Robert Monroe Innovative Product Development January 18, 2011

Carnegie Mellon Qatar ©2006 - 2011 Robert T. Monroe Course 70-446

The Cagan / Vogel Innovation Process,Social, Economic, and Technology (SET) Factors

and Product Opportunity Gaps

Robert Monroe

Innovative Product Development

January 18, 2011


By The End Of Class Today, You Should:

• Understand the five basic steps in the Cagan/Vogel process for bringing an innovative new product to market

• Be able to use the SET factor model to identify, evaluate, and understand how broad Social, Economic, and Technology changes can create Product Opportunity Gaps (POGs)


Launch*

The Cagan and Vogel Innovation Process

Realize Conceptualize UnderstandIdentify

* The launch stageis not part of theCagan / Vogel process but it is

something we willlearn about


Phase 1: Identify The Opportunity

Source: Cagan and Vogel, Creating Breakthrough Products, Chapter 5.

Launch* Realize Conceptualize UnderstandIdentify


Phase 2: Understand The Opportunity




Phase 3: Conceptualize The Opportunity

• Goals:– Turn Value Opportunities into product concepts that are perceived as

useful, usable, and desirable– Generate many concepts, evaluate, refine, iterate, reduce to a single

concept to move to stage 4

• Results:– Clearly articulated product concept– Clear market definition– Visual, and/or physical prototypes that can be shown to and evaluated by

potential customers– Demonstration or belief that product is technically feasible




Phase 4: Realize The Opportunity




Phase 5: Launch the Product

• Goals:– Deliver the product or service to customers– Start generating revenue– Ramp up production– Support organization is up and running

• Results:– Product or service offering is available to customers– Distribution channels functioning– Sales lead to inbound cash flow




SET Factors and Product Opportunity Gaps


Social, Economic, and Technology (SET) Factors


SET Factors

ProductOpportunity

Gap

Source: [CV02] page 9


SET Factor Exercise


SET Factor Discussion

• Do you see some common themes emerging?

• Which of these SET factors are mostly the same throughout the GCC nations? Throughout the Arab League nations?

• Which of these SET factors vary considerably throughout the GCC nations? Throughout the Arab League nations?


Product Opportunity Gaps (POG’s)

• The next step is to identify Product Opportunity Gaps, or POGs based on your SET factor analysis.

• A Product Opportunity Gap is the gap between what is currently on the market and the possibility for new, or significantly improved, products that result from emerging trends.– Source: [CV02] page xxxi (glossary)


POG Exercise

• Let’s pick a specific industry – _____________

• Based on the SET factors identified, where should the leading companies in that industry be looking for gaps to fill with innovative new products or services? – Are they doing so currently?

– If not, why not?

• Meet again as S, E, and T groups. Come up with a list of at least 10 POGs for this industry that your group thinks that companies in this industry should be exploring


Wrap Up


By The End Of Class Today, You Should:

• Understand the five basic steps in the Cagan/Vogel process for bringing an innovative new product to market

• Be able to use the SET factor model to identify, evaluate, and understand how broad Social, Economic, and Technology changes can create Product Opportunity Gaps (POGs)


References

[CV02] Jonathan Cagan and Craig M. Vogel, Creating Breakthrough Products, Prentice Hall, 2002, ISBN: 0-13-969694-6.

Documents

Robert Monroe Innovative Product Development January 18, 2011