2. Product Concept – creation process
• Concept is an idea that is not fulfilled.
• Required inputs to the creation process
– Form , Technology and Benefit.
• Form - the physical thing created, or in the case of a service, the sequence
of steps by which the service will be created.
• Technology -the source by which the form was attained.
• Benefit/Need - benefit to the customer for which the customer sees a
need or desire.
• Technology permits us to develop a form that provides the benefit.
• At least two of the three inputs needed to have a feasible new product
concept, and all three to have a new product.
3. Product Concept- creation process ways
• The innovation process can start with any of the three inputs.
• If any of these three are missing then product innovation cannot be done.
• Putting benefit last is very risky since it comprises a solution trying to find
a problem.
• Best way to go about product innovation – Benefit Technology
finished form
Firm finds a
Customer need/
benefit
Firm develops
technology
Produces form which is
then sold to the
customer
Firm has a
technology
Firm finds out
need for a market
group
Produces form
Firm envisions
form
Firm develops
technology
Form given to
customers to see
benefits
4. Product Concept
• A product concept is a verbal or prototype statement of what is going to
be changed and how the customer stands to gain or lose.
• A product is a concept up to the initial stages of its launch until it becomes
successful.
• A Concept Statement is needed to judge whether the concept is worthy of
development or not.
• Anything that doesn’t communicate
gain or loss to the intended buyer
is still just an idea that needs work.
• Potential customers do not have
enough information to judge the
worthiness of an idea: the product
concept gives them the required
information.
5. Two Basic Approaches for generating
concepts
• Two Broad Categories of generating product concepts:
– Gathering Ready-Made Product Concepts
– Using a Managed Process Run by the New Products Team
• 40-50% of new product ideas are ready made.
• Best Sources of Ready-Made New Product Concepts –
– New Products Employees
• Technical: R&D, engineering, design
• Marketing and manufacturing
– End Users
• Lead Users
– Resellers, Suppliers, Vendors
– Crowdsourcing: open idea solicitation from customers.
– Idea exploration firms and consulting engineers
6. Lead Users as creative source
• Lead users are an important source of new product ideas.
• It involves customers associated with a significant current trend or other
companies.
• They have the best understanding of the problems faced and can gain
from solutions to these problems.
• In many cases, customers would already start solving their own problems,
or can work with product developers to anticipate the next problem in the
future.
• Example: X-Games athletes for new high-performance snowboards.
– They provide design requirements and also are early adopters and
good at stimulating word-of-mouth.
• To find lead users is challenging.