Archive for the 'New Product Development' Category

Open Innovation: Partnering to Develop New Products and Reduce Costs

Point: Working with a partner in a different industry can yield innovative resultsgabriel washable textile globe

Story: Gabriel is a Danish manufacturer of environmentally-friendly upholstery fabrics. Founded in 1851, it’s one of Europe’s leading suppliers of furniture textiles and was voted the most innovative company in Denmark in 2007. Because Gabriel knows that it can’t create every idea in-house, the company uses open innovation to weave in the capabilities of outside partners. Open innovation means intentionally leveraging the research and technologies of outsiders, rather than only relying on internally-generated innovations. Gabriel is constantly looking for new materials, new production technologies, and new applications for furniture textiles.

In particular, Gabriel gives special attention to how it forms partnerships for open innovation. First, Gabriel ensures that its partners have the right competencies to match the innovation activity at hand. Second, partners sign a confidentiality agreement so that the ideas can be exchanged freely. Open innovation is even possible with competitors, provided that the companies create clear and explicit contractual agreements from the outset.

In one example, Gabriel looked at the manufacturing technologies used by the car industry to make car seats. After all, a car seat is like a chair on wheels. Together with furniture company Hay, Gabriel introduced a fabric electro-welding technology originally used by Fiat to make car seats. The method laminates tough exterior fabric covering and soft interior filler in a way that greatly reduces production costs of furniture.

Action:

  • Look outside your company and outside your industry for people that have similar problems (and possibly useful solutions)
  • Identify innovative products or methodologies for collaborative and adaptive projects.
  • Create a partnership with the outside co-innovator to share ideas, results, or profits as appropriate.

For more information: Gabriel A/S

8 Comments »Case study, How-to, Innovation, New Product Development, Strategy

Developing New Products with Less Guesswork

Point: Use technology to get real-time, full-time feedback from users

Story: Designing new products seems like a guessing game: which features do users want? In the early days, engineers had to guess. Then came market research: asking people which features they’d like to have or which they prefer from among the choices. Of course, users often have difficulty articulating what they want.

Next, some companies hired ethnographers to observe users in action. Software maker Intuit, for example, sent software engineers to watch how users tried to use accounting software. Intuit’s QuickBooks succeeded because its developers had watched users struggle with traditional accounting software and solved the difficulties they were having.

Other companies built usability labs, which have the advantage of measurement but are in controlled settings. Ethnographic techniques and usability labs improve upon market research, but they are expensive and can only watch a small sample of users for a short time.

Now, technology lets companies go one better. Software companies who host their applications in the cloud can see what customers are doing – in real time, all the time. They can see which features really get used and which don’t. They can notice if users hit the “undo” button frequently, which suggests that the feature isn’t doing what users expect it to do. Sam Shillance, co-creator of Writely, found that what users of his word processing tool wanted most was a way to let several people edit a document together. (The Writely app was bought by Google and is now in Google Docs). Finally, as new types of users adopt the product or as new uses arise, developers can continue to adapt their software from the stream of feedback of usage patterns.

Action

  • Think about how you can put more of your product or service? on the web or in cloud media so that you can watch user behavior.
  • Look for evidence of frustration (e.g., use of “Undo,” help requests, problem reports)
  • Watch which features users use first, and keep those simple. That will make your product easy to adopt and will reduce first-use frustration.
  • Improve the functionality of the most-used features.
  • De-emphasize (or rework) the least-used features.

For further information: The Netbook Effect by Clive Thompson

1 Comment »Capital, How-to, New Product Development

Dr. Seuss: Innovating within Constraints

Point: Use a constraint to convert complexity into simplicity

Story: In 1954, Life magazine published an article on illiteracy among schoolchildren, reporting that children were not learning to read because their books were boring. “Pallid primers” featuring girls and boys who were “uniform, bland, idealized and terribly literal,” its author, John Hersey, contended. Publisher William Spaulding of Houghton Mifflin wanted to change that. He approached his friend Theodore Geisel (later known as Dr. Seuss) to write a much more lively primer. But he gave Geisel a challenge: the book could only use a vocabulary of 225 words, so that beginning readers could read it. Geisel took up the challenge. The result? The Cat in the Hat. Dr. Seuss used clever combinations of the 225 words and fanciful illustrations to create a playful story.

Action: A constraint limits the creative choices you have. Instead of viewing the constraint as merely negative and frustrating, consider the positive side: you can ignore those choices. Strip your problem to its basic elements. Then generate unusual combinations of those bare building blocks to look for a creative solution. This technique can be used in marketing, product development and strategy.

For more: Dr. Seuss & Mr. Geisel by Judith Morgan, Neil Morgan, Neil Bowen Morgan

3 Comments »Creativity, How-to, Innovation, New Product Development, Strategy

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