1
Q
What Is Design?
A
“The synthesis of technology and human needs into manufacturable products.”
- In practice, design can mean many things, ranging from styling to ergonomics to setting final product specifications.
- Helps achieve new product objectives.
- One thing it is not: an afterthought; “prettying up” a product that is about to be manufactured!
- “Beautiful is not enough. The product must be useful. Design includes the whole human interface.” (Ken Munsch of Herman Miller)
2
Q
The Role of Design at Apple:
A
- Firms such as Apple, judged high in design effectiveness, have superior returns on sales, net incomes, and cash flows.
- Apple routinely praised for the modernistic, intuitive designs of iPads, iPhones, and other devices.
- Clean, simple appearance of Apple devices directly traceable to the 60s record players and radios of German designer Dieter Rams.
- Design is certainly not an afterthought at Apple!
3
Q
Design-Driven Innovation:
A
“Design introduces a bold new way of competing. Design-driven innovations do not come from the market; they create new markets. They dont push new technologies, they push new meanings.”
(Design expert Roberto Verganti)
- In design-driven innovation, design itself has the leadership role (unlike market-pull or technology-push innovation).
- Product functionality is as important to excellent design as is appearance or aesthetics.
4
Q
Assessment Factors for an Industrial Design
A
5
Q
Model of the Product Design Process:
A
6
Q
Who Are the Team Members?
A
- Core Team: manage functional clusters
- Marketing, R&D, manufacturing…
- Are active throughout the new products process.
- Ad Hoc Group: support the core team
- Packaging, legal, logistics…
- Are important at intervals during the new products process.
- Extended Team Members: less critical members
- From other divisions
7
Q
Options in New Products Organization:
A
- Functional: work is done by the various departments, very little project focus.
- Usually a new products committee or product planning committee.
- Does not lead to much innovation.
- Functional Matrix: A specific team with people from various departments; project still close to the current business.
- Team members think like functional specialists.
- Departments call the shots.
- Balanced Matrix: Both functional and project views are critical.
- May lead to indecision and delay.
- Many firms are making it work successfully.
- Project Matrix: Team people are project people first and functional people second.
- People may drive the project even against departments best wishes.
- Venture: Team members pulled out of the department to work full time on the project.
(They are listed as increasing projectization, defines as the extent to which participants see themselves as independent from the project or committed to it)
8
Q
Drivers of Organizational Option Choice:
A
High projectization encourages cross-functional integration.
- If state-of-the-art functional expertise is critical to project success (e.g., in a scientific specialty such as fluid dynamics), a functional organization might be better, as it encourages the development of high-level technical expertise.
- If individuals will be part of the project for only a short time, it might make more efficient use of their time if they were organized functionally. Industrial designers may be involved in any given project for only a short time, so different projects can simply draw on their expertise when needed.
- If speed to market is critical, higher projectization is preferred as project teams are usually able to coordinate their activities and resolve conflicts more quickly and with less bureaucracy. PC makers often use project teams, as they are under severe time pressure.
9
Q
Building a Team Essentials:
A
- Establishing a Culture of Collaboration
- Team Assignment and Ownership
- Empowered product champion
- Selecting the Leader
- A good general manager
- Selecting the Team Members
- Core and extended team members
10
Q
Team Roles:
A
Project Manager
- Leader, integrator, mediator, judge
- Translator, coordinator
Project Champion
- Supporter and spokesperson
- May be the project manager
- Enthusiastic but play within the rules
Sponsor
- Senior executive who lends encouragement and endorsement to the champion
Rationalist
- The “show-me” person
Strategist
- Longer-range
- Managerial — often the CEO
- Spelled out the Product Innovation Charter
Inventor
- Creative scientist
- “Basement inventor” — may be a customer, ad agency person, etc.
- Idea source
11
Q
Managing the Team: New Product Process Implementation:
A
- Clarity of goals: Ensure shared vision, common focus, and excellent communication across team members.
- Ownership: Team members can make a difference; their identity is tied to the project outcome. Provide rewards and recognition.
- Leadership at senior and team levels: Senior management visibly supports new products; team level leadership can be support, facilitation and encouragement.
- Integration with business processes: the inputs and outputs of all upstream activities are linked to new product development; facilitated by central business process organization.
- Flexibility: in terms of number of projects underway, length of time devoted to each stage, etc.
12
Q
Issues in Team Management:
A
- Cross-functional interface management
- Overcoming barriers to market orientation (information flow across functional areas)
- Ongoing management of the team
- Team compensation and motivation
- Monetary vs. non-monetary rewards?
- Process-based vs. outcome-based rewards?
- Closing the team down
13
Q
Common Rewards to Motivate Teams:
A
- Project completion celebrations
- Opportunity to work on a bigger and more meaningful project
- Writeup in company newsletter
- Plaques and pins
- Award dinners
14
Q
Guidance in Reward Settings:
A
- Drawbacks to totally financial rewards: lazy team members also benefit; reward may not match the value of the idea to the firm.
- Align reward structure to project characteristics: for less complex projects, tie reward to profit outcome; for riskier ones, tie reward to processes (procedures, behaviors, completion of phases).
- Consider milestone rewards to boost team spirit.
15
Q
Team Rewards Examples:
A
- TRWs Project Elite: specific goals are set for team projects and for each individual; 10-25% of pay tied to accomplishing these goals.
- DuPont “360-degree” review process: team members evaluated by peers, subordinates, and supervisors.
- Motorola: rewards team behavior and not only results; rewarding only results leads to risk aversion.
16
Q
Five Conflict Management Styles:
A
17
Q
Product Use Testing:
A
Product use under normal operating conditions.
Some terms:
- Alpha testing: done in-house.
- Beta testing: done at the customer site (to determine if the product works and is free of ‘bugs’).
18
Q
Why NOT to Invest on Testing:
A
- A fortune has already been spent on the product.
- Market research says the product is a winner.
- Competitor is working on a similar product.
- May suggest lack of faith in product.
- Customers have to learn how to use the product.
- Competitor may steal our idea and beat us to the market.
19
Q
Why to Invest on Testing:
A
- Better to build off a technology base that provides some insulation from competitive copying than to worry about such copying.
- Customer needs are complex sets—use testing would have identified problems with GTE Airfone, Apple Newton, P&G Olestra.
- Delivering a total quality product—avoiding “horror stories” of poor product quality before product is marketed
20
Q
Gamma Testing:
A
Beta testing may not meet all the product developers requirements.
- Does the new product meet customers needs?
- Is it cost-effective for them?
Gamma testing involves thorough use and evaluation of the new product by the end-user.
- Its an ideal product use test – but in many cases firms go with beta testing.
- Cost and time considerations
- Keeping ahead of competitors
21
Q
Key Testing Dimensions:
A
- User groups to contact (lab personnel, experts, employees, stakeholders).
- Mode of contact (mail vs. personal, individual vs. group, point of use vs. central location).
- Identity disclosure (avoid halo-image effects).
- Degree of use explanation (no comment, some, full explanation).
- Degree of control over use (supervised vs. unsupervised)
- Singularity (monadic usually less sensitive than paired or triangular comparison).
- Duration of use (single use vs. extended periods).
- Source of product (batch, pilot plant, final production).
- Product form (single product vs. variants).
- Mode of recording reaction (like/dislike, preference, descriptive information).
- Source of norms (past experience, market research firms).
- Research service (internal vs. outside personnel).
22
Q
Types of Testing:
A
New Product Development
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