2015 innovation day_better products through virtual customer validation_verhaert_michiel cambron
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Michiel Cambron talks about how to design better products through virtual customer validation. Verhaert innovation day 2015
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2015 innovation day_better products through virtual customer validation_verhaert_michiel cambron
- 1. Better products through virtual product validation Template Innovation Day presentationCONFIDENTIAL BETTER PRODUCTS THROUGH VIRTUAL PRODUCT VALIDATION Michiel Cambron Innovation & Design Consultant Michiel.Cambron@verhaert.com METHODOLOGIES & TOOLS
- 2. Better products through virtual product validation CONFIDENTIAL 2 IF YOU BUILD IT, THEY WILL COME Who systematically validates concepts/ideas ?
- 3. Better products through virtual product validation 3 CONFIDENTIAL 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.
- 4. Better products through virtual product validation 4 CONFIDENTIAL 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
- 5. Better products through virtual product validation 5 CONFIDENTIAL 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”
- 6. Better products through virtual product validation 6 CONFIDENTIAL 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!
- 7. Better products through virtual product validation 7 CONFIDENTIAL PRODUCT MANAGEMENT FLOW – A CONTINIOUS PROCESS OPPORTUNITY DEVELOPMENT PRODUCT CONCEPT PRODUCT DEFINITION PROTOTYPING TECHNICAL MODELS GOALSTRATEGIC FOCUS TOOLS& METHODS IDEA GENERATION LAUNCH What do we learn? CREDIBILITY Market analytics Conjoint analysis Conjoint analysis Conjoint analysis Conjoint analysis Sentiment analysis Usability Product value perception Concept preference JTB What will thrive 2020? VALUENEEDS
- 8. Better products through virtual product validation CONFIDENTIAL 8 Needs Value Credibility PRODUCT MANAGEMENT Needs and values
- 9. Better products through virtual product validation 9 CONFIDENTIAL WHEN DOES VALIDATION TAKE PLACE IN THE PROCESS ? DESIGN INPUT DESIGN RESEARCH DESIGN WORK DESIGN VALIDATION DESIGN OUTPUT THE SWEET SPOT DESIGN INPUT DESIGN RESEARCH DESIGN WORK DESIGN VALIDATION DESIGN OUTPUT
- 10. Better products through virtual product validation 10 CONFIDENTIAL 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
- 11. Better products through virtual product validation 11 CONFIDENTIAL 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 PERFORMANCE ATTRIBUTES FEATURE PREFERENCES CONCEPT PREFERENCES PRODUCT VALUE PERCEPTION USABILITY
- 12. Better products through virtual product validation 12 CONFIDENTIAL 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 Suite Each client request is mapped and reviewed for possible insights. • Example Stihl Chainsaw NEEDS & MOTIVATION PERFORMANCE ATTRIBUTES FEATURE PREFERENCES CONCEPT PREFERENCES PRODUCT VALUE PERCEPTION USABILITY
- 13. Better products through virtual product validation 13 CONFIDENTIAL PRODUCT DEVELOPMENT VALIDATION STUDIES NEEDS & MOTIVATION PERFORMANCE ATTRIBUTES FEATURE PREFERENCES CONCEPT PREFERENCES PRODUCT VALUE PERCEPTION USABILITY 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 =
- 14. Better products through virtual product validation 14 CONFIDENTIAL PRODUCT DEVELOPMENT VALIDATION STUDIES NEEDS & MOTIVATION PERFORMANCE ATTRIBUTES FEATURE PREFERENCES CONCEPT PREFERENCES PRODUCT VALUE PERCEPTION USABILITY F (Importance of feature * desirability of specific feature) 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.
- 15. Better products through virtual product validation 15 CONFIDENTIAL PRODUCT DEVELOPMENT VALIDATION STUDIES VS Prototyping NEEDS & MOTIVATION PERFORMANCE ATTRIBUTES FEATURE PREFERENCES CONCEPT PREFERENCES PRODUCT VALUE PERCEPTION USABILITY 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. F (Importance of feature * desirability of specific feature) Utility Value = Live Prototyping
- 16. Better products through virtual product validation 16 CONFIDENTIAL 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.
- 17. Better products through virtual product validation 17 CONFIDENTIAL Product Development Validation Studies Technology Push Change Pull NEEDS & MOTIVATION PERFORMANCE ATTRIBUTES FEATURE PREFERENCES CONCEPT PREFERENCES PRODUCT VALUE PERCEPTION USABILITY 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 =
- 18. Better products through virtual product validation 18 CONFIDENTIAL ENHANCING CLASSIC DESIGN VALIDATION WITH VIRTUAL TECHNIQUES CLASSIC DESIGN VALIDATIONS VIRTUAL DESIGN VALIDATIONS Observations 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. Considerations Virtual 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 PERFORMANCE ATTRIBUTES FEATURE PREFERENCES CONCEPT PREFERENCES PRODUCT VALUE PERCEPTION USABILITY
- 19. Better products through virtual product validation CONFIDENTIAL 19 Needs Value Credibility PRODUCT MANAGEMENT Credibility
- 20. Better products through virtual product validation 20 CONFIDENTIAL 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 TECHNOLOGY FEASIBLE PEOPLE DESIRABLE BUSINESS VIABLE THE SWEET SPOT
- 21. Better products through virtual product validation 21 CONFIDENTIAL • 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
- 22. Better products through virtual product validation 22 CONFIDENTIAL Google maps: appliance locations • Monitoring: bottle volume, consumption, temperature, … INTERFACE EXAMPLE (HARD FEEDBACK)
- 23. Better products through virtual product validation CONFIDENTIAL 23 Needs Value Credibility PRODUCT MANAGEMENT
- 24. Better products through virtual product validation 24 CONFIDENTIAL SETTING UP A SYSTEM Front-end system Web and mobile conceptualization Back-end system Computing User base Learning core Project management capabilities IoT Reporting INPUT INPUT MANAGEMENT OUTPUT
- 25. Better products through virtual product validation 25 CONFIDENTIAL 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 & Interaction How 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 Population It’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)
- 26. Better products through virtual product validation CONFIDENTIAL 26 CONCLUSION Are we ready to all become Product Developers ?
- 27. Better products through virtual product validation Kruibeke Belgium Verhaert New Products & Services Hogenakkerhoekstraat 21 B-9150 Kruibeke T +32 3 250 19 00 E info@verhaert.com www.verhaert.com Nivelles Belgium Noordwijk Netherlands Lambda-X Avenue Robert Schuman 102 B-1400 Nivelles T +32 67 47 57 10 E info@lambda-x.com www.lambda-x.com Verhaert Netherlands Kapteynstraat 1 2201 BB Noordwijk T +31 71 760 05 50 E info@verhaert.com connect.verhaert.com INDUSTRYFMCGCONNECT MEDICAL TECHXFER MEDICALAEROSPACE TECHXFER FMCGCONNECT TECHXFER Aveiro Portugal Load Interactive Av. Dr. Lourenço Peixinho 15 3800-159 Aveiro T +351 234 604 088 E info@load-interactive.com www.load-interactive.com CONNECT 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.
Editor's Notes
- Who Systematically validates concepts/ Ideas ? What do you understand about validating your products ? How do you put this in practice ?
- Shortening time-to-market, controlling product development costs, safeguarding quality and relentlessly innovating are keys to success (F.E. in the high tech and electronics (HTE) ) industry. To compete and win, manufacturers have to identify product features that customers want, then implement those features in products that align with customer expectations and deliver them to market faster than the competition.
- Understand the Difference: Honestly can you define a new product out of this information: “ He is a man, single, has two kids and works as a farmer” Marketing Studies often have a population of n= 1000 while they aim to be as accurate as possible, with product research we aim to validate our assumptions – we aim for small statistics and never have such a large amount of people. If you use virtual techniques we can complement our classic design research with additional data driven virtual research.
- Alles is fact based: Accountancy , Financial Decision Making ( NPV, Payback periods, …) maar Innovatie is het niet. Altijd de perceptie dat dit een puur creatieve zaak is, een beetje geluk en zoverder en zovoort. Maar we moeten mee met de trend om zaken te gaan kwantificeren. Big Data en R&D management gaan dan ook hand in hand tesamen.
- Global CMO Study 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 potantial customers produce. 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.
- Dell Client Command Suites – How they use Dependency Techniques in how to collect insights from people. Stihl Chainsaw – One of our previous projects where we had to define a new range of products. You have free information of users just laying on the internet. You can do it manually review different writing from people and collect the different Needs, Jobs To Be Done and just analyze the complete Customer Journey. But you can also use API’s such as TextAlytics. Same thing with Twitter.
- One of our current running projects related to the next iteration of a blood catridge. We are currently in the phase were we have prototypes up and running but before that it was a process of validation and iterations. 1Needs & Motivation 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 ? 1Performance Attributes What are important decisive elements ? What are the most important elements? 2Feature Preferences To determine importance of different feautures. To understand a preferred option for each feauture. Calculate utitility values for each feauture. What combination of feautures would be preferred. 3Concept Preferences 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. 4Product Value perception 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. 5Usability 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.
- Derk vragen eerst bollen daarna learnings
- RM is possible solution to tackle the described problems in essence its: think what you want to moniter (end why) attach sensors & touchpoints to your product monitor the activity develop a system to draw conclusions/learn (e.g. algorithms) Hard Feedback continuous feedback real-time objective digital data (past, now & future) > automated handling (artificial intelligence) involvement of organization & users creating more, faster, accurate feedback on your 1st gen feedback to further improve your product saving you time & money creating a relationship with its users and your stakeholders
- sharing the relevant data and insights, will involve stakeholders (internal or even external) creating a dashboard with the relevant KPI’s keeps them involved and ithese people will give you relevant feedback again (when you desire this, off course) Filter Region Appliance Time frame (start-end date) Sensor
- Gutfeeling is not good anymore we need to elaborate with data driven design. Fact Based. Innovation is more than
- Customer Population How do we make sure that we find the population that we need ? The profiles that we are searching that will give us the understanding that we need ? Agencies are specializing in finding your profiles that you need. In general B2C project will aim to be better but more and more agencies are specializing in finding specific profiles for B2B purposes. By matter of example we worked already with SchlesingerAssociates and Fieldwork. Apart from that Company Community is a strong way to collaborate with possible customers. Sharing Economy to the best. Customer Incentivation How do we make sure we get these people activated ? How do we ensure they are motivated to finish and help with the product development ? How do we ensure they act as they would normally do ? Customer Interaction How do we ensure that social interaction & insights can be captured ? Front-End Visualisation 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 ? Data Gathering How do we ensure we gather the correct data ? Computation Which kind of frameworks do we use to get out of that data real usefull information and knowledge ? Difference Data , Information , Knowledge