GENTREP

MODULE 5

PRODUCT
IDEATION AND
PRODUCT
DEVELOPMENT
K A R LO D A C A N AY

KARLO DACANAY
DESIGN THINKING MIND
CHARACTERISTICS OF A DESIGN THINKING MIND

OPTIMISTIC ENGAGES IN DYNAMIC EMPATHETIC

PROTOTYPING MIND

EMBRACING VISUAL HUMAN-CENTERED

OF FAILURE

OPEN TO COMFORTABLE
REFLECTIVE COLLABORATIVE WITH AMBIGUITY
TAKING RISKS
CHARACTERISTICS OF A DESIGN THINKING MIND
DYNAMIC MIND
• the ability to shift between inventive thinking,
where new ideas are generated, and analytical
thinking, where ideas are tested to identify an
appropriate solution.

EMPATHETIC
• the ability to see a situation from multiple
perspectives. These various perspectives allow
design thinkers to imagine solutions that meet
the needs of the users.
CHARACTERISTICS OF A DESIGN THINKING MIND

HUMAN CENTERED
• Design thinkers put the human experience at the
center of problem solving where the lives of
people, their challenges, and their ideas are
closely and deeply examined by engaging with
people in their everyday environments.

COMFORTABLE WITH AMBIGUITY

• comfortable not knowing while at the same time
exploring information, generating ideas, and
detecting patterns.
CHARACTERISTICS OF A DESIGN THINKING MIND

COLLABORATIVE
• engage with clients to understand what needs to
be designed, with end users to understand their
perspectives, and with other stakeholders to
determine the context and existence of any
constraints.
• design thinkers do not create solutions in isolation,
but, rather, solutions are co-created through
engagement with others.
CHARACTERISTICS OF A DESIGN THINKING MIND
VISUAL
• two components:
- First, visual thinking speaks to a form of thinking
that brings about new ideas;
- Second, is bringing to life what was
conceptualized in the mind.
REFLECTIVE
• learning through action where the design thinker
proposes a solution, creates an artifact that can
be examined by others, and reflects upon the
perspectives provided by others to improve
upon the solution.
WHY IS ENVIRONMENTAL SCANNING IMPORTANT TO BUSINESS?

OPEN TO TAKING RISKS

• comfortable with questioning the status quo to
seek new opportunities.
• With this questioning the status quo also comes
the ability to examine constraints to understand
why they exist and how they can be worked
with.
WHY IS ENVIRONMENTAL SCANNING IMPORTANT TO BUSINESS?

EMBRACING OF FAILURE
• Design thinkers are not fearful that the ideas
presented will not be received well or
completely miss the mark.
• does not view failure as something to be
avoided but rather as a needed part of the
problem solving process.
• reflects on failure and use this information to
move an idea into the next iteration.
WHY IS ENVIRONMENTAL SCANNING IMPORTANT TO BUSINESS?

OPTIMISTIC
• Design thinkers are committed to the pursuit of
finding better alternatives. Therefore, design
thinkers approach a problem with an attitude that
all problems have at least one solution that will
improve the situation from where it is currently.
WHY IS ENVIRONMENTAL SCANNING IMPORTANT TO BUSINESS?

ENGAGES IN PROTOTYPING
• Design thinkers view solution finding as an iterative
process that requires refining and combining ideas
to arrive at a final solution.
• Design thinkers engage in prototyping to transform
conceptualized ideas into tangibles for the
purpose of gathering feedback on how a solution
will work in the real world.
CREATIVITY AND
INNOVATION
CREATIVITY

The generation of ideas that result in

the improved efficiency or
effectiveness of a system.
ENTREPRENEURIAL CREATIVITY

“At the very heart of capitalism… is the creative habit of

enterprise. Enterprise is, in its first moment, the inclination to
notice, the habit of discerning, the tendency to discover what
other people don’t yet see. It is also the capacity to act on
insight, so as to bring into reality things not before seen. It is the
ability to foresee both the needs of others and the combinations
of productive factors most adapted to satisfying those needs.
This habit of intellect constitutes an important source of wealth in
modern society.

Novak, M. (1996) Business as a Calling. The Free Press, New York. 120
COMMON IDEA KILLERS

1. “Naah.”
2. “Can’t” (said with a shake of the head and an air of finality).
3. “That’s the dumbest thing I’ve ever heard.”
4. “Yeah, but if you did that . . .” (poses an extreme or unlikely disaster case).
5. “We already tried that—years ago.”
6. “I don’t see anything wrong with the way we’re doing it now.”
7. “We’ve never done anything like that before.”
8. “We’ve got deadlines to meet—we don’t have time to consider that.”
9. “It’s not in the budget.”
10. “Where do you get these weird ideas?”
Source: Adapted from The Creative Process, ed. Angelo M. Biondi (Hadley,
MA: The Creative Education Foundation, 1986).
CREATIVE CLIMATE
• Characteristics of a creative climate:
• A trustful management that does not overcontrol the personnel
• Open channels of communication among all business members
• Considerable contact and communication with outsiders
• A large variety of personality types
• A willingness to accept change
• An enjoyment in experimenting with new ideas
• Little fear of negative consequences for making a mistake
• The selection and promotion of employees on the basis of merit
• The use of techniques that encourage ideas, including suggestion
systems and brainstorming
• Sufficient financial, managerial, human, and time resources for
accomplishing goals
SCHUMPETER’S DISTINCTION BETWEEN ”INVENTION” AND
”INNOVATION”

An ’INVENTION’ is an idea, a sketch or model for

a new or improved device, product, process or
system. It has not yet entered to economic
system, and most inventions never do so.
An ’INNOVATION’ is accomplished only with the
first commercial transaction involving the new
product, process, system or device. It is part of
the economic system.
INNOVATION AND THE ENTREPRENEUR

It is an idea, practice or object that is perceived as new by an

individual or other unit of adoption.

It is a use of new knowledge to offer a new product or service that

customers want.

Thus, it is Invention + Commercialization

“Innovation is the search for and the discovery, developed,

improvement, adoption and commercialization of new processes,
new products and new organization structures and procedures.”
IMPORTANCE OF INNOVATION

-Competitive pressure and the need to survive

-The management of a firm or enterprise.
Managers have to implement change, new
processes and improve systems
-The impact of innovation on organizational life
WHY INNOVATION FAILS?

▪Poor leadership
▪Poor organization
▪Poor communication
▪Poor empowerment
▪Knowledge management
▪Poor goal definition
▪Poor alignment of actions to goals
▪Poor monitoring of results
▪R&D efforts are not guided by marketing research, manufacturing
capabilities and skills
▪Mere imitation /copy without any increase in value- innovation offers
nothing new
▪Customers are not yet ready for such innovation
OSLO MANUAL OF INNOVATION
Product innovation
-A good or service that is new or significantly improved.
improvements in technical specifications, components and materials, software
in the product, user friendliness or other functional characteristics
Process innovation
-A new or significantly improved production or delivery method.
significant changes in techniques, equipment and/or software
Marketing innovation
-A new marketing method involving significant changes in product design or
packaging, product placement, product promotion or pricing.

Organizational innovation
-A new organizational method in business practices, workplace organization or
external relations.
 PRODUCT INNOVATION

MOTION PILLOW

JUUL
 PRODUCT INNOVATION

TRANSITION LENSES XIAMO RICE COOKER

PRODUCT (SERVICE) INNOVATION

BRUNO’S BARBER SHOP

 PROCESS INNOVATION

MCDO ROBOTIC NXT LEVEL FARMING

FASTFOOD CHAIN
PROCESS INNOVATION

DIGITAL PAYMENT
MARKETING INNOVATION
 TYPES OF INNOVATION- KURATKO
Type Description Examples
INVENTION Totally new product, service, or Wright brothers—airplane
process Thomas Edison—light bulb
Alexander Graham Bell—telephone

EXTENSION New use or different application Ray Kroc—McDonald’s

of an already existing product, Mark Zuckerberg—Facebook
service, or process Barry Sternlicht—Starwood Hotels & Resorts

DUPLICATION Creative replication of an Wal-Mart—department stores

existing concept Gateway—personal computers
Pizza Hut—pizza parlor

SYNTHESIS Combination of existing Fred Smith—Fed Ex

concepts and factors into a Howard Schultz—Starbucks
new formulation or use
PRODUCT DEVELOPMENT
WHAT IS PRODUCT?

ANYTHING THAT IS OFFERED TO THE MARKET

TO SATISFY A WANT OR NEED
GOODS, SERVICES, IDEAS, PEOPLE, ORGANIZATIONS,
PLACES, EVENTS
CUSTOMER SATISFACTION
PRODUCT QUALITY AND CUSTOMER NEEDS
- A product with more features or even better features is
not a high-quality product if the features are not what
the target market wants or needs
LEVELS OF A PRODUCT
PRODUCT CLASSIFICATION

- DURABILITY AND TANGIBILITY

- CONSUMER PRODUCTS
- BUSINESS PRODUCTS
DURABILITY AND TANGIBILITY

NON-DURABLE GOODS
-Tangible goods that are normally consumed in one or
few uses

DURABLE GOODS
-Tangible goods that can normally survive many uses

SERVICES
-Intangible, inseparable, variable, and perishable
products
CONSUMER PRODUCTS CLASSIFICATION

CONVENIENCE
-purchased frequently, immediately, and with no or
minimal effort

▪STAPLES
▪IMPULSE
▪EMERGENCY
STAPLES
 IMPULSE

EMERGENCY
CONSUMER PRODUCTS CLASSIFICATION

SHOPPING GOODS
-consume characteristically compares on such bases as
suitability, quality, price, and style
SPECIALTY GOODS
-have unique characteristics or brand identification for which
enough buyers are willing to make a special purchasing effort

UNSOUGHT GOODS
- goods that consumers do not know about or normally think
of buying
SHOPPING SPECIALTY
UNSOUGHT
BUSINESS PRODUCTS CLASSIFICATION

▪RAW MATERIALS
▪ACCESSORY
▪COMPONENTS
▪SUPPLIES
▪PROFESSIONAL SERVICE
PRODUCT ATTRIBUTES

QUALITY
-creating customer value and satisfaction
-two dimensions: level and consistency

QUALITY LEVEL- performance quality or the ability of a product

to perform its function
QUALITY CONSISTENCY- freedom from defects and consistency
of performance delivery
PRODUCT ATTRIBUTES

FEATURE
-Competitive tool for differentiating the company’s
product from competitors’ products
-What you have that your competitors do not have

BENEFIT
-practical, physiological, psychological, social,
economic
PRODUCT ATTRIBUTES

STYLE
-Describes the appearance of the product
-Visual aesthetics

DESIGN
-Contribute to the product’s usefulness as well as
looks
-Visual + function
NEW PRODUT DEVELOPMENT STAGES

• IDEA GENERATION
1

• IDEA SCREENING
2
• CONCEPT DEVELOPMENT
3 • (PRODUCT IDEA, CONCEPT, IMAGE)

• CONCEPT TESTING
4

• PRODUCT DEVELOPMENT
5

• TEST MARKETING
6

• COMMERCIALIZATION
7
IDEA GENERATION STRATEGY
IDEA GENERATION STRATEGY

CONTACT LENSE
IDEA GENERATION STRATEGY
IDEA GENERATION STRATEGY

MEMORY FACEBOOK APP

FOAM SHOES FOR MOBILE
IDEA GENERATION STRATEGY
IDEA GENERATION STRATEGY

SCENTED CANDLES VIAGRA

IDEA GENERATION STRATEGY
IDEA GENERATION STRATEGY
IDEA GENERATION STRATEGY