage when/where the product will affect the customer (purchase, delivery, use, supplements, maintenance, disposal).
Source: W. C. Kim and R. Mauborgne, “Knowing a Winning Business Idea When You See One,” Harvard Business Review, Sept.-Oct. 2000, pp. 129-138.
Other Methods:Other Methods:Lateral Search TechniquesLateral Search Techniques
Free association Stereotype activity Lateral thinking -- avoidance Creative stimuli words Studying “big winners” Use of the ridiculous Forced relationships
Lateral Thinking -- AvoidanceLateral Thinking -- Avoidance
Keep an idea from dominating thinking as it always has in the past by asking avoiding questions.
Ask “Is there another way of looking at this?” Ask “Why?” Focus on an aspect of the problem other than
the “logical” one. List all possible alternatives to every aspect of
the analysis. Break apart aspects (concepts) of the problem,
or combine them to create even more concepts.
Some Creative Stimuli WordsSome Creative Stimuli Words
Guest stars Alphabet Truth Outer space Charity His and hers Style Nation Family Videotape
Photography Testimonials Decorate Fantasy Hobbies Holidays Weather Calendar Push button Snob appeal
Use of the RidiculousUse of the Ridiculous
How can you join two wires together? Hold them with your teeth. Use chewing gum.
Can you think of others? Do any of these ridiculous ideas
suggest a not-so-ridiculous solution?
Review and Preview…Review and Preview…
Lecture on Chapters 4-7 Midterm One Next Week
(Chapters 1-7) Project I the Week After that… Chapters 8-12 Next Week John Jolliff Guest Speaker Next
Week (Services NPD)
Midterm One DiscussionMidterm One Discussion
Questions Comments