The whole product model, from niche to mainstream (By David Pas)
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Transcript of The whole product model, from niche to mainstream (By David Pas)
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CONFIDENTIAL Template Innovation Day 2017 CONFIDENTIAL
THE WHOLE PRODUCT MODEL
David Pas Coordinator [email protected]
TRACK 3 - USER CENTRICITY
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CONFIDENTIAL
David Pas
INTRO
Coordinator
Design Coach 5x5, Designregio Kortrijk
Guest Lecturer University of Antwerp, Product Design, Design Sciences department
Guest Lecturer University of Antwerp, Innovation Management, Applied Economical Sciences department
“to be leading in innovation is also about changing expectations & perception of a product. That's why I’m also looking for meaningful tweaks, and not only for technological leaps”
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CONTEXT
Strategy
Business
Technology
User centricity
TRANSFORMATION FRAMEWORK
Designthinking
Digital & datasciences
Business modelinnovation / servitization
3D printingAdvancedmaterials
IoT &sensors
Robotics &autonomous
platforms
Early uservalidation
(User)co-creation
Behavioralchange
Roadmap
Accelerated by open innovation and technology transfer
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THE WHOLE PRODUCT = CORE + KEY ENABLERS
The whole product is the total of what a customer buys.
CORE + KEY ENABLERSThe whole product is the physical object, software or service from which a customer gets direct utility plus other factors, services and perceptions that make the product useful and desirable
THE WHOLE PRODUCT CAN BE DEFINED DIFFERENTLY IN DIFFERENT PHASES OF THE PRODUCT LIFE CYCLE
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EXAMPLE : IPAD
GENERICWhat is shipped in the box.
EXPECTEDThis is the thing that the consumer thought he/she was buying. It’s the minimum configuration of products and services to achieve the objective
+ +
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AUGMENTEDThe product fleshed out to provide the maximize the buying objective
POTENTIALRepresents the product’s room for growth with ancillary products.
+ +
EXAMPLE : IPAD
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WITHIN THE LIFE CYCLE
EARLY ADOPTERS EARLY MAJORITY
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TRANSFORMATION TO SCALE UP THERE IS A LIFE BEYOND THE NICHE
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THE OBJECTIVE
EARLY ADOPTERS EARLY MAJORITY
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THE FACTS
2,5 % 13,5 % 34 % 34 % 16 %
MARKET SHARE
16 %
Innovators Early Adopters Early Majority Late Majority Laggards
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THE FACTS
2,5 % 13,5 % 34 % 34 % 16 %
MARKET SHARE MARKET SHARE
16 % 84 %
Innovators Early Adopters Early Majority Late Majority Laggards
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WHAT’S SO DIFFICULTA SHIFT FROM BEING BELOVED TO BEING LIKED
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WHAT DO THESE PRODUCTS HAVE IN COMMON ?
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WHAT DO THESE PRODUCTS HAVE IN COMMON ?
THEY WERE BOTH ONE OF A KIND
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…the more pragmatic mainstream user was not able to compare before purchase…
AS A CONSEQUENCE
That made it hard to shift to the mainstream market, because this market was not ready for it.
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BEING UNIQUE IS ONE THINGBEING DIFFERENT IS EVEN HARDERFROM BEING BELOVED TO BEING LIKEDWITH THE WHOLE PRODUCT MODEL
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FEATURES OF A NICHE-PRODUCTBELOVED BY IT’S USERS
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SURE, YOU’RE BELOVED…BY YOUR FRIENDS
“I love it”
NICHE MARKET
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MORE PEOPLE, MORE OPINIONS
“I like it, but….”
NICHE MARKET MAINSTREAM
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BIGGER MARKET, MORE OPINIONS
NICHE MARKET
What’s the best buy ?What’s doing a good job ?What’s the best value for money
“I like it, but….”
MAINSTREAM
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TO SCALE UP MEANS : “FROM LOVE IT TO LIKE IT”FROM STRICTLY DESIGN-CENTRICTO MORE MARKET-CENTRICUSER-CENTRIC
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FROM…
More analytic
Evolutionary advances
Conformist
Stay with the herd
Risk-avers
Motivated by current problems
Pursue what is probable
Will seek best solution or vendor
More Intuitive
Revolutionary advances
Contrarian
Avoid the herd
Risk-taking
Motivated by future opportunities
Seek what is possible
Will seek best concept
…TO
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DESIGN TO BE LIKED AND TO BE LOVEDFROM BEING BELOVED TO BEING LIKEDWITH THE WHOLE PRODUCT MODEL
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SO WHAT’S THE BIG IDEA ?
DESIGN TO GROW
HERE1
What’s the best buy ?What’s doing a good job ?What’s the best value for money
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SO WHAT’S THE BIG IDEA ?
START A FIRE DESIGN TO GROW
HERE HERE2 1
What’s the best buy ?What’s doing a good job ?What’s the best value for money
Distinctive value proposition which can be “loved”
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SO WHAT’S THE BIG IDEA ?
START A FIRE DESIGN TO GROW
HERE HERE2 1
FOCUS ON
MARKET
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SO WHAT’S THE BIG IDEA ?
START A FIRE DESIGN TO GROW
HERE HERE2 1
FOCUS ON
DESIGNFOCUS ON
MARKET
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SO WHAT’S THE BIG IDEA ?
START A FIRE DESIGN TO GROW
HERE HERE2 1
FOCUS ON
DESIGNFOCUS ON
MARKET
USER-CENTRIC
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Positioning exists in people’s heads. The most effective positioning strategies are the ones that demand the least amount of change.
IN THE MAINSTREAM MARKET, YOU NEED COMPETITION
FUN SECURITY
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Keep it simple : differentiate from competition with a limited set of unique features.
IN THE MAINSTREAM MARKET, YOUR USP’S MIGHT DIFFUSE
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Create a balanced mix of emotional value
drivers and functionalfeatures
IN THE MAINSTREAM MARKET, EMOTIONS AND FACTS COUNT
Allow buyers to rationalizetheir ‘pre-established’ choice
DESIGN CHALLENGE
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EAMPLE : RATIONALIZE THE PURCHASE OF ……
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MAKE IT A PROCESS THE WHOLE PRODUCT MODELLIFE-CYCLE COMPATIBLEUSER-CENTERED
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DESIGN TO LOVE IT
GENERIC PRODUCTYou’re able to start with a minimum lovable/viable productWith just enough features to become beloved by early customers, and to provide feedback for future improvements and development.
“I love it”
NICHE MARKET
DESIGN CHALLENGEThis is really about finding the hidden need and answer with
a distinctive new offering
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DESIGN TO LIKE IT
AUGMENTED PRODUCTYou’re able to adapt and to appeal to create a specific market position in multiple market segments without touching the core !
“I like it , but… .”
NICHE MARKET MAINSTREAM
DESIGN CHALLENGEThis is more about finding a smart way to differentiate in different market segments
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EXAMPLE : THE START-UP WAY
Although not equipped with all features from the beginning, still a viable product launch.Accepted by the early adopters, now ready to evolve into other market segments.
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EXAMPLE : THE BIG CORPORATE STYLE
Although not performing what was expected from the beginning, still a successful product launch.Accepted by the early adopters, now ready to conquer the mainstream, since it (finally ;-) is equipped with cellular connectivity.
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THE USER-CENTERED TOUCHBEYOND DESIGN TRENDSBEYOND MARKET FACTSBUT BASED ON ‘SCALABLE’ NEEDS
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BEYOND VALUE-ADDING BY DESIGN
Do not search only for features that people might love, but look for some resistance, why people might refuse it !
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LISTEN ALSO TO WHAT YOU DON’T LIKE TO HEAR
User centricity should exceed the hunt for the hidden and unmet needs. Validate to understand also the ‘unwillingness’ to use or purchase. Understand why users do not adopt your great idea.
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BEYOND TECHNOLOGY LEAPS
Since technology used to be the innovation driver for decades, adoption life cycles were based on functional product performance.
DESIGN CHALLENGE
Today, the innovation speed is so high that
human adoption becomes the next bottleneck
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INDUSTRY TRANSFORMATIONA FEW EXAMPLES
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TORO/IRRITROL
New irrigation control product portfolio based on a smart roadmap to allow two brands to serve a global market.
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BOSCH
An entire new product portfolio to serve the Smart Home market.
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SOME TIPS TO GO ‘MAINSTREAM’
• You need competition, moreover, try to ‘design your competition’• Don’t think in “taking a small part in a big market”. If you want to
go beyond the niche, think bigger and conquer a segment to reach a significant market share.
• Positioning exists in people’s heads : the most effective positioning strategies are the ones that demand the least amount of change.
• Your beloved idea might dilute in the mainstream…
“Sometimes you must destroy what you like to get what you love”
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Innovation Day is an initiative of Masters in Innovation, the umbrella brand of the Verhaert Group which aims to connect, train and accelerate professional innovators.
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