2015_InnovationDay_Better products through virtual customer validation_Verhaert_Michiel Cambron_

Better products through virtual product validation

Template Innovation Day presentationCONFIDENTIAL

BETTER PRODUCTS THROUGH VIRTUAL PRODUCT VALIDATION

Michiel CambronInnovation & Design [email protected]

METHODOLOGIES & TOOLS


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IF YOU BUILD IT, THEY WILL COMEWho systematically validates concepts/ideas ?


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THE CORPORATE BEAST

It’s all about Product Push – We make the customer

love it.

We know what our customer wants and will

pay for.

The Proud Businessman

Our product is superior than our competition, we are leading.

Ensuring future we just need to

innovate to cut our costs.


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PRODUCT DEVELOPMENT FLOW

• Yes, We know how to validate.

• Yes, we focus on validating once we have our first product in the market.

• Yes, The risk of failure is the highest in the early stage.

• Yes, The cost of failure is the highest at the end of the process.

• Yes, We should focus on failing fast early on.

Effort Validation

€€€€

OPPORTUNITY INNOVATION

Risk of failure


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HYPERLOCAL CROWBAR

• Act Global – Think Local• Different customer segments

allocated in different areas with each of them their own preferences and characteristics.

• Make validation happen in a cost-effective way.

• Understand the difference: Marketing is all about Demographics & Geographics

• Honestly can you define a new product out of this information: “ He is a man, single, has two kids and works as a farmer”


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NEED FOR R&D DATA METABOLISM

• Higher Data Metabolism• We used to talk now we generate

a massive amount of data.• Tap into the dimensions of web and

mobile technologies.• Communication: Get connected worldwide,

follow interaction real time.

• Conceptualization: Share your vision on products in an easy way and attractable way through 2D and 3D visualizations.

• Computation: Iterate while you are gathering information & generate accurate data points which gives useful knowledge.

• Big Data & R&D Management go hand in hand!


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PRODUCT MANAGEMENT FLOW – A CONTINIOUS PROCESS

OPPORTUNITY DEVELOPMENT

PRODUCT CONCEPT PRODUCT DEFINITION PROTOTYPING

TECH

NIC

AL

MO

DELS

GO

ALST

RAT

EGIC

FO

CUS

TOO

LS &

M

ETH

ODS

IDEA GENERATIONLAUNCH

What do we learn?

CREDIBILITY

Market analytics

Conjoint analysis

Conjoint analysis

Conjoint analysis

Conjoint analysis

Sentiment analysis

UsabilityProduct

value perception

Concept preferenceJTBWhat will

thrive 2020?

VALUENEEDS


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Needs

Value

Credibility

PRODUCT MANAGEMENTNeeds and values


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WHEN DOES VALIDATION TAKE PLACE IN THE PROCESS ?

DESIGN INPUTDESIGN RESEARCHDESIGN WORKDESIGN VALIDATIONDESIGN OUTPUT

THESWEET SPOT

DESIGN INPUTDESIGN RESEARCHDESIGN WORKDESIGN VALIDATIONDESIGN OUTPUT


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OPPORTUNITY: FUZZY FRONT END

NEEDS & MOTIVATION

PERFORMANCE ATTRIBUTES

FEATURE PREFERENCES

CONCEPT PREFERENCES

PRODUCT VALUE PERCEPTION USABILITY

What are different jobs to be done? What motivates the user and purchase? What are unmet needs? What are the biggest pains, concerns? How success is measured ?

(Satisfaction * Importance)

Belief

F(Needs) =

Global CMO Study – IBM

82% of CMOs plan to increase social media use during the next three to five years, only 26% are currently tracking blogs, 42% are tracking third-party reviews, and 48% are tracking consumer reviews to help shape their marketing strategies.

56% of CMOs view social media as a key engagement channel, but they still struggle with capturing valuable customer insight from the unstructured data that customers and potential customers produce.

Sentiment Analyze


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OPPORTUNITY: FUZZY FRONT END

𝑶 ≔ ƒ(𝑺, 𝑰) : OPPORTUNITY is a function of SATISFACTION and IMPORTANCE

Opportunities for innovation exist when a need is important and not well satisfied. The more important a need is, and the less satisfied customers are, the greater the opportunity for value creation. The opportunity algorithm makes it possible to rank different needs.

The opportunity landscape model gives an overview of which jobs are over - or under -served.

Overserved jobs have high satisfaction and low importance. There is potential for disruption, to reduce or eliminate certain features that address these needs in existing products.

Underserved jobs have low satisfaction and high importance. These unmet needs represent opportunities. Increasing or creating features that address these needs can attract new users to a product.

NEEDS & MOTIVATION


FEATURE PREFERENCES

CONCEPT PREFERENCES



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OPPORTUNITY & IDEA GENERATION: FUZZY FRONT END

• Analyze the unstructured customer feedback through any communication channel (email, call center, surveys, social media) and manage their experience in all their contact points with the company.

• Example Dell Client Command SuiteEach client request is mapped and reviewed for possible insights.

• Example Stihl Chainsaw

NEEDS & MOTIVATION


FEATURE PREFERENCES

CONCEPT PREFERENCES



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PRODUCT DEVELOPMENT VALIDATION STUDIES

NEEDS & MOTIVATION


FEATURE PREFERENCES

CONCEPT PREFERENCES


To determine importance of different features. To understand a preferred option for each feature. Calculate utility values for each feature. What combination of features would be preferred.

F (Importance of feature * desirability of specific feature)

Utility Value =


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NEEDS & MOTIVATION


FEATURE PREFERENCES

CONCEPT PREFERENCES



Utility Value =To understand perception of different product concepts in relation to the key product promises. What product has the highest market acceptance potential? What are positive and negative perception factors? What is the logics of decision making? To understand trade offs driven by specific features.

1. For each set of stimuli, respondents click on those cards, in no particular order, that they would be “likely to buy.”

2. Respondents then click on cards that they would be “unlikely to buy.” Others are added to the “not sure” group.

3. Respondents rank order stimuli within each of the “likely,” “not sure,” or “unlikely” groups by clicking on profiles in order of preference.

4. Finally, the “likely,” “not sure,” and “unlikely” groups are “stitched” together to create the rank order of all stimuli for analysis.


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VS

Prototyping

NEEDS & MOTIVATION


FEATURE PREFERENCES

CONCEPT PREFERENCES


To understand perception of different product concepts based on the look & feel experience. To learn about criticalities in decision making. What product version would/have the highest market acceptance.


Utility Value =

Live Prototyping


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PROTOTYPING

Source: David Aycan and Paolo Lorenzoni (HBR)

RAPID PROTOTYPING

PILOTTECHNICAL PROTOTYPING

LIVE PROTOTYPING

Question answered

What are the different ways we could solve this problem?

Does our message and solution resonate in the market?

Can the problem be solved in this specific way?

Are the economics attractive enough to justify scaling?

When to employ it in the product development process

Early, to explore many ways to achieve a goal and periodically during the mid-phase to explore ways to deliver a specific feature or value driver.

Midway, to rigorously explore market appeal once a specific opportunity area has been identified.

When technical feasibility is in question or when the function has been identified but the specific means is yet to be determined.

Late, as a final check to tweak details before launching at scale.

Fidelity Low. Just enough for the product to appear real in the marketplace.

High enough to prove feasibility.

Very High. Pilots require a working solution and are often more polished than the scalable versions to overcome initial market awareness challenges.


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Product Development Validation Studies

Technology Push

Change Pull

NEEDS & MOTIVATION


FEATURE PREFERENCES

CONCEPT PREFERENCES


Collect insights on the usability & key values. Collect insights on preferred options & appreciation of different features potential trade offs. Collect insights on overall use experience.

Acceptance =


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ENHANCING CLASSIC DESIGN VALIDATION WITH VIRTUAL TECHNIQUES

CLASSIC DESIGN VALIDATIONS

VIRTUAL DESIGN VALIDATIONSObservations are used to observe what a person does and what their preferences are.

F.E. Heat Mapping Techniques can be used to see how people interact with a 2D or 3D model of a concept.

ConsiderationsVirtual Techniques are in certain instances a complimentary technique which can enable cost effective first validations but need to added with classic design validations.

NEEDS & MOTIVATION


FEATURE PREFERENCES

CONCEPT PREFERENCES



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Needs

Value

Credibility

PRODUCT MANAGEMENTCredibility


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Does it work as we want to?What doesn’t and why?

Do people use it?Do they like it?

What have we learned?What do we need to improve?

Does it create the value we thought it would?Do all business areas are in line?

MINIMUM VIABLE (PRE)PRODUCT LAUNCH

TECHNOLOGYFEASIBLE

PEOPLEDESIRABLE

BUSINESSVIABLE

THESWEET SPOT


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• Equip your 1st gen with a gateway

• Define what you want to monitor (and why)

• Attach sensors & touchpoints to your product

• Define an interface & monitor the activity

• Define a system to draw conclusions/learn (e.g. algorithms)

• Connect to your system, users, stakeholders

An additional approach to obtain feedback

REMOTE MONITORING


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Google maps: appliance locations

• Monitoring: bottle volume, consumption, temperature, …

INTERFACE EXAMPLE (HARD FEEDBACK)


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Needs

Value

Credibility

PRODUCT MANAGEMENT


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SETTING UP A SYSTEM

Front-end systemWeb and mobile conceptualization

Back-end systemComputing

User base Learning core

Project management capabilities

IoT

Reporting

INPUT

INPU

TM

ANAG

EMEN

T

OUTPUT


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THE JIGSAW PUZZLE OF AN ONLINE VALIDATION ECOSYSTEM

Which kind of frameworks do we use to get out of that data real useful information and knowledge ?

Which model suit for which situation ?

Getting into Analytics … Much more than just Programming code.

Back-End Organization & Computation

Front-End Visualization

What kind of questions do we need to ask? How do we ask them?

Which phase are we in and what do we want to know and how is this best used in app format?

Respondent Incentive & InteractionHow to ensure that people are activated to participate?

Making sure that they behave in a way like they would do in a non virtual environment?

Customer PopulationIt’s all about finding the right profiles and getting them on the web.

B2C Profiles piece of cake, B2B is for real chefs?

Specialized Agency (Fieldwork, SchlesingerAssociates) or building your own community ( VPS Community)


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CONCLUSIONAre we ready to all become Product Developers ?


KruibekeBelgiumVerhaert New Products & Services Hogenakkerhoekstraat 21B-9150 KruibekeT +32 3 250 19 00E [email protected]

www.verhaert.com

NivellesBelgium

NoordwijkNetherlands

Lambda-XAvenue Robert Schuman 102B-1400 NivellesT +32 67 47 57 10E [email protected]

www.lambda-x.com

Verhaert NetherlandsKapteynstraat 12201 BB NoordwijkT +31 71 760 05 50E [email protected]

connect.verhaert.com

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AveiroPortugalLoad InteractiveAv. Dr. Lourenço Peixinho 153800-159 AveiroT +351 234 604 088E [email protected]

www.load-interactive.com

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Masters in Innovation is the innovation platform of Verhaert to inspire and coach professionals on product and business development and management.

Innovation Day is an initiative of Verhaert Masters in Innovation.

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2015_InnovationDay_Better products through virtual customer validation_Verhaert_Michiel Cambron_