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9ProductandServiceDesign1.pptxProduct and Service
Design and Development
John Wu, Ph.D.
Professor of Supply Chain and Transportation
CSU San Bernardino
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Deign is easy, right? Ask customers what they want then design a product or service that meets their needs. Look at the pictures here. Do you see similar situations happening around you? If Steve Job had asked customers (you and me) what they wanted, would any one of us tell him that we needed an iPod, iPad, or iPhone?
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Product and Service Development Process
Follow similar processes like the one here, companies design products and services to achieve their organizational missions. However, it’s a long road from ideas to successful product launches with less than 5% of the ideas actually see the light of the day to make it to new product. Then market reality kicks in…
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Even fewer new products launched will see commercial success in the end of the first year. The five year success rate is even lower.
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Drug Discovery and Approval
New drug discovery is notorious for its time consuming process and huge amount of costs involved. An average drug now takes 15 years and $800 millions to get FDA approval. What are the implications of this tedious and expensive process? How can we improve it?
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Video Games Development
Video games industry follows a similar development process.
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Video Games Development
And the cost to develop a new video games is now approaching that of a Hollywood movie! Grand Theft Auto 5 cost $265 million to develop. What’s the reward? It sold over $1 billion dollars in the first 72 hours!
In comparison, Angry Bird cost less than $200K to develop and has seen more than 1 billion download in the first five years it was introduced.
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Video Games Development
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Product Design
Things that make sense…
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Is it too obvious that we should design things that make sense? How many things that do NOT make any sense are around us?
Product Design
Things that make sense…
A mechanism was designed to prevent the minivan’s sliding door from hitting the fuel door. Does it make sense and do you have better designs?
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Does this make sense? What are the pros and cons of this design? If you were the manager in charge of this project, would you go along or would you make changes? If so, what and how? Why is this a good or bad design?
Read up these concepts, too: Design for manufacturability (DFM) is the process of designing a product for efficient production at the highest level of quality. Product simplification is the process of trying to simplify designs to reduce complexity and costs and thus improve productivity, quality, flexibility, and customer satisfaction.
Eco Design
A wash basin on top of the toilet reservoir for people to wash hands then water is stored for the next flush.
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Product Design
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How do you like this Japanese bidet/washlet with seat warmer, self cleaning nozzle with multiple positions for male and female users (front and rear too), dryer, and music playing capabilities (to disguise the noise that one may make in the process). Do you think you can sell this in North America? What is your approach to sell this baby and how big do you think the market is?
Another Real Product
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Does it make sense, a product that allows women to pee like a guy? Where and when would you use it? Can you sell this? How?
Women Friendly Designs?
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The world is littered with these pseudo women-friendly design. Half of the car buyers now are women yet many designers still don’t get it. Credit goes to the first car with driver side vanity mirror but what else has been changed to meet the needs of female drivers? What about other industries? Can you spot real women-friendly and fake women-friendly designs (like the pink examples here)?
Senior Friendly Designs: Oxo
Smart Design. Products and services that matter.
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OXO began with a few simple questions - Why do ordinary kitchen tools hurt your hands? Why can't there be wonderfully comfortable tools that are easy to use?
The founder, Sam Farber, noticed that his wife Betsey was having difficulty gripping ordinary kitchen tools due to a slight case of arthritis in her hands, he saw an opportunity to create more comfortable cooking tools that would benefit all users. The rest, as they say it, is history. Oxo sells over 100 million dollars inkitchen products every year!
Service Design: It All Started with a Stupid Question…
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Think about this stupid idea of putting people on the conveyor belt… why not?
Service Design
Basic idea:
People and luggage arrive together at airport
People and luggage are separated
People and luggage are transported
People and luggage are reunited
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It’s a small observation. Then someone at the airline asked a question why do WE handle the bags, rather than asking passengers to carry them on board? Airlines started to change bag fees at $20 or $25 a piece. Do you know how much they make out of these small fees? More than $3 Billion dollars in 2013! Wish I had thought of it…
Service Design
When people are hungry…people and food are separated
Goal: bring people and food together
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The food and restaurant industries face similar challenges of airport luggage handling. How do you bring food and people together when they are hungry?
Service Design
When people are hungry…people want to reunite with food
In-house: go to market, buy raw food, cook at home, eat
Outsourcing: go to a restaurant, eat
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Home cooking vs. restaurant?
Service Design
Outsourcing options:
Go to store, buy cooked food, eat
Order delivery by phone/computer
Go to restaurant (where food is) and
Order take out food
Sit down and self-serve food
Sit down and have other people bring food
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See how many business models are based on these ideas?
Service Design
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Service Design
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Service Design
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This is how Domino’s service is designed. Can you tell which generic strategy it uses? In what way does its supply chain differ from others?
Service Design
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And, yes, it’s global!
