AIPMM Webinar: How Ideas Become Products
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About The Speaker, Chad McAllister, Ph.D., NPDP, PMP Founder, Product Innovation Educators AIPMM Certified Innovation Leader Content developer and Trainer chad@productinnovationeducators.com Moderated by Cindy F. Solomon cindy@prodmgmttalk.com Jan 14 Global Product Management Talk Podcast: Chad & Cindy: http://bit.ly/TMGzHt CIL Virtual Study Group starting January 8 Special Launch Pricing! Only $395 ($845 value) (Additional fees for AIPMM membership and certification exam required) http://www.productinnovationeducators.com/index.php/aipmm/buy-cil-prep-now 3 Day San Francisco Product Leader Special Package Price: $1797.00 2 day intensive training followed by 1 day conference & meetup includes lunch all 3 days Product Innovation Leadership Training http://www.aipmm.com/html/certification/strategic-innovation.php February 5 & 6, 2013 / 8:30 AM - 5:00 PM includes the 2 Day Intensive Training ($1697 value), Certified Innovation Leader (CIL®) certification exam fee ($395 value), and a 1 year premium AIPMM membership ($175 value). This course also offers 16 PDUs for PMI® certified Project Management Professionals (PMP®). AND Startup Product Summit startupproduct.com February 7, 2013 / 8:30 AM - 5:00 PM 1-Day Conference: Discover how to work together to develop amazing products. Join the first conference ($349 value) bringing together everyone who touches product at a company to talk frankly about what product is and our shared role in making them a success with a healthy mix of product managers, engineers, marketers and designers speaking from their experiences about products from every angle, including prototyping, roadmapping and marketing. The conference will offer additional PDUs. AND Startup Product Talks February 7, 2013 6:30 PM sfproducttalks.com San Francisco meetup networking event ($10+ value includes food and drinks) -------------------------------------- Subscribe AIPMM Product Management News and Views: http://www.aipmm.com/subscribe LinkedIn: http://www.linkedin.com/company/aipmm
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AIPMM Webinar: How Ideas Become Products
- 3. Innovation www.ProductInnovationEducators.com Founded 1998 Largest Product Management professional group Provides professional development and certification • Certified Product Manager • Certified Product Marketing Manager • Agile Certified Product Manager •Certified Innovation Leader
- 4. Innovation www.ProductInnovationEducators.com TODAY’S SPEAKERS Moderator: Cindy F. Solomon, CPM, CPMM Founder, Global Product Management Talk http://www.BlogTalkRadio.com/ProdMgmtTalk Twitter: @ProdMgmtTalk @startupproduct @cindyfsolomon Presenter: Chad McAllister, Ph.D., CIL, NPDP, PMP Product Innovation Educators http://www.productinnovationeducators.com LinkedIn: http://www.linkedin.com/in/chadmcallister http://www.aipmm.com
- 5. Innovation www.ProductInnovationEducators.com CERTIFIED INNOVATION LEADER (CIL) To earn the Certified Innovation Leader (CIL) designation, participants can choose 1 of 3 ways to complete the training in addition to receiving a passing score on the CIL Exam: • 2-Day Product Innovation Leadership Course, or; • Virtual Online Study Group, or; • 9 Module Self-Study Online Course http://www.aipmm.com @AIPMM #prodmgmt
- 6. Innovation www.ProductInnovationEducators.com 3-DAY SAN FRANCISCO PRODUCT INNOVATION LEADER PACKAGE February 5, 6, 7, 2013 8:30 AM - 5:00 PM Special Package Price: $1797.00 Product Innovation Leadership Training February 5 & 6, 2013 / 8:30 AM - 5:00 PM The course includes 2 Day Intensive Training ($1697 value), Certified Innovation Leader (CIL®) certification exam fee ($395 value), and a 1 year premium AIPMM membership ($175 value). This course also offers 16 PDUs for PMI® certified Project Management Professionals (PMP®). Startup Product Summit February 7, 2013 / 8:30 AM - 5:00 PM 1-Day Conference: Discover how to work together to develop amazing products. ($349 value) bringing together everyone who touches product at a company to talk frankly about what product is and our shared role in making them a success with a healthy mix of product managers, engineers, marketers and designers speaking from their experiences about products from every angle, including prototyping, roadmapping and marketing. Additional PDUs available. Startup Product Talks February 7, 2013 6:30 PM – 10 PM San Francisco meetup networking event included as part of Developer Week ($10+ value includes food and drinks) http://www.aipmm.com @AIPMM #prodmgmt
- 7. Innovation www.ProductInnovationEducators.com STAY ON TO WIN! Keep your Chat box open Use the Questions box to ask questions for the Q&A session following the presentation Participants will be entered into drawing for free tickets to Startup Product Summit and get invaluable information worth over $500 immediately http://www.aipmm.com @AIPMM #prodmgmt
- 9. Innovation www.ProductInnovationEducators.com Certified Innovation Leader How Ideas Become Products Chad McAllister, PhD
- 10. Innovation www.ProductInnovationEducators.com Chad McAllister • Educator, entrepreneur, and innovator • 24+ years software product development • Teaches innovation, project management, and business courses • Through Product Innovation Educators, provides new product development instruction and certification preparation. • PMP, NPDP, CIL certifications • EE degrees • PhD in Org & Management • chad@ProductInnovationEducators.com
- 11. Innovation www.ProductInnovationEducators.com WHAT IS INNOVATION? Turning Ideas into Products
- 12. Innovation www.ProductInnovationEducators.com PROJECT MANAGER, INNOVATION MANAGER, PRODUCT DEVELOPER, BUSINESS DEVELOPER, ….?
- 13. Innovation www.ProductInnovationEducators.com EXAMPLE: NEONATAL INCUBATOR & WHERE IDEAS COME FROM Source: “Steven Johnson: Where good ideas come from”TEDTalk, available at: http://www.ted.com/talks/steven_johnson_where_good_ideas_come_from.html
- 14. Innovation www.ProductInnovationEducators.com 1. Idea-Management System 2. Outcome-Driven Innovation 3. Blue Ocean Strategy & Value Innovation 4. A-to-F Model 5. IDEO’s Deep Dive 6. Crowdsourcing & Open Innovation THE BIG INNOVATION FRAMEWORKS
- 15. Innovation www.ProductInnovationEducators.com IDEA MANAGEMENT SYSTEM Systematic system for collecting and screening lots of ideas controlled by the idea manager (Cooper, 2011) Source: adapted from Cooper, R. G. (2011). Winning at new products: Creating value through innovation. Basic Books. Figure 6.3. Ideas from Many Sources Incubate, Enhance, Grow &Visualize NPD Process Collect & Organize Ideas on Hold & Dead Ideas Periodic Review & Update yes no
- 16. Innovation www.ProductInnovationEducators.com OUTCOME-DRIVEN INNOVATION: PROBLEM ADDRESSED • Obtaining the most valuable ideas based on customers’ desired outcomes • Uncovers all customer needs and then prioritizes those with the most impact • A formula approach to innovation (Ulwick, 2004)
- 17. Innovation www.ProductInnovationEducators.com EXAMPLE: BOSCH CS20 CIRCULAR SAW • Circular saw market viewed as mature – a commodity • Little innovation for many years • Needed to identify inexpensive ways to differentiate and add value • Bosch worked with the Outcome-Driven Innovation process to create a market winner – Uncovered 14 unmet needs – Showed an increased customer satisfaction from 63 to 87% Source: Creating the Bosch CS20Circular Saw. Strategyn Case Study. Available at time of printing from: http://www.strategyn.com/successes. Unmet needs included: - Direct-connect cord - Dust blower - Improved handle - Bevel stops
- 18. Innovation www.ProductInnovationEducators.com OUTCOME DRIVEN INNOVATION: ACTIVITIES 1. Design the interview 2. Conduct interviews 3. Capture and organize expressed needs using very specific “need” language 4. Ask customers to rate importance of outcomes 5. Identify key outcomes 6. Brainstorm means of achieving selected opportunities (Ulwick, 2004)
- 19. Innovation www.ProductInnovationEducators.com BLUE OCEAN STRATEGY • Goal is to create new markets with little immediate competition – “blue oceans” • Create a new “value curve” that results in a product with appeal to a blue ocean (Kim & Mauborgne, 2005)
- 20. Innovation www.ProductInnovationEducators.com BLUE OCEAN ACTIVITIES • Primary market research – e.g., customer interviews • Secondary research of environment – market trends, demand, competitors strategy and actions • Structured brainstorming process to create a value curve 1. trade-offs customers make (e.g., NetJets) 2. strategic groups in an industry (e.g., Toyota) 3. users, influencers, and buyers (e.g., Websense) 4. complementary products customers use (e.g., Barnes & Noble) 5. emotional vs functional appeal (e.g., Starbuck) 6. trends impacting value (e.g., Apple) • Create possible value curve (Kim & Mauborgne, 2005)
- 21. Innovation www.ProductInnovationEducators.com BLUE OCEAN ISSUE • Great concepts, but… – Is it really actionable? – A retrospective analysis • Value Innovation enters…
- 22. Innovation www.ProductInnovationEducators.com Value Innovation Example: International Traveler Source: Provided by Value Innovations using their Slalom automated system. See www.ValueInnovations.net. Used by permission.
- 23. Innovation www.ProductInnovationEducators.com A-TO-F MODEL: TRADITIONAL STEPS OF THE INNOVATION PROCESS Objective Research Ideas Evaluation Development Launch (Trias De Bes & Kotler, 2011)
- 24. Innovation www.ProductInnovationEducators.com A-TO-F MODEL: TRADITIONAL STEPS OF THE INNOVATION PROCESS Objective Research Ideas Evaluation Development Launch (Trias De Bes & Kotler, 2011)
- 25. Innovation www.ProductInnovationEducators.com A-TO-F MODEL: INNOVATION ROLES 1. Activators: initiate the innovation process 2. Browsers: experts in searching for information 3. Creators: produce ideas and find solutions 4. Developers: make ideas tangible 5. Executors: get the product out – to the organization and the market 6. Facilitators: approve investment and manage the innovation (Trias De Bes & Kotler, 2011)
- 26. Innovation www.ProductInnovationEducators.com IDEO’S “DEEP DIVE” • IDEO describes innovation in terms of 10 “faces” or roles grouped into three categories: – Learning roles: anthropologist, experimenter, cross-pollinator – Organizing roles: hurdler, collaborator, director – Building roles: experience architect, set designer, storyteller, caregiver For details: www.tenfacesofinnovation.com/tenfaces (Kelley, 2005)
- 27. Innovation www.ProductInnovationEducators.com IDEO’S PROCESS FRAMEWORK • Described as a loose process – focus is on roles • Five activities 1. Understand the market, the client, the technology, and the perceived constraints on the given problem 2. Observe real people in real situations 3. Visualize concepts and the customers who will use them 4. Evaluate and Refine the prototypes in a series of quick iterations 5. Implement the new concept for commercialization (Kelly & Littman, 2001)
- 28. Innovation www.ProductInnovationEducators.com http://www.youtube.com/watch?v =wcODLI5X1d8 An Example of Innovation: IDEO Shopping Cart Source: http://www.youtube.com/watch?v=wcODLI5X1d8
- 29. Innovation www.ProductInnovationEducators.com CROWDSOURCING: THE QUIRKY WAY • Anyone submits a product idea • Community votes for ideas • Designers select best ideas • Products are created and brought to market www.quirky.com
- 30. Innovation www.ProductInnovationEducators.com INNOVATION EXAMPLE: COMPASSION INTERNATIONAL • Idea Management + Value Innovation – 1700 ideas – 35 synthesized and vetted ideas – Top 20 ideas ranked by executive team – Market research to identify need and interest – Top idea moved into the new product development process: Water of Life
- 31. Innovation www.ProductInnovationEducators.com Low High Availability Likelihood a child <5years old will die Mortality Rate (%) Likelihood of Contracting Disease High, Very Low Clarity 1 to 5 scale 1-V Poor; 5- Excellent Odor Puchase Price US cents/gal Time to process minutes Ease of cleaning 1 to 5 scale: 1- V difficult; 5- V easy Service life Years Heavy metal content Total, mg/liter Organic content Total, mg/liter 1.0 3.0 5.0 7.0 9.0 Drinking Water Value Curve Value to the Family Rwanda Draft 2 6 7 8 9 10 10 1 2 3 4 5 20 Hi 1 0 120 10 0 2 V Low 5 0.2 130 Brackish Water Bottled Water Compassion Water of Life
- 32. Innovation www.ProductInnovationEducators.com EXAMPLE: COMPASSION’S WATER OF LIFE • The Result: water.compassion.com – A simple and highly effective water filtering system for third-world countries – A successful partnership with Sawyer – Most successful product launch on radio outlets – And, hundred of thousands of kids with clean water!
- 33. Innovation www.ProductInnovationEducators.com 1. Idea-Management System 2. Outcome-Driven Innovation 3. Blue Ocean Strategy & Value Innovation 4. A-to-F Model 5. IDEO’s Deep Dive 6. Crowdsourcing & Open Innovation THE BIG INNOVATION FRAMEWORKS
- 34. Innovation www.ProductInnovationEducators.com CERTIFIED INNOVATION LEADER • Managed Front End – Innovation Strategic Alignment – Ideation Management – Business Case Development • New Product Development – Knowledge Creation – Project Planning – Innovation Development – Innovation Qualification – Product Launch
- 36. Innovation www.ProductInnovationEducators.com X ONLINE COURSE INTRODUCTORY OFFER • http://www.productinnovationeducators.com • Introductory Pricing: – $845 $395 for online course – $395 for proctored exam(Introductory Offer for a limited time -- includes annual premium AIPMM membership, a $175 value!!)
- 37. Innovation www.ProductInnovationEducators.com Chad McAllister • Contact Info: – chad@ProductInnovationEducators.com – www.ProductInnovationEducators.com
- 38. Innovation www.ProductInnovationEducators.com PLEASE JOIN US AGAIN! Global Product Management Talk: Monday Jan 7 Iterative Product Development Follow http://www.blogtalkradio.com/prodmgmttalk AIPMM Webinar Series: Friday Jan 11 Rise of SaaS Product Manager http://aipmm.com/aipmm_webinars/ ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 3 days of Startup Innovation Training, Certification Credential & Conference San Francisco, CA +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Stay Informed! Newsletter: http://www.aipmm.com/subscribe LinkedIn: http://www.linkedin.com/company/aipmm Membership: http://www.aipmm.com/join.php Certification: http://aipmm.com/html/certification/ http://www.aipmm.com @AIPMM PRODUCT INNOVATION LEADER http://bit.ly/SEAZGA February 5 & 6, 2013 STARTUP PRODUCT SUMMIT startupproduct.com February 7, 2013
Notas do Editor
- The Certified Innovation Leader body of knowledge and credential is aligned with The Association of International Product Marketing and Management. AIPMM was founded in 1998. It provides professional development, training, and certification to those involved in product management, such as product managers and developers, marketing managers, brand managers, project managers, and many more. The certified innovation leader credential is one of four certifications provided by AIPMM. The others include: certified product manager, certified product marketing manager, and agile certified product manager.
- Now we will look at sources and methods for managing ideas that can be matured into products. Note that we are in the middle of the Managed Front End, working towards winning product concepts that feed the New Product Development process.
- Who does that – who turns ideas into products
- Steven Berlin Johnson is the best-selling author of six books on the intersection of science, technology and personal experience. His current book examines "Where Good Ideas Come From.“ This is a clip of a TED video where Steve uses an example for how ideas are generated. As you watch it, note what stands out to you – what you find important. [Briefly have a few people share ONE concept they noted.]
- Next we will look at these major innovation frameworks – methods for creating concepts for the new product development process. Some of these are idea-first approaches while others are need-first. In each case we only have time to provide a high-level overview of the framework but I will give you resources for exploring them more deeply. INSTRUCTOR NOTES: At the end of each framework you will see notes to ask the participants about their experience with the approach.
- Cooper tells us to “Put someone in charge of your internal idea suggestion scheme.” He suggests that while “Ideation is everyone's job [too often it is] no one's responsibility” (Cooper, 2011, Internal Idea Capture section). He tell us to have a formal idea management system, like the one depicted here – a systematic way to collect and screen lots of ideas. It begins with ideas and we have many sources for ideas -- customers, employees, vendors, partners, patent searches, environmental scanning, etc. We collect, store, and organize the ideas and then use brainstorming and other tools to help visualize concepts. Concepts are evaluated and the worth ones move into the New Product Development process. Those that do not remain in an Idea Bank or idea database. Ideas that still have potential should be periodically reviewed and updated for reevaluation. For example, we may have a valuable product concept but lack a technology to make it a reality. Later we may acquire or create the necessary technology, passing the concept on to the NPD process.
- Remember the Bosch Circular Saw example from the Introduction section? That product improvement used the Outcome-Driven Innovation approach to identify how a circular saw could be enhanced to provide higher value to customers. ODI analyzes what customers want to achieve – their desired outcome that helps them better accomplish a job or create value for them. It strives to create an exhaustive set of customer needs and then prioritizes them to identify those with the most positive impact. For those that enjoy formulas, ODI is a good choice as it tends to present innovation in a formulaic manner – it is far from being chaotic, which is how some think about innovation.
- Here is a good example of innovation. This is a case of creating differentiation in a mature marketplace with commodity pricing – breathing new life into an existing product line. From the Strategyn website (source on slide). “Bosch recognized that there had been little innovation in the market; it was perceived as mature and commodity-like. Therefore, they knew that finding innovative solutions would depend on the company's ability to uncover and inexpensively address market opportunities that others had missed. The company hit a home run in the competitive saw market by understanding the jobs that customers were trying to get done, and generating innovative ideas to address those needs. The updated product improved customer satisfaction and enabled Bosch to gain the distribution support of Big Box retailers such as Home Depot and Lowe's.” By understanding the needs of customers, Bosch added inexpensive capabilities that differentiated the Bosch CS20 in the circular saw market: The power cord was removed because it was often getting nicked or cut by the saw itself on job sites . Instead, an extension cord is plugged directly into the saw. The blower was improved to remove debris from the cutting line so the person sawing can clearly see where the saw will cut. The comfort of the handle was improved and a hook added so the saw could be hung from a 2 x 4. The bevel adjustment was improved so that it could be adjusted to cut must faster and with greater accuracy.
- We can think of ODI as following these six key activities: Identify customers to interview and design an interview guide that will uncover the “jobs” or tasks that customers want to accomplish and unmet needs they have in doing so. Ideally, customers are observed in their environment so we can focus not on only what customers say but also what they do. Conduct the actual interviews – one-on-one sessions asking customers questions and recording responses along with observing their actions. Organizing customers’ responses using a formal “need language” that helps to specify the outcomes and how they are met. Then customers rate how important each outcome is to them. Based on the aggregate of the ratings, we identify the outcomes with the most impact Finally we brainstorm opportunities for how the product should fulfill these outcomes. As an example from the Bosch Circular saw, an outcome of high importance was to avoid accidently cutting the electrical cord of the saw. The opportunity was to eliminate the cord and allow electrical extension cords to be plugged directly into the saw. Does anyone have experience with ODI?
- The goal is to play in “blue oceans” – uncontested markets that offer significant advantage over playing in crowded “red oceans.” Environmental scanning is used to identify opportunities. We can look at history as well as current environmental characteristics, such as competitive and market intelligence. We identify specific factors where competitors current invest and other factors the provide values to customers. These are used to create a “strategy canvas” and a value curve for the factors our product must address. We’ll look at an example in a moment. To deliver greater value than competitors, four core questions are asked – what can we eliminate or reduce to provide a better customer experience and what can we raise or create to create higher value. Cirque du Soleil is a frequent example of a company that created a blue ocean based on merging existing capabilities with a new market – the love of circus shows up scaled for an adult audience at a time that traditional circuses were experience a decrease in attendance.
- Blue Ocean Strategy combines primary and secondary research to understand that market factors related to a product. What is the difference between primary and secondary research? Primary is research we specifically conduct to answer our questions, such as interviewing customers and non-customers. Secondary research is using research findings others have already created for our purposes, such as scanning literature and trade press for trends, competitors actions, market demand, etc. Then six structured brainstorming activities are followed with each resulting in one or more value curves. The focus during brainstorming is applying techniques for reducing, eliminating, raising, and/or creating factors for the new value curves. The brainstorming areas include Analyze trade-offs which customers make. For example, NetJets saw the trade-off in convenience and cost between charter jets and commercial airline travel, and tried to capture the best of each by providing fractional ownership of a private jet. Consider strategic groups within an industry. Toyota did this when they created Lexus by considering the quality and amenities of Mercedes that provided higher value at a lower cost. Examine users, influencers, and buyers to see value can be added and identify the most important customer. Websense, maker of internet compliance software, increased their success when they shifted their focus from the IT department (the user) to the compliance/HR officer (they buyer). Review complementary products and services customers use before, during, and after your product. Barnes & Noble incorporated coffee bars and cafes because they realized their customers were leaving to get those items. As a result, customers spend more time in the stores. Identify functional and emotional appeal and increase emotional appeal. Starbucks turned getting coffee into a delightful experience – the coffee house. Incorporate emerging trends into the analysis. Apple identified and capitalized on the trend of downloading music by legalizing it with iTunes. After creating several value curves, they are examined, combined, and ultimately a value curve to pursue is created. This may be accomplished in conjunction with executive input, voting, and utility analysis.
- Value Innovation Works: Move Mountains.....Deliver Sustainable, Profitable Growth. Deliver Exceptional Value to the Most Important Customers in Your Value Chains. A "How To" Guide. (Volume 1) by Dr Richard K Lee, Lin Lee, Peter Frey and Nina E Goodrich(May 12, 2012) Here is an example value curve based on an early analysis for creating an improved airport experience for the international traveler. The elements of performance are listed in order of most to least important, with “in airport time” at the top as the most important performance factor. These factors were found through interviews with airport customers (travelers) who also ranked the information. The numbers in red to the left of the factors is the result of a mathematical calculation (analytical hierarchy process) provided by the software that creates this analysis, which indicates how important each factor is. For example, “Ease of use” is responsible for 18% of the total performance picture for customers. Consequently we know both the ranking and the weight of the factors. The value curves at the right shows how the performance factors are rated in terms of value to travelers for four “products”: Green: the worst airports (Frankfurt, Germany, LHR & La Guardia/JFK/Newark) Red: the “as-is” or average airport experience Blue: the airports currently considered the best (Hong Kong, Singapore & Denver), and Black: a potentially achievable value curve for an improved airport Note the creation of a blue ocean highlighted with the orange oval – higher value to travelers on the performance factors that are most important. This is a sophisticated analysis that is beyond the scope of the Blue Ocean book – if you want to learn more about this analysis, please contact those that provided this example: Value Innovations.
- In “Winning at Innovation” the authors Fernando Trias de Bes and Phil Kotler rightly state that the typically innovation process is like a production line, moving one step at a time through a defined process. We move through: Creating objectives Conducting research Generating ideas Evaluating and selecting ideas Developing the best ideas for the market Launching products to the market However, the authors suggest that thinking about innovation as a well defined phases or stages limits the nature of innovation, which includes spontaneous interaction and the need for flexible process flows. Instead, they suggest thinking of innovation in terms of the roles involved.
- In “Winning at Innovation” the authors Fernando Trias de Bes and Phil Kotler rightly state that the typically innovation process is like a production line, moving one step at a time through a defined process. We move through: Creating objectives Conducting research Generating ideas Evaluating and selecting ideas Developing the best ideas for the market Launching products to the market However, the authors suggest that thinking about innovation as a well defined phases or stages limits the nature of innovation, which includes spontaneous interaction and the need for flexible process flows. Instead, they suggest thinking of innovation in terms of the roles involved.
- In the A-to-F Model, the focus is on 6 roles. Activators: initiate the innovation process Browsers: are the experts in searching for information Creators: produce ideas and find solutions Developers: make ideas tangible Executors: make it real by getting the product out – to the organization and the market Facilitators: approve investment and manage the innovation Each of the roles has defined activities to do. For example, Browsers would be responsible for Market Research and identifying trends, Creators might conduct customer visits to generate ideas, Developers would create prototypes and the functioning form of the product, and Executors would plan the market launch and prepare the sales team.
- IDEO well-known for their design expertise. Not unlike the A-to-F Model, Tom Kelly, IDEO’s general manager, describes innovation in terms of 10 “faces” or roles grouped into three categories: Learning roles: anthropologist, experimenter, cross-pollinator Organizing roles: hurdler, collaborator, director Building roles: experience architect, set designer, storyteller, caregiver INSTRUCTOR NOTES: Details below if needed, but suggest you only introduce his role-approach to innovation and quickly move on to the video in two slides. The Learning Roles Anthropologist: develops deep understanding of needs by observing people. Experimenter: learns by trial and error; frequently developing prototypes of new ideas. Cross-Pollinator: synthesizes and applies ideas from other industries and domains. The Organizing Roles Hurdler: adept at overcoming obstacles that fraught innovation. Collaborator: aids the innovation process by bringing various and possibly disparate organizational groups together. Director: just like a movie director, this role organizes the talent and crew and directs their creative talents. The Building Roles Experience Architect: finds ways to deeply connect innovation with customers’ needs. Set Designer: optimizes the layout and configuration of physical environments to influence people’s behavior in a positive manner. Storyteller: Creates, extends, and reinforces key values and cultural traits that foster innovation through compelling stories. Caregiver: suppresses mere customer service to anticipate needs and exceed expectations for care.
- “Characterized as “loosely described,” Kelley shares IDEO’s five-step methodology: understand the market, the client, the technology, and the perceived constraints on the given problem; observe real people in real-life situations; literally visualize new-to-the-world concepts AND the customers who will use them; evaluate and refine the prototypes in a series of quick iterations; and finally, implement the new concept for commercialization.”
- Since “visualization” is so critical to the IDEO process, let’s take a moment to watch IDEO apply their craft. This is a 4 minute video clip from ABC’s Nightline’s investigation of what IDEO does. INSTRUCTOR NOTES: Ask after the video is over. What stood our as significant for you in the video?
- Crowd sourcing in an increasingly popular way to gain insights into how products can be improved as well as creating new-to-the-world product ideas. Let’s take an example from a product designer and creator that relies on crowdsourcing for its concepts. INSTRUCTOR NOTES: Play the video, which should open in a browser window – click the full screen option for the best viewing experience.
- A nonprofit organization created an exceptionally successful product using an innovation process. This is a good example for us to consider. The organization is Compassion International. Compassion International’s mission includes working with impoverished children in Third World countries. Compassion started with an idea generating activity that resulted in 1700 ideas. From these ideas, related ideas were combined, organized and vetted. Then 35 well formed concepts emerged. A cross-functional team representing functional interests of the organization ranked the 35 concepts from most viable to least viable. Then Compassion executives ranked the top 20 concepts on two dimensions: (1) excitement for the concept, and (2) feasibility for the organization. An external research study was also conducted with potential supporters. Unlike most commercial products, as a nonprofit, Compassion has a dual value chain and must create products that appeal to financial supporters and meet the needs of their customers. The potential donors assessed two dimensions for each concept: the critical need for the product, and (2) how likely potential donors would be willing to provide financial support. The data from the internal and external assessments were plotted and the concept with the highest overall value was selected for entering product development. The product was launched and has become a market winner. Note that the process considered both the organizational viability of the concept as well as the market viability; it was a good fit for both.
- The selected concept was a simple but highly effective system for producing clean water from unclean sources. The product has produced a successful partnership with the creators of the technology that is utilized. The initial launch of the product was done by radio ads that described the product and asked for financial contributions. It was the most successful donor drive the radio network had ever experienced! And of course, the product is providing hundred of thousands of children and their families with clean water, with more customers being added every day.
- Next we will look at these major innovation frameworks – methods for creating concepts for the new product development process. Some of these are idea-first approaches while others are need-first. In each case we only have time to provide a high-level overview of the framework but I will give you resources for exploring them more deeply. INSTRUCTOR NOTES: At the end of each framework you will see notes to ask the participants about their experience with the approach.
- This is the big-picture of the concepts that we will review together. We will explore innovation activities that are part of the managed front end, which you may have heard called the fuzzy front end. We use the term “managed” to suggest that there are clear and not fuzzy activities to accomplish. We will also explore the five phases of new product development. For each area, we will be concerned with: Core Concepts Inputs Tasks & Tools Deliverables Decisions