What are some ideas for invention marketing

Management of innovation projects Training to become a certified innovation manager. Impulse center Grambach

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1 Slide 1 Management of innovation projects Training as a certified innovation manager Impulse Center Grambach Stefan Vorbach Institute for Systems Science, Innovation and Sustainability Research (ISIS) Karl-Franzens-University Graz Tel. +43 (0) 316 / Fax +43 (0) 316 / Slide 2 Innovation processes 1

2 Success factor research Slide 3 Success rates of innovation projects N = 1919 projects from 116 UN (cross-sector study) approx. 0.6% Source: Berth (1993) Success factor research Slide 4 Indicators of innovation success Project level Customer / market success Financial success Technical success Temporal success Process success Company level Financial Success Strategic success Program success Process level Product idea R&D Invention Marketing and manufacturing Market and process intro. Continuous sales, operation of customer satisfaction, customer acceptance, number of customers, target achievement of market share, sales, sales growth, sales units, proportion of repeat buyers, achievement of profit and profit margin targets, ROI, break-even point, development costs, relative profitability compared to (2004), Hauschildt (2004) , Loch, Tapper (2002) 2

3 Success factor research: Product success factors Slide 5 Cooper / Kleinschmidt (1987) Unique features Higher quality than competitive products Reduce customers costs Innovative (first of its kind on the market) Superior to competing products (in the eyes of the customer) Henard / Szymanski ( 2001) Product advantage Product meets customer needs Product Price Product technological sophisticated Product Innovativeness Solves problem of customer Central role of the customer's perspective Success factor research: Product success factors Slide 6 CIA Competitive Innovation Advantage Source: 1-4 KKV according to Backhaus (2003), modif. according to Trommsdorff, Steinhoff (2007) 3

4 Success factor research: Project success factors Slide 7 Individual project-related success factors Professionalism of the market and technology-related activities of the pre-development Initial Screening Innovations - PROCESS Financial and business analyzes Professionalism of the technical activities Transfer to production Interaction between R&D, marketing, production Professional market launch and the right time Professional Innovation marketing (market research, market tests, customer integration, competition observation) Development time (speed to market) Innovations - PROJECT Top management support innovation process - skills (technology and market know-how) Cross-functional team composition Clear, strong project manager Integration of customers and sales staff Project champion and promoter / Sponsor Sufficient resources for the project Formal project protocol Professionalism of project management Structured and complete innovation Process approach Ernst (2002), Hernard, Szymanski (2001), Montoya-Weiss, Calantone (1994), Lilien, Yoon (1989), Cooper et al. (2004) Song et al. (1997), Clark, Wheelright (1992), Tatikonda, Rosenthal (2000), Brown, Eisenhardt (1995), Zirger, Maidique (1990) Errors & Problems in Product Development Slide 8 Insufficient market analysis to determine specific customer and market requirements : One is often satisfied with rough information and assesses the situation one-sidedly from the company's point of view No creation of business plans: This means that there is no detailed planning of the success targets. Products are often specified unilaterally by marketing or development experts, which leads to an incomplete description of the product requirements . The technical realization of the products is often started, although the requirements and success criteria have not yet been sufficiently clarified and evaluated. Source: Schäppi et al. (2005), p. 13f. 4th

5 Errors & problems in product development Slide 9 The product concept has to be changed several times due to a lack of technical possibilities The costs incurred are significantly higher than assumed The marketing concept is not fully developed at the time of the product launch The product was developed past customer needs In the application of the product problems arise with the customer Due to the lack of preparation and coordination, a great deal of time is required to bring the production processes to the required level of quality Source: Schäppi et al. (2005), p. 14 The innovation process Slide 10 Early phase of development phase of commercialization Market Source: Wecht ( 2008), p. 10 5

6 Typical errors in the innovation process 1/3 Slide 11 The innovation processes are extensively documented in manuals, but they are not lived in the company. There is a lack of discipline and commitment. Processes are too dominant and detailed and do not allow any leeway. Defined freedom in companies is a prerequisite for real innovation. Project managers are not given sufficient skills. Task, responsibility and competence must match. The interface to strategic management is insufficiently defined. Often strategies are developed but not implemented in everyday life. The project selection must be derived directly from the strategy. Wild ideas can encourage breakthrough innovations, but the likelihood of success is low. Source: Gassmann, Sutter (2008), p. 42f. Typical mistakes in the innovation process 2/3 Slide 12 Innovation processes are too restricted to R&D. Departmental egoism has to be overcome. Therefore, cross-functional teams are extremely important for the success of a project. The basics are not sufficiently clarified. Simultaneous engineering is misunderstood if the engineering is started without the technical feasibility being clarified. Checkpoints are ignored. A reduction in development times means that the pressure to reach milestones is extremely high. If entire project review teams and checkpoints are ignored, this leads to dangerous loopholes. At the beginning of the project, it must be defined which gates or checkpoints need to be addressed. Source: Gassmann, Sutter (2008), p. 43 6

7 Typical mistakes in the innovation process 3/3 Slide 13 Good ideas are not accepted. A systematic idea management system stirs up ideas, motivates employees to communicate their ideas, filters them effectively, regularly checks the suitability and strategy conformity of the filter and recycles rejected ideas. For some ideas, the point in time regarding feasibility or market is too early. Unclear project selection or measurement criteria as well as non-transparent decisions lead to demotivation of employees. You cannot understand why your project was not selected. The motivation to get involved in ideas drops drastically. A lack of training in the innovation processes means that the development manuals and guidelines are becoming more and more detailed, but at the same time fewer and fewer employees are living according to the processes. Source: Gassmann, Sutter (2008), p. 43 The innovation process in the broader sense Slide 14 Activity Research & Development Market introduction Market enforcement Competition through imitation Invention Innovation i.e.s. Diffusion Imitation Result of the innovation process in the broader sense Source: Brockhoff (1999) 7

8 The front-end of the innovation process Slide 15 Source: own illustration based on Gemünden (2001) The innovation process according to Thom Slide 16 Idea generation Search field definition Idea generation Idea proposal Idea acceptance Checking the ideas Creating realization plans Decision for a plan Idea realization Realization of the idea Sales of the idea Acceptance control Source: Thom (1980) 8

9 Phase model of the innovation process according to Brockhoff Slide 17 Source: Brockhoff (1999) Phase model of the innovation process according to Witt Slide 18 Source: Witt (1996) 9

10 Phase model of the innovation process according to Vahs and Burmester Slide 19 Source: Vahs, Burmester (2002) Phase model of the innovation process according to Ebert, Pleschak and Sabisch Slide 20 Source: Ebert, Pleschak, Sabisch (1992) 10

11 Phase model of the innovation process: Stage-Gate Gate process 1st generation Slide 21 Source: Vahs, Burmester (2005), p. 91 The special features of Gates Slide 22 Source: Fürst (2008), unpublished documents 11

12 Gates decisions Slide 23 Source: Fürst (2008), unpublished documents Phase model of the innovation process: 2nd generation Stage-Gate Slide 24 12

13 Phase model of the innovation process: Stage-Gate of the 2nd feasibility / customer requirement Selection of interdisciplinary customer orientation Prototype test Orientation towards roadmaps, specification / functional specification Intermediate controls Development up to series readiness Approval for series production Market acceptance tests Completion of breakeven point Source: Cooper, Edgett (2002) Phase model of the innovation process: Stage -Gate of the 3rd generation Slide 26 13

14 Phase model of the innovation process: Value Proposition Cycle Slide 27 Source: Hughes, Chafin (1996) Phase model of the innovation process Innovation impetus Result Slide 28 Idea generation I. Situation analysis and strategy formation II. Idea collection and development III. Rough intention of the ideas Innovation goals / strategy Pool of ideas Problem solution suggestions Idea acceptance IV. Feasibility study, idea evaluation V. Decision for a realization plan Realization plan Start of realization Idea realization VI. Concept development VII. Development and prototype construction VIII. Provision of services IX. Market launch and monitoring Product concept / service concept Prototype Finished product Launch on the market Source: Innovital & Innovators (2004) 14

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16 Technical product development: Model of a construction process (continued) Slide 31 Definitive layout Preparation of production and work processes: Elaboration of detailed drawings and parts lists Completion of production, assembly and transport instructions Review of all documents Detailed design of product documentation Solution Source: based on Pahl, Beitz 2004 Criticism of phase models Slide 32 The content-related definition and delimitation of the proposed phases are (as can also be seen from the large number of proposed phase models) arbitrary and imprecise. The assignment of individual activities to the phases is often problematic. The individual phases and activities are often taken from general problem-solving methods and reappear as microcycles in other phases or activities. The unconditional connection of the different phases and activities gives the impression of an inevitably linear sequence of measures. The sequential linking promotes the idea that each phase is a self-contained unit that can only be started after the immediately preceding phase has been completed. Source: based on Pepels (1999) 16

17 Success factors in innovation processes 1/3 Slide 33 There is always the risk of failure. Taking this into account is an important prerequisite for innovation. If a chosen path turns out to be a wrong path, the courage must also be found to leave this path. There is no procedure for stopping projects. Often there are no clear stop-and-go criteria at the gates. If such criteria are not clearly defined ex ante, discussion about them begins if the project progresses insufficiently. In addition, the wrong people take part in the project reviews; often there is a lack of detailed knowledge and seniority. By dividing the innovation process in two, the innovation rate can be increased significantly. Effectiveness and efficiency can be increased if the early innovation phase is separated from the late implementation phase. Source: based on Gassmann, Sutter (2008) Success factors in innovation processes 2/3 Slide 34 The phase goals in the innovation process must be defined in such a way that they include all results that are necessary for the business decision to start the next project phase not less. Today's approaches are iterative. The individual iterations in the process are time boxed. If the desired goals are not achieved, an additional iteration is inserted. The moving target (changing target conditions) is often self-inflicted. 80% of all target changes are due to poor market research at the start of the project. It is not for nothing that they say: tell me how a project starts and I will tell you how it ends. Source: based on Gassmann, Sutter (2008) 17

18 Success factors in innovation processes 3/3 Slide 35 Stop-and-go policy must be avoided as a matter of urgency. Innovation projects have high hidden set-up costs. Once a project is stopped, it is later difficult for psychological reasons to run it again on a high priority. Constancy and continuity are important here. Product development usually runs parallel to production process development (simultaneous engineering). But: It is essential to avoid parallelizing early and late phases. Product development can only be started after the basics have been clarified. The effort for the changes that become necessary due to the lack of basic clarifications cannot be estimated. Even the best ideas need management support. Too often ideas are not pursued because there are no promoters in the company. Source: based on Gassmann, Sutter (2008) Open Innovation Slide 36 First used by Henry Chesbrough in 2003, a new umbrella term for phenomena that have been known individually for a long time, including interactive value creation (Frank Piller) = opening up the innovation processes of companies with the aim of being active Strategic use of the outside world to increase one's own innovation potential (Gassmann / Enkel) 18

19 Closed Innovation Slide 37 Research Development Markets Source: based on Chesbrough (2003) Open Innovation Slide 38 Research Development Company boundaries Research projects Company boundaries Research projects Markets Source: based on Chesbrough (2003) 19

20 Open Innovation at Kimberley-Clark Slide 39 Open Innovation leverages the skills and expertise of others to contribute to differentiated solutions and strategic growth for Kimberley-Clark Venture Capital Contract Manufacturing Community Development Licensing / Licensing Tools for Open Innovation External Agents Co-Marketing / Co-Branding Co-Distribution Advantages of Open Innovation Slide 40 Good ideas are not forgotten Innovation development is accelerated No investments Through customer integration Better response to customer needs Exciting innovation processes Much more and / or weird ideas Inexpensive recruiting from a pool of the best 20

216, 2004, p

22 Example Whirlpool Gladiator Foil the idea of ​​developing a product line with fixtures and storage systems for the garage Interesting business opportunity, strong brand position required Product must be cost-effective At the time of market launch, a complete line had to be in place in order to keep ahead of the competition From GF as deadline end Specified in 2002 in order to show sales, customers and product line Free hand in implementation, fixed budget allocated Source: HBM No. 9, 2004, p. 66 Example Whirlpool Gladiator Implementation Traditional production (as an integrator) too expensive Entire production (exception: devices) was outsourced Great internal resistance New suppliers were also integrated Several suppliers to save time Autumn 2002: Product launch 1 year development (ø 3-5 years) Sales and profit exceeded expectations Slide 44 Source: HBM No. 9, 2004, p

23 Product line Whirlpool Gladiator Foil 45 Rolls in the innovation process Foil 46 23

24 Performance contributions ge and roles in innovation management Slide 47 Performance contributions 1. Impetus in the innovative process 2. Development of a problem solution 3. Process control 4. Decision 5. Realization roles in innovation management initiator, catalyst, stimulator Solution seeker, solution giver, idea generator, information source process helper , connector, resource linker, idea faciliator, orchestrator decision maker, legitimizer realizer, executor Source: Hauschildt (1997), p. 159 Sources of power and roles in innovation management Slide 48 Sources of power 1. Object-specific expertise 2. Hierarchical potential 3. Disposal of material resources 4 Organizational knowledge and communication potential Roles in innovation management Specialist promoter, technical innovator, technologist, inventor Power promoter, chief executive, executive champion business innovator, investor, entrepreneur, sponsor process promoter, product champion, project champion 5. Network knowledge and interaction potential relationship promoter Source: Hauschildt (1997), p

25 Information relationships in innovation management Slide 49 Consultant Power promoter Suppliers Specialist promoter Process promoter Customers Opponents Functional instances Main information relationships Supplementary information relationships Source: Hauschildt, Chakribarti (1988), p. 384 Slide 50 Innovation processes and resistance 25

26 How do change processes begin? Slide 51 We differentiate between change processes that develop in an evolutionary manner, of a revolutionary nature or that are unexpected and surprising for everyone. Source: Based on Leao, Hofmann, Fit for Change, p. 11f. We understand evolutionary change processes slide 52 as those that have been considered and recognized as economically necessary, are systematically planned and implemented and bring about a careful further development of the corporate culture over a longer period of time. In the long term, those involved have the opportunity to get used to the changes and to help shape them to a large extent. Management often takes place through coaching, mentoring or process moderation or is supported by these.Source: Based on Leao, Hofmann, Fit for Change, p. 11f. 26

27 Revolutionary change processes Slide 53 arise when the pressure of problems is high. Management cannot obtain the consent or participation of a large part of the workforce and it is often a matter of a radical redesign of company structures, processes, products or the entire company. The management plans rationally and autocratically, the integration of the workforce occurs late and rarely. For the majority of the workforce, this is a revolutionary process, as it often happens unexpectedly and its implementation is experienced as a high pressure. Source: Based on Leao, Hofmann, Fit for Change, p. 11f. Unexpected change processes Slide 54 Not every change starts planned. Some companies are confronted with completely unexpected changes: be it through visible signs such as changing market conditions, customer reactions, organizational, qualitative or other problems or be it through problems whose signs were not recognized in time. In such a situation there is initially a high level of uncertainty. All those involved are equally unplanned. Targeted crisis management on the part of the management is necessary in order to maintain or restore the profitability of the company. Source: Based on Leao, Hofmann, Fit for Change, p. 11f. 27

28 Phases of change processes Slide 55 Perceived own competence 7. Integration 6. Knowledge 2. Rejection 3. Rational insight 5. Learning 1. Shock 4. Emotional acceptance Time Source: Based on Kostka, Mönch (2006), p. 11 phases of Change processes Slide 56 Perceived own competence 2. Rejection 3. Rational insight 1. Shock, surprise: Here there is a confrontation with unexpected framework conditions 7. Integration takes place (eg radical 6. new insight, idea). The perceived own competence decreases, because 5. Learning one's own drafts of action are not suitable for the new conditions. 1. Shock 4. Emotional acceptance time Source: Based on Kostka, Mönch (2006), p

29 Phases of change processes Slide 57 perceived own competence 2. Rejection 1. Shock 3. Rational insight 2. Negation, rejection: At this point, values ​​and paradigms are activated that strengthen the conviction 7. Integration that a change cannot 6. Realization made must become. The perceived 5. learning of one's own competence increases again, the changed conditions are not seen as a necessity to change one's own behavior. 4. Emotional acceptance time Source: Based on Kostka, Mönch (2006), p. 12 Phases of change processes Slide 58 Perceived own competence 2. Rejection 1. Shock 3. Rational insight 5. Learning 4. Emotional acceptance 3. Rational insight: The need for change is recognized, which means that one's own 7. integration skills decrease. Solutions aimed at short-term success are sought, with which often only the symptoms are treated. There is no will to change one's own behavior. Time Source: Based on Kostka, Mönch (2006), p

30 Phases of change processes Slide 59 Perceived own competence 2. Rejection 1. Shock 3. Rational insight 4. Emotional acceptance: This phase is also referred to as a crisis (Greek: decisive turn). The crisis harbors both opportunities and risks. If the 7th integration is aroused willingness to question values ​​and behavior, 6th knowledge of unused potential can be tapped under the changed framework conditions. If this does not succeed, however, the situation can be rejected again and the process of change becomes 5. Learning 4. Emotional acceptance slowed down or stopped. Time Source: Based on Kostka, Mönch (2006), p. 12 Phases of change processes Slide 60 Perceived own competence 2. Rejection 1. Shock 3. Rational insight 5. Learning 4. Emotional acceptance 5. Trying out, learning: The emotional acceptance to change sets in motion the willingness for a learning process. 7. Integration, the corresponding new, changed behaviors can be tried out and practiced. There are successes and failures. The perceived competence only increases through continuous trial and error. 6. Knowledge of time Source: Based on Kostka, Mönch (2006), p

31 phases of change processes perceived 6. Insight: own competence When practicing, more and more information is collected. These provide information about the situations in which the new behaviors are appropriate 2. Rejection 5. Learning. This leads to an expansion of the 3rd rational insight consciousness. The expanded behavioral repertoire 1. Shock enables greater behavioral flexibility. The 4th emotional perception - acceptance 6th knowledge 7th integration time slide 61 own competence taken rises above the level before the change. Source: Based on Kostka, Mönch (2006), p. 12 Phases of change processes Slide 62 Perceived own competence 7. Integration: The new ways of thinking and behavior are fully integrated 2., rejection so that they are considered as 5. learning as a matter of course 3. Rational largely insight can be performed unconsciously. 1. Shock 4. Emotional acceptance 6. Insight 7. Integration time Source: Based on Kostka, Mönch (2006), p

32 Reasons for obstacles to innovation Slide 63 The causes of obstacles to innovation lie in the person In the matter of not wanting Not being able organizational obstacles technical obstacles financial obstacles Symptoms for resistance Slide 64 verbal (speaking) non-verbal (behavior) active (attack) contradiction counter-argumentation Allegations, threats, polemics, stubborn formalism, excitement, unrest, quarrel, intrigue, rumors, formation of cliques, passive (flight), evasion, silence, trivializing, ridiculing unimportant debates, listlessness, inattention, tiredness, staying away, inner emigration, illness, source: based on Doppler, Lauenburg (2002) 32

33 Patterns of resistance Slide 65 Assessment of personal risks low high Skeptics (approx. 40%) Opponents (approx. 15%) Promoters (approx. 5%) Brakes (approx. 40%) include first include later do not include high low Assessment of factual risks Source: Based on Mohr et al. (1998) Killer Phrases 1/2 Slide 66 That may be theoretically correct, but ... We have never done it like this before. That is unfashionable. A committee must first clarify this. It has been known for a long time (it has proven itself over the decades). You can't get away with that with me (in the house). Do you want to take full responsibility for this? We're too small for that (we don't have enough staff for that). Let's talk about it another time (the time is not right for that) 33

34 Killer Phrases 2/2 Slide 67 The customers don't want that (or want it differently). This is not technically feasible (if it were really that simple, then ...). Let's wait and see what others say about it. We are not responsible for that (it does not help us). If that were really that good, why hasn't anyone else done it before? You always know everything better. As an expert, I can tell you that ... We have no money left for that. Just be here for a few years ... There are already enough projects going on at the moment. Slide 68 Product planning and implementation in innovation projects 34

35 Product planning with the help of feasibility studies Slide 69 Clarification of the feasibility of an innovation project Examination of a project with regard to technical feasibility Economic feasibility Feasibility in the actual sense Basis for the decision on the implementation of an innovation project Classification in the construction process Slide 70 Feasibility studies Source: based on Leemhuis (2005) 35

36 Specific questions in the product planning and implementation phase Slide 71 Which target customers can I address for my product? How can I best win my target customers for my product? Marketing Management What are the customer's requirements? What functions does my product have to fulfill in order for the customer to be satisfied? Quality management What is the customer willing to pay for my product? Cost Management Overview Phases Material Products Slide 72 Material Products VI. Concept development VII. Development & prototype construction VIII. Provision of services IX. Market launch & monitoring Project management Marketing management Cost management Quality management 36

37 Overview phases - services Slide 73 Services / intangible products VI. Concept development VII. Development & prototype construction VIII. Provision of services IX. Market introduction & monitoring Project management Quality management Cost management Marketing management Allocation of methods to phases Slide 74 Quality management Marketing management Cost management Phases of idea realization VI. Concept development VII. Development and prototype construction VIII. Provision of services IX. Market introduction and observation Marketing information Lead user concept Product clinic Conjoint analysis QFD FMEA FMEA Dev.-begl. Lime. Target costing contribution coverage source: Innovators (2004) 37

38 Use and importance of methods for product planning Slide 75 Source: Gausemeier et al. (2000) Project Management 1 Slide 76 Project definition Determination of project goals Organization of innovation projects Project order Project planning Project structure plan Bar plans Estimation exams Project name: Project order Project number: Project start event: Project start date in: Project end event: Project end date in: Goals: Non-goals: Main tasks: Project owner: Project manager: Project coach : Project start Order material Calculate material costs Delivery time of the material Determine actual costs Draw up work plans Calculate wage costs Instruct workers Carry out work Project goal Signatures: Project manager, date Project resources: Project costs: Project team: Milestone dates: Order value: Project client, date 38

39 Project management 2 Slide 77 Project control Performance progress measurement Deadline monitoring Cost monitoring Integrated project control Project completion Project final report Lessons learned Planning period Project progress M New product development: Feasibility and information Slide 78 Technical feasibility Economic feasibility Internal information functions Quality of the product Development costs Manufacturing costs External company information Customer requirements Information on the market Market volume Market price Market share 39

40 Questions that require internal company information Slide 79 Can the desired functions be technically implemented? How high are the expected material costs, manufacturing costs and thus manufacturing costs for the planned product? How high are the development costs? Is the necessary infrastructure (facilities, buildings) available? Questions that require information from outside the company Slide 80 Are there comparable products on the market? Which functions of the product do customers want? How much are customers willing to pay for the new product? Are there any trends for / against the product in the near future? Are legal framework conditions observed? 40

41 External feasibility analysis Slide 81 Market volume Market potential Market trends Sales potential Sales volume Market share Sales channels Market Competitors Products Prices Distribution channels Competitor suppliers External feasibility analysis Potential customers Evaluation of customers and their behavior Customer needs and purchase motives Must Criteria Can Criteria Customer requirements Customers Other Legal regulations New technologies Subsidies Property rights Relevant purchase criteria External analysis Customers Slide 82 Who Are Potential Customers? What price do customers see realistic? How is the price sensitivity of the customers? What are important purchase criteria? What specific requirements do these customers have? Concrete presentation of customer requirements Allocation of customer requirements to the individual product features Ordering of customer requirements according to their importance for the product 41

42 External analysis competitors Slide 83 Are there competing products, and if so, which functions do they fulfill? What advantages do these competing products have over your own products? What prices are obtained for competing products? What is the status of these products in the product life cycle? Are you already planning new, similar products? What sales channels does the competition have? External analysis of the market slide 84 Identification of the target market Segmentation of the market Analysis of the market volume and the market potential Determination of the sales potential and the sales volume Analysis of development trends Analysis of possible sales channels 42

43 Elements and methods of market research Slide 85 Market participants Market Market aspects Customers Competitors Selling agents Partners Overall market Sector market Submarket (product-related) Factors Needs Purchasing power Attitude Values ​​Motives Competitive strength Degree of differentiation Program strength Market share Functional performance Assortment structure Market coverage Development Growth elasticity State of development Saturation level Need structure Substitution effect Product strength Methods Desk research Primary research: Survey, observation, Experiment, Camping Out, Lead User Analysis Uni / Bivariate Analysis Benchmarking Perceptual Mapping Market Maps Sales Agent Analysis Analysis of Potential Partners Market Analysis Publications Market Analysis Publications Market Analysis Publications Source: Schäppi et al. (2005), p. 23 Feasibility and information Slide 86 Technical feasibility Economic feasibility Internal information functions Quality of the product development costs manuf costs External information Customer requirements Market volume Market price Market share 43

44 Internal Feasibility Analysis Slide 87 Availability Know-How Machines Buildings Personnel Finances Infrastructure Resources Costs Development Costs Material Manufacturing Costs Manufacturing Alternative Solution Internal Feasibility Analysis Physical Chemical Biological Alternative Solutions Principle of Solution Other Make or Buy Decisions Synergies with Existing Products Synergies with Existing Technologies Strategic Aspects Methods to Support Feasibility Studies Slide 88 Function analysis Analysis of existing technologies Availability of resources Orientation calculation Determination of wholesale costs Determination of investment costs Target costing 44

45 Framework specification - specification sheet - functional specification sheet 89 The information here is still very vague and is often described with pictures and moods. Another component of this phase is the determination of the competitive situation. Unique selling points are developed. Requirements are thus mainly described textually and graphically. Comparisons are made that the product should meet the requirements of the pre-series, norms and new standards are referenced. In this phase, to describe the product, product functions are already described that are to be fulfilled by the product to be developed. Source: based on Leemhuis 2005 specification sheet 90 The further product definition and more detailed product requirements are documented in the specification sheet. The specification documents the product from the customer's point of view. It describes which properties the product to be purchased should have. In these documents, the requirements become more precise and contain general functional descriptions, organizational information and functional and design parameters. Since many developments are variant and repeated part constructions, solution elements and solution principles are predominantly already specified in the specification sheet. Source: based on Leemhuis

46 Specification sheet 91 According to DIN 69905: totality of all requirements of the client for the delivery and services of a contractor. According to VDI / VDE 3694: In the specifications, the requirements from the user's point of view, including all boundary conditions, are to be described. These should be quantifiable and verifiable. The requirement specification defines HOW and FOR WHAT a task is to be solved. Source: DIN and VDI / VDE 3694 specifications for the SWATCH watch slide 92 quartz watch Material: plastic Successful design in many variants Requirement for the legally stipulated designation Swiss Made Display of hours, minutes and seconds by means of pointers, day and date in a window on the dial Quick correction of the date display Handling by means of a conventional winding shaft in three positions Water resistance up to 3 bar Very easy replaceability of the battery Service life of the battery over 3 years High reliability with robustness at the same time Favorable retail price for the quality level offered Source: Horsch 2003, p

47 Specification sheet 93 In the next step, based on the specification sheet, as a description of the target product, a specification sheet is created that documents the product to be designed. In the specification, the product is described from the manufacturer's point of view, taking into account production, assembly, test criteria and other influencing factors. In order to obtain complete documentation of the design history, requirements are to be represented optionally, starting with the first product documentation. Source: based on Leemhuis 2005 Specifications sheet 94 According to DIN 69905: Implementation specifications drawn up by the contractor based on the implementation of the specifications. According to VDI / VDE 3694: The functional specification contains the requirement specification. The user specifications are detailed in the functional specification and the implementation requirements are described in an extension, taking concrete solutions into account. The specification defines HOW and WITH WHAT the requirements are to be implemented.Requirements can be: Legal and official requirements Market research results Agreed supplier obligations Exact description of the requirement profile Source: DIN and VDI / VDE

48 Sample structure of the specification sheet, target definition a. Must criteria: services that are indispensable for the product and that must be fulfilled in any case b. Desired criteria: the aim is to meet these criteria c. Delimitation criteria: these criteria should deliberately not be achieved 2. Product use a. Areas of application b. Target groups c. Operating conditions: physical environment of the system, daily operating time, constant observation of the system by the operator or unattended operation 3. Product overview Brief overview of the product 4. Product functions Exact and detailed description of the individual product functions 5. Product data / services Requirements regarding quality, time and ( Target costs 6. Non-functional requirements Laws and standards and safety requirements to be complied with 7. Technical product environment a. Basic technology / technical framework b. Manufacturing process c. Interfaces 8. Requirements for development 9. Structure in (sub) components Source: based on Innoware 2006 Involvement of customers in the innovation process Slide 96 Employees with customer contact Suggestions and ideas from customers Evaluation of complaints Customer surveys Observation of customers Develop together with customers Trend-leading customers / lead user employees work for customers forums, focus groups, panels Source: Kreuzer, Förster (2002), p

49 Systematisation of customer requirements Slide 97 Requirements Requirements (must) (must) Desires (should) (should) Fixed requirements Fixed area requirements Area explicitly explicit implicitly implicit Example for customer requirements Slide 98 Bicycle rack requirements (must) (must) wishes (should) ( should) Shopping basket can be fastened Sports bags can be fastened Stability No obstacle when cycling Resistance explicitly explicit capacity Low weight implicitly implicit Design appealing Protection from rain Source: Lindemann (2000) 49

50 Slide 99 Source: Lindemann (2000) Categories of customer requirements (Kano (Kano model) Slide 100 Enthusiasm new unexpected not particularly negative Customer satisfaction positive Time Performance requirements expected consciously pronounced degree of fulfillment positive negative Basic requirements naturally expected partly unconsciously 50

51 Opportunities for customer integration Slide 101 No translation errors and frictional losses Development of tailor-made answers to customer needs Merging of new and different perspectives on the product / service Problem identification through interaction with the customer Better understanding of the required design Facilitation of relationships between departments involved (e.g. marketing and R&D) Customers become the extended R&D department Risks of customer integration Slide 102 Pressure from customers inhibits the creativity of developers Customers only have limited experience, risk of generating less representative knowledge Early customer integration can inhibit radical innovations Too strong a focus on the customer can result in the company move away from core competencies. Selecting customers for integration in the new development is demanding. Risk of information leakage by customers. Large financial outlay 51

52 Newer methods of customer integration Slide 103 Lead users Slide 104 are highly innovative companies Development efforts have a high level of market and industry knowledge Have a strong awareness of the problems of their own customers Have a strong awareness of technical developments Are willing to cooperate and trustworthy Have a personal Need for a specific problem solution (earlier than other customers in the target market) expect high personal benefit from new developments Anticipate innovative performance characteristics at an early stage not only have information about needs, but also information about solutions 52

53 Toolkits Slide 105 Tools to enable / facilitate the work on new products for customers E.g. certain software characteristics: trial and error principle allow iterations predefined solution space (exclude the technically impossible) user-friendliness libraries as an aid interaction of the participants should be possible, exchange of ideas inspirations e.g. . Sketches, evaluation of existing ideas, etc. Use of the new product must be clearly communicated Source: von Hippel, Katz 2002 Example Johnson & Johnson slide Start of a lead-user project Innovative ideas for the area of ​​patient cover and protective clothing Innovations in this product segment rarely talk about trends with experts, e.g. Users (surgeons, leading OR nurses) and target market (hygiene experts) Surgical robotics pursued screening process for innovative ideas 20 lead users selected (dissatisfaction with existing solutions, experience, interest in better solutions, own ideas), 10 surgeons, 3 hygiene experts, 3 OR nurses, 4 engineers 4 specific new product ideas, e.g. Foil to cover the surgical robots Source: Herstatt, Lüthje, Lettl 2003, pp. 66ff 53

54 Example Swarovski film, the Crystal Tattoos collection (body jewelry made of crystal stones) was introduced Design competition on the Internet Customers were asked to create designs for patterns of crystals to be stuck on the skin ToolKit was designed (own crystal tattoos could be designed on the computer, high quality of the Representation) A questionnaire on purchasing properties was attached to the software. In 4 weeks, 263 usable motifs. Over 30 minutes, the participants dealt with the problem on average. Assessment of the designs by the internal jury Source: Füller et al Example Swarovski slide 108 Source: Füller et al

55 Example OMV slide 109 Project together with WU Vienna additional services for petrol stations identified trends and needs (mass customization, automation and sensor technology, sharing systems, fun factor) 60 experts in the target market contacted, 15 lead users identified 2-day workshop with 7 leads Users Six specific solution concepts worked out DiGGit snowboard backpack slide 110 Development of a new type of backpack by a student of industrial design Backpack with integrated avalanche shovel to which a snowboard can also be attached Prototype development in-house Industry was negative There is no market Presentation of the product on a snowboard Opening revision and presentation on the Internet Internet surveys, independent further developments Further development off-line Investor produced rucksack, awareness already achieved through Internet forums Source: Füller, Schmidt-Gabriel

56 DiGGit Snowboard Backpack Slide 111 Source: Füller, Schmidt-Gabriel 2003 Further examples Slide 112 Tipp-Ex (invented by a secretary in the late 1950s, taken up by 3M) Gatorade (invented by coaches from US football teams) Mountain bike (Gary Fisher) Snowboard (developed by enthusiastic surfers, e.g. Jake Burton) Inline skates Kickboards Semiconductor technology (from semiconductor manufacturers, not from developers of process technologies) CAD, CAM systems Fastening industry in the construction industry Linux (open source movement) 56

57 Examples of lead-user user innovations Slide 113 Quality management tsmanagement in innovations Slide 114 Goals As high as possible customer satisfaction through the development of high quality products, services or processes As low as possible quality-related costs Continuous further development of quality awareness Methods Quality Function Deployment (QFD) Failure Mode and Effect Analysis (FMEA) 57

58 Quality Function Deployment - QFD Slide 115 Objectives Better solutions through the cooperation of all departments involved in the development and product creation process More cost-effective solutions through preventive avoidance of undesirable developments Customer-oriented solutions through early consideration of market and customer information Shorter development time through a well-founded object definition and consequently minimal Changes in the development process Quality Function Deployment - QFD Slide 116 Information gathering Phase 0 HOW? Product features Customer requirements WHAT? Product requirements Product planning phase 1 HOW? Product description Feedback to improve the previous HoQ WHAT? Product features Component planning phase 2 HOW? Process features take over from the previous HoQ WHAT? Product description Process planning phase 3 HOW? Quality control product WHAT? Process characteristics production planning phase 4 Source: Innovators (2004) 58