The New Product Development Process

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The New Product Development Process

• Class 4
• February 6, 2007
• Stage 2 Concept Generation

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Identifying and/or Interpreting Needs
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Translating the Voice-of-the-Customer
Customer Verbatims
Observations
Scenario Planning Or Market Driving Forecasting
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Empathic Design...
Customer Verbatims
Observations
Scenario Planning Or Market Driving Forecasting
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Empathic Design

• Empathic design means understanding user needs
  through
• empathy with the user world rather from user
  articulation
• of needs.
• Methods used
• - Observing users behavior.
• - Interpretation of users environment, and
  extrapolation of trends
• into the future.
• - Anthropological exploration - NPD designers
  live in users
• environment, and consider how to solve
  unspoken problems.

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Empathic Design
Five types of information acquired from empathic
design 1. Triggers of Use (e.g., Cheerios
PAM) 2. Fit between the product and users
environment(e.g., Intuits Follow Me Home
Program venting hood) 3. User customization
(e.g., id labels laundry detergent mixtures) 4.
Intangible product attributes (e.g., emotional
appeal.. Huggies pull ups) 5. Unarticulated
user needs (e.g., surgeons camera Minivan seats)
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Translating Observations into Interpreted Needs
(Empathic Design)

• Observation
• Capture data - use video or still pictures,
  dont write
• Show data to people who didnt observe
  first-hand and discuss observations
• Brainstorm for solutions

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Depth Interviews...
Customer Verbatims
Observations
Scenario Planning Or Market Driving Forecasting
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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.

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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.
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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 dont 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.
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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?

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Prioritizing Interpreted Needs

• Kano Classification (one approach)
• L Linear Satisfiers
• (The more the merrier.)
• N Neutral/Indifferent
• (No big deal.)
• M Must Haves
• (I wont buy without!)
• D Delighters
• (What an unexpected treat!)

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Kanos 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
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Stage II Concept Generation
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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
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Creativity

• Process
• What is creative thought?

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The Process Creative Cognition

• Creative accomplishments, whether mundane or
  extraordinary, are based on ordinary mental
  processes
• Our understanding of human cognition can be
  directly applied to understanding creative
  thought as well

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The Process Creative Cognition

• Bottom Up The Geneplore Model
• Generative Processes
• Pre-Inventive Structures (Finke, Ward, and Smith
  1992)
• Mental transformation / assimilation to create a
  structure
• For example, arrange an 8, a V, and a circle to
  make a figure or structure
• Exploratory Processes

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The Process Creative Cognition

• Top Down The POLR (Path of Least Resistance)
• Reproductive Thought
• What pushes you off the POLR?
• Constraints

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Time and Money Constraints

• Budgetary Constraint
• (1,000 per house)
• Time Constraint
• (2 days)

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Input Constraints
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Creativity

• Process
• Outcome
• How do you measure it?

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e.g., do you know creativity when you see it?
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Are these creative new product concepts?
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What about these?
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Or these?
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Definition of a Creative Concept
One that is both originalANDuseful
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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

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Strategy Implications

• Individual Trait
• Use Cross-Functional Teams
• Use Personality Testing in Hiring
• 9-dot problem
• Remote Associates Test
• MBTI

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Strategy Implications

• Individual Trait
• Use Cross-Functional Teams
• Use Personality Testing in Hiring
• Situational Effects
• Culture/Processes (3M, TI, IDEO, Kelloggs)
• No more mistakes and youre through! - John
  Cleese
• Reward Structures (IBM, Campbells)
• Ideation Strategies (Analogies)
• Analytical Strategies (Perceptual Mapping,
  Relationship Analysis, Morphological Matrix)

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Analytical Strategies

• Perceptual Mapping
• Determinant

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Perceptual MappingA Determinant Gap Map
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Analytical Strategies

• Perceptual Mapping
• Determinant
• Attribute Ratings (AR)

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Obtaining Customer Perceptions
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..5 7. Looks like a designer label
1..2..3..4..5 8. Easy to swim in
1..2..3..4..5 9. 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
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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

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Selecting the Number of Factors
The Scree
Percent Variance Explained
No. of Factors
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Factor Loading Matrix
Figure 6.7
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Factor Scores Matrix
Figure 6.8
Sample calculation of factor scores From the
snake plot, the mean ratings of Aqualine on
Attributes 1 through 15 are 2.15, 2.40, 3.48, ,
3.77. Multiply each of these mean ratings by the
corresponding coefficient in the factor score
coefficient matrix to get Aqualines factor
scores. For example, on Factor 1, Aqualines
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.
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The AR Perceptual Map
Figure 6.9
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Analytical Strategies

• Perceptual Mapping
• Determinant
• Attribute Ratings (AR)
• Overall Similarity (OS)

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Dissimilarity Matrix
Figure 6.10
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The OS Perceptual Map
Figure 6.11
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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 Kid
napping Being Insulted
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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
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Non-Analytical Strategies

• Brainstorming
• Analogical Thinking

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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.

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Some Interpreted Needs
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Results

• Teams of 2 Designers
• Texas Instruments
• TXS Industrial Design
• Ignition

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Results from comprehensive study

• Number of benchmarks or no benchmark
• Design Strategy - use many vs. few analogies
• Results

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