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Integrated Product Development
Customer Research, Market & Forecasting
Jakob A. Bejbro Andersen
jaban@mek.dtu.dk


                         Unless otherwise stated, this material is under a Creative
                         Commons 3.0 Attribution–Share-Alike licence and can be
                         freely modified, used and redistributed but only under the
                         same licence and if including the following statement:
“Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product
Development Department of Mechanical Engineering, The Technical University of Denmark”
Agenda for lecture 5
8:30        Customer research
9:00        Break
9:15        Guest lecture by Tobias Toft
            (Interaction designer at IDEO in Palo Alto)
9:45        Break
10:00       Value Proposition and Market Description
10:45       Break
11:00       Forecasting




2      Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product   2012
       Development Department of Mechanical Engineering, The Technical University of Denmark
Your Objective:
• Convince the investor that:
   – There is a need for your product.
   – You are in unique position to address this need.
   – You know where to start and how to spend the money.
   – You will start making money soon.
   – You will return the investment tenfold very soon.


                                                                                     SOLD!



3   Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product   2012
    Development Department of Mechanical Engineering, The Technical University of Denmark
Customer Research
Linking need and product / service – gaining an advantage
Who is the customer
• Customers can be easily identifiable or elusive.
• This tends to relate to the maturity of the market.

Market type           Knowledge about                           Pros                           Cons
                      customer
Mature                • Consensus reached.                      • Easy to get                  • Need for disruptive
                      • Possibly ”locked in”.                   overview.                      innovations.
                      • Rarely updated                          • References                   • Competition from
                                                                underline                      big, wealthy
                                                                differentiation.               companies.
                                                                                               • 2nd mover
                                                                                               advantage
New /                 • Unlikely to be readily                  • 1st mover                    • No track record in
Reframed              available.                                advantage.                     market.
                      • Potential for uncovering                • Customer                     • A lot of work to do.
                      extensive, unadressed                     knowledge hard to              • Complexity.
                      needs                                     replicate.




5    Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product                    2012
     Development Department of Mechanical Engineering, The Technical University of Denmark
Customer types – who needs what?
•A product’s success lies in its ability to
 provide value to the key stakeholders.

You have to figure out…

•Who      uses it? (normal focus)
•Who      approves it?
•Who      purchases it?
•Who      sees the vision?
•Who      …?                                                             The happy employees of Company X
6   Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product        2012
    Development Department of Mechanical Engineering, The Technical University of Denmark
A ”who’s who” for Company X (B2B)
                        Needs to create good
                 PR for our company                                                      Has to be
                                       Board/
    Strategic level                     Chief
                                      Executive
                                                                                         environmentally
                         Numbers have to
                                       Officer



      Only under certain add up.                                                         friendly.

      conditions!
                                        Head of                  Chief                   Chief                    External
    Managerial level                    procure-
                                          ment
                                                              financial
                                                                officer
                                                                                       Operatio-
                                                                                       nal officer
                                                                                                                   energy
                                                                                                                  advisor



                                     Has to interface
                                     w. other technologies.
                    More ergonomic!
    Intermediate level
                                                                          Operations                 Operations
                                                                                                     manager
                                                                          manager

                    Less noise!
                                  Easier to use
     Operational level                                        Worker
                                                                1
                                                                           Worker
                                                                             2
                                                                                          Worker
                                                                                            3




7        Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product                             2012
         Development Department of Mechanical Engineering, The Technical University of Denmark
Exercise 1

        In each group map the key
         stakeholders for your product.

        Think about:
        •Who            uses it?
        •Who            approves it?
        •Who            purchases it?
        •Who            sees the vision?
        •Who            …?

8   Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product   2012
    Development Department of Mechanical Engineering, The Technical University of Denmark
Mapping needs (organisational levels)

    •Different of organisations communicate
     and operate in different ways.

    •Sources of knowledge vary between
     levels.
                                                                                               Approach 1


                                                                                               Approach 2


                                                                                               Approach 3


                                                                                                Approach 4



9    Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product                 2012
     Development Department of Mechanical Engineering, The Technical University of Denmark
Mapping needs                          (Strategic level)

•Look for reports, press releases,
 media coverage.
•This level tends to communicate a lot.




                                                                                               From:
                                                                                               www.maersk.com
                                                                                               www.ikea.com

10   Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product            2012
     Development Department of Mechanical Engineering, The Technical University of Denmark
Mapping needs                          (Managerial/Intermediate level)

• Generally not the most accessible part of
 organisations
• Look for references: What else are they buying?
• Find persons with experience in the area.
  – Use networks organisations (Connect DK, Væksthus
     Hovedstaden)




11   Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product   2012
     Development Department of Mechanical Engineering, The Technical University of Denmark
Mapping needs                            (Operational level)

•    Interviews, observation.
•    Photo/Video documentation.
•    Surveys.
•    User specific fora – what is being discussed?




12     Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product   2012
       Development Department of Mechanical Engineering, The Technical University of Denmark
Mapping needs                          (over time)

• The needs of the customer change over time.

• The role of the product changes between different
 activities.

• Customer Activity Cycles* (CACs) can be used to map
 needs over time.




                                                                                      *(Vandermerwe, 2000)
13   Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product          2012
     Development Department of Mechanical Engineering, The Technical University of Denmark
Mapping needs                          (the CAC)




                                                                                               Figure courtesy of
                                                                                               Krestine Mougaard and
                                                                                               Shin Knudsen (master
                                                                                               thesis 2009)

14   Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product              2012
     Development Department of Mechanical Engineering, The Technical University of Denmark
Exercise 2
        In each group write down ways of
         investigating and describing the
         needs of your stakeholders.




                                                        You have big groups:
                                                        Everyone should be
                                                        investigating seperate leads!
15   Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product   2012
     Development Department of Mechanical Engineering, The Technical University of Denmark
Q?
16   Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product   2012
     Development Department of Mechanical Engineering, The Technical University of Denmark
After the 15 minute break (at 9:15 sharp):
Guest lecture on User Centered Design
By Tobias Toft, Interaction designer at IDEO

Live from Palo Alto, California (00:15 AM local time):




                                 www.ideo.com
17   Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product   2012
     Development Department of Mechanical Engineering, The Technical University of Denmark

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42629 lecture 5 pt 1

  • 1. Integrated Product Development Customer Research, Market & Forecasting Jakob A. Bejbro Andersen jaban@mek.dtu.dk Unless otherwise stated, this material is under a Creative Commons 3.0 Attribution–Share-Alike licence and can be freely modified, used and redistributed but only under the same licence and if including the following statement: “Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark”
  • 2. Agenda for lecture 5 8:30 Customer research 9:00 Break 9:15 Guest lecture by Tobias Toft (Interaction designer at IDEO in Palo Alto) 9:45 Break 10:00 Value Proposition and Market Description 10:45 Break 11:00 Forecasting 2 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012 Development Department of Mechanical Engineering, The Technical University of Denmark
  • 3. Your Objective: • Convince the investor that: – There is a need for your product. – You are in unique position to address this need. – You know where to start and how to spend the money. – You will start making money soon. – You will return the investment tenfold very soon. SOLD! 3 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012 Development Department of Mechanical Engineering, The Technical University of Denmark
  • 4. Customer Research Linking need and product / service – gaining an advantage
  • 5. Who is the customer • Customers can be easily identifiable or elusive. • This tends to relate to the maturity of the market. Market type Knowledge about Pros Cons customer Mature • Consensus reached. • Easy to get • Need for disruptive • Possibly ”locked in”. overview. innovations. • Rarely updated • References • Competition from underline big, wealthy differentiation. companies. • 2nd mover advantage New / • Unlikely to be readily • 1st mover • No track record in Reframed available. advantage. market. • Potential for uncovering • Customer • A lot of work to do. extensive, unadressed knowledge hard to • Complexity. needs replicate. 5 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012 Development Department of Mechanical Engineering, The Technical University of Denmark
  • 6. Customer types – who needs what? •A product’s success lies in its ability to provide value to the key stakeholders. You have to figure out… •Who uses it? (normal focus) •Who approves it? •Who purchases it? •Who sees the vision? •Who …? The happy employees of Company X 6 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012 Development Department of Mechanical Engineering, The Technical University of Denmark
  • 7. A ”who’s who” for Company X (B2B) Needs to create good PR for our company Has to be Board/ Strategic level Chief Executive environmentally Numbers have to Officer Only under certain add up. friendly. conditions! Head of Chief Chief External Managerial level procure- ment financial officer Operatio- nal officer energy advisor Has to interface w. other technologies. More ergonomic! Intermediate level Operations Operations manager manager Less noise! Easier to use Operational level Worker 1 Worker 2 Worker 3 7 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012 Development Department of Mechanical Engineering, The Technical University of Denmark
  • 8. Exercise 1 In each group map the key stakeholders for your product. Think about: •Who uses it? •Who approves it? •Who purchases it? •Who sees the vision? •Who …? 8 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012 Development Department of Mechanical Engineering, The Technical University of Denmark
  • 9. Mapping needs (organisational levels) •Different of organisations communicate and operate in different ways. •Sources of knowledge vary between levels. Approach 1 Approach 2 Approach 3 Approach 4 9 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012 Development Department of Mechanical Engineering, The Technical University of Denmark
  • 10. Mapping needs (Strategic level) •Look for reports, press releases, media coverage. •This level tends to communicate a lot. From: www.maersk.com www.ikea.com 10 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012 Development Department of Mechanical Engineering, The Technical University of Denmark
  • 11. Mapping needs (Managerial/Intermediate level) • Generally not the most accessible part of organisations • Look for references: What else are they buying? • Find persons with experience in the area. – Use networks organisations (Connect DK, Væksthus Hovedstaden) 11 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012 Development Department of Mechanical Engineering, The Technical University of Denmark
  • 12. Mapping needs (Operational level) • Interviews, observation. • Photo/Video documentation. • Surveys. • User specific fora – what is being discussed? 12 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012 Development Department of Mechanical Engineering, The Technical University of Denmark
  • 13. Mapping needs (over time) • The needs of the customer change over time. • The role of the product changes between different activities. • Customer Activity Cycles* (CACs) can be used to map needs over time. *(Vandermerwe, 2000) 13 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012 Development Department of Mechanical Engineering, The Technical University of Denmark
  • 14. Mapping needs (the CAC) Figure courtesy of Krestine Mougaard and Shin Knudsen (master thesis 2009) 14 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012 Development Department of Mechanical Engineering, The Technical University of Denmark
  • 15. Exercise 2 In each group write down ways of investigating and describing the needs of your stakeholders. You have big groups: Everyone should be investigating seperate leads! 15 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012 Development Department of Mechanical Engineering, The Technical University of Denmark
  • 16. Q? 16 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012 Development Department of Mechanical Engineering, The Technical University of Denmark
  • 17. After the 15 minute break (at 9:15 sharp): Guest lecture on User Centered Design By Tobias Toft, Interaction designer at IDEO Live from Palo Alto, California (00:15 AM local time): www.ideo.com 17 Original material by Jakob A. Bejbro Andersen for course 42629 – Innovation and Product 2012 Development Department of Mechanical Engineering, The Technical University of Denmark