New Product Development

             Session 2: Opportunity Development
                                              Jun...
Agenda
      Overview
      Opportunities from Experience
      Opportunities from Market
      Opportunities from Tec...
NPD Process

   Conceptualize                         Develop                  Launch



 Opportunity                  Pr...
Opportunity defined

                                       Opportunity
When technological
  possibilities are
matched wit...
NPD’s three legs
                        New Product
                        Opportunity




   Technological             ...
Different paths to opportunity
          Market concept
           complete

2. Market given




 4. Market pull




     ...
Examples
 1.   Market pull: The oil price is increasing steadily. Need a
      means for business professionals to conduct...
Examples
          complete




                                   Rice farming
                                          ...
Sources of ideas


    Internal Sources:
    Research & Engineering
    Sales, Marketing & Planning
    Production
    Oth...
Source of opportunities
EXPERIENCE                MARKET                          TECHNOLOGY
1.   Unexpected           1. ...
Agenda
      Overview
      Opportunities from Experience
      Opportunities from Market
      Opportunities from Tec...
1. Unexpected Success
 Do not think of unexpected success as
  temporary event
 There might be underlying factors that c...
Example: McDonald
                                    Ray Kroc wondered why he
                                     was s...
Questions to ask
1. What unexpected product success have you had recently?
2. In which geographic areas have you had unexp...
2. Unexpected Failure
 Instead of spending time defending failure,
  one should be asking “What caused this
  failure, an...
Example: Ford
                                                    Ford learned many lessons
   Ford Edsel, the           ...
Questions to ask
1. What unexpected product failures have you had recently?
2. In which geographic areas have you had unex...
3. Unexpected External Events
• Unexpected external events can be from
  competitors or some other unrelated events.
  The...
Example




Aircraft hijacking in1960’s                        Metal detector is created by
                              ...
Example


AIDS
AIDS epidemic                       Condom has found another use
                                   (beside...
Example




Availability of DVDs                        DVD players has been in such high
                                ...
Questions
•   What unexpected external events have occurred
    recently?
•   What unexpected internal events have occurre...
4. Competitor-triggered ideas
Example




  Apple 2
                                    IBM PC tweaked its development
   ...
Know your competition
•   Routinely survey your competition
•   Periodically perform a complete review of competitive prod...
Agenda
      Overview
      Opportunities from Experience
      Opportunities from Market
      Opportunities from Tec...
5. Demographic Changes
• Dimensions
  –   Income
  –   Age
  –   Education
  –   Mix




                  © 2009 Dr. Jay ...
Quiz: Demographic Size
•    Total population of Thailand
•    Number of households
•    Mobile phone penetration
•    Numb...
Example: Japanese aging population




         © 2009 Dr. Jay Jootar
                                 Slides downloadable...
Questions
•    How is the age distribution of your customers and users
     changing?
•    How will the educational level ...
6. High-growth areas
• One should search for changes in the present
  business or related businesses in which growth
  is ...
Mobile download content
        Wallpaper          Music (Ringtone)              Game




Source: Siam Turakit

          ...
Mobile download market is big and growing

    Category of download content
                                              ...
Questions
•    What parts of the business are growing faster than
     economic or population growth?
•    What other busi...
7. Shift in consumer’s taste or perception
• “What changes are happening in how our
  customers perceive our products, and...
Example:



                                                   Hospital




Health consciousness



                      ...
Questions
•   What changes are occurring in how your products and services are
    perceived?
•   What changes are occurri...
8. Shift in supply chain or strategic landscape


Component                                                            End...
Example: eBay
                                  The popularity of eBay leads to
                                   change...
Questions
•   What major structural changes are occurring among your
    customers?
•   What major structural changes are ...
9. Regulation Changes
• Watch for important regulation changes
  that can create a whole new industry




           © 200...
Example: VoIP
In 2006, NTC
granted
permission to ISPs
to provide voice
over IP service,
thus opening a
new range of voice
...
Agenda
      Overview
      Opportunities from Experience
      Opportunities from Market
      Opportunities from Tec...
10. New Knowledge (Fundamental Research)
•    Provide more focus to research to deliver new knowledge or
     a capability...
Example: Wi-Fi
                                                                    Original solution - Use wire to
       ...
WiFi access point




          © 2009 Dr. Jay Jootar
                                  Slides downloadable from www.vctha...
WiFi-equipped Notebook




Wi-Fi built in                           Wi-Fi PC card insertion


             “Intel Centrino...
Source of ideas for new knowledge
•   Trade shows
•   Trade publications
•   Patents
•   Suppliers
•   Universities




  ...
Questions
•    What new knowledge has recently become known about
     your business?
•    What combinations of knowledge ...
11. Converging Technologies
• Two or more technologies that perhaps singly do
  not represent opportunity but that, when t...
Example: Digital camera
    Optical
        +
Digital imaging
        +
    Storage
  technology




                  © 2...
Questions
•    What technologies in your businesses are converging or
     merging?
•    Which of your technologies is now...
12. Process Weaknesses
• All organizations are composed of various
  processes, procedures, or systems.
• We should ask ou...
Example: Federal Express




Leverage weakness in USPS
process to deliver parcels and
packages to provide more efficient
s...
Questions
•    What self-contained processes exist in the organization?
•    What process weaknesses exist in our customer...
13. Underutilized Resources
• Look for way to utilize utilized resources
  into something that is valuable, scarce, or
  e...
Example: Bio-fuel
           Gasohol                                  Bio-diesel




           Ethanol




Tapioca       ...
14. Scale Expansion for Existing Business

    • Look for way to capture more market by
      expanding scale of existing ...
Example: Dell Computer
               1984        Founded company as PC’s Limited based in his dorm
                      ...
Agenda
      Overview
      Opportunities from Experience
      Opportunities from Market
      Opportunities from Tec...
Idea generating system
1. Establish a “focal point” for ideas
    –   Assign one person the responsibility of stimulating,...
© 2009 Dr. Jay Jootar
                        Slides downloadable from www.vcthailand.com
Business Plan
 Workshop




                © 2009 Dr. Jay Jootar
                                        Slides downloada...
Voice-of-Customer Research
•    Camping out, a.k.a. “Fly-on-the-wall”, “Day-in-the-life-of”
•    In-depth on-site intervie...
Lead users
•    Many commercially important products are initially
     thought of and prototyped by lead users –
     com...
Lead-user process
•   Identify the target market and company goals for
    innovations in this market
•   Determining the ...
Scenario Planning
•    What is the best future scenario?
•    What is the worst possible scenario of the future?
•    How ...
Business Plan Workshop
• Off-site company event designed to produce or
  scope out at least several future revenue
  strea...
Example of Workshop Plan
•    Day 1 & 2
     – Opening speech
     – Break-out session “Identify major trends, shifts, cha...
Example of Workshop Plan
   – Opportunity mapping – Have the team map out some of the
     opportunities that their assess...
Immersion
•   Select a product area where the company currently
    has no presence but that it wants to attack. Select
  ...
Broaden scope
•   A project manager come up with a product idea
•   He/she invite people from other business units and pos...
In-house suggestion scheme
•    Focus the scheme strictly on new product ideas
•    Publicize the scheme widely; use in-co...
Provide Scouting Time
• A handful of progressive firms encourage select
  groups of employees to be creative by providing
...
Agenda
      Overview
      Opportunities from Experience
      Opportunities from Market
      Opportunities from Tec...
Summary
•   A well-developed new opportunity need to have clear
    definition on both market and technology dimensions
• ...
Ending Notes

            Think of the market as a “non-flat” world
               Look on the other side to find new
    ...
Reference
1. Cooper, R. G. Winning at New Products, Basic Books,
   2001
2. Drucker, P. F. Innovation and Entrepreneurship...
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Session 02 opportunity development

  1. 1. New Product Development Session 2: Opportunity Development June 13, 2010 © 2010 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  2. 2. Agenda  Overview  Opportunities from Experience  Opportunities from Market  Opportunities from Technology  Tools and Techniques  Summary © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  3. 3. NPD Process Conceptualize Develop Launch  Opportunity Product  Pre-launch testing and development Planning  System Architecting  Market Space Mapping  Managing through Life-  Development process Cycle  Positioning and Core  Project Management Capabilities Marketing  Business Model Design  Pricing New Product  Marketing Strategy  Sales and Channel  Total Business Case Management Development  Marketing Communication © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  4. 4. Opportunity defined Opportunity When technological possibilities are matched with market Clear and consistent needs and expected statement about market demand “product” and its “value” to “target market” © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  5. 5. NPD’s three legs New Product Opportunity Technological Value to possibilities Target Market WHAT HOW WHY © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  6. 6. Different paths to opportunity Market concept complete 2. Market given 4. Market pull Product concept 3. Technology push 1. Product given complete © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  7. 7. Examples 1. Market pull: The oil price is increasing steadily. Need a means for business professionals to conduct their meetings effectively without having to meet face to face. 2. Technology push: Our technology can pump water at twice the rate of the existing device. Need to find the market for this technology. 3. Product given: Find the market for a given washing machines with the specific features and functionalities 4. Market given: Find the products which help the construction firm to move construction material from the truck to the construction site easily © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  8. 8. Examples complete Rice farming Powered Market concept by small truck battery Agriculture Rugged model Double power water pump complete Product concept © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  9. 9. Sources of ideas Internal Sources: Research & Engineering Sales, Marketing & Planning Production Other company executives External Sources: Customers & prospects Contract research organizations & consultants Technical publications Competitors Universities Inventors Unsolicited sources Source: Cooper, R. G. © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  10. 10. Source of opportunities EXPERIENCE MARKET TECHNOLOGY 1. Unexpected 1. Demographic 1. New knowledge success changes 2. Converging 2. High-growth area technologies 2. Unexpected failure 3. Shift in consumer’s 3. Process weaknesses 3. Unexpected taste or perception 4. Underutilized external event 4. Shift in supply chain resources 4. Competitor- or strategic 5. Expansion of scale of triggered idea landscape current operation 5. Change in regulation © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  11. 11. Agenda  Overview  Opportunities from Experience  Opportunities from Market  Opportunities from Technology  Tools and Techniques  Summary © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  12. 12. 1. Unexpected Success  Do not think of unexpected success as temporary event  There might be underlying factors that can be exploited to gain even more success © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  13. 13. Example: McDonald  Ray Kroc wondered why he was selling so many milkshake machine to McDonald restaurant  He visited the restaurant and finally bought franchise before expanding its success into the biggest restaurant chain in the world © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  14. 14. Questions to ask 1. What unexpected product success have you had recently? 2. In which geographic areas have you had unexpected success recently? 3. In which market/industry segments have you experienced unexpected success recently? 4. What customer segments have provided unexpected success recently? 5. What unexpected success have your suppliers had recently? 6. What unexpected success have your competitor had recently? 7. Which of your technologies has had unexpected success recently? 8. What unexpected customer/user groups have bought from you recently? 9. What unexpected sources have asked to sample, distribute, or represent your product recently? 10. ……. AND WHY? © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  15. 15. 2. Unexpected Failure  Instead of spending time defending failure, one should be asking “What caused this failure, and how can we turn it into an opportunity the next time?” © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  16. 16. Example: Ford  Ford learned many lessons Ford Edsel, the from the failure of launching biggest failure in Edsel in 1950’s history of automobile  One of the lessons was that people bought car not just as a transportation, but also as a lifestyle  This led to the development of Mustang, the first lifestyle car that has been very successful commercially Mustang, the first real lifestyle automobile © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  17. 17. Questions to ask 1. What unexpected product failures have you had recently? 2. In which geographic areas have you had unexpected failure recently? 3. In which market/industry segments have you experienced unexpected failures recently? 4. What customer segments have you provided unexpected failures recently? 5. What unexpected failures have your suppliers had recently? 6. What unexpected failures have your competitors had recently? 7. Which of your technologies has had unexpected failures recently? 8. Which customer/user groups have had unexpected failures recently? 9. Which distributors, dealers, and/or agents have had unexpected failures recently? 10. …….AND WHY? © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  18. 18. 3. Unexpected External Events • Unexpected external events can be from competitors or some other unrelated events. They can be internal or external to the firm. © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  19. 19. Example Aircraft hijacking in1960’s Metal detector is created by applying existing technology used for other industry © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  20. 20. Example AIDS AIDS epidemic Condom has found another use (besides contraception) to protect transmission of the disease © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  21. 21. Example Availability of DVDs DVD players has been in such high demands that many brands come out with big marketing budget © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  22. 22. Questions • What unexpected external events have occurred recently? • What unexpected internal events have occurred recently? • Have any expected external and internal events combined in an unexpected way recently? © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  23. 23. 4. Competitor-triggered ideas Example Apple 2 IBM PC tweaked its development efforts and come out with similar product © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  24. 24. Know your competition • Routinely survey your competition • Periodically perform a complete review of competitive products, particularly new ones. Determine how well the product is doing in the market place • Obtain a sample of your competitor’s product. Undertake a thorough evaluation of the product from a technical standpoint • Obtain copies of ad and literature, knowing what the competitor emphasizes or how it positions the product can yield new insights for your own new products • Arrange an internal brainstorming session aimed at better your competitor’s product and how to position against it © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  25. 25. Agenda  Overview  Opportunities from Experience  Opportunities from Market  Opportunities from Technology  Tools and Techniques  Summary © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  26. 26. 5. Demographic Changes • Dimensions – Income – Age – Education – Mix © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  27. 27. Quiz: Demographic Size • Total population of Thailand • Number of households • Mobile phone penetration • Number of cars, motorcycles, pick-up truck • Number of students • Number of tourists • Number of Thais working overseas • Number of computers • Number of Internet users © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  28. 28. Example: Japanese aging population © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  29. 29. Questions • How is the age distribution of your customers and users changing? • How will the educational level of your customers and users change in the next few years? • How will the income distribution of your customers and users change in the next few years? • How will the geographic distribution of your customers and users change in the years ahead? • How might the buying habits of your customers and users change in the year ahead? • What are the customer demographics that might change over the years ahead? • How will the mix of your users and customers change in the next few years? © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  30. 30. 6. High-growth areas • One should search for changes in the present business or related businesses in which growth is occurring faster than growth in gross domestic product (GDP) or population growth. © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  31. 31. Mobile download content Wallpaper Music (Ringtone) Game Source: Siam Turakit © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  32. 32. Mobile download market is big and growing Category of download content Highlights game color 5%  46% of Thai teenagers 15% use mobile download music basic service1 basic 10% color game  6% use the service more than 5 times a month1 music 70%  The majority of download comes from Ringtone1 Source: Kasikorn Research Center, Industry sources, TIC © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  33. 33. Questions • What parts of the business are growing faster than economic or population growth? • What other businesses are growing faster than economic or population growth? • What potentially high-growth businesses related to yours are dominated by only one or two companies? • What parts of your competitors’ businesses are growing faster than economic or population growth? • What parts of your customers’ or suppliers’ businesses are growing faster than economic or population growth? © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  34. 34. 7. Shift in consumer’s taste or perception • “What changes are happening in how our customers perceive our products, and how can we convert those changes into new opportunities?” • This is the area that can be consciously manipulated. Creating new trend… © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  35. 35. Example: Hospital Health consciousness Fitness center © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  36. 36. Questions • What changes are occurring in how your products and services are perceived? • What changes are occurring in the values of your customers? • What changes are occurring in the lifestyle, image, and status of your customers? • How will changes in perception affect your customers and suppliers? • For what new purposes have customers purchased your products and services recently? • What intangible reasons are customers developing to support your products and services? • What societal, peer, and normative pressures will affect your products and services in the future? © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  37. 37. 8. Shift in supply chain or strategic landscape Component End suppliers customers Opportunities can occur anywhere in the supply chain…You need to translate that to see the implied opportunities where you are © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  38. 38. Example: eBay  The popularity of eBay leads to changes in distribution channel for several kinds of goods  Now people with little or no capital can make money by selling goods on eBay and get a fair price without being beaten down by retailer  This lead to many products now being sold primarily through eBay © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  39. 39. Questions • What major structural changes are occurring among your customers? • What major structural changes are occurring in your geographic markets? • What major structural changes are occurring within your market/industry structure or in the conduct of your business? • What major structural changes are occurring among your competitors? • What major structural changes are happening in your customers’ businesses? • What major structural changes are occurring within your regulatory environment? • What major structural changes are occurring in your supplier relationships? © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  40. 40. 9. Regulation Changes • Watch for important regulation changes that can create a whole new industry © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  41. 41. Example: VoIP In 2006, NTC granted permission to ISPs to provide voice over IP service, thus opening a new range of voice services to be delivered to users by this new Softphone IP Phone Mobile Phone technology (on PC) With WiFi © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  42. 42. Agenda  Overview  Opportunities from Experience  Opportunities from Market  Opportunities from Technology  Tools and Techniques  Summary © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  43. 43. 10. New Knowledge (Fundamental Research) • Provide more focus to research to deliver new knowledge or a capability that may spawn new products or processes • Use relevant criteria to judge technology development projects – Degree of strategic fit and strategic importance to the corporation – Ability to achieve strategic leverage (e.g. platform for growth, impact on multiple business units – Potential for reward (value to the company, if successful) – Likelihood of technical feasibility – Likelihood of commercial success (for example, competitive advantage, existence of in-house competencies) © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  44. 44. Example: Wi-Fi Original solution - Use wire to Hi-speed internet connect broadband at home or office hi-speed internet Wi-Fi access point Wi-Fi equipped notebook Use WiFi (Wireless LAN) to connect to broadband at home or office © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  45. 45. WiFi access point © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  46. 46. WiFi-equipped Notebook Wi-Fi built in Wi-Fi PC card insertion “Intel Centrino” Microprocessor embedded with Wi-Fi © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  47. 47. Source of ideas for new knowledge • Trade shows • Trade publications • Patents • Suppliers • Universities © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  48. 48. Questions • What new knowledge has recently become known about your business? • What combinations of knowledge have created new insights into your business? • What new sources of information about your business have recently been tapped? • What new patents or discoveries have been announced relating to your business? © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  49. 49. 11. Converging Technologies • Two or more technologies that perhaps singly do not represent opportunity but that, when taken together, represent substantial opportunity for those willing to look for it. © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  50. 50. Example: Digital camera Optical + Digital imaging + Storage technology © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  51. 51. Questions • What technologies in your businesses are converging or merging? • Which of your technologies is now being joined to outside technologies? • Which of your technologies can be more effective if deliberately converged? • What would be the ideal convergence of technologies in your business? © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  52. 52. 12. Process Weaknesses • All organizations are composed of various processes, procedures, or systems. • We should ask ourselves “What bottlenecks, weak links, or missing links are there in these processes and how can we eliminate them?” © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  53. 53. Example: Federal Express Leverage weakness in USPS process to deliver parcels and packages to provide more efficient service targeting at premium prices © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  54. 54. Questions • What self-contained processes exist in the organization? • What process weaknesses exist in our customers’ organization? • What weakness or “missing link” prevents better process performance? • Why do some processes perform better at some times than at others? • What bottlenecks do each of these processes have? • What process weaknesses among our competitors might we be able to improve on? © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  55. 55. 13. Underutilized Resources • Look for way to utilize utilized resources into something that is valuable, scarce, or expensive © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  56. 56. Example: Bio-fuel Gasohol Bio-diesel Ethanol Tapioca Sugar Cane Oil Palm © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  57. 57. 14. Scale Expansion for Existing Business • Look for way to capture more market by expanding scale of existing “successful” business. Create a new business model along the way. © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  58. 58. Example: Dell Computer 1984 Founded company as PC’s Limited based in his dorm room 1985 Built 1st PC “Turbo PC” Began selling direct to consumers (instead of selling through distribution channel) 1989 Set up its 1st on-site-service program to compensate for the lack of local retailers Michael Dell 1996 Started selling PC via web site 1999 Becomes the largest seller of PC in U.S.A. © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  59. 59. Agenda  Overview  Opportunities from Experience  Opportunities from Market  Opportunities from Technology  Tools and Techniques  Summary © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  60. 60. Idea generating system 1. Establish a “focal point” for ideas – Assign one person the responsibility of stimulating, generating, and receiving new product ideas, moves the idea to the next step and get feedback to idea submitter – Make a list of possible sources of ideas – Establish a flow lines or mechanisms to solicit ideas from each source 1. Set up an idea bank – Not all product ideas get acted upon – Set up an “idea bank” a holding tank for inactive ideas © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  61. 61. © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  62. 62. Business Plan Workshop © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  63. 63. Voice-of-Customer Research • Camping out, a.k.a. “Fly-on-the-wall”, “Day-in-the-life-of” • In-depth on-site interviews and visits with customers can often point to unmet, unarticulated, needs that yield your next new product breakthrough • For B2B, focus on the entire workflow of customers • Product Value Analysis – experiential method where customers have interactions with facets of your product and then express their views, concerns, and difficulties • Customer surveys or focus groups • Convene a group of experts to discuss the problem and possible breakthrough solutions © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  64. 64. Lead users • Many commercially important products are initially thought of and prototyped by lead users – companies, organizations, or individuals that are well ahead of market trends and have needs that go far beyond the average user • If we can find the lead users and get ideas from them, we get the idea that are well ahead of the market © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  65. 65. Lead-user process • Identify the target market and company goals for innovations in this market • Determining the trends: Talk to people in the field who have a broad view of emerging technologies and leading- edge applications • Identify lead users: Use a networking process in which project team members explain their quest to people with apparent expertise on the subject, then ask for a referral to someone with even more relevant knowledge • Developing the breakthroughs: Host a workshop with lead users and key in-house technical and marketing people © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  66. 66. Scenario Planning • What is the best future scenario? • What is the worst possible scenario of the future? • How do you characterize these scenarios? • Identify the primary decisions managers face • Identify markers or signals of each scenario to spot which way the world is moving © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  67. 67. Business Plan Workshop • Off-site company event designed to produce or scope out at least several future revenue streams • Key is to harness the creative energy of the entire group of senior and middle management © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  68. 68. Example of Workshop Plan • Day 1 & 2 – Opening speech – Break-out session “Identify major trends, shifts, changing customer needs, and potential disruptions that are taking place in our market place” – Break-out session “Identify the major technology shifts in your and your customers’ industry that will impact the market and change the way you do business” – “Assessment if internal company strengths and core competencies that might be leveraged to advantage and shifts in the industry and value chain structure” – Key challenge  “What opportunities do these changes suggest to you” © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  69. 69. Example of Workshop Plan – Opportunity mapping – Have the team map out some of the opportunities that their assessments have suggested  Clustering of new opportunity suggestions around major opportunity themes • Day 3 – Cluster and collapse these many opportunity themes into manageable subset of major opportunities  Convert into drawings, sketches, prototype brochures and display on posters around the conference room – Have attendees walk to the posters of product idea they would like to work on – Each opportunity team fleshes the opportunity out further, starts to shape the product, product family, or solution and begins to think about the path forward © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  70. 70. Immersion • Select a product area where the company currently has no presence but that it wants to attack. Select based on strategic assessment. • Assemble a dedicated cross-functional team to immerse themselves in this area for the next eight to twelve months. • Harvest many ideas uncovered during this period and sit down with others in the company, develop a list of product opportunities © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  71. 71. Broaden scope • A project manager come up with a product idea • He/she invite people from other business units and pose a key challenge “What could this idea become if all the business units in the room worked on it? • Key is to put together a group of creative people, give them a product idea, and ask how it can be amplified and grown by employing the strengths of each of their business units © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  72. 72. In-house suggestion scheme • Focus the scheme strictly on new product ideas • Publicize the scheme widely; use in-company promotion • Offer some guidance; provide a pamphlet or web page that defines what a good idea is and what areas are in bounds and out of bounds, and create an idea submission sheet or template • Provide fast and fair feedback to submitters • Provide recognition or rewards for successful submitters © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  73. 73. Provide Scouting Time • A handful of progressive firms encourage select groups of employees to be creative by providing free time – “scouting time” – and some financial helps on personal projects © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  74. 74. Agenda  Overview  Opportunities from Experience  Opportunities from Market  Opportunities from Technology  Tools and Techniques  Summary © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  75. 75. Summary • A well-developed new opportunity need to have clear definition on both market and technology dimensions • Leverage experience both good and bad to find a new opportunity • Look at the market, both customers and supply chain level to identify new opportunity • Exploit new technology, process to create a truly innovative new business • Use various tools to brainstorm and consolidate new business ideas © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  76. 76. Ending Notes Think of the market as a “non-flat” world Look on the other side to find new source of wealth and opportunities © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com
  77. 77. Reference 1. Cooper, R. G. Winning at New Products, Basic Books, 2001 2. Drucker, P. F. Innovation and Entrepreneurship: Practice and Principles, Harper & Row, 1985 3. Robert, M. Product Innovation Strategy, McGraw-Hill, 1995 © 2009 Dr. Jay Jootar Slides downloadable from www.vcthailand.com

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