Your new product: Good concept or great product innovation?
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Your new product: Good concept or great product innovation?

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How to filter through new product concepts and identify the truly innovative products that are more likely to succeed.

How to filter through new product concepts and identify the truly innovative products that are more likely to succeed.

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  • Before the issue of balance even comes up, a company must allow sufficient time for what may be the most underrated yet most important part of the innovation process: problem definition. Consider Apple: its genius lies in the ability to get to the heart of a problem and not settle for convoluted solutions until they find, in the late Steve Jobs’ words, "the key, underlying principle of the problem" and then the "beautiful, elegant solution that works.” <br /> <br /> Once the problem has been defined and the desired target established, there are two key functions in innovation: brainstorming new ideas, and deciding which of those ideas are worth pursuing. <br />
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Your new product: Good concept or great product innovation? Your new product: Good concept or great product innovation? Presentation Transcript

  • Your New Product: Good Concept or Great Product Innovation? (How to Identify the Golden Goose among the Ugly Ducklings)
  • Chris Marocchi President: Klear Strat, LLC
  • What This Discussion Is About • This presentation is NOT about product development. • It IS about how we get from ideas to concept to product development. Concept Evaluation Product C Product B Product A Product Development Product Launch
  • Scenario • Your company sells products. • Your products are good. • Your company is profitable. • A recession hits, and profits shrink. • Your company’s strategic planning team decides the company needs to pivot its strategy for growth.
  • New Products vs. New Markets We need to first evaluate how to grow by examining the product-market expansion grid. Market Penetration Product Development Market Development Diversification Existing Markets New Markets Existing Products New Products
  • Question • You decide to develop a new product. But how do you determine which product to develop? • What is so hard about determining this Golden Goose?
  • The Problem Defined • How do we identify and prioritize the right mix of new products to develop? • Many stage/phase-based processes tell you what to do AFTER you have determined which product to develop. Product C Product B Product A
  • The Challenge • Multiple Sources of Input – Internal Stakeholders (Executives, Parent Company/BOD, Sales force, Engineers, etc.) – External Stakeholders (Customers, Shareholders, Vendors, etc.) • Lack of a Reliable Process • No Crystal Ball
  • Where To Start? • Understand the Market • Innovate Concepts • Select a Process for Evaluation of Concepts • Move Forward with Confidence
  • Step 1 - Understanding the Market Stefan Thomke – How Can a Company Balance Creativity and Innovation With the Need for Process and Structure? "the key, underlying principle of the problem" and then the "beautiful, elegant solution that works.”
  • Step 2 - Innovate Concepts How do we generate product ideas through innovation? • Product Concepts: – Existing (from internal/external sources) • Need to consolidate concepts Product A Product A Product – Non-existing Product A Product A Product A Product A Product A Product A Product A Product A A • Ideation: Brainstorming + Wycoff’s Play Theory Thinking – Divergent – Support, Wander, Associate, Morph, Inquire – Convergent – Sort, Order, Adapt, Refine, Select
  • What the Experts Say Venkatakrishnan Balasubramanian – Dimensions of the framework for conceptualizing an idea The two views of the business model for the idea and the business strategy of the enterprise combine to give five important dimensions that an innovator can use to think through and conceptualize the idea. 1) Competitive Advantage 2) Business Alignment 3) Customers 4) Execution 5) Business Value
  • Step 3 - The Evaluative Process • Processes: – Subjective Approach • Just Do What Your Boss Asks • Arbitrary Selection/TIATWASWS – Objective Approach • Weighted/Scored Analysis • Nail It, Then Scale It • Good to Great • Optimizing the Stage-Gate Process
  • Weighted Analysis Scorecard • Strategic Assessment • Identify criteria • Weight criteria • Score each criterion • Add up score and compare with other ideas
  • Nail It Then Scale It Innovation = The intersection of science and industry. Science Industry INNOVATION INVENTION INSIGHT
  • Good to Great The Hedgehog Concept = the intersection of what you can be the best in the world at, what you are deeply passionate about, and what drives your economic engine.
  • Stage Gate Adding a Discovery Phase
  • Step 4 – Move Forward With Confidence 1. Strategy is in place. 2. You’ve listened to the market. 3. You’ve brainstormed ideas for concepts. 4. You’ve introduced a process to evaluate the concepts. 5. Now you’re ready to move toward product development with confidence that your product will be successful in achieving the goal of profitable growth.
  • Case Study – The UPS Stores • Follows a process that is a combination of the optimized stage-gate process and weighted scale analysis. • Pros – brings objectivity into the evaluative process, and the analysis provides rationale for the go/no-go decision. • Cons – Insufficient resources to adequately evaluate the quantity of concepts, interference from executive staff in the process.
  • Case Study - Apple • Apple used a market research approach combined with usability experience studies. • At first, they tried a product-centric approach with Motorola, which failed. • When they brought the project in-house and based the product on what the market wanted, they succeeded.
  • Case Study – CB Richard Ellis • In an off-site strategy meeting, we conducted a brainstorming session driven by the Hedgehog concept. • The participants were divided into 3 teams for brainstorming. • Ideas generated were then categorized and consolidated. BEFORE
  • Case Study – CB Richard Ellis The intersection of 3 areas. What product enhancements should we pursue? • Improved customer experience/footprint • Portfolio data/reporting • Improved analytics • Axis Community • Sustainability module AFTER
  • Conclusion • Optimal new product introductions will start with a thorough understanding of the market. • Ideation and a consolidation of existing ideas will provide a pool of concepts to consider. • Select a process for evaluating and scoring the concepts based on how well a new product will align with corporate goals and strategy. • Prioritize projects based on the outcome.
  • Contact Us! Chris Marocchi President, Klear Strat, LLC chris@klearstrat.com Klearstrat.com @klearstrat