Lean Innovation for Micro Enterprises Module 3 Concept Development

1. Module 3:
Concept Development

2. Module Overview
2
1. Concept development case study
2. Idea generation (ideate)
3. Accumulation of information – the checklist
4. Idea screening (filter)
5. Building the actual business case
6. Concept template
7. 7 simple ways to improve concept development
OVERVIEW

3. 1. Concept development case study
3

4. 1. Concept Development Case Study 4
Seamus Flynn and Dearbhaile Collins, Sapphire Eyewear, Cork
Website: https://www.sapphireeyewear.com/
Facebook: https://www.facebook.com/sapphire.eyewear/
1.
CASE
STUDY
OF
CONCEPT
DEVELOPMENT
Seamus is an
optometrist.
Dearbhaile is a
cancer doctor.

5. How they came up with the idea 5
By observation of their own problem of visual discomfort after spending a lot of time
on computers. Dearbhaile spends a lot of time on computers researching cancer treatments.
They knew that all the extra screen time means
more of us are exposed for longer to damaging
blue light from devices, which causes eye strain
and headaches.
So they came up with the idea of producing eyeglasses that protect the eyes from blue light.
They sourced lenses and high-quality frames and started putting pairs of glasses together in the garage.
Seamus had also noticed a huge increase in the
number of complaints of digital eyestrain
especially in the last 5 years or so due to the
increasing amount of time we now spend looking
at computers, tablets and smartphones. So they
set out to make anti-blue light protective glasses
more available, accessible and affordable.
1.
CASE
STUDY
OF
CONCEPT
DEVELOPMENT

6. 2. Idea generation –
6
a systematic search to find out new
ideas

7. 7
What should you do?
Identify an important market and the company's
goals for innovation in your market
Find the trends
Talk to people who lead that trend about their
experience and intensity of needs
Consult customers, suppliers, and their
customers and suppliers,
to find someone who knows even more about the
area or the 'problem'
Hold a workshop with leading figures and your
own employees
Start by working in smaller groups and then all
together in order to develop a product concept that
involves a number of possible products
http://qpc.adm.slu.se/SNPD_ver2/page_19.htm
You need to
understand:
What are the
market trends?
What do
customers want?
2.
IDEA
GENERATION

8. 8
How to know what customers want?
Sources of new ideas:
Internal
sources
External
sources
2.
IDEA
GENERATION

9. 9
Internal sources
Employees Shelved ideas Complaints
systems
Customer
service
Sales force
Engineering/
IT
2.
IDEA
GENERATION

10. 1 0
External sources
Customers Lead-users
(user solutions)
Competitors Suppliers Acquisitions Trade fairs &
conventions
Patents/
inventions
Published
information
Trade
magazines
Outside
consultants
Universities Government
2.
IDEA
GENERATION

11. 1 1
Customer voice and pain points
– how to acquire them?
Customers often are not be aware of what they need if asked.
In order for you both to discover that idea, you need to do things together.
It is likely that your next big product idea may be found among your customers!
What could be the
problem?
An example
A company supplying machinery for bakeries was looking for ways to improve its products.
After two weeks on site with a baker they came up with variety of ideas for new products that
they had never thought of before.
For fast-moving products, working in micro-enterprises, for example, a shop, bar or
restaurant, can give you similar experiences to bring back to your own product development.
Feedback
Complaints
Questions
NEW PRODUCT IDEA
2.
IDEA
GENERATION
One way is to arrange with your customer to spend an agreed period of time at the workplace with them,
when you think they are most likely to have ideas about their job. This is particularly appropriate when
dealing with products that are used in a way that you and your company don't really understand or know
how to improve.

12. 1 2
Competitors
Prepare a SWOT
analysis
of your main
competitor…
Weaknesses
Opportunities
Threats
Strengths
SWOT
analysis
What you can do to find a
product/service idea?
to find
out
what is the gap in
competitor’s
products/services that
you might fill with your
products/services.
2.
IDEA
GENERATION
You Tube Link
Watch
(7mins)

13. 1 3
Distributors and suppliers (collaborators)
are close to
the market…
…know
customers’
problems…
…know the
techniques to
address these
problems
So ask them!
2.
IDEA
GENERATION

14. 3. Accumulation of information
– the checklist
1 4

15. It provides a list of considerations that are classified according to different aspects of the product:
The Ideation Stimulator Checklist – a practical example of
a systematic approach to developing new ideas
DIMENSIONALITY L a r g e r , S m a l l e r , L o n g e r , S h o r t e r , T h i c k e r , T h i n n e r , D e e p e r , S h a l l o w , S t a n d V e r t i c a l l y , P l a c e
H o r i z o n t a l l y , M a k e S l a n t e d O r P a r a l l e l , S t r a t i f y , I n v e r t ( R e v e r s e ) , C r o s s w i s e
QUANTITY M o r e , L e s s , C h a n g e P r o p o r t i o n s , F r a c t i o n a t e , J o i n S o m e t h i n g , A d d S o m e t h i n g T o I t , C o m b i n e
W i t h S o m e t h i n g E l s e , C o m p l e t e
ORDER A r r a n g e m e n t , P r e c e d e n c e , B e g i n n i n g , A s s e m b l y / D i s a s s e m b l y , F o c u s
TIME F a s t e r , S l o w e r , L o n g e r , S h o r t e r , C h r o n o l o g i c a l , P e r p e t u a t e d , S y n c h r o n i z e d , A n t i c i p a t e d ,
R e n e w e d , R e c u r r e n t , A l t e r n a t e d
CAUSE/EFFECT S t i m u l a t e d , E n e r g i z e d , S t r e n g t h e n e d , L o u d e r , S o f t e r , A l t e r e d , D e s t r o y e d , I n f l u e n c e d ,
C o u n t e r a c t e d
CHARACTER S t r o n g e r , W e a k e r , A l t e r e d , C o n v e r t e d , S u b s t i t u t e d , I n t e r c h a n g e d , S t a b i l i z e d , R e v e r s e d ,
R e s i l i e n t , U n i f o r m i t y , C h e a p e r , M o r e E x p e n s i v e , A d d C o l o u r , C h a n g e C o l o u r
FORM A n i m a t e d , S t i l l e d , S p e e d e d , S l o w e d , D i r e c t e d , D e v i a t e d , A t t r a c t e d , R e p e l l e d , A d m i t t e d , B a r r e d ,
L i f t e d , L o w e r e d , R o t a t e d , O s c i l l a t e d , A g i t a t e d
STATE/
CONDITION
H o t t e r , C o l d e r , H a r d e n , S o f t e n , O p e n O r C l o s e d , P r e f o r m e d , D i s p o s a b l e , I n c o r p o r a t e d , P a r t e d ,
S o l i d i f i e d , L i q u e f i e d , V a p o r i z e d , P u l v e r i z e d , A b r a d e d , L u b r i c a t e d , W e t t e r , D r i e r , I n s u l a t e d ,
E f f e r v e s c e d , C o a g u l a t e d , E l a s t i c i z e d , R e s i s t a n t , L i g h t e r , H e a v i e r
ADOPTION TO
NEW MARKET
M e n , W o m e n , C h i l d r e n , O l d , H a n d i c a p p e d , F o r e i g n
Source: C. Merle Crawford, C. Anthony Di Benedetto, New Products Management, 11th Edition, McGraw-Hill Education, 2014
3.
ACCUMULATION
OF
INFORMATION

16. 4. Idea screening
1 6
– analysing the collected data

17. 1 7
It might provide innovation or solutions!
Designers, employees, thinkers
generate and discuss ideas by brainstormingordesignthinking
“Design
thinking” will
be descibed
in Module 4
4.
IDEA
SCREENING
Watch
You Tube Link
(3.5mins)

18. How to find good ideas
and drop the poor
ones?
Youneedtoanswerthefollowingquestions:
1 8
What are the factors influencing the
evaluation criteria?
What to do to make the idea succeed?
Is the
product
useful to
customers’
needs?
What are company
objectives and
resources (do You
have enough
people and skills)?
What are
company
strengths and
weaknesses that
You might deal
with?
What are current
trends?
What is the
affordability,
advertising and
distribution?
What is the
expected return
on investment?
4.
IDEA
SCREENING

19. 5. Building the actual business case
1 9

20. This is the final stage prior to actual product development.
A detailed business analysis will clearly define the New Product Development project
and to verify the attractiveness of the product to be developed.
2 0
What needs to be
done?
After finding a good idea…
The Next
requirement
is…
…prepare a detailed description of the idea
(a more physical and visual presentation for a more reliable concept test)
5.
BUILDING
THE
ACTUALL
BUSINESS
CASE

21. Make a competitive analysis to benchmark your product advantage,
compared to what is (or is going to be) offered on the market
Make a detailed technical appraisal focusing on the “do-ability” of the
project.
Customer needs and “wish lists” need to be translated into technically
and economically feasible solutions.
Do an operations appraisal.
This is where you assess any manufacturing costs or the additional
investment necessary.
Finally, a detailed financial analysis to get an overview of the financial
figures involved.
5.
BUILDING
THE
ACTUALL
BUSINESS
CASE

22. 6. Concept template
2 2

23. CORE CONCEPT Provide a statement with the core concept in one sentence
Use a preliminary product name (if available )
BENEFITS Describe the product benefits , based on sensory, convenience , health,
process and other product attributes
Decide on “stripped” versus “embellished” formulations
( f o r m o r e i n f o r m a t i o n s e e : C . M . C r a w f o r d , C . A . D i b e n e d e t t o ( 2 0 0 8 ) , n e w p r o d u c t
m a n a g e m e n t , m c g r a w h i l l , n e w Y o r k )
PRODUCT INFORMATION Provide information about relevant extrinsic cues such as price, size,
product-related information
TARGET USERS Tell your respondent how you would describe him or her
Describe the person based on segmentation criteria
Ask if he or she feels the description is appropriate. (Do not forget to
ask about personal information , before or after the test.)
You can use the following simple concept template:
Source: L. Peng, A. Finn, (2008), “Concept testing: the state of contemporary practice", Marketing Intelligence & Planning, Vol. 26 No. 6, pp. 649-674; C. M. Crawford, C. A. Di Benedetto
(2008), New product management, McGraw Hill, New York.
6.
CONCEPT
TEMPLATE

24. 7. Seven simple ways to improve
concept development
2 4

25. “Size” the opportunity, not the market
2 5
Look at the entire market through the lens of your customer to determine the
actual potential.
7.
Seven
simple
ways
to
improve
concept
development
By accurately sizing the opportunity, you can set proper expectations of what can be achieved.

26. Kill a few new ideas 2 6
Choose only the best project to develop
Too many organizations carry all their new ideas through the
development cycle when some should have been left behind
Carrying new ideas too far wastes resources and
distracts the team’s efforts from focusing on the winners
If an idea does not meet your revenue requirements cut it from the list
or figure out how to rework it so that it can make more money
Establish the elements that
an idea must have
to stay on the list
Make sure you have comprehensive parameters
against which to screen new product and service ideas
7.
Seven
simple
ways
to
improve
concept
development

27. Find the pain points of users 2 7
Many businesses incorrectly develop
benefit statements based on a new
offering’s features instead of its
actual benefits.
If you don’t thoroughly understand your
target group’s pain points, you can
easily undersell the very real benefits of
your product or service.
You need to find answers to these two most important questions:
What is the actual
purpose of your new
product or service?
What need
does it solve?
ForExample
What might they want after having fun in the snow?
This or that?
7.
Seven
simple
ways
to
improve
concept
development

28. Price for customers 2 8
Pricing needs to be based on your customer’s cost threshold to ensure that
price does not become a barrier to purchase for people who truly want the
product.
ForExample
What will she be able to buy?
This OR that?
7.
Seven
simple
ways
to
improve
concept
development

29. Get customers involved early
2 9
You can reality-proof your
concepts by including your
customer in the product
development cycle —
especially if you do it well
before you launch.
7.
Seven
simple
ways
to
improve
concept
development

30. Dedicate a team to the job
(and empower them to do great work)
3 0
Responsibility for the success of a new product or service should not be spread among too many individuals
7.
Seven
simple
ways
to
improve
concept
development
You should look to empower a lead person so that they have authority and resources

31. Consider life after launch
3 1
Prepare a detailed plan as to how this new product will be
supported by the product development team.
The development team and sales/support teams should
work in tandem (maybe even involve sales team
earlier in the development process).
The initial question is:
How the new product or service will be supported and improved upon
throughout its lifecycle?
You should also have
extensive
training and
education available
internally to staff.
7.
Seven
simple
ways
to
improve
concept
development

32. After the business analysis of
chosen idea is done…
3 2
MINIMUM VIABLE PRODUCT ASSESSMENT, EXPERIMENTATION/TESTING
This helps companies to investigate customers reactions before introducing to the market.
The next step
is…
And the final
step is…
FIRST INTRODUCTION TO THE MARKET AND EVALUATION OF THE PRODUCT
What are the customer’s reactions in term of feedback.
Is the concept appealing or not? Does the innovation fulfill the customers needs?
But you will
learn about
these steps
from the
next
modules.
7.
Seven
simple
ways
to
improve
concept
development

33. SUMMARY
3 3
1. Case study of concept development
2. Idea generation (ideate)
3. Accumulation of information – the checklist
4. Idea screening (filter)
5. Building the actual business case
6. Concept template
7. 7 simple ways to improve concept development
SUMMARY