User Needs_ Plcor Dcor Scor Ccor _ Hawley_ 6-8-12 v1

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User Needs Integration

Dick Hawley Principal Industry Solutions Practice Manufacturing June 8, 2012


1. User Needs Evaluation - Existing Process Elements do delineate Product Development tasks such as

C3.4 Acquire Market Detailed Knowledge and C3.5 Specify Product Features and Functions. Background: The accuracy of the analysis of user needs and understanding of product requirements

has direct impact on product success and profound ramifications on business financials. Diagrams have been included that outline the process of Marketing Product Management involved with new product and/or market introduction. The multiple intersections of User Needs requirements with this process framework have been depicted on subsequent diagrams. As User requirements have a pervasive influence on outcomes, it is important to understand how they are interwoven into the overall development process, touching directly product features , market segmentation, marketing strategy and market mix decisions.

Recommended: 1) User Requirements and Needs be identified and assigned clearly stated Elements at each stage of the PLCOR model. For example an intermediate element C3.X Document a User Needs Evaluation be added to Create. 2) A framework for analyzing User Needs in a Quality context be adopted which will be used throughout the PLCOR model. This would include a systematic monitor and control loop process in which the REVISE market data acquisition flows back through this Quality Framework for analysis. Comparison to earlier documented User Requirement, originally determined and used in various product development stages, would be conducted and significant changes reviewed and analyzed to determine appropriate next steps. Next steps could include product or marketing program revisions.

Comments: 1) Essential for market segmentation discussion and determining target segments. 2) Central to customer value assessments. 3) Important to validation of the value to customers of

product features/functions and their associated product cost. 4) Accuracy essential for “Quality of Market Research” assessments 5) Documentation is fundamental to monitoring ongoing user needs shifts/changes that should trigger PLC actions 6) Provides defined evaluation parameters and structure needed for ongoing product evaluation.

2

Comments on Existing PLCOR Framework


Marketing Management Framework

3


Corporate Policy Guidelines

Gap / Market Opportunity

Analysis

Market Segment Analysis

Selection of Target Markets

Marketing Strategy

Marketing Objectives

Marketing Mix – Product, Price,

Promotion, Position

Placement

Marketing Program

Marketing Development

Target Market Response

Evaluation & Control

Product Strategy

Product Concept

Functional Specifications

Product Development Plan

Product Deployment

User Needs & Buyer Behaviors

Market Data Acquisition &

Analysis

Marketing Product Management Framework




Analysis



Marketing Strategy


Marketing Mix

Product /Service Placement/

Channel Distribution

Pricing

Marketing Program



Promotion / Advertising Positioning


Market Data Acquisition & Analysis

Marketing Management Framework


Demand Analysis

Generic Product / Market Analysis

Channel Analysis

Specific Product / Market Analysis

Market Potential Forecast

Competitive Analysis

Detailed Product / Market Analysis

Market Share and Sales Forecast

Market Segmentation Analysis

Industry Analysis

Market Opportunity Analysis _ Detail


Initial User Needs & Behavior Analysis

Identify Basis for Segmenting Markets

Document Customer Profiles by Segments

Forecast Market Potential of Segments

Determine Competitive Position within Segments

Forecast Market Share by Segment

Analyze Potential for Achieving Corporate

Objectives by Segment

Select Target Market Segments

Determine Marketing Mix to Serve Segments

Estimate Market Service Costs by Segment

Market Segmentation –Target Market Selection


Corporate Policy

Guidelines

Group Objectives &

Goals Capabilities Inventory

Existing Product

Evaluations & Forecasts


Analysis

Preliminary Group

Expansion Guidelines

New Product/ Markets Techno-

Economic Analyses Data

Integration

Group Expansion

Plans

Product Line Expansion Plans

Existing Product

Development

Existing Acquisition Programs

Long Range Expansion Portfolio Planning


Group Expansion

Plans

Acquisition Targets

New Product Development

New Market Development

Personnel & Facilities Financial Plans

Long Range Expansion Portfolio Planning (continued)

Specific Group Expansion Planning


Corporate Resources & Capabilities

Environmental Analysis

Corporate Objectives

Market Data

Risk Assessment


Mission / Charter

Product Strategy

Evaluation Criteria

User Needs Evaluation

Opportunity Threat

Identification

Idea Generation & Collection

Screening

Product Business Plan Development

Technology Assessment

Product Planning

Product Plan

Product Business Plan



Market Analysis

Sales Forecast

Product Planning

User Needs Analysis

Product Management

Product Cost & Availability

Functional Plans Financial

Analysis & Evaluation

Project Authorization

Program Cost & Schedule


Product Plan



Impact of User Needs Evaluation Accuracy on Market / Product Results and Intersection Points with Product / Market Planning Process

User Needs / Marketing Framework Integration

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Analysis



Marketing Strategy


Marketing Mix – Product, Price

Position Placement

Marketing Program




Product Strategy

Product Concept



Product Deployment



User Needs Integration Framework User Needs

Market /User Feedback

Interpretation of User Needs


Final Product Features




Analysis



Marketing Strategy


Marketing Mix

Product /Service Placement /

Channel Distribution

Pricing

Marketing Program



Promotion / Advertising Positioning



Marketing Management Framework User Needs



Demand Analysis

Generic Product / Market Analysis

Channel Analysis

Specific Product / Market Analysis

Market Potential Forecast


Detailed Product / Market Analysis

Market Share and Sales Forecast

Market Segmentation Analysis

Industry Analysis

Market Opportunity Analysis

User Needs

User Needs


Initial User Needs & Behavior Analysis

Identify Basis for Segmenting Markets

Document Customer Profiles by Segments

Forecast Market Potential of Segments

Determine Competitive Position within Segments

Forecast Market Share by Segment

Analyze Potential for Achieving Corporate

Objectives by Segment

Select Target Market Segments

Determine Marketing Mix to Serve Segments

Estimate Market Service Costs by Segment

Market Segmentation –Target Market Selection

User Needs

Interpretation from User

Needs


Corporate Policy

Guidelines

Group Objectives &

Goals Capabilities Inventory

Existing Product

Evaluations & Forecasts

Gap Analysis

Preliminary Group

Expansion Guidelines

New Product/ Markets Techno-

Economic Analyses Data

Integration

Group Expansion

Plans

Product Line Expansion Plans

Existing Product

Development

Existing Acquisition Programs

Long Range Expansion Portfolio Planning

Market / User Needs


Group Expansion

Plans

Acquisition Targets

New Product Development

New Market Development

Personnel & Facilities Financial Plans

Long Range Expansion Portfolio Planning (continued)

Specific Group Expansion Planning


Corporate Resources & Capabilities

Environmental Analysis

Corporate Objectives

Market Data

Risk Assessment


Mission / Charter

Product Strategy

Evaluation Criteria

User Needs Evaluation

Opportunity Threat

Identification

Idea Generation & Collection

Screening


Technology Assessment

Product Planning

Product Plan


User Needs



Market Analysis

Sales Forecast

Product Planning

User Needs Analysis

Product Management

Product Cost & Availability

Functional Plans Financial

Analysis & Evaluation

Project Authorization

Program Cost & Schedule


Product Plan


User Needs Interpretation of User Needs


Unbalanced Scenarios Engineering Driven, Budget Driven, Market Driven, Out of Control

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Balanced Product Development Process

Balanced Results

5 Key Elements


Assumption: New Product Ideas Fit the Users Needs “Fitness for Use” 22

Leverage in Product Planning – The Leverage is Product Uniqueness and ‘Fitness’

Force Load

ROI


Incorporating Quality Concepts and User Needs throughout the Product Life Cycle Model

Quality Definition / PLCOR-DCOR-SCOR Integration

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“Fitness for Use”

Quality of Design

Quality of Market Research

Quality of Concept

Quality of Specification

Quality of Conformance

Technology

Manpower

Management

Availability

Reliability

Maintainability

Logistical Support

Field Service

Promptness

Competence

Integrity

Definition of Quality J M Juran Level 1 Level 2 Level 3 User Needs Major Parameters Component Parameters

PLCOR

PLCOR DCOR

DCOR SCOR

DCOR SCOR

DCOR SCOR

DCOR SCOR

DCOR SCOR

SCOR

SCOR

SCOR

SCOR

PLCOR




Analysis



Marketing Strategy


Marketing Mix – Product, Price,

Promotion, Position

Placement

Marketing Program




Product Strategy

Product Concept



Product Deployment


Market Data Acquisition &

Analysis

User Needs Integration Framework User Needs




Final Product Features


Quality of Concept



Quality of Availability

Quality of Field Service

Analysis Framework - Definition of

Quality


The Important First Step to Quality Results. _

Initial User Needs Evaluation

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“… three critical but neglected human aspects of the requirements process:

1. Developing a consistent understanding of requirements among all participants

2. Developing the desire to work as a team on the project 3. Developing the necessary skills and tools for working

effectively as a team to define requirements.”

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“Exploring Requirements : Quality BEFORE Design” by Donald C. Gause & Gerald M. Weinberg

“Billions of dollars are squandered each year building projects that don’t meet requirements, mostly because the requirements were never clearly understood.”


Postulate Market Segment(s) and User Needs Establish a User Needs Analysis Program Validation and Development of Postulated Concepts/Needs Prospecting for Concepts/Needs Define Need for Information in Terms of Analytical and Investigative Objectives Establish Practical Scope and Limitations

Pertinent User Needs Analysis implies/requires: Integration into Meaningful, Usable Patterns Development and Objective Testing of Working Hypothesis Organized, Disciplined Approaches Parallel Pathing of User Needs and Product Development Cycles Successes and Failures in Analysis

Primary and Secondary Data Collection Final End Users and Intermediate Customer Activities, Operations, and Motivations Existing, New and Emerging Trends in Significant User Groups and Market Segments Total Economic Situations, Usually at Multiple Level Defined Research Methodology, Sources, Investigative Techniques and Questions and

Collection Tools Structure Total Data Collection Plan Analyze, Quantify Significance of Findings and Finalize Opportunity/Market Model Interpret Total Findings and Relevance to Needs and Objectives

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User Needs Evaluation & Research Elements


Usage Needs • How existing product satisfies user needs? • Are Customer Support and Field Service meeting your needs? • What would improve Service response time and effectiveness? • Would any modifications facilitate ease of maintenance? • Has the product availability and uptime met your requirements? • What would improve user productivity? • What would improve consistence and repeatability of user performance? • What are unsatisfied needs? • Competitive differentiators? Buying behaviors and Decision Process • Who buys product? • Why to they buy? • What do they buy? (performance, features, price) • Why do they buy that one? • How do they use it? • What problems do they have with it? • Who do they buy from? Why? • Who else do they consider? • Why don’t they buy from them? • Who don’t they consider? Why? • How does price impact your decision? What sustaining costs enter into your decision? Knowledge sources • Their sources of information? • Use of manuals and support materials?

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User Needs Research Plan_ Sample Questions


Iterative Process Controlled Loop Backs Examples of Monitoring and Control in the PLCOR processes

Ongoing PLC Management

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Evaluation Process for Existing Products

Determination of Criteria for Evaluation

Establish Product

Evaluation Procedures

Matching Criteria with

Performance to Identify Drop Candidates

Continue to Market Product

Comprehensive Analysis of Drop

Candidates

Planning & Scheduling

Product Departure

Decision to Modify Product


• Marketing Program Design

• Implementation

• Determination of Marketing Strategy Processes to be Controlled

• Determination of Performance Standards

• Development of Information Systems to Provide Results of Marketing Strategy Actions

• Evaluation of Strategy Results to Identify Performance Gaps

• Determinations of Needed Modifications in Marketing Strategy

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Marketing Management Control Process


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Alternative Marketing Strategy Positions

New Venture Strategy

Growth Strategy

Market Development Strategy

Market Retention Strategy

Balancing Strategy


Market Targets & Market Objectives

Marketing Program

Distribution Channel Objectives

Channel Strategy Development

Determine Channel Alternatives

Evaluation & Choice of Channels

A B

Selection of Channel Participants

Management of Channel Relationships

Appraising Channel Performance

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Distribution Channel Decision Process

Channel Arrangement

Revision Modification of

Channel or Participants


Definition of Quality – Framework for Requirements and Data Analysis

Appendices

35


Price Delivery Date “Fitness for Use”

Defining Quality Requirements Overall User Needs _ Value


Original Price Paid for Product Operation Costs e.g. energy, consumable supplies Maintenance Costs e.g. repair, labor, spare parts Downtime Relating from Product Failure Depreciation of the Product value due to wear and obsolescence Loss on Resale or Trade-in

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Price versus Cost of Usage Over Useful Life


“Fitness for Use”

Quality of Design


Quality of Concept



Technology

Manpower

Management

Availability

Reliability

Maintainability

Logistical Support

Field Service

Promptness

Competence

Integrity

Definition of Quality J M Juran Level 1 Level 2 Level 3 User Needs Major Parameters Component Parameters


Quality of Design – Selection of the ‘level of excellence’ based on the imbalance

between a high level of human wants and a variable level of human affluence

– Selection of ‘grade’ or level of quality which relates to level of ‘fitness for use’ and a level of affluence

• Quality of Market Research – Identification of what constitutes ‘fitness for use’ to the user

• Quality of Concept – Choice of a concept of product or service to be responsive to the

identified needs of the user • Quality of Specification

– Translation of the chosen product concept into a detailed set of specifications which if faithfully executed will then meet the users’ needs

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Definitions


Quality of Conformance – Extent to which the product conforms to the design. – Alternatively ‘quality of manufacture’ or ‘quality of product’ – Inherent Judgment of “Fitness for Use” – Acceptance involves

determination of product conformance to specifications that substitute for “product supposed to do” knowledge related to fitness for use.

– Production processes commonly utilize process specifications and criteria as means of maintaining conformance to product specifications

• Technology • Manpower • Management

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Definitions


Availability – Continuity of Service – Time related and measured by the extent to which the user can

secure service when he wants it. – ‘Operational readiness’ or ‘Uptime’

• Reliability

– Freedom from failure, “operational reliability” – Probability of a product performing without failure a specified

function under given conditions for a specified period of time. • Maintainability

– Serviceability, Repairability, – MTTB, Probability of restoring service in specified time period, Mean

Time for Scheduled Maintenance • Logistical Support

– Availability of spare parts, Timeliness of delivery

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Definitions


Field Service – User’s ability to secure continuity of service

• Promptness

– Response time to service calls, Availability of spare parts, Totsl time to restore, contractual commitments

• Competence – Service force competence to diagnose and remedy failures – Technological capabilities for diagnosis and

management/supervising outside operations – Training and performance monitoring

• Integrity – Includes after sale service aspects of “customer service” and direct

user interface.

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Definitions

User Needs_ Plcor Dcor Scor Ccor _ Hawley_ 6-8-12 v1

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