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© 2013 GEN3 Partners, Inc. 1 The Voice of the Product Garrett Dietz CEO, GEN3 Partners May 12, 2014

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Page 1: The Voice of the Product - PMA...Electroosmosis Electrophoresis Electrostatic Induction Ellipse Evaporation Ferromagnetism Forced Oscillations Funnel Effect Inertia Ionic Exchange

© 2013 GEN3 Partners, Inc. 1

The Voice of the Product

Garrett Dietz CEO, GEN3 Partners May 12, 2014

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© 2013 GEN3 Partners, Inc. 2

=  +  VOP Innovation Analytics

Global Knowledge

Breakthrough Innovations

n Diverse group of world class scientists and engineers; 60% with PhD or ScD

n Headquartered in Boston, MA

n CPG, Industrial and Medical Technology Clients

n Proprietary Global Knowledge Network - thousands of scientists, engineers and technical experts

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© 2013 GEN3 Partners, Inc. 3

Advancing our VOP analytics with:

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© 2013 GEN3 Partners, Inc. 4

The Voice of the Product

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© 2013 GEN3 Partners, Inc. 5

Voice of the Customer

n Capturing the Voice of the Customer (VOC) is an integral part of all well-run innovation programs

n However…customers do not always know “what is possible” or what innovations “might be achievable”

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Limitations of VOC

n For example, was any MP3 user really envisioning a single round knob for all music control?

The “Standard” The Breakthrough

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Limitations of VOC

n Customer insights do Not provide all the answers:

o What technologies are emerging that will enable a completely different product concept?

o What technologies in other industries provide important learnings for my product and its evolution?

o What position on the “S curve” of technology evolution does my product lie on and what are the implications?

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Limitations of VOC

n This is not meant to imply that the customer is unimportant or uninformed…

n …it means that there is a perception gap – “we do not know what we don’t know”

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© 2013 GEN3 Partners, Inc. 9

“Every object tells a story…if you can read it.” — Henry Ford

“A lot of times, people don't know what they want until you show it to them.” — Steve Jobs

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© 2013 GEN3 Partners, Inc. 10

VOP means analyzing where the technology wants to go…

© Aatma Studio

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© 2013 GEN3 Partners, Inc. 11

Two “Voices” Are Needed

Voice of the Product Breakthrough Innovation

Voice of the Customer

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Voice of the Product

n One of the reasons that Steve Jobs and others were so successful is that he and others innovated against what we call the Voice of the Product (VOP)

n We define VOP as a set of objectively determined indicators gleaned from the product and its related technologies that foreshadow the next winners

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Definition of Value-Driven Innovation

Main Parameter of Value: Key attribute of a

product that is important to the purchase decision

process $$$

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© 2013 GEN3 Partners, Inc. 14

Definition of Value-Driven Innovation

Innovation: Significant improvement along a Main Parameter

of Value (MPV)

Main Parameter of Value: Key attribute of a

product that is important to the purchase decision

process

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Identify Latent

Functionality

Voice of the Product — Under the Hood

F1

F2

F3

F4

Fn F5

F6

Function Analysis How It Works

SYSTEM SUPER SYSTEM

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Identify Latent

Functionality

Voice of the Product — Under the Hood

F1

F2

F3

F4

Fn F5

F6

Function Analysis

§  Map the interactions (“functions”) inside the system

o Are any of them harmful? Insufficient?

§  Map the functions within the supersystem

o Are there useful functions that we can transfer to the system?

§  VOC does not necessarily reveal these value improvement directions

How It Works

SYSTEM SUPER SYSTEM

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Voice of the Product — Latent Functionality

Example: Surgical Device Discovery of Latent Functionality

Tissue

Device

Optical Tissue Recognition

Surgeon

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Voice of the Product — Latent Functionality

§  Known MPVs from VOC were: Speed, Accuracy, Thermal Management

§  Function modeling showed unexploited resources in the device:

o  Function: “Tissue informs surgeon”

o  The surgeon recognizes different tissues and uses this to decide where to cut

o  However, this function was performed insufficiently

Example: Surgical Device Discovery of Latent Functionality

Tissue

Device

Optical Tissue Recognition

Surgeon

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Voice of the Product — Latent Functionality

The device was equipped with an innovative feature that:

1. Detects and provides tissue parameters 2. Giving surgeons highly accurate information on where to cut

Example: Surgical Device VOP Innovation

Tissue

Device

New Tissue Recognition

Surgeon

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Identify Evolutionary

Stages

Voice of the Product — Under the Hood

Tool: Trends of Technology Evolution How It Works

MP

V P

erfo

rman

ce

Time

Stage 1

Stage 2

Stage 3 Stage 4

Transitional Stage

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Identify Evolutionary

Stages

Voice of the Product — Under the Hood

Tool: Trends of Technology Evolution

§  Map the system on its S-Curve of Technology Evolution

o  Just launched?

o  Quickly evolving?

o  Performance improvement slowing down?

o  Reaching the performance limit?

§  For each stage strategies exist to achieve MPV improvement

§  VOC does not necessarily reveal these value improvement directions

How It Works

MP

V P

erfo

rman

ce

Time

Stage 1

Stage 2

Stage 3 Stage 4

Transitional Stage

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What Is True Breakthrough Innovation?

Increasing MPV performance incrementally →

Sustaining Innovation

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What Is True Breakthrough Innovation?

Increasing MPV performance incrementally →

Sustaining Innovation

Increasing MPV performance dramatically with a different

technology → Breakthrough Innovation

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What Is True Breakthrough Innovation?

Addressing a new, latent MPV →

Breakthrough Innovation

Increasing MPV performance incrementally →

Sustaining Innovation

Increasing MPV performance dramatically with a different

technology → Breakthrough Innovation

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Integrating VOC and VOP for Breakthrough Innovation Success

n Integrating VOC and VOP in an innovation approach offers the greatest likelihood of breakthrough innovation success (some might call it “the effect”)

VOC VOP

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Why Is This so Difficult? Because Innovation Killers Are Everywhere…

n Solving the Wrong Problem

n Project Constraints – Budget, Time, Etc.

n Inability to Navigate Knowledge Explosion

n Compromising too Easily and Early - Optimization

n Not Invented Here/Limited Knowledge

n Unable to Forecast the Future

n Psychological Inertia

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For Example: Psychological Inertia

n  Remaining in our comfort zone

n  “This is the way we’ve always done it”

n  “Don’t rock the boat” or “If it ain’t broke, don’t fix it”

n  Result of life experiences / Educational backgrounds

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© 2013 GEN3 Partners, Inc. 28

Why is this so difficult?

Kodak Digital Camera — 1975

Kodak Bankruptcy Filing — 2012

n What if Kodak had left its comfort zone and pursued what its own R&D was telling it about the future?

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The Power of VOP — 4 Tenets

n A comprehensive approach to innovation exploits the power of VOP using these four tenets:

1.  Use Main Parameters of Value

2.  Clearly Understand Evolutionary Trends

3.  Deploy a Functional Approach

4.  Access Global Knowledge

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1. Use Main Parameters of Value

n  Use Main Parameters of Value (MPV) to define what will drive customer purchasing decisions

o  An MPV is an important product feature that, when improved, will drive new sales

o  A latent MPV is an MPV that consumers do not express but that the VOP will reveal

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1. Use Main Parameters of Value

n  Use Main Parameters of Value (MPV) to define what will drive customer purchasing decisions

o  An MPV is an important product feature that, when improved, will drive new sales

o  A latent MPV is an MPV that consumers do not express but that the VOP will reveal

Latent MPV: “Faucet informs

user about strength and temperature of

water stream”

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Main Parameters of Value?

Innovation Challenge

How can we take a commodity product and find new opportunities for growth?

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o Taste

o Health

o Appearance

o Convenience

o Brand

Innovation Challenge

How can we take a commodity product and find new opportunities for growth?

Main Parameters of Value?

But what is the development potential along each MPV?

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Innovation Challenge S-Curve Analysis of Banana Products – Opportunities for growth/improvement?

Taste

Time Today

Banana Limit

Health

Time Today

Banana

Limit

Appearance

Banana

Limit

Today

Convenience

Banana

Limit

Today Time Time

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Innovation Solution

Solution: Synchronize the velocity of the supply chain with the natural biological processes for the ripening of the fruit o  Regulates in-flow of oxygen

and outflow of carbon dioxide

New channels offer new profit

potential

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Innovation Solution

Solution: Synchronize the velocity of the supply chain with the natural biological processes for the ripening of the fruit o  Regulates in-flow of oxygen

and outflow of carbon dioxide

New channels offer new profit

potential

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© 2013 GEN3 Partners, Inc. 37

2. Understand Evolutionary Trends

n  All products and technologies evolve according to common trends which can be predicted

n  S-Curves, for example, reveal in what stage a system or product is in and what this means for its further innovation potential

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2. Understand Evolutionary Trends – Example

Trend of S-Curve Evolution

Propeller planes have reached their maximum speed

potential

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2. Understand Evolutionary Trends – Example

Trend of S-Curve Evolution

Propeller planes have reached their maximum speed

potential

Trend of Increasing Dynamicity

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3. Deploy a Functional Approach

n  Use a Functional approach to determine the right problems to be solved

n  The key problem may not be the initially stated problem

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3. Deploy a Functional Approach

How many ways can you move a liquid?

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3. Deploy a Functional Approach

Acoustic Cavitation Acoustic Vibrations Archimedes’ Principle Bernoulli’s Theorem Boiling Brush Constructions Capillary Condensation Capillary Evaporation Capillary Pressure Coanda Effect Condensation Coulomb’s Law Deformation Electrocapillary Effect

Electroosmosis Electrophoresis Electrostatic Induction Ellipse Evaporation Ferromagnetism Forced Oscillations Funnel Effect Inertia Ionic Exchange Jet Flow Lorentz Force Magnetostriction Mechanocaloric Effect Osmosis

Pascal’s Law Pump Resonance Shock Wave Spiral Super Thermal Conductivity Superfluidity Surface Tension Thermal Expansion of Subst. Thermocapillary Effect Thermomechanical Effect Ultrasonic Capillary Effect Ultrasonic Vibrations Use of foam Wetting

How many ways can you move a liquid?

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3. Deploy a Functional Approach – Example

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3. Deploy a Functional Approach – Example

The Web performs the harmful function of

distributing H2O

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3. Deploy a Functional Approach – Example

Eliminate the Web and SAP; transfer

useful function (stop water) to

Jacket

The Web performs the harmful function of

distributing H2O

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4. Access Global Knowledge

n  Access global knowledge effectively and efficiently by using Function-Oriented Search

1 - Translates an innovation challenge from object-based language to function-based

2 - Identifies an extensive body of knowledge related to the function from remote fields

3 - Adapts these new technologies to the innovation challenge

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n The firm: A major computer chip manufacturer

n The issue: A photoresist polymer bubbles when applied to the wafer; losses amount to $millions

4. Access Global Knowledge – Example

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n The firm: A major computer chip manufacturer

n First approach: Looked at every possible cause using a common “manufacturing language;” tried to use experience from solving problems in similar processes

n The issue: A photoresist polymer bubbles when applied to the wafer; losses amount to $millions

n The result: Their most experienced engineers could not find the source

4. Access Global Knowledge – Example

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4. Access Global Knowledge – Example

n Next approach: tried to apply the knowledge of the best polymer scientists into new practice

n This translation might (after 2 years and an investment of $millions) have led to success

n But the competition and the relentless demand to be “better and faster” did not make this viable

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4. Access Global Knowledge – Example

n Translation: from an object-based language (polymer science) to a function-based language

n Reformulated challenge: the issue is with a gas - goal is to eliminate gas from a liquid

n Reformulated challenge: the issue is with a gas - goal is to eliminate gas from a liquid

n Reformulated challenge: the issue is with a gas - goal is to eliminate gas from a liquid

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4. Access Global Knowledge – Example

n Translation: from an object-based language (polymer science) to a function-based language

n Question: Who knows how to deal with gas in a liquid?

n Reformulated challenge: the issue is with a gas - goal is to eliminate gas from a liquid

n Reformulated challenge: the issue is with a gas - goal is to eliminate gas from a liquid

n Reformulated challenge: the issue is with a gas - goal is to eliminate gas from a liquid

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4. Access Global Knowledge – Example

n Translation: from an object-based language (polymer science) to a function-based language

n Question: Who knows how to deal with gas in a liquid?

n Reformulated challenge: the issue is with a gas - goal is to eliminate gas from a liquid

Carbonated beverage industries

Blood transfusion experts

Scuba diving experts

n Reformulated challenge: the issue is with a gas - goal is to eliminate gas from a liquid

n Reformulated challenge: the issue is with a gas - goal is to eliminate gas from a liquid

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4. Access Global Knowledge – Example

n The solution came from the champagne industry

n It involved a sinusoidal pipe (oriented vertically) to transport the photo-resist from storage to application point

n At every high point in the pipe bubbles are trapped and removed

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n Meeting heretofore undefined customer needs and leveraging stunning new technologies are key prerequisites to breakthrough innovation

n Understanding and utilizing Voice of the Product analytics — along with VOC — is a powerful means to address today’s sustaining and breakthrough innovation challenges

The Breakthrough Innovation Challenge

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The Power of VOP — 4 Tenets

n Exploiting the full power of VOP can be accomplished systematically by using these four tenets:

1.  Use Main Parameters of Value

2.  Clearly Understand Evolutionary Trends

3.  Deploy a Functional Approach

4.  Access Global Knowledge

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Breakthrough Innovation is Achievable

Voice of the Product Breakthrough Innovation

Voice of the Customer