New Product Management (5)

Chapter 5: Problem-based Ideation: finding & solving customers’ problems

The flow of problem-based concept generation essentially is from study of situation, to use of various techniques of problem identification, to screening of the resulting problems, and to development of concept statements that will then go into the evaluation phrase. The whole system is based on close involvement with parties who have info to help us.

The leading cause of new product failure is the absence of a perceived need by the intended end-user. If our development process begins with a problem/ need the end-user has and agrees is important, then we have answered the toughest questions.

Gathering the problems – Four sources for needs & problems of stakeholders (two involve directly access within the firm, a 3rd called for problem analysis, and 4th for scenario analysis).

1) Internal records: the most common source comes from an organization’s routine contacts with Customers & others in the marketplace (Customer/ technical service departments, sales files, warranty files, customer satisfaction studies). A complaint files becomes a psychological projective technique (using the hot line to handle user complaints which helps defuse criticism & can lead to new products).
2) Direct inputs from technical & marketing departments: most marketing & technical have understanding about end-users & other stakeholders (as they spent time together). Technical people may be found anywhere, not just in R&D or engineering. The problems with using in-house people to report on customer problems are i) each suggestion is usually someone’s perception of what the customer problem is , and ii) there is usually a solution given with each suggestion. These problems together with the time & difficulty of gathering memories, lead us to depend more on active search for stakeholder problems. That is, making direct contact with all relevant stakeholders, asking them what their problems & needs are. The methods of direct user contact are what we usually mean when we say problem analysis.
3) Problem analysis: it is much more than a simple compilation of user problems. Taking inventory is the beginning, analysis is the key. If people are asked what they want in a new house and also what are their problems with their current house, we will get distinctly different subject matter on each list. Their problem is better predictor than the want list. User verbalize their wants in terms of current products, whereas problems are not product specific (Needs & wants from shampoo is clean, manageable hair which reflects recent promotions of product benefits, for problems – answers may range into areas unrelated to shampoo such as color/ style). Many award-winning product designs have resulted from problem analysis. IBM sent researchers to get pictures of customers’ home and found that space is at a premium for home users, as home desk are smaller than offices’. The new model was thus given a sleek design with built in speakers & became very popular.

The general procedure: one common use procedure is reverse brainstorming – participants generate a list of key problems with the current product, then group& prioritize these such that product development can focus on addressing the most important problems.

i) Determine the appropriate product/ activity category for exploration

ii) Identify a group of heavy product users/ activity participants

iii) Gather a set of problems associated with the category, then respondents are asked to rate: the benefits they want and the benefits they are getting (the differences indicate problems).

iv) Sort & rank the problems according to their severity/ importance (various methods can be used: the extent of the problem & the frequency of its occurrence (Toyota was facing disappointing sales in US and the customer research found that Customers think the cars were too small, the firm came up with larger models and was successful. Heinz also understood that children are the heavy Customers, so it came up with package redesign – curvier squeeze bottle & green & purple color ketchup).

Methodologies to use (how to gather the list of Customer problems as Customers often does not perceive problems well enough to verbalize them).

i) Experts – using them as surrogates for end-users, based on their experiences (Nokia used 8,000 scientists & managers to collect environmental info & identify the main challenges. This has helped sustain growth through the introduction of innovative, successful new products).

ii) Published sources – industry studies, the firm’s own past studies, government reports, investigations by social critic customers, and scientific studies in universities.

iii) Stakeholder contacts – ask household/ Customers directly through…

a) Interviewing: most common, direct, one-on-one. Sometimes it is a full scale, very formal & scientific survey. As many end-users do not think much about the products, and often just accept them as parts of living, even very informal discussions with individuals can reopen thinking, bringing to mind things forgotten.

b) Focus groups: designed to yield the exploratory & dept-probing type of discussion required & it can be easy & inexpensive to use. We are not seeking facts or conclusions, just genuine problems. People are stimulated to speak out about things they are reluctant on when in one-on-one interview situations. It usually cost $3,000 to $10,000 for a two hour meeting (about 10 mins talk per participant). However, the outcome is not always successful, as it is qualitative which depends on in-dept discussions rather than the power of numbers. To increase its usefulness, scientists & top executives are invited rather than prayer groups (when mangers just pray for the comments wanted rather than really listening to what users are saying).

c) Observation: watching Customers using products in their own environments (video cameras/ photos are sometimes used to record observational data). Ford sent a team of designers to watch how people use their cars (like a zoologists watching animals in their natural habitat) – known as “gorilla research”.

d) Role playing: long been used in psychology to enhance creativity, but little evidence if it is successful in new products. It is valuable where product users are unable to visualize or verbalize their reactions, as well as where Customers are emotionally unable or unwilling to express their views.

4) Scenario analysis: comes into play because the ideal problem for us to find is one that Customers do not know they have at this time. We have to stay one step ahead of the Customers by anticipating their problems. The procedure is: paint a scenario, study it for problems & needs, evaluate those problems & begin trying to solve the most important ones. The ideal one should be a “stylize narrative” (like a story). It takes several different forms, distinguishing between extending the present to see what it will look like in the future, and leaping into the future to pick a period that is then described. Leap studies can be dynamic (the focus is on what changes must be made between now & then if the leap scenario is to come about) and static (there is no concern about how we get there). Wild cards study (high-impact, low-probability events) – one assesses the likelihoods of occurrence of the identified events & investigates the threats or new product opportunities they suggest.

Solving the problems (problem has to be specified in order that a good, creative solution is found).

1) Group creativity – new products people use individual problem-solving effort, but many think that group creativity is more effective. However, some small firms are more innovative and this could be due to the less use of group activity. One person presents a thought, another person reacts to it, and another person reacts to the reaction, and so on. This presenting/ reacting sequence gives group creativity its meaning.

2) Brainstorming – two basic principles: deferral of judgment (requires participants to be free to express any idea that comes to mind without worry about criticism from others in the group. The judicial mind weighs evidence but discourages the free flow of idea) and quantity breeds quality (our most dominant thoughts are the habitual thoughts which we are most comfortable. To have really new ideas we must break though these conventional thoughts & ideas).

3) Electronic brainstorming & computer-assisted creativity technique – a form of brainstorming assisted by group support systems (or SGSS) software, allow participants to all answer at once (anonymously) through a network of computer terminals.

4) Disciplines panel – assemble experts from all relevant disciplines & have them discuss the problem.

5) Concepts generation techniques

i) Using props – in developing the Fruit Juicers line, a consultant filled the room with samples of fruits, varieties of perfumes, and lists of dozens of ice cream flavor.

ii) Role playing – a pair of Bausch & Lomb executives play the roles of eyeball & contact lens to think of ways the lens could stop hurting the eye balls.

iii) Imitating nature – goats eat waste & emit in small pellets. Whirlpool developed Trasher Smasher compactor based on this aspiration.