product development & management association’s 32 nd annual international conference,...
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Product Development & Management Association’s 32nd Annual International Conference, September 15-17, 2008, Orlando, FL – www.pdma.org
NPD 2.0The Impact of the Web on Product InnovationPanelists:
Dion Hinchcliffe, Founder & CTO - Hinchcliffe & Company
William Porter, Chief Technology Transfer Officer, TekScout - Vice President – UTEK Corporation
Vida Killian, Manager of IdeaStorm, Global Communities and Conversations Team - Dell Inc.
Kenny VanZant, Chief Product Strategist, SolarWinds
Moderator:
Patrina Mack, Managing Partner – Vision & Execution, Inc.
Patrina MackManaging Partner, Vision & Execution Patrina Mack, Managing Partner of Vision & Execution,
consults with emerging and established companies here and internationally to optimize market acceptance of innovative product solutions across a wide range of industries. In addition she works with established companies who have fallen behind in innovation of new products or services to retool and redesign their product development organizations. She authored the award-winning white paper, "After Internet Time: Five New Realities for Product Development." She is a two-term Chapter President of the Product Development & Management Association, and is an Advisory Board Member to TechCoire and CleanTech Open. Ms. Mack holds a BA from UC Irvine, in Advertising Design. She continues her lifelong pursuit of understanding what drives customer adoption of innovative products.
Dion Hinchcliffe Founder & Chief Technology Officer, Hinchcliffe & Company Dion Hinchcliffe is a well-known business strategist and enterprise architect,
who speaks, writes, and works prolifically hands-on with clients in the Fortune 500, federal government, and Internet startup community. Mr. Hinchcliffe was the first to provide a detailed definition of Product Development 2.0 that was generally accepted in the product development community. He also helps lead the industry by evolving the thinking around Web 2.0 in the enterprise for ZDNet (http://blogs.zdnet.com/Hinchcliffe) as well as other leading industry periodicals and media outlets. He was founding Editor-in-Chief of the respected Web 2.0 Journal and is current Editor-in-Chief of Social Computing Magazine. His thought leading work has been covered in BusinessWeek, CNET News, Wired Magazine, CIO Magazine, and many other well-known periodicals.
In addition to helping companies deliver effective Web 2.0 and Enterprise 2.0 product solutions, Mr. Hinchcliffe is also is a regular keynote speaker on the topics of Web 2.0, SOA, and Enterprise 2.0 and has presented or keynoted at Web 2.0 Expo, CeBIT, Business Integration Forum, Interop, JavaOne, SOA Web Services Edge, Enterprise 2.0 Conference, Office 2.0, and other major business and software conferences. He is also the founder of Web 2.0 University (http://web20university.com) the world's leading education solution around Web 2.0 as well as The Enterprise 2.0 TV Show (http://e2tvshow.com). He can be reached at [email protected] or http://twitter.com/dhinchcliffe.
NPD 2.0 Defined
Comparison of NPD 1.0 to 2.0
Product Development 1.0
Product Development 2.0
Primary Customer Interaction Channel:
Telephone, Mail, Face-to-Face, One Way Media (Print, TV, Radio, etc.), e-mail
World Wide Web, e-mail, IM
Source of Innovation: Organizations Customers
Innovation Cycle: Months, YearsMinutes, Hours, Days, Weeks
Content Creators: Internal Producers External Producers
Feedback Mechanisms:
Market research, satisfaction surveys, complaints, focus groups
Analytics, online requests, user contributed changes
Comparison of NPD 1.0 to 2.0
Product Development 1.0
Product Development 2.0
Customer Engagement Style:
Controlled, well-defined process
Spontaneous and chaotic
Product Development Process:
Upfront design Less upfront, much more emergent
Product Architecture:
Closed, not designed for easy extension or reuse by others; walled garden
Open, very easy to extend, refine, change and add on to, ecosystem friendly, designed (and legal) for widespread remixing and mashups
Product Development Culture:
Hierarchical, centralized, Not Invented Here, somewhat collaborative, expert-driven
Egalitarian, decentralized, remix instead of reinvent, highly collaborative, Wisdom of Crowds
Comparison of NPD 1.0 to 2.0
Product
Development 1.0 Product
Development 2.0
Product Testing:Internal, dedicated test groups, hand-picked select customers
Users as testers
Customer Support: Customer Service User Community
Product Promotion:One-Way Marketing and Advertising
Viral propagation, explicit leveraging of network effects, word of mouth, user generated and other two-way advertising
Business Model:
Product Sales, Customer Service and Support Fees, Service Access Charges, Servicing High Demand Products
Advertising, Subscriptions, Product Sales, Servicing All Product Niches (The Long Tail), Unintended Uses
Comparison of NPD 1.0 to 2.0
Product
Development 1.0 Product
Development 2.0
Customer Relationship:
External Buyer (Consumer)
Partner and -- increasingly remunerated -- Supplier (Consumers as Producers )
Product Ownership:Institution, particularly executive management and shareholders
Entire User Community
Partnering Process:Formal, explicit, infrequent, mediated
Ad hoc, thousands of partners online, disintermediated
Product Development and Integration Tools:
Heavyweight, formal, complex, expensive, time-consuming, enterprise-oriented
Lightweight, informal, simple, free, fast, consumer-oriented
Comparison of NPD 1.0 to 2.0
Product
Development 1.0 Product
Development 2.0
Competitive Advantage:
Superior products, legal barriers to entry (IP protections), brand name advantage, price, popularity, distribution channel agreements
#1 or #2 market leader, leveraging crowdsourcing effectively, mass customization, control over hard-to-create data, end-user sense of ownership, popularity, cost-effective customer self-service, audience size, best-of-breed architectures of participation
William Porter – TekScout / UTEK Chief Technology Transfer Officer From 1983 to 1998, Mr. Porter was an executive
with AT&T/Lucent where he was general manager and co-founder of the Intelligent Acoustics Systems Group within Bell Laboratories. From 1998 to 2001, Mr. Porter was Director of Business Development for the Digital Television and Entertainment Business Unit of Sarnoff Corporation. Recently, Mr. Porter was a technology business development consultant for NEC Research Institute where he was responsible for developing strategies to facilitate technology transfers for the Institute. Mr. Porter received a B.S. in Physics from Lamar University and a M.S. in Mathematics from Texas Southern University.
Fundamentals of Open Innovation
The most difficult developmental challenges are solved by experts on the fringe or outside a company’s core expertise, who may see the solution as obvious.
IP must be managed as a perishable asset–markets and customers won’t wait.
Not all of the smart people in the world work for you
Why Open Innovation Networks Work Open Innovation networks deliver technical experts
motivated to find and solve challenges They are pre-qualified to move your product quickly
and innovatively from R&D concept to commercialization.
They have expertise from multiple disciplines to ensure the best solution to get your product to market.
Open Innovation leverages professional scientists, engineers and academics Only 40% of the 640,00 U.S. based scientists in the US
are employed in for-profit companies. Open Innovation taps the knowledge of the 60%
working in government and academic labs.
Why Open Innovation Networks Work Open Innovation provides access new perspectives
from the emerging worldwide technical community 37% of the foreign-born scientists who are US
Educated return to their country after graduation. There is tremendous growth in new research being
done in Russia, China, India, and other emerging countries.
Certain countries are ahead of the US in areas such as “green” and sustainable design methodologies.
Companies post challenging development projects online, along with a reward and timeline
TekScout makes the Scientist connection
TekExperts earn rewards by solving posted projects
Products reach the market with more Innovation, faster, and with less expense
How It Works
The Process is simple, the results are brilliant
Make The Challenge Clear: Include a summary that scientists outside of your field can
relate to Give detail as to what might work Don’t waste your and scientists’ time: State up-front any
solution approaches that you are not interested in.
Make it interesting to Scientists, Engineers and Academics The most likely success will come from professionally
affiliated experts, not “the crowd”. Pique their motivation to solve challenges Encourage and be open to expertise from multiple
disciplines to ensure the best solution to get your product to market
Key to Effective Open Innovation
Vida Killian - Dell Inc. Manager, Ideastorm Vida Killian is the manager of IdeaStorm within the
Global Conversations team at Dell Inc. In this role, Vida manages the technology that powers Dell's IdeaStorm and engages teams across Dell that participate on the site, evaluates ideas, and steer business action on innovation. Dell's IdeaStorm has collected more than 670k votes on over 10,000 customer-driven ideas.
Vida has been with Dell for over nine years including roles in Manufacturing, Supply Chain, Services and Community.Vida holds a Chemical Engineering degree from Texas A&M University as well as an MBA and Masters in Supply Chain from MIT.
Why IdeaStorm? Engage in relevant conversations with our customers online 24/7,
worldwide in all major languages.
OBJECTIVE:
Encourage ideas,feedback, inputand dialogue
RESULTS:
IDEASTORMLaunched Feb. 2007
DELL CONFIDENTIAL
Approx. 10,000 ideas generated by the community 200 Ideas Implemented by Dell to date Over 1 million unique users More than 670,000 positive votes Approx. 4,000 comments per month
www.ideastorm.com
DELL CONFIDENTIAL
• Executive review at the highest level
• Screening ideas for validity
• Engaging experts to weigh in
• Critical to have strong process and idea management
• Listening Culture
• Lightning rods to focus discussion
• Allows users to deliver bad news (rate ideas low)
• Clarify ideas and brainstorm
• First place Dell engages
• Moderation to encourage ideas not chatter
• Closed loop feedback model
• Transparency
• Recognition
• Engagement and interaction with top users to include them in the management of the site
How it works…
Approximate Breakdown of IdeaStorm
DELL CONFIDENTIAL
4% InnovationNew Brainstorming
Process.
80% ImprovementsIncludes both incremental ideas for next generation products as well as improvements to existing products and services.
Use existing Ideas Management process.
12% UnusableNo action needed.
Next Steps – IdeaStorm 2.0 Continuous improvement in Idea Management
Improve back end process flow to manage inputEnsure the right people throughout the company
are engaged and active in the community Build on truly Innovative ideas (~4%)
Create a virtual team room for collaboration Create other applicable Storms
Internal: Product Group Innovation, Place for Account Executives to provide input
External: PremierStorm, Non-English Languages, Others TBD
DELL CONFIDENTIAL
Kenny Van Zant - SolarWinds Chief Product Strategist Kenny Van Zant serves as chief product strategist
and is responsible for overall product strategy and strategic partnership activities. Prior to SolarWinds, Kenny served as head of Strategy and Corporate Development at Motive, Inc., a leading provider of broadband management software. Kenny joined Motive following its merger with BroadJump in 2003. Prior to Motive, Kenny co-founded BroadJump in 1998, and served as its COO. Previously, Van Zant was responsible for the technical direction and strategy for Broadband sales in the United States for Cisco Systems.
SolarWinds was founded on the idea of products designed BY network engineers, FOR network engineers
Thwack, our community site, is more than 17,000 members strong
600 new registrations per month, 2000+ posts per month Offers solutions problem-solving, technology-sharing, peer
interaction, and product development input. Community engagement is part of employee quarterly goal
setting To date, 20% implementation rate (up to 33% for some
products)
Lessons Learned
1. Strike a Balance
HYBRID of 1.0 and 2.0 approaches
Engage both the vocal minority and the not so vocal majority
2.0 delivers more incremental than transformative
2.0 offers great testing ground
2. End the telephone game
“Old Way”
Lessons Learned
3. Overcome your fears
Be ready for the good AND the bad (they will defend you)
Join the debate! Be human, but don’t take
it personally All levels participate
4. Define WIIFM
Clearly outlinewhat you wantto know, be specific.
Identify the value of participation for the end users
Lessons Learned
5. Beware the False Positives
Know the audience, engage both sides Have a mechanism to clarify & validate ideas Close the loop
Watchers Creators
Discussion & Questions
Download Presentation http://www.visionandexecution.com/2008PDMA/