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352DP-CH-5.ppt Chapter 5
Finding and Solving Customers’ Problems
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Problem-Based Concept Generation
Figure 5.1
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Problem Analysis Procedure
1. Identify product or category.
2. Identify heavy users.
3. Gather problems associated with product/category & rate importance of benefits & satisfaction.
4. Sort & rank problems according to severity or importance:
- Avoid “omniscient proximity” — frequent minor problems mentioned first.
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Problem Analysis Applied to the Cell Phone
- Keeping the unit clean.
- Breaks when I drop it.
- Battery doesn’t stay charged long enough.
- Finding it in dark.
- Battery dies in mid-conversation.
- Who “out there” hears me?
- Dropped calls.
- Looking up numbers.
- Voice fades in and out.
- Hard to hold.
- Health risks?
- Can’t cradle between ear and shoulder.
- Antenna breaks off.
- Flip cover breaks off.
- Disruptive instrument.
- Can’t see facial/body language.
- Rings too loud/too soft.
- Wrong numbers.
- Fear of what ringing might be for.
Figure 5.2
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The Bothersomeness Technique of Scoring Problems
Figure 5.3
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List of pet owners' problems:
A
Problem Occurs
Frequently
B
Problem is
Bothersome
A x B
Need constant feeding
98%
21%
.21
Get fleas
78
53
.41
Shed hairs
70
46
.32
Make noise
66
25
.17
Have unwanted babies
44
48
.21
Problem Analysis: Sources and Methodologies
- Experts
- Published Sources
- Contacts with Your Business Customers or Consumers
- Interviewing
- Focus groups
- Observation of product in use (ethnographic research)
- Role playing
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Dyson Air Multiplier Fan Problem Analysis
- Conventional fan problems:
- Spinning blades chop airflow
- Hard to clean
- Blades can be dangerous to children
- Fan tips over
- Energy inefficient
- Air Multiplier: bladeless (uses technology adapted from hand dryers), and attractively designed.
- Airstream is smooth and danger is eliminated
- Low center of gravity eliminates tipping
- Much more effective and efficient cooling
- No blades to clean
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Typical “Problem” Questions for Focus Groups
- What is the real problem?
- What are attitudes and behaviors of users for the product/category?
- What product attributes and benefits do the users want?
- What are dissatisfactions, problems, and unfilled needs?
- What changes occurring in their lifestyles are relevant?
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Problem Analysis: Observation and Role Playing
- Observation: Carmakers send designers to parking lots to watch people interact with their cars (Ford “gorilla research”).
- Observation: Honda obtains insights about size of SUV passenger compartments by observing U.S. families.
- Role Playing: Bausch and Lomb generate ideas on making contact lenses more comfortable by getting pairs of executives to act out skits where they were the eyeball and contact lens.
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Problem Analysis in Action
- Toyota pickups redesigned with a V8 engine and larger passenger compartment for North American tastes.
- Domino’s Pizza position as fast delivery worked until competition caught up, then found their average taste was now a problem in focus groups.
- Product development produced a better tasting pizza which is Domino’s new competitive position.
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I. SCENARIO PLANNING
Stage 1 Orientation: Key Focal Issue under uncertainty defined
Stage 2 Exploration: Driving Forces & Critical Uncertainties identified
Stage 3 Scenarios: 4-box matrix Scenarios created
Stage 4 Options: Strategies, Actions & Changes defined
Stage 5 Integration: Early Warning Signs developed
Stage 1 Orientation: Key Focal Issue under uncertainty defined
- Key Focal Issue defined in clear statement
- Time specifics
- Place specifics
- Key interviews & research needed
Ex: How will Linux affect ABC company, customers, and suppliers in the USA and globally in next 10 years?
Stage 2 Exploration: Driving Forces identified – ABC Company & Linux*
Customer push
Government mandate
Supplier push
Windows backlash
Copyright laws
Terrorist strike on MS
Anti-USA sentiment
Company profits
Budget reductions
Vendor adoption
Application availability
Future of LinusTorvalds
Future of Bill Gates
Survival of Sun
SCO lawsuit
*A Note on Scenario Planning, Garvin & Levesque, HBS 9-306-003
Stage 2 Exploration: Pairs of Critical Uncertainties identified
- Identify & rank driving forces behind issue.
- Rank issues to determine 2 most Critical Uncertainties.
- External Push/Acceptance. 2. Total Cost of Ownership.
Linux for ABC Co.
Stage 3 Scenarios: 4-box matrix Scenarios created
- Create 4-box matrix with x, y axes for 2 Critical Uncertainties.
- Create descriptive narrative for each box.
Low
Low
High
High
Total Cost of Ownership
External Push/Acceptance
Focal Issue: How Linus affects ABC company, customers, suppliers?
Niche Market
Penguins Rule!
Penquins for Profit
Why Bother?
Wall Street Journal, Dec. 18, 2009
Rise and Fall of the Linux Dynasty
Linux was officially declared dead today, as Linus Torvalds accepted the position of Chief Technical Officer at MS. Linus declared his complete abandonment of the open source version of the operating system he created. The hurdles were too high to overcome, Linus said. Its advantages were never accepted as significant enough to warrant the high costs of conversion and difficulty finding technical support. Torvalds indicated he was working with MS to find the next new technology.
Wall Street Journal, Dec. 18, 2009
Linux 10 Years Later
After years of litigation, MS and Linux have reached parity with similar products and support. While MS still owns 50% of desktops, Linux and MS share the transactions processing space. Linux has the majority of middleware and mobile solutions. Widespread litigation, IP issues and limited supply of skilled workers have driven up costs. But the technical superiority and elegance of Linux continue to attract new users, especially as vendors deliver new products to fit both platforms.
Wall Street Journal, Dec. 18, 2009
Who Stuffed the Penquin?
We can today derive some lessons for the future as we look back at a platform that was heralded in 2003 as having great promise. Open Source was an open question back then. Unfortunately, the question was answered in large part by SCO prevailing in its lawsuit regarding their Intellectual Property contained within the Linux base code. Despite low costs associated with Linux, lack of confidence in its future and few leaders in the field led many, although not all, companies to abandon their conversion effects.
Wall Street Journal, Dec. 18, 2009
Linux Dethrones MS
In a move that just a few years back was not even a twinkle in Linus Torvald’s eye, Linux finally surpassed MS as the dominant desktop and general purpose operating system. As vendors entered the field with new applications, driving down costs, more organizations and governments began to adopt the technology. With a plentiful supply of skilled technicians and improved security, Linux became the de facto standard in the industry.
Low
Low
High
High
Total Cost of Ownership
External Push/Acceptance
Focal Issue: How Linus affects ABC company, customers, suppliers?
Niche Market
Penguins Rule!
Penquins for Profit
Why Bother?
IMPLICATIONS
Fewer Linux vendors and suppliers primarily due to consolidation
Relatively no impact on customers, connectivity
IMPLICATIONS
Vendors emphasize support of Linux; hardware optimized for Linux
Customers move from MS to Linux
Connectivity – applications run on Linux
IMPLICATIONS
Fewer vendors and product offerings
Operating systems become irrelevant
Customers not drive towards Linux
Connectivity – no major implications
OPTIONS
Migrate systems to Linux
Re-evaluate apps architecture
Re-rationalize tools, frameworks, architectures and procedures for a Linux World
OPTIONS
Maintain legal awareness
Track the technology
Develop an exit strategy
Avoid acquisition of new Linux-based technology
IMPLICATIONS & OPTIONS
OPTIONS
Maintain strategic relationships with Linux vendors
Leverage options to minimize costs
Reassess existing portfolio to define conversion priorities
OPTIONS
Maintain legal awareness
Track the technology closely
Identify areas for Linux fit
Maintain Linux core team
IMPLICATIONS
Lower prices; new vendors in market
IT must respond to high demand for Linux-based systems; retraining & budget impact
Apps required to interface with Open Source databases
Stage 5 Integration: Early Warning Signs developed
- Select Leading Indicators & Signposts for emergence of each scenario integrated into decision-making.
- Use scenarios to evaluate strategic investment decisions.
ABC Warning Signals: 1. SCO wins lawsuit over Linux, 2. MS changes its pricing model, 3. Non-USA countries demand Linux, 4. Sun declares bankruptcy.
Wild Card Events Examples & Consequences
- No-Carbon Policy: Global warming may cause governments to put high taxes on fossil fuels, shifting demand to alternative sources of energy. This changes the allocation of R&D investment toward alternative energy, possibly causes new “energy-rich” nations to emerge, and ultimately may lead to a cleaner environment for everyone.
- Altruism Outbreak: This is the “random acts of kindness” movement – solve social problems rather than leaving it up to the government. Schools and other institutions will revive due to community actions, and perhaps inner cities would be revitalized.
- Cold Fusion: If a developing country perfects free energy, it becomes prosperous overnight. It gains further advantages by becoming an energy exporter.
Figure 5.6
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Creating the Concept Communication
- Best media?
- Paper card
- Slide
- Video
- Product Description?
- Physical
- Brand
- Price
- Features?
- Benefits?
New Product Concept Example:
My Best Pet Dog Food
- My Best Pet is a dog owner’s dream
come true – the best tasting, all-natural,
best nutrition and health food you can
give your faithful, loving companion in
convenient bite size nuggets. Made from
real meat, chicken, fish, and supplements, it is priced similar to other premium dry dog food brands.
- My Best Pet has all-natural herbal supplements that repel fleas, resist shedding, and keep your doggy friend’s teeth and breath healthy and fresh, while providing a balanced diet and nutrition.
- My Best Pet will keep your dog living better, longer, and healthier!
Exercise: Concept Generation Research - New Cell Phone
- Work in table teams.
- Fill out frequency and importance rating sheet (from Figure 5.2).
- Select new cell phone features to improve.
- Create Concept Slide.
- Present in class.
List of pet owners' problems:
A
Problem Occurs
Frequently
B
Problem is
Bothersome
A x B
Need constant feeding
98%
21%
.21
Get fleas
78
53
.41
Shed hairs
70
46
.32
Make noise
66
25
.17
Have unwanted babies
44
48
.21
Low
Low
High
High
Total Cost
of Ownership
External Push/Acceptance
Focal Issue: How Linus affects ABC company, customers, suppliers?
Niche Market
Penguins Rule!
Penquins for Profit
Why Bother?
Wall Street Journal, Dec. 18, 2009
Rise and Fall of the Linux Dynasty
Linux was officially declared dead today, as Linus Torvalds
accepted the position of Chief Technical Officer at MS. Linus
declared his complete abandonment of the open source
version of the operating system he created. The hurdles
were too high to overcome, Linus said. Its advantages were
never accepted as significant enough to warrant the high
costs of conversion and difficulty finding technical support.
Torvalds indicated he was working with MS to find t he next
new technology.
Wall Street Journal, Dec. 18, 2009
Linux 10 Years Later
After years of litigation, MS and Linux have reached
parity with similar products and support. While MS still
owns 50% of desktops, Linux and MS share the
transactions processing space. Linux has the majority of
middleware and mobile solutions. Widespread litigation,
IP issues and limited supply of skilled workers have
driven up costs. But the technical superiority and
elegance of Linux continue to attract new users,
especially as vendors deliver new products to fit both
platforms.
Wall Street Journal, Dec. 18, 2009
Who Stuffed the Penquin?
We can today derive some lessons for the future as we
look back at a platform that was heralded in 2003 as
having great promise. Open Source was an open
question back then. Unfortunately, the question was
answered in large part by SCO prevailing in its lawsuit
regarding their Intellectual Property contained within the
Linux base code. Despite low costs associated with
Linux, lack of confidence in its future and few leaders in
the field led many, although not all, companies to
abandon their conversion effects.
Wall Street Journal, Dec. 18, 2009
Linux Dethrones MS
In a move that just a few years back was not even a
twinkle in Linus Torvald’s eye, Linux finally surpassed
MS as the dominant desktop and general purpose
operating system. As vendors entered the field with
new applications, driving down costs, more
organizations and governments began to adopt the
technology. With a plentiful supply of skilled
technicians and improved security, Linux became the
de facto standard in the industry.
Low
Low
High
High
Total Cost
of Ownership
External Push/Acceptance
Focal Issue: How Linus affects ABC company, customers, suppliers?
Niche Market
Penguins Rule!
Penquins for Profit
Why Bother?
IMPLICATIONS
Fewer Linux vendors and
suppliers primarily due to
consolidation
Relatively no impact on
customers, connectivity
OPTIONS
Maintain legal
awareness
Track the technology
Develop an exit
strategy
Avoid acquisition of
new Linux-based
technology
IMPLICATIONS & OPTIONS
IMPLICATIONS
Vendors emphasize
support of Linux;
hardware optimized for
Linux
Customers move from MS
to Linux
Connectivity –
applications run on Linux
OPTIONS
Maintain strategic
relationships with
Linux vendors
Leverage options to
minimize costs
Reassess existing
portfolio to define
conversion priorities
IMPLICATIONS
Fewer vendors and
product offerings
Operating systems
become irrelevant
Customers not drive
towards Linux
Connectivity – no
major implications
OPTIONS
Maintain legal
awareness
Track the
technology closely
Identify areas for
Linux fit
Maintain Linux
core team
IMPLICATIONS
Lower prices; new
vendors in market
IT must respond to
high demand for Linux-
based systems;
retraining & budget
impact
Apps required to
interface with Open
Source databases
OPTIONS
Migrate systems
to Linux
Re-evaluate apps
architecture
Re-rationalize
tools, frameworks,
architectures and
procedures for a
Linux World
