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My presentation across a marathon session in ISB, Hyderabad. Focus on sharing experiences and inferences from the world of Hi-Tech as well as from the FMCG markets. Included a very brief perspective of product development in India and how what we need to do.
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From Interpretation to Execution
Prakash Bagri Indian School of Business, Hyderabad
March 19, 2013
Product Development Perspectives: From Experiences & Inferences
Hi - Tech
India
Types of New Product Development
• New to the World
• New for the Company
• New addition (Brand/ SKU)
• New Features
– Improvement to existing
• New Positioning or Repositioning
• New Value: Re-engineering
Why?
• Changing "Needs and Wants"
• Stage of Product Life Cycle
• Environmental Changes
• Competitors
• Life-line
OR….
• New Technology?
A few learnings
Understanding Consumer Needs
6
“Had I asked end customers, all they would have said is that they need a faster horse”
20-Mar-13
People don’t do what they say they do People don’t do what they think they do People don’t do what you think they do
People don’t do what you want them to do!
7
The Power of Observation!
20-Mar-13
Gripper
8 20-Mar-13
Traditional Investigation • Improves existing things
• Focus on explicit needs
• Market segment based
• Controlled settings
• Static interview
• Objective data
Observation & Empathy • Inspires new ideas
• Uncovers latent needs
• Focus on individuals
• Natural contexts
• Dynamic conversations
• Interpretive
9
Emphatic Design: Research based on discovering customer needs through observation
Based on anthropology and ethnography Develop deep understanding of user environment, extrapolate into future, imagine future products
20-Mar-13
What women want?
20-Mar-13 10 http://www.youtube.com/watch?v=wzp0vtMyee8
Developing a New Milk-shake?
12 20-Mar-13
Product Management?
A software product company is already doing business and has several different kind of customers
within their customer base, there comes a time to start the development process for a new release.
What should the product management do?
3/20/2013 13
Software company’s Internal Product Process:
Käppi, R. 2002
A common answer: Collect requirements from all the customers and select the most important ones from each that will give you the next product release requirements specification. Something for everybody
3/20/2013 14
Dilemma: Which customer segment will be really satisfied?
3/20/2013 15
Microsoft Tablet PC is a term coined by Microsoft for tablet computers conforming to a set of specifications announced in 2001 by Microsoft, for a pen-enabled personal computer, conforming to hardware specifications devised by Microsoft and running a licensed copy of Windows XP Tablet PC Edition operating system or a derivative thereof
Microsoft Tablet PC
Vs.
16
Whole Product: Delivers the Compelling Reason to Buy
The whole product is the minimum set of products and services needed to fulfill the target customer's compelling reason to buy.
The Product
Hardware
Software
Legacy interfaces Connectivity
Pre-sales services
Post-sales service
& support
Peripherals
Consulting Co
mp
lem
en
tary Pro
du
cts Co
mp
lem
en
tary
Se
rvic
es
3/20/2013
Oracle Retail
3/20/2013 17
2000-2005
Fashion/ Departmental
Partner – Gap/ Nordstrom
Followup - Ross, Perry Ellis, Saks Fifth Avenue
2003-2005
Catalog Channel
Partner - Williams Sonoma
2005-2008
Grocery/ Hypermarket
Partner - Dunnes Store
Followup - Hypercity, Tesco, Sainsbury’s
2007-2010
Internationalization (India)
Partner - Aditya Birla
Followup - Landmark, Lifestyle, Arvind Mills
2010-2012
Internationalization (LatAm)
Partner - Grupo Pão de Açúcar
18
Adding Bells and Whistles?
Mousepad?
19
iDrive
20
21
Feature Fatigue: Overloaded on Bells and Whistles?
The Featuritis Curve
Technology Adoption Life Cycle
23
How different groups of customers adopt to discontinuous innovation at different times.
3/20/2013
0
10
20
30
40
50
60
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Mill
ion
s
Total Sales
classic mini
shuffle
nano
touch
3/20/2013 24
Dealing with Features
But you can still create a WoW!
25 3/20/2013
A Trip up the Amazon
Marketing Management in the World of High Technology & Innovation
26
Once merely an online bookseller, Amazon has diversified into other merchandize, devices, and even web services.
Outcome: $233 a share,, 439X trailing earnings.
The Importance of Partnerships
The first mobile phone with…
20-Mar-13 Marketing Management in the World of
High-Tech & Innovation 28
The iPhone 5
29 20-Mar-13 International network of suppliers to deliver the product
20-Mar-13 30
Process Innovation
Product Innovation
High
Low
Ra
te o
f M
ajo
r In
no
va
tio
n Stage of Product Life Cycle
20-Mar-13 31
http://www.coolinfographics.com/blog/2011/5/18/microsoft-acquisitions-subway-map-infographic.html
The Future of Fitness ?
34
The Koko Fitness Experience
http://video.foxbusiness.com/v/1279673614001/booming-franchise-koko-fitclub/ 20-Mar-13
What is common to these industries?
The Technology Paradox!
20-Mar-13 Marketing Management in the World of
High Technology & Innovation 37
Changing Economic Models
• The Attention Economy
• The Gift Economy
• The Sharing Economy
• The Reputation Economy
20-Mar-13 38
CAPTCHA
reCAPTCHA
Execution
~ $ 13B
Ideas are Nothing, Execution is Everything
Idea
$ 65M
Take an Idea, Make it Big!
“To me, ideas are worth nothing unless executed. They are just a multiplier.
Execution is worth millions.”
Audio Highway Listen Up 1997
IBM Simon 1992
Microsoft Tablet Computer 2002
“You know, one of the things that really hurt Apple was ….a very serious disease.
It’s the disease of thinking that a really great idea is 90 % of the work. And if you just tell all these other people “here’s this great idea,” then of course they
can go off and make it happen.
And the problem with that is that
there’s just a tremendous amount of craftsmanship in between a great idea and a great product.”
EXECUTION
In summary..
• Power of Observation
• Providing the Killer App
• Beauty of Simplicity
• Riding the Life-cycle
• Importance of Partnerships
• Internet as a Disruptor
• Execution is Everything!
India Perspective
• Critical role of distribution
• Affordability, experiential & promotional
• Dynamic evolution of channels
• Whole product meaning – alt energy sources!
• Pricing challenges – COD, EMI, PpU etc.
• Packaging innovations over the years
Local Markets Considerations
20-Mar-13 51 Insights: Value, Lower-Unit Price, Disaggregation, Customization
India Product Development Timeline
1990s
• Opening Up
• New Players
• Competition
2000s
• Booming Market
• Made for/ in India
• Test-bed for the World
Now
• Indian Innovation
• New Business Models
• Globalization ??
Indian Challenges
• Agriculture Services
• All-at-once vs Step-by-step
• Partnership Anathema
• Skill Development
• Challenging Market
• The China Factor
• Risk Taking?
The Future is bright!
• Superior people
• Discerning (rather demanding) consumers
• Amazing initiative
• Huge market
