This document discusses innovation, idea generation, prototyping, testing, sourcing and manufacturing. It begins by exploring inspiration behind globally adopted products and services. It then covers the innovation process including analyzing trends, testing prototypes, and sourcing and manufacturing options. The document outlines learning from industry professionals about developing products, services and concepts. It also discusses managing quality through total quality management.

1. Session 3: Innovation, Idea
Generation, Prototype, Testing,
Sourcing & Manufacture
Presented by Niels Brock California International Business
University
Innovation &
Entrepreneurship Week

2. TREND
• Beginning with the 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 Create Opportunities
• 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

5. Life-Cycles of Products

6. Market Introduction
• New idea market introduction – awareness & interest
• Promotion to show the potential – decision
• Sales revenue begins to flow – action & reinforcement

7. Market Introduction
• Harman has 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
• How much 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

9. Market Introduction
APPAREL

10. Market Introduction
APPAREL

11. Market Introduction
Lifestyle

12. MARKETPLACE MOVERS
Mr C – Beverly Hills
Dormero - Stuttgart
Sanderson - London

13. MARKETPLACE MOVERS
• The Millennial 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
• Industry Sales Grow Fast
• Growing Profits Made
• Competition Appears
Example:
Prius Hybrid

15. Market Maturity
• Competition Gets Tough
• Profits Decrease  High Pressure on Prices
• First Competitors Drop Out Example:
Snickers – Candy Bars

16. Sales Decline
• Price competition gets stronger
• New products replace older ones
• Strong brands may be sold until the end
Example:
DVD-Player

17. Life-Cycles vary in Length
• 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
• New product 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
Ideas from:
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 products must 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 With Design
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 With Design
Thinking

23. Applying Inspirational Design
Thinking to 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
Thinking to 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
Thinking to Tackle Breakthrough
Innovation

26. Applying Inspirational Design
Thinking
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

27. Applying Inspirational Design
Thinking

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
• Total company 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