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Product and Service Innovation, Stages of product and service innovation…
Product and Service Innovation
Creation
the ability to move beyond conventional ideas, rules, or assumptions in order to generate significant new ideas
Innovation
A new method, idea, product etc (Oxford English Dictionary)
Change that creates a new dimension of performance (Peter Drucker)
The act of introducing something new (American Heritage Dictionary)
A new idea, method, or device (Webster Online Dictionary)
Radical vs Incremental
R = large technological advancements that may require completely new knowledge and/or resources, making existing services and products obsolete, and so non-competitive
I = relatively modest technological changes, built upon existing knowledge and/or resources, so existing services and products are not fundamentally changed
Design
the process that transforms innovative ideas into something more concrete
must deliver a solution that will work in practice and is an activity that can be approached at different levels of detail
Design Process Objectives
Speed
Dependability
Flexibility
Costs
The cost of buying the inputs to the process
The cost of providing the labor in the process
The other general overhead costs of running the process
Quality
Conformance quality = the result of failures in the design of the product (automation recalls)
Specification quality = the degree of functionality, experience, aesthetics or whatever the product or service is primarily competing on
Sustainability
the extent to which it benefits the triple bottom line (people, planet, and profits)
Dimensions:
Ethical Dimention
Environmental Dimention
Circular economy design
means designing products for longevity, reparability, ease of dismantling and recycling
Skunkworks = Encouraging creativity in design, while at the same time recognising the constraints of everyday business life
a small team who are taken out of their normal management activities ad constraints (a pure project-based structure)
Stages of product and service innovation
Concept generation
Concept screening
Preliminary design
Evaluation and improvement
Prototype and final design
Interactive product and service innovation
reduction in the elapsed time for the whole design innovation activity (time to market/TTM)
Can be reduced by:
Simultaneous development of the various stages in the overall process
An early resolution of design conflict and uncertainty
An organisational structure that reflects the development project
Stages of product and service innovation continuation
CG: when innovative ideas become the inspiration for new service or product concepts
Ideas from research and development
Ideas from customers
Ideas from staff
Ideas from competition activity
Open-sourcing
CS: evaluate concepts by assessing the worth or value of design options
Categories of design criteria
Feasibility
Accessibility
Vulnerability
Known as the design funnel
criticism
managers do not start out with an infinite number of options
the number of options being considered often increase as time goes by
the real process of design often involves cycling back, often many times, as potential design solutions raise fresh questions or become dead ends
PD: a first attempt at specifying the individual components or elements of the product and services, and the relationship between them, which will constitute the final offering
Required information
The constituent component parts that make up the service or product package and the component structure
The order in which the component parts of the package have to be put together
Methods to reduce complexity
Standardisation
Commonality (Using common elements within a service or product)
Modularisation (designing standardised sub-components of a service or product, which can be put together in different ways)
E&I: take the preliminary design and subject it to a series of evaluations, to see if it can be improved before the service or product is tested in the market
Quality Function Deployment (the house of quality)
ensure that the eventual innovation actually meets the needs of its customers
Matrix is a formal articulation of how the company sees the relationship between the requirements of the customers (the whats) and the design characteristics of the new product (the hows)
Whats = the list of competitive factors that customers find significant
Hows = the various dimensions of the design, which will operationalise customer requirements within the service or product
Bottom box of the matrix = technical assessment of the product. This contains the absolute importance of each design’s characteristics
Triangle roof of the house = captures any information the team has about the correlations (positive or negative) between the various design characteristics
P&FD: includes everything from clay models and CAD systems to advanced computer simulations, but also the actual implementation of the service on a pilot basis
Alpha and Beta testing
AT = an internal process, where the developers or manufacturers (or sometimes an outside agency that has been commissioned) examine the product for errors
BT = when the product is released for testing by selected customers
Interactive product and service continuation
Simultaneous development of the various stages in the overall process
a set of individual predetermined stages, each with a clear starting and ending point
Advantages
The process is easy to manage and control because each stage is clearly defined
Each stage is completed before the next, so each stage can focus its skills and expertise on a limited set of tasks
Drawbacks
It is time consuming and costly
An early resolution of design conflict and uncertainty
Characterising the design innovation activity as a whole series of decision is a useful way of thinking about design
reasons for this:
if new information emerges suggesting better alternatives
One of the initial design decisions was made without sufficient inclusion of those in the organisation who have a valid contribution to make
It may be that when the decision was made, there was insufficient agreement to formalise it, and so the team went on ahead without formally making the decision
Failure to resolve = prolong degree of uncertainty in the whole design activity
An organisational structure that reflects the development project
Different organisational structures
Pure functional organisation
Lightweight and Heavyweight project managers
Balanced matrix organisation
Pure project organistion
PF = All staff associated with the design project are based unambiguously in their functional groups (There is no project-based group at all)
they may be working full-time on the project, but all communication and liaison is carried out through their functional managers
PP = All the individual members of staff from each function who are involved in the project could be moved out of their functions and could even be physically relocated to a task force dedicated solely to the project
the task force could be led by a project manager who might hold the entire budget allocated to the design project
Not all members of the task force necessarily have to stay in the team throughout the development period, but a substantial core might see the project through from start to finish