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Presentation 3 of 4
- 1. Session 3: Innovation,Idea Generation, Prototype, Testing, Sourcing & Manufacture Presented by Niels Brock California International Business University Innovation & Entrepreneurship Week
- 2. TREND • Beginning withthe inspiration behind some of the globes most adopted products and services, and well loved brands. • We will delve into the innovation process, incorporating analysis of overall market, consumer trends, and the processes and new alternatives to consumer testing, prototype development, sourcing, and manufacturing options. • We will meet and learn from 3 industry professionals the development of a product, service, and concept.
- 3. Outline • Changes CreateOpportunities • Life-Cycles of Products • New-Product Development • Managing Product Quality
- 4. Change Creates Opportunity •Constant Replacement Around Us • Customer Behavior Changes • Competition Grows • Old Products are Replaced by Newer Products or Updated Versions
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- 6. Market Introduction • Newidea market introduction – awareness & interest • Promotion to show the potential – decision • Sales revenue begins to flow – action & reinforcement
- 7. Market Introduction • Harmanhas invented a new system with the potential to save thousands of lives each year. The world’s first pupil-based in-car monitoring system can track a driver’s eyes to not just provide a warning if he or she is falling asleep, but also ensure the driver’s attention stays on the road. • The system monitors pupil dilation to determine if a driver might be distracted, and the hardware component is little more than a simple camera so it can feasibly be installed in any car. TECH
- 8. Market Introduction • Howmuch time and money would people save if they actually read their owner’s manuals? How much better informed would they be? • That will never happen since manuals are so difficult to get through, but Hyundai’s new technology might make owner’s manuals a thing of the past. • In their place, a nifty smartphone app uses augmented reality to show you all the information you need about whatever you’re looking at on your smartphone’s display. TECH
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- 12. MARKETPLACE MOVERS Mr C– Beverly Hills Dormero - Stuttgart Sanderson - London
- 13. MARKETPLACE MOVERS • TheMillennial consumer segment is interested in utilizing technology to do things that many others have become accustomed to doing manually: checking in at hotels, paying their restaurant and bar bills and looking up places to eat, shop and play to name a few. Robot DeliveryTablet OrdersMobile Room Key
- 14. Market Growth • IndustrySales Grow Fast • Growing Profits Made • Competition Appears Example: Prius Hybrid
- 15. Market Maturity • CompetitionGets Tough • Profits Decrease High Pressure on Prices • First Competitors Drop Out Example: Snickers – Candy Bars
- 16. Sales Decline • Pricecompetition gets stronger • New products replace older ones • Strong brands may be sold until the end Example: DVD-Player
- 17. Life-Cycles vary inLength • Depends on the Market & Product, Service or Concept • Products Grow Fast When: Easy & Legal to Access & Use Easy to Communicate Value Exceed Needs of the Consumer Appeal to Wants of Consumers • Life Cycles are Getting Shorter “The Early Bird Catches the Worm!” • Planning for Different Stages of Product is Vital • As Consumers Needs Evolve, Improvements or New Products are Inevitable Where are existing products on the cycle?
- 18. New-Product Development • Newproduct development is necessary, it is not an optional matter • Organized new-product development is critical • Often it is the key to a firm’s success and survival • Even though the costs and failure rate are high
- 19. Development Process Idea Generation Ideasfrom: Customers and users, Marketing research, Competitors, Other markets, Company people, middlemen, etc. Screening Strengths and Weaknesses fit with: Objectives, Market trends, Rough ROI estimate Idea Evaluation Concept testing reactions from: Customers, Rough estimates of costs, sales and profits Development Research & Development: Develop model or service, prototype, Test marketing mix, Revise Plans Commercialization Finalize and start Product and Marketing: “Roll out” in select markets, Final ROI estimates
- 20. Design Metrics New productsmust be ten times better than existing products for consumers to switch and the failure rate connected to new product introductions is 35 to 40 percent. So, how a product is designed is the key to its success and is twice as influential as the branding of that product. Apple’s design success may have converted even the staunchest design skeptic into believing in design by now, but how does one really know if one’s design is good enough? Is design quality subjective or objective? To quantify design, one needs to define objective metrics, such as the generally accepted criteria behind the IDEA Award that is given out for design quality excellence each year by the Industrial Designers Society of America. Is It Possible to Optimize Design for Innovation?
- 21. Manage Innovation WithDesign Thinking Innovative new products are the lifeblood of society’s progress but the risk of market, technology or execution failure is significant. With failure rates of 30-40% for incremental innovations and 95% for breakthrough innovations, rates of return are difficult to predict. Only the best survives in the game of innovation. Managing New Product Development (NPD) can thus be daunting, especially since most project managers get one to two projects under their belt before either advancing or being let go. Because it is critical to focus on what is important, design teams use of key performance indicators (KPI) so they can manage expectations and so achieve higher satisfaction.
- 22. Manage Innovation WithDesign Thinking
- 23. Applying Inspirational Design Thinkingto Tackle Breakthrough Innovation A society’s progress depends upon the quality of the questions it asks itself and to know what questions to ask today in order to secure a sustainable future. One question could be: “Why design something at all?” Our society obsesses over entrepreneurship, innovation and design for creating growth, however few stop and ask ‘Why,’ or, think about the high impact “Why’s - What’s - How’s” before doing any Design Thinking at all. For a society, organization or individual to make meaningful progress, this balance will be required for long and short-term investments in the development process.
- 24. Applying Inspirational Design Thinkingto Tackle Breakthrough Innovation With its focus on user needs, Design Thinking is excellent at developing incremental offerings; however, for breakthrough innovation users cannot provide the answer or even pose the question. Henry Ford said: “If I had asked the customer what they wanted, they would have asked for a faster horse.” Creating breakthrough innovation takes inspiration, as well as, Design Thinking. We have to encourage innovation by making it so ordinary that it becomes a part of our core business.
- 25. Applying Inspirational Design Thinkingto Tackle Breakthrough Innovation
- 26. Applying Inspirational Design Thinking Creativeleadership, ecosystem and spaces … What environment and leadership style is conducive for experts to generate these BIG Questions? Studies of teams at Stanford University, Yonsei Business School and by ingomar&ingomar - consulting suggest that multiple teams working in isolation from each other generate a far wider variety of ideas. When it comes to leading these teams - they may benefit from being lead in the same way as were the top tier creative professionals at BMW GROUP - as little as possible and very much like Venture Capitalists lead entrepreneurs. This increases the variation of outcomes and thus increases the number of useful business and design concepts
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- 28. Applying Inspirational Design Thinking 1)Creative leadership, ecosystem and spaces What environment and leadership style is conducive for experts to generate these BIG Questions? Studies of teams at Stanford University, Yonsei Business School and by ingomar&ingomar - consulting suggest that multiple teams working in isolation from each other generate a far wider variety of ideas. When it comes to leading these teams - they may benefit from being lead in the same way as were the top tier creative professionals at BMW GROUP - as little as possible and very much like Venture Capitalists lead entrepreneurs. This increases the variation of outcomes and thus increases the number of useful business and design concepts
- 29. Development Process • Totalcompany effort • Development team with members from different departments participating • Evaluate carefully new ideas never say no or yes without consideration first • Product managers evaluate the existing products to avoid losses – re-establish your product/brand
- 30. Managing Product Quality •Through total quality management (TQM) customer requirements are met • Costs of defects are not only the costs of replacement • Continuous improvement is necessary • Quality is the job of the whole company • But managers should also focus on quality efforts that really provide the customer