How do you prepare your business from a niche market to a more lucrative mainstream market? Prepare your beloved minimum viable product based on the whole product model.

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CONFIDENTIAL Template Innovation Day 2017CONFIDENTIAL
THE WHOLE PRODUCT MODEL
David Pas
Coordinator DesignLab
David.pas@verhaert.com
TRACK 3 - USER CENTRICITY

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CONFIDENTIAL
David Pas
INTRO
Coordinator
Design Coach 5x5, Designregio Kortrijk
Guest Lecturer University of Antwerp, Product Design, Design
Sciences department
Guest Lecturer University of Antwerp, Innovation Management,
Applied Economical Sciences department
“to be leading in innovation is also about changing expectations &
perception of a product. That's why I’m also looking for meaningful
tweaks, and not only for technological leaps”

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CONFIDENTIAL
CONTEXT
Strategy
Business
Technology
User centricity
TRANSFORMATION FRAMEWORK
Design
thinking
Digital & data
sciences
Business model
innovation / servitization
3D printing
Advanced
materials
IoT &
sensors
Robotics &
autonomous
platforms
Early user
validation
(User)
co-creation
Behavioral
change
Roadmap
Accelerated by open innovation and technology transfer

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TRANSFORMATION

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THE WHOLE PRODUCT = CORE + KEY ENABLERS
The whole product is the total of what a
customer buys.
CORE + KEY ENABLERS
The whole product is the physical object,
software or service from which a customer
gets direct utility plus other factors,
services and perceptions that make the
product useful and desirable
THE WHOLE PRODUCT CAN BE DEFINED DIFFERENTLY IN
DIFFERENT PHASES OF THE PRODUCT LIFE CYCLE

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EXAMPLE : IPAD
GENERIC
What is shipped in the box.
EXPECTED
This is the thing that the consumer thought
he/she was buying. It’s the minimum
configuration of products and services to
achieve the objective
+ +

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AUGMENTED
The product fleshed out to provide the
maximize the buying objective
POTENTIAL
Represents the product’s room for growth
with ancillary products.
+ +
EXAMPLE : IPAD

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WITHIN THE LIFE CYCLE
EARLY ADOPTERS EARLY MAJORITY

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TRANSFORMATION TO SCALE UP
THERE IS A LIFE BEYOND THE NICHE

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THE OBJECTIVE
EARLY ADOPTERS EARLY MAJORITY

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THE FACTS
2,5 % 13,5 % 34 % 34 % 16 %
MARKET SHARE
16 %
Innovators Early Adopters Early Majority Late Majority Laggards

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THE FACTS
2,5 % 13,5 % 34 % 34 % 16 %
MARKET SHARE MARKET SHARE
16 % 84 %
Innovators Early Adopters Early Majority Late Majority Laggards

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WHAT’S SO DIFFICULT
A SHIFT FROM BEING BELOVED TO BEING LIKED

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WHAT DO THESE PRODUCTS HAVE IN COMMON ?

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WHAT DO THESE PRODUCTS HAVE IN COMMON ?
THEY WERE BOTH ONE OF A KIND

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…the more pragmatic mainstream user was not able to
compare before purchase…
AS A CONSEQUENCE
That made it hard to shift to the
mainstream market, because
this market was not ready for it.

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BEING UNIQUE IS ONE THING
BEING DIFFERENT IS EVEN HARDER
FROM BEING BELOVED TO BEING LIKED
WITH THE WHOLE PRODUCT MODEL

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FEATURES OF A NICHE-PRODUCT
BELOVED BY IT’S USERS

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I WAS DESIGNED FOR…..

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THIS BELIEVER

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WHAT ‘DRIVES’ THE PURCHASE ?

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SURE, YOU’RE BELOVED…BY YOUR FRIENDS
“I love it”
NICHE MARKET

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MORE PEOPLE, MORE OPINIONS
“I like it, but….”
NICHE MARKET MAINSTREAM

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BIGGER MARKET, MORE OPINIONS
NICHE MARKET
What’s the best buy ?
What’s doing a good job ?
What’s the best value for money
“I like it, but….”
MAINSTREAM

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TO SCALE UP MEANS :
“FROM LOVE IT TO LIKE IT”
FROM STRICTLY DESIGN-CENTRIC
TO MORE MARKET-CENTRIC
USER-CENTRIC

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FROM A ‘COOL’ STATEMENT

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TO FACTS

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FROM…
More analytic
Evolutionary advances
Conformist
Stay with the herd
Risk-avers
Motivated by current problems
Pursue what is probable
Will seek best solution or vendor
More Intuitive
Revolutionary advances
Contrarian
Avoid the herd
Risk-taking
Motivated by future opportunities
Seek what is possible
Will seek best concept
…TO

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FROM… …TO

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DESIGN TO BE LIKED AND TO BE LOVED
FROM BEING BELOVED TO BEING LIKED
WITH THE WHOLE PRODUCT MODEL

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SO WHAT’S THE BIG IDEA ?
DESIGN TO GROW
HERE
1
What’s the best buy ?
What’s doing a good job ?
What’s the best value for money

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SO WHAT’S THE BIG IDEA ?
START A FIRE DESIGN TO GROW
HERE HERE
2 1
What’s the best buy ?
What’s doing a good job ?
What’s the best value for money
Distinctive value
proposition which
can be “loved”

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SO WHAT’S THE BIG IDEA ?
START A FIRE DESIGN TO GROW
HERE HERE
2 1
FOCUS ON
MARKET

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SO WHAT’S THE BIG IDEA ?
START A FIRE DESIGN TO GROW
HERE HERE
2 1
FOCUS ON
DESIGN
FOCUS ON
MARKET

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SO WHAT’S THE BIG IDEA ?
START A FIRE DESIGN TO GROW
HERE HERE
2 1
FOCUS ON
DESIGN
FOCUS ON
MARKET
USER-CENTRIC

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Positioning exists in people’s heads. The most effective
positioning strategies are the ones that demand the least amount
of change.
IN THE MAINSTREAM MARKET, YOU NEED COMPETITION
FUN SECURITY

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Keep it simple : differentiate from competition with a limited set of
unique features.
IN THE MAINSTREAM MARKET, YOUR USP’S MIGHT DIFFUSE
PERCEIVEDVALUE
LOWHIGH
IMAGEQUALITY
NIGHTVISION
SMART
DO-IT-YOURSELF
RELIABLE
QUALITATIVE
INNOVATIVE
TRADITION
DESIGN
EASYTOUSE

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Create a balanced mix
of emotional value
drivers and functional
features
IN THE MAINSTREAM MARKET, EMOTIONS AND FACTS COUNT
Allow buyers to rationalize
their ‘pre-established’ choice
DESIGN CHALLENGE

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EAMPLE : RATIONALIZE THE PURCHASE OF ……

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MAKE IT A PROCESS
THE WHOLE PRODUCT MODEL
LIFE-CYCLE COMPATIBLE
USER-CENTERED

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THE MODEL FOR A PROCESS

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DESIGN TO LOVE IT
GENERIC PRODUCT
You’re able to start with a minimum
lovable/viable product
With just enough features to become
beloved by early customers, and to provide
feedback for future improvements and
development.
“I love it”
NICHE MARKET
DESIGN CHALLENGE
This is really about finding the
hidden need and answer with
a distinctive new offering

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DESIGN TO LIKE IT
AUGMENTED PRODUCT
You’re able to adapt and to appeal to create
a specific market position in multiple
market segments without touching the
core !
“I like it, but….”
NICHE MARKET MAINSTREAM
DESIGN CHALLENGE
This is more about finding a
smart way to differentiate in
different market segments

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EXAMPLE : THE START-UP WAY
Although not equipped with all features from the beginning, still a
viable product launch.
Accepted by the early adopters, now ready to evolve into other
market segments.

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EXAMPLE : THE BIG CORPORATE STYLE
Although not performing what was expected from the beginning,
still a successful product launch.
Accepted by the early adopters, now ready to conquer the
mainstream, since it (finally ;-) is equipped with cellular
connectivity.

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THE USER-CENTERED TOUCH
BEYOND DESIGN TRENDS
BEYOND MARKET FACTS
BUT BASED ON ‘SCALABLE’ NEEDS

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BEYOND VALUE-ADDING BY DESIGN
Do not search only for features that people might love, but
look for some resistance, why people might refuse it !

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LISTEN ALSO TO WHAT YOU DON’T LIKE TO HEAR
User centricity should exceed
the hunt for the hidden and
unmet needs.
Validate to understand also the
‘unwillingness’ to use or purchase.
Understand why users do not
adopt your great idea.

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BEYOND TECHNOLOGY LEAPS
Since technology used to be the
innovation driver for decades,
adoption life cycles were based on
functional product performance.
DESIGN CHALLENGE
Today, the innovation
speed is so high that
human adoption becomes
the next bottleneck

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INDUSTRY TRANSFORMATION
A FEW EXAMPLES

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TORO/IRRITROL
New irrigation control product portfolio
based on a smart roadmap to allow two
brands to serve a global market.

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BOSCH
An entire new product
portfolio to serve the Smart
Home market.

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SOME TIPS TO GO ‘MAINSTREAM’
• You need competition, moreover, try to ‘design your competition’
• Don’t think in “taking a small part in a big market”. If you want to
go beyond the niche, think bigger and conquer a segment to
reach a significant market share.
• Positioning exists in people’s heads : the most effective
positioning strategies are the ones that demand the least
amount of change.
• Your beloved idea might dilute in the mainstream…
“Sometimes you must destroy what you like to get what you love”

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THANK YOU

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Innovation Day is an initiative of Masters in Innovation,
the umbrella brand of the Verhaert Group which aims
to connect, train and accelerate professional innovators.
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