carnegie mellon qatar ©2006 - 2011 robert t. monroe course 70-446 innovative product development...

Carnegie Mellon Qatar ©2006 - 2011 Robert T. Monroe Course 70-446

Innovative Product Development

Robert Monroe

January 11, 2011


Agenda

• Introductions• Course philosophy, structure, grading, and expectations • What is innovative product development?• In-class exercise


Introductions


Agenda

• Introductions• Course philosophy, structure, grading, and expectations • What is innovative product development?• In-class exercise


Two Big Questions

1. How does an organization bring a new product or service to market, starting with an initial idea and continuing on through product (or service) launch?

– This is the product development part of the course

2. How does an organization decide which new products or services to develop and bring to market?

– This is the innovation part of the course


What Is This Course About?

• Creating innovative products and services that:– Solve real problems, for real people

– Are useful

– Are usable

– Are desirable

– Delight your customers

• Creating organizations that can uncover product opportunities and create great new products to meet those opportunities– … again, and again, and again


Course Goals: By the End of this Course You Will:


You will understand and be able to apply:

• The common stages, tasks, and decision points in a new product development cycle

• Tools and processes for successfully navigating the early stages of new product development wherein you decide what new products and services your organization will invest in bringing to market

• Techniques for harnessing consumer forces as a source of new product ideas

• Research methods for deeply understanding the needs of product stakeholders

• Techniques for identifying and meeting stakeholder needs with innovative product features, capabilities, and design

• Tools, techniques, and processes for prototyping new products and services


Course Philosophy


Course Structure


Agenda

• Survey and introductions• Course philosophy, structure, grading, and expectations • What is innovative product development?• In-class exercise


Products, Services, and Experiences

• For purposes of this course, a product is a good or service offered for sale by a company. – A product may be customized for different customers but it needs

to be offered for sale in substantially the same form to multiple customers.

– A product may be a service, as long as the service is offered as a standard package to multiple customers

– Sometimes I will use the generic term offering to refer to product/service/experience

• It is also possible for a company to offer a product that is fundamentally an experience. As long as the experience is available in a standard package or form and repeatedly offered to multiple customers


Are These Products, Services, or Experiences?

• A laptop computer• A car• An oil change at a car dealer• Renting a bicycle to tour around a foreign city• A book that describes best practices for organizational

change management• Hiring a consultant to advise your company on

organizational change management. – The consultants are paid based on hours worked

• An adventure outfitter that leads treks to Mt. Everest• A hotel room and dinner at the Ritz-Carleton hotel


How Does Product, Service Or Experience Change:

• Developing your offering?• Producing your offering?• Delivering your offering to customers?• Marketing and selling your offering?

– Pricing your offering

• Does an offering need to be only one of product/service/experience? If not, should it be?


Launch*

The Cagan and Vogel Innovation Process

Realize Conceptualize UnderstandIdentify

* The launch stageis not part of theCagan / Vogel process but it is

something we willexplore


Phase 1: Identify The Opportunity

• Goals:– Identify and evaluate a set of promising Product Opportunity Gaps

(POG’s)– Choose the most appropriate POG to move forward with

• Primary results:– Product opportunity statement (hypothesis)– Initial scenario that illustrates the opportunity

• Methods– Brainstorming, observing, researching Social, Economic, and

Technology (SET) factors– Generating POGs based on SET factors– Evaluating and filtering POG ideas generated– Scenario generation, feedback, and refinement

Source: Cagan and Vogel, Creating Breakthrough Products, Chapter 5.

Launch* Realize Conceptualize UnderstandIdentify


Phase 2: Understand The Opportunity

• Goals:– Much deeper understanding of customer and customer’s Value

Opportunities (VO’s), translated into product criteria• Results:

– In-depth understanding of the customer/user, captured through refined customer scenarios and VOA’s

– List of product characteristics and constraints• Methods

– Primary research: observe, interview, listen, task analysis, stakeholder analysis

– Secondary research: human factors, lifestyle reference, dive deeper on SET factor changes




Phase 3: Conceptualize The Opportunity

• Goals:– Turn Value Opportunities into product concepts that are perceived

as useful, usable, and desirable– Generate many concepts, evaluate, refine, iterate, reduce to a single

concept to move to stage 4• Results:

– Clearly articulated product concept– Clear market definition– Visual, and/or physical prototypes that can be shown to and

evaluated by potential customers– Demonstration or belief that product is technically feasible




Phase 4: Realize The Opportunity

• Goals:– Develop product or service – move from prototype to product– Complete marketing plan, financing, initial production, etc.– Product or service is ready to be sold to customers

• Results:– Production processes defined– Go to market plan completed (marketing, positioning, etc.)– Sales channels lined up– Placement and contracts with distributors, retailers, etc. negotiated




Phase 5: Launch the Product

• Goals:– Deliver the product or service to customers– Start generating revenue– Ramp up production– Support organization is up and running

• Results:– Product or service offering is available to customers– Distribution channels functioning– Sales lead to inbound cash flow




Agenda

• Survey and introductions• Course philosophy, structure, grading, and expectations • What is high-tech product innovation?• In-class exercise


Exercise – Discuss, Evaluate, Be Prepared To Present:


Innovations To Evaluate

• Apple iPad• Google keyword advertising• Al Jazeeera News Network (Arabic and/or English)• Wikipedia• Toyota Prius• Liquified Natural Gas (LNG)• Anti-lock braking systems for cars• Aramex shipping service• Nintendo Wii• Garmin handheld / automotive GPS systems


Wrap Up


For Thursday

• Thursday we will look into some standard processes for developing innovative products and services and bringing them to market

• Come prepared to apply the concepts in the readings in class discussions and an in-class exercise

carnegie mellon qatar ©2006 - 2011 robert t. monroe course 70-446 innovative product development...

Documents

monroe course

course slide

course goals

carnegie mellon qatar

product opportunities

innovative product features

product innovation process

innovative products