Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Re-think: Product Planning
~ Why Apple can create blockbusters? ~
Chikafuji, Ryu
- Version 0.9c1 -
For persons who are interested in consumer
products, services, and markets.
– Aug/25/2011
Temptation
Chapter 1
The most important task is to find out:
“what user-experiences the customer looks for,
values, and needs”.
Everyone knows ...
Instead, many companies give an ear to the
industry’s influencers and oversee competitors,
apart from their target custome...
Curiously, influencers provide the vision of the
newly defined product category for their customers
– the consumer product...
In fact, many influencers have global marketing
platforms to survey their customers’ potential market.
The problem is that the influencers’ happiness
do not correspond with the companies’ happiness.
The influencers’ happiness is to spur intense
competition in their customers’ market because
such competition brings them ...
The influencers elegantly lead their
customers into intense competition.
The competition makes the influencers’ hearts sing,
while the companies’ hearts are exhausted.
It’s time to re-think.
Re-Think
Chapter 2
Many companies start from products.
They improve existing products and
make their spec table better.
Existing market Exist...
Fewer companies start from people.
They innovate new user experiences
and make the people’s life better.
Existing market E...
My focus here is clearly on the latter case:
“Start from people”.
*Lots of theories, practices, consulting services are av...
True marketing says “These are the [user-experiences](*)
the customer looks for, values, and needs.”
– Peter. F. Drucker
(...
To find out “the user-experiences” is the starting
line for new product planning, however,
“You can’t go out and ask people, you know,
What’s the next big thing?”
– Steve Jobs
CNN Money, Aug/03/2008
“This product is ‘Innovative’” means that the
product brings far better user-experience to the
target customers.
user-experience
time
Discontinuity
Conventional Products
Innovative Product
In other words, there must be discontinuity be...
What ordinary people can imagine is limited to
incremental improvement of existing products,
their imagination can’t go be...
If I had asked people what they wanted,
they would have said “faster horses”
– Henry Ford
Founder of the Ford Motor Company
We did market survey (around 2000) about the demand
for camera-phone; not once but four times the results
showed negative....
It’s really hard to design products by focus groups.
A lot of times, people don’t know what they want
until you show it(*)...
It’s us who have to answer the question:
“What’s the next big thing?”
Masaru Ibuka,
photo from www.sony.net
Both Honda-san(*)
and I had never started product
development from a technological p...
The idea for the Walkman had come from Ibuka, who was
over 70 years old, and Morita(*)
, himself approaching 60
enthusiast...
"It was very nearly fetishistic, in fact – he even had a
collection of Sony letterhead and marketing materials,"
laughs De...
Steve Jobs simply described Ibuka’s way:
We figure out what we want. And I think we're pretty
good at having the right discipline to think through
whether a lot of...
Once we are confident that “a lot of other people
are going to want it, too”, then most barriers
which prevent us from inn...
You may have heard the following sentences.
“I requested an engineering team to implement that
feature, but they said it was too difficult and too risky
to do it. So,...
“I asked marketing guys how critical to implement
that feature for our business. But they didn’t show
any compelling expla...
Before iPhone, most manufacturers believed
that it was impossible to implement a full-web
browser on a mobile handset.
But just less than one year after iPhone, many
manufacturers released mobile handsets with
a full-web browser.
What does all this mean?
We see a lot of similar stories in our history:
Transistor Radio, Home VTR, Walkman, Personal
Computer, Megapixel Digital ...
What does all this mean?
Barriers against an innovation are not so high if
we share strong confidence that
“a lot of other people are going to want...
This confidence fires up us to realize far better
user-experience, innovative products, no matter
how high the barrier may...
You know, potential ability of engineering is
much higher than we expect and engineers can
be more flexible if they share ...
Marketing, sales, logistics, legal, production, PR, IP,
HR, or top managements, in whatever sections,
persons in charge ca...
The missing piece for innovation is the strong
confidence that “a lot of other people are going
to want it, too”.
The key to get strong confidence is the ability
to understand and share the feelings of target
customers, that is, “Empath...
Think about
Chapter 3
It's in Apple's DNA. The technology alone is not enough.
That is technology married with the liberal arts, married
with th...
This sentence explains about the advantage of
Apple’s products, but it doesn’t explain why they
can create such attractive...
The question I’d like to ask here is:
“How to create such attractive products?”
The answer must be very basic and obvious.
Apple has strong confidence that gets what
the customers want to buy.
Apple is always striving to find out:
“what user-experiences the
customer
looks for, values, and needs”.
Apple spends enough time for this task.
Category Inception Apple Product Released
MP3 Player 1997 iPod 2001
MP3 Download(*)
1999 iTune Store 2003
Smart Phone 2001...
The greatest praise an innovation can receive is
for people to say,
"This is obvious. Why didn't I think of it?"
– Peter. ...
Looking back from today:
The demands for iPod & iTune Store was
obvious around 1999.
The demands for “Breakthrough inter...
It may sound paradoxical, but Steve Jobs says:
 We do no market research. We don’t hire
consultants.
In the meantime, Apple has been building
a huge platform.
Apple Store was launched in May 2001, five months
before the first iPod was to be released and two years
before the iTune ...
In 2011, Apple has 336 stores in 11 nations:
Japan: 7
US: 240
Canada: 20
Australia: 12
France: 7
Spain: 2
UK: 30
Germany: ...
5.8 millions people come to Apple Stores each week
and 610,000 members in “one-to-one” service.
(data from ifoAppleStore.c...
Apple has about 50,000 employees and about 30,000
of them are working at Apple Stores as full-time
employees. 60% of emplo...
The only way to enrich their life is to be part of
their life.
– Ron Johnson
Senior Vice President of Retail, Apple
Apple Store has become the most powerful
“empathy” platform on the planet.
Empathy
Chapter 4
The business enterprise has two – and only these two –
basic functions: marketing and innovation. Marketing
and innovation...
Marketing
Empathy: [em-puh-thee]
- the ability to understand and share the feelings of the
target customers; “the CORE” ab...
Empathy
Imagination (feel)
Creativity (think)
Innovation (produce)
Passion (triumph)
Motivation (act)
encourage
inspire
[r...
“Empathy” is the very core ability for both
marketing and innovation, the two basic
functions of business enterprise.
Some companies have already executed drastic
investment for Empathy as a system.
Apple has been building a huge and stunning
Empathy platform: the Apple Store.
Samsung has a “Regional Specialist Program”,
a very aggressive Empathy cultivation program.
(*) see http://is.gd/Eu0Gfy
Th...
Dyson’s vacuum cleaner DC12,
a strategic product for Japan market
Dyson’s engineers home-stayed in Japan several
months to...
However, to build the Empathy as an effective
system is not easy, especially, in this profound
changing age.
Life Style
Declining Birth Rate
and Aging
Population
Diversity &
Inclusion
Sustainable Society
Later Marriage
…
Connected ...
Share of Global GDP
 USA: 31%(2000)  18%(2015)(*1)
 BRICS: 8%(2000)  23%(2015)  31%(2020)(*2)
Share of Global Cell-Ph...
Lifestyle changes day-to-day,
market changes globally.
Once again, “Empathy” is the very core ability
for business.
Are you being inspired through
target customers?
Are you cultivating your passion through
target customers?
Are you and your company ready for
the next decade?
… to be posted.
An answer will be shared here in version 1.0
"Why Apple can create blockbusters?" ~ Re-think: Product Planning
"Why Apple can create blockbusters?" ~ Re-think: Product Planning
Upcoming SlideShare
Loading in …5
×

"Why Apple can create blockbusters?" ~ Re-think: Product Planning

545 views

Published on

Many companies conduct product management without product planning.
They copy a product which is originally designed by other companies, and modify it.
They strive to survey technology/market trends and roadmaps from leading companies/giant research firms.
And they enhance the variety of functions and/or the numbers to make their spec table better.
They love to swim in the ‘red ocean’.

Apple is one of the companies which is carrying out product planning as well as product management.
It often enters the market very late, but re-creates the market itself.
Apple strives to understand what the user-experiences the customer looks for, values, and needs,
and re-invents the product category to make customers’ lifestyle better.
Apple loves to make her heart sing with her product.

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

"Why Apple can create blockbusters?" ~ Re-think: Product Planning

  1. 1. Re-think: Product Planning ~ Why Apple can create blockbusters? ~ Chikafuji, Ryu - Version 0.9c1 -
  2. 2. For persons who are interested in consumer products, services, and markets. – Aug/25/2011
  3. 3. Temptation Chapter 1
  4. 4. The most important task is to find out: “what user-experiences the customer looks for, values, and needs”. Everyone knows this, but this isn’t an easy task.
  5. 5. Instead, many companies give an ear to the industry’s influencers and oversee competitors, apart from their target customers. Influencers: - Big research firms - Oligopoly firms Competitors Target Customers (*) A Company (a consumer products company)
  6. 6. Curiously, influencers provide the vision of the newly defined product category for their customers – the consumer products companies. (*) examples of influencers
  7. 7. In fact, many influencers have global marketing platforms to survey their customers’ potential market.
  8. 8. The problem is that the influencers’ happiness do not correspond with the companies’ happiness.
  9. 9. The influencers’ happiness is to spur intense competition in their customers’ market because such competition brings them huge revenue. Everybody Netbook! (with Wintel !!!)
  10. 10. The influencers elegantly lead their customers into intense competition.
  11. 11. The competition makes the influencers’ hearts sing, while the companies’ hearts are exhausted.
  12. 12. It’s time to re-think.
  13. 13. Re-Think Chapter 2
  14. 14. Many companies start from products. They improve existing products and make their spec table better. Existing market Existing market New segment Sometimes they create a new segment.
  15. 15. Fewer companies start from people. They innovate new user experiences and make the people’s life better. Existing market Existing market New market Sometimes they create a new market.
  16. 16. My focus here is clearly on the latter case: “Start from people”. *Lots of theories, practices, consulting services are available for the former case, such as theory of competition, product management practices, social media marketing, etc.
  17. 17. True marketing says “These are the [user-experiences](*) the customer looks for, values, and needs.” – Peter. F. Drucker (*)In the original, the term “satisfactions” is used.
  18. 18. To find out “the user-experiences” is the starting line for new product planning, however,
  19. 19. “You can’t go out and ask people, you know, What’s the next big thing?” – Steve Jobs CNN Money, Aug/03/2008
  20. 20. “This product is ‘Innovative’” means that the product brings far better user-experience to the target customers.
  21. 21. user-experience time Discontinuity Conventional Products Innovative Product In other words, there must be discontinuity between the trajectory of conventional products and an innovative product in terms of “user-experience”. Conventional trajectory (incremental improvement) New trajectory
  22. 22. What ordinary people can imagine is limited to incremental improvement of existing products, their imagination can’t go beyond this discontinuity.
  23. 23. If I had asked people what they wanted, they would have said “faster horses” – Henry Ford Founder of the Ford Motor Company
  24. 24. We did market survey (around 2000) about the demand for camera-phone; not once but four times the results showed negative. However, nowadays, camera-phone have become the standard. – A comment from a marketing director (Martin Cooper’s Keynote Speech at IEEE Wescon 2005)
  25. 25. It’s really hard to design products by focus groups. A lot of times, people don’t know what they want until you show it(*) to them. – Steve Jobs (*) From the context, “it” doesn’t mean prototype, “it” means finished product such as shown at Apple’s conference.
  26. 26. It’s us who have to answer the question: “What’s the next big thing?”
  27. 27. Masaru Ibuka, photo from www.sony.net Both Honda-san(*) and I had never started product development from a technological point of view. The first and foremost priority was our goal what product we really wanted to make. – Masaru Ibuka, co-founder of Sony Quoted from“The Soul of Monozukuri” (*) Soichiro Honda, founder of HONDA
  28. 28. The idea for the Walkman had come from Ibuka, who was over 70 years old, and Morita(*) , himself approaching 60 enthusiastically supported it. Not content to rest on their laurels, both kept looking for new ideas and strove to understand what kind of products would meet the lifestyle needs of young people. – Quoted from “Sony History”, www.sony.net (*) Morita: Akio Morita, co-founder of Sony Sony Walkman TPS-L2 (1979) Photo by GeorgeArthur, Wikimedia
  29. 29. "It was very nearly fetishistic, in fact – he even had a collection of Sony letterhead and marketing materials," laughs Deutschman(*) . "Sony was a company that Jobs instinctively admired and saw as model from the very beginning.” By Jeff Yang, "How Steve Jobs 'out-Japanned' Japan”, SF Gate (*) Alan Deutschman, Author of "Walk the Walk", Professor at University Nevada-Reno.
  30. 30. Steve Jobs simply described Ibuka’s way:
  31. 31. We figure out what we want. And I think we're pretty good at having the right discipline to think through whether a lot of other people are going to want it, too. That's what we get paid to do. – Steve Jobs CNN Money, Aug/03/2008
  32. 32. Once we are confident that “a lot of other people are going to want it, too”, then most barriers which prevent us from innovation are removed.
  33. 33. You may have heard the following sentences.
  34. 34. “I requested an engineering team to implement that feature, but they said it was too difficult and too risky to do it. So, we had to abandon it. However, our competitor could do it and we are in for it now. Stupid engineering team!” Marketers
  35. 35. “I asked marketing guys how critical to implement that feature for our business. But they didn’t show any compelling explanations. So, we had to make it a lower-priority task. Otherwise, we could do it! Our marketing team doesn’t work at all” Engineers
  36. 36. Before iPhone, most manufacturers believed that it was impossible to implement a full-web browser on a mobile handset.
  37. 37. But just less than one year after iPhone, many manufacturers released mobile handsets with a full-web browser.
  38. 38. What does all this mean?
  39. 39. We see a lot of similar stories in our history: Transistor Radio, Home VTR, Walkman, Personal Computer, Megapixel Digital Camera, Full-flat CRT, Large format LCD, Broadband, Tablet PC, …etc.
  40. 40. What does all this mean?
  41. 41. Barriers against an innovation are not so high if we share strong confidence that “a lot of other people are going to want it, too”.
  42. 42. This confidence fires up us to realize far better user-experience, innovative products, no matter how high the barrier may be.
  43. 43. You know, potential ability of engineering is much higher than we expect and engineers can be more flexible if they share the confidence.
  44. 44. Marketing, sales, logistics, legal, production, PR, IP, HR, or top managements, in whatever sections, persons in charge can be more passionate and creative if they share the confidence.
  45. 45. The missing piece for innovation is the strong confidence that “a lot of other people are going to want it, too”.
  46. 46. The key to get strong confidence is the ability to understand and share the feelings of target customers, that is, “Empathy”. empathy: the ability to understand and share the feelings of another. (Concise Oxford English Dictionary)
  47. 47. Think about Chapter 3
  48. 48. It's in Apple's DNA. The technology alone is not enough. That is technology married with the liberal arts, married with the humanities, that yields us the result that makes our hearts sing. – Steve Jobs Keynote speech, Mar/2011, from Apple.com
  49. 49. This sentence explains about the advantage of Apple’s products, but it doesn’t explain why they can create such attractive products.
  50. 50. The question I’d like to ask here is: “How to create such attractive products?”
  51. 51. The answer must be very basic and obvious.
  52. 52. Apple has strong confidence that gets what the customers want to buy.
  53. 53. Apple is always striving to find out: “what user-experiences the customer looks for, values, and needs”.
  54. 54. Apple spends enough time for this task.
  55. 55. Category Inception Apple Product Released MP3 Player 1997 iPod 2001 MP3 Download(*) 1999 iTune Store 2003 Smart Phone 2001 iPhone 2007 Mobile App(**) 1999 App Store 2008 Netbook 2007 iPad 2010 Apple’s blockbusters So, Apple often enters the market very late, and attractively re-defines the product which makes customers’ hearts sing as well as itself. (*) Napster, etc. (**) NTT docomo, etc
  56. 56. The greatest praise an innovation can receive is for people to say, "This is obvious. Why didn't I think of it?" – Peter. F. Drucker
  57. 57. Looking back from today: The demands for iPod & iTune Store was obvious around 1999. The demands for “Breakthrough internet communicator”(*) was obvious around 2005. The demands for “big iPhone” was obvious around 2008. (*) Steve Jobs’s introductory words about iPhone
  58. 58. It may sound paradoxical, but Steve Jobs says:  We do no market research. We don’t hire consultants.
  59. 59. In the meantime, Apple has been building a huge platform.
  60. 60. Apple Store was launched in May 2001, five months before the first iPod was to be released and two years before the iTune Store was to be launched. Apple Store Photo by Camillo Miller, Flickr (*)At that time, Apple's annual revenue was only $5.4 billion and loss was $25 million. There were only Notebook and Desktop computers in the Apple Stores.
  61. 61. In 2011, Apple has 336 stores in 11 nations: Japan: 7 US: 240 Canada: 20 Australia: 12 France: 7 Spain: 2 UK: 30 Germany: 5 Italy: 6 Switzerland: 3 China: 4
  62. 62. 5.8 millions people come to Apple Stores each week and 610,000 members in “one-to-one” service. (data from ifoAppleStore.com) One-to-one service at Apple Store Photo by Phil Photostream, Flickr
  63. 63. Apple has about 50,000 employees and about 30,000 of them are working at Apple Stores as full-time employees. 60% of employees are there sharing their vision "Enrich Lives". (*) Gateway, now a subsidiary of Acer, had similar retailing strategy, but they didn't hire their own people, didn't own real estate. On the other hand, Apple does. Apple Store Photo by Camillo Miller, Flickr
  64. 64. The only way to enrich their life is to be part of their life. – Ron Johnson Senior Vice President of Retail, Apple
  65. 65. Apple Store has become the most powerful “empathy” platform on the planet.
  66. 66. Empathy Chapter 4
  67. 67. The business enterprise has two – and only these two – basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are “costs” – Peter F. Drucker
  68. 68. Marketing Empathy: [em-puh-thee] - the ability to understand and share the feelings of the target customers; “the CORE” ability of Marketing
  69. 69. Empathy Imagination (feel) Creativity (think) Innovation (produce) Passion (triumph) Motivation (act) encourage inspire [ref] ”Towards a Definition of Creativity”, Wisconsin Task Force on Arts and Creativity in Education Empathy: [em-puh-thee] - the ability to understand and share the feelings of the target customers; “the Source” of Innovation
  70. 70. “Empathy” is the very core ability for both marketing and innovation, the two basic functions of business enterprise.
  71. 71. Some companies have already executed drastic investment for Empathy as a system.
  72. 72. Apple has been building a huge and stunning Empathy platform: the Apple Store.
  73. 73. Samsung has a “Regional Specialist Program”, a very aggressive Empathy cultivation program. (*) see http://is.gd/Eu0Gfy This is very old program, since 1990.
  74. 74. Dyson’s vacuum cleaner DC12, a strategic product for Japan market Dyson’s engineers home-stayed in Japan several months to understand and share the people’s lifestyle before designing DC12.
  75. 75. However, to build the Empathy as an effective system is not easy, especially, in this profound changing age.
  76. 76. Life Style Declining Birth Rate and Aging Population Diversity & Inclusion Sustainable Society Later Marriage … Connected Society
  77. 77. Share of Global GDP  USA: 31%(2000)  18%(2015)(*1)  BRICS: 8%(2000)  23%(2015)  31%(2020)(*2) Share of Global Cell-Phone Market(*3)  USA market: 50% (1998)  12% (2015)  Asia market: 19% (1998)  50% (2015) E7 will go beyond G7 in 2020 in terms of GDP(*4) (*1) IMF (*2) BRICS Summit (*3) Softbank (*4) PWC Global Economy
  78. 78. Lifestyle changes day-to-day, market changes globally.
  79. 79. Once again, “Empathy” is the very core ability for business.
  80. 80. Are you being inspired through target customers?
  81. 81. Are you cultivating your passion through target customers?
  82. 82. Are you and your company ready for the next decade?
  83. 83. … to be posted. An answer will be shared here in version 1.0

×