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Management of Product and Service Innovation
Nishant Bhaskar
- Understanding PSI
- Realising PSI
- Role of Design in PSI
- Assignment
Contents
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Management of Product and Service Innovation 23rd October 2017 - - PowerPoint PPT Presentation
Management of Product and Service Innovation 23rd October 2017 - - PowerPoint PPT Presentation
Management of Product and Service Innovation 23rd October 2017 Nishant Bhaskar Contents Understanding PSI Realising PSI Role of Design in PSI Assignment 2 2 Products and Services: Levels of Innovation The Levels of
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Products and Services: Levels of Innovation
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The Levels of Innovation indicate the relationship between the level of potential gain with a significant innovation and the higher risk that goes with that opportunity.
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Products and Services: Types of Innovation
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The Ten Types of Innovation framework provides a way to identify new opportunities through experience,
- ffering, and an organisation’s internal structure.
https://www.doblin.com/dist/images/uploads/Doblin_TenTypesBrochure_Web.pdf
How Netflix turned the video rental industry on its head by implementing a subscription model How Target works with renowned external designers to differentiate itself How Uber has built a robust feedback system for drivers and riders How Zara’s “fast fashion“ strategy moves its clothing from sketch to shelf in record time How OXO Good Grips cost a premium but its “universal design” has a loyal following How Google is parlaying Pixel, Android, Apps, Google Home, Chromecast, Google Wifi etc. into a pervasive suite How Muji has ironically created a strong brand by promoting the motto - 'No Brand Quality Goods’ How Wii’s experience draws more from the interactions in the room than on-screen How Nespresso locks in customers with its useful members
- nly club
How Amazon is gaining trust worldwide by its consistent service and A-to-Z Guarantee
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Products and Services: Types of Market
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Rowland, C., Goodman, E., Charlier, M., Light, A., & Lui, A. (2015). Designing connected products: UX for the consumer Internet of Things. O'Reilly Media, Inc., Chicago.
Four types of market in which a product can operate
New market Existing market
New product New type of product Niche product Low cost product
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Four types of market in which a product can operate
New market Existing market
New product New type of product Niche product Low cost product
iBeacon for airports
A new type of product in an existing market offers higher performance than what is currently offered. Higher performance can be a product or service that runs faster, does something better or substantially improves on what is already on the market.
Products and Services: Types of Market
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Four types of market in which a product can operate
New market Existing market
New product New type of product Niche product Low cost product
Energy monitoring system for those who generate their own power
Niche products attempt to convince customers that some of its characteristics are radical enough to change the rules and shape of an existing market.
Products and Services: Types of Market
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Four types of market in which a product can operate
New market Existing market
New product New type of product Niche product Low cost product
DIY Home Automation Kits (eg. SmartThings)
Low cost products are for customers at the low-end of an existing market, who will buy “good enough” performance if they could get it at a substantially lower price.
Products and Services: Types of Market
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Four types of market in which a product can operate
New market Existing market
New product New type of product Niche product Low cost product
GlowCaps Pill Bottle
A new product for a new market addresses unmet need(s) of a section of customers by creating something, that never existed before or that solves availability, skill, convenience, or location issues in a way no other product has.
Products and Services: Types of Market
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Four types of market in which a product can operate
New market Existing market
New product
GlowCaps Pill Bottle
New type of product
iBeacon for airports
Niche product
Energy monitoring system for those who generate their own power
Low cost product
DIY Home Automation Kits (eg. SmartThings)
Products and Services: Types of Market
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Potential Benefits of PSI
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Market Position
A new product can set industry standards, standards that become a barrier to competitors or open up new
- markets. Superior products and services are a means to gain a lead on competitors, build on existing
advantages by creating stronger competitive barriers, establish leadership image that translate into dominant designs in the market, extend existing products and service offerings, and increase market share.
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Resource Utilisation
Potential Benefits of PSI
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Capitalising on prior R&D investments, improving the returns on existing assets, applying new technologies for both products and manufacturing processes, and eliminating or overcoming past weaknesses that prevented other products or processes from reaching their full potential.
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Potential Benefits of PSI
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Imagery
The excitement, image, and growth associated with product and process development efforts capture the commitment, innovation, and creativity of the entire organisation. This success, in turn, enhances the firm’s ability to recruit the best people, improve their integration, and accelerate the pace of change.
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PSI can fail in many ways. For example because products and services:
Failure in PSI
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- Do not meet users’ needs.
- Are not sufficiently differentiated from the products and services of competitors.
- Do not meet technical specifications.
- Are too highly priced compared to their perceived value.
- Do not comply with regulatory requirements.
- Compete with the company’s other products and services.
- Lack strategic alignment with the company’s business portfolio.
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Realising Product and Service Innovation
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The Fundamental Questions
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The four often-forgotten questions that are at the core of any business:
- 1. What should we make?
- 2. Who will want it?
- 3. Why will it create enough value to
make it worth producing?
- 4. How should we organise our key
activities so we can make it?
Whitney, P. (2015). Design and the economy of choice. She Ji: The Journal of Design, Economics, and Innovation, 1(1), 58-80. Chicago
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Development Approach for PSI (I)
A generic stage gate new product development process
Gate 1 Initial Screen Gate 2 Second Screen Gate 3 Decision
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Business Case Gate 4 Post- developme nt Review Gate 5 Pre- commercial isation Business Analysis PIR Post Implement ation Review Idea Ideas Stage 1 Preliminary Investigation Stage 2 Detailed Investigation Stage 3 Development Stage 4 Testing & Validation Stage 5 Full Production & Market Launch
Cooper, R. G. (1994). Perspective third-generation new product processes. Journal of product innovation management, 11(1), 3-14. Chicago
While rigorous planning and control are essential in stable, complex, and relatively mature sectors (such as most elements of autos and computers), they are perhaps less important in uncertain and fast-moving sectors where learning and experimentation are more suitable. In some project-based businesses, where innovation is required in large, long-term, and complex one-off projects, a combination of rigour in planning and adaptability through learning is required.
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Development Approach for PSI (II)
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Tool: Stakeholder Maps
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A stakeholder map is a visual or physical representation of the various groups involved with a particular
- service. By representing staff, customers, partner organisations and other stakeholders in this way, the
interplay between these various groups can be charted and analysed.
Stickdorn, M., Schneider, J., Andrews, K., & Lawrence, A. (2011). This is service design thinking: Basics, tools, cases. Hoboken, NJ: Wiley.
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Tool: Customer Journey Maps
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A customer journey map provides structured visualisation of a user’s experience. The touch-points where users interact with the product/service are used to construct a “journey” – an engaging story based upon their experience. This story details their product/service interactions and accompanying emotions in an accessible manner.
Stickdorn, M., Schneider, J., Andrews, K., & Lawrence, A. (2011). This is service design thinking: Basics, tools, cases. Hoboken, NJ: Wiley.
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Tool: Value Webs
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Value Webs show why participants in producing and using the offering will create value for all involved. It is used to compare early versions of business models.
DNA DNA DNA DNA
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Quiz
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Fiat’s 1.3L Multijet Diesel Engine
https://motorbash.com/fiats-1-3l-multijet-diesel-engine-list-of-all-indian-cars-that-run-on-it/
What’s common in these three cars?
Hint: It’s not visible!
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Modularity, Product Families, and Platforms
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- Families of related products built on core technologies have flexibility to adapt to changing customer
requirements.
- Modularity and product platforms are especially important in complex products and systems.
- System integrators coordinate the overall design process.
- Relationships between components and the dependency of one part on another are often represented in a
matrix showing the overall product system, listing constituent subsystems, and the patterns of their interaction, interfaces, and dependency on one another.
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Case Study: Car Platform
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The floorpan, which serves as a foundation for the chassis and other structural and mechanical components Type of front and rear suspensions Steering mechanism and type of power steering Placement and choice of engine and
- ther powertrain components
Front and rear axles and the distance between them - wheelbase
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Case Study: Connected Devices Platform
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Wifi Direct / Bluetooth
Sales Service Marketing Design
IOT Client
IoT Hub Provisioning API App Backend Solutions UX Identity and Registry Stores Device State Stores Stream Processor Storage
Business Integration Connectors
Monitoring Data Device Events Appliance Telemetry User Profiles
Device Connectivity Presentation and Business Connectivity Data Processing, Analysis and Management
Recommendations Content Store Recommendation Engine OTA Firmware Feed App Service - Mobile App App Service - Web App Azure Service Fabric Reliable Actors Azure Batch Tableau Mobile Notifications Appliance Monitoring
Web and Mobile
User Side Mobile App Backend Analytics Dashboard
Business Systems
CRM Device Diagnostics Biztalk Services App Service - Logic App Data Factory Data Catalog
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Quiz
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Which is the most valuable company in the world?
Hint: The company has has returned more than 870 per cent to shareholders since 2007.
Forbes List: The World's Most Valuable Brands
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New York
Engineering vs Design
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Jahnke, M. (2009). Design thinking as enabler of innovation in engineering organizations. In 8th European Academy of Design Conference, Aberdeen, Scotland.
Key characteristics of the fields of innovation/engineering and design:
Paris
Image reproduced from ‘Paris versus New York: The Complete Series of Two Cities’, by Vahram Muratyan
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Designing Electronic Ticket Management System
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Design electronic ticket management system for Mumbai which provides commuters seamless travel experience across different modes of public
- transportation. While designing the
system, consider different types of users and their expectations, variability in ticket price for different distances and modes
- f travel, measures for fraud prevention,
measures to attract new users etc.
- Enlist different stakeholders and their
interests.
- Design the system and its touch-
points.
- Identify different scenarios of use, and
draw customer journey map for each (use those to further refine your system).
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Touch-point Examples
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