9780133011425

For years, Jonathan Cagan's and Craig M. Vogel's Creating Breakthrough Productshas offered an indispensable roadmap for uncovering new opportunities, identifying what customers really value, and building products and services that redefine markets or create entirely new markets. Now, the authors have thoroughly updated their classic book, adding brand-new chapters on service design and open innovation, plus new insights, best practices, and case studies from both U.S. and global companies. Their new Second Edition compares revolutionary (Apple-style) and evolutionary (Disney-style) approaches to innovation, helping decision-makers choose between them, and make either one work. Cagan and Vogel provide more coverage of Value Opportunity Analysis and ethnography, as well as new case studies ranging from Navistar's latest long-haul truck to P&G's reinvention of Herbal Essence. Throughout, readers will find up-to-date insights into identifying Product Opportunity Gaps that can lead to enormous success; navigating the "Fuzzy Front End" of product development; and leveraging contributions from diverse product teams while staying relentlessly focused on customers' values and lifestyles, from strategy through execution. Using additional visual maps and illustrations, they've made their best-selling book even more intuitive and accessible to both industry and academic audiences.

Jonathan Cagan is the George Tallman and Florence Barrett Ladd Professor of Mechanical Engineering and Co-Director of the Master of Product Development at Carnegie Mellon University. Globally known for his rigorous and effective approach to product innovation, Cagan works extensively in research on innovation processes and tools, and teaching and leading innovation teams in both university and corporate settings. Cagan has worked with a variety of companies ranging from Fortune 100 to entrepreneurial start-ups such as Apple, Navistar, GlaxoSmithKline, and Philips Respironics. www.JonathanCagan.com.

Craig M. Vogel is Associate Dean for Graduate Studies in the College of Design, Architecture, Art, and Planning at the University of Cincinnati. He is also a professor in the School of Design with an appointment in Industrial Design. He is a Fellow, Past President Elect, and Chair of the Board of the Industrial Designers Society of America (IDSA). He is a cofounder and president of the Live Well Collaborative, a nonprofit company working with corporations to address the challenges and opportunities of a globally aging world.

Foreword by Dee Kapur xix

Acknowledgments xxi

About the Authors xxiii

Preface xxv

Glossary of Acronyms and Terms xxxv

Part One The Argument 1

Chapter 1 What Drives New Product Development 2

Redefining the Bottom Line 3

Positioning Breakthrough Products 5

Products, Services, and Product-Service Ecosystems 7

Identifying Product Opportunities: The SET Factors 10

POG and SET Factor Case Studies 15

The Margaritaville Frozen Concoction Maker 15

The BodyMedia FIT System 19

Starbucks 25

The GE Healthcare Adventure MRI Series 28

Summary Points 33

Notes 34

Chapter 2 Moving to the Upper Right 36

Integrating Style and Technology 37

Style Versus Technology: A Brief History of the Evolution of Style and Technology in the Nineteenth and Twentieth Centuries 40

In the Beginning 40

The Growth of Consumer Culture 41

The Introduction of Style to Mass Production 42

Post–World War II Growth of the Middle Class and the Height of Mass Marketing 44

The Rise of Consumer Awareness and the End of Mass Marketing 45

The Era of Customer Value, Mass Customization, and the Global Economy 46

Positioning Map: Style Versus Technology 47

Lower Left: Low Use of Style and Technology 48

Lower Right: Low Use of Style, High Use of Technology 49

Upper Left: High Use of Style, Low Use of Technology 50

Upper Right: High Use of Style and Technology 50

Positioning Map of Margaritaville Frozen Concoction Maker 52

Positioning Map of BodyMedia FIT System 53

Positioning Map of Starbucks 55

Positioning Map of GE Adventure Series 56

Knockoffs and Rip-offs 57

The Upper Right and Intellectual Property 59

Revolutionary Versus Evolutionary Product Development 60

Summary Points 62

References 62

Chapter 3 The Upper Right: The Value Quadrant 64

The Sheer Cliff of Value: The Third Dimension 65

The Shift in the Concept of Value in Products and Services 66

Qualities and a Customer’s Value System: Cost Versus Value 70

Value Opportunities 73

Emotion 74

Aesthetics 75

Product Identity 75

Impact 76

Ergonomics 77

Core Technology 80

Quality 80

Value Opportunity Charts and Analysis 81

VOA of Margaritaville Frozen Concoction Maker 84

VOA of BodyMedia FIT System 86

VOA of Starbucks 87

VOA of GE Adventure Series MRI 89

The Time and Place for Value Opportunities 90

VOs and Product Goals 91

The Upper Right for Industrial Products 93

The Upper Right of Commodity Products: Trading off Value among the Aluminum Can, the Plastic Bottle, and the Glass Bottle 96

Summary Points 98

References 98

Chapter 4 The Core of a Successful Brand Strategy: Breakthrough Products and Services 100

Brand Strategy and Product Strategy 101

Corporate Commitment to Product and Brand 105

Corporate Values and Customer Values 108

Managing Product Brand 109

Building an Identity 110

Company Identity Versus Product Identity 111

Building Brand Versus Maintaining Brand 114

Starting from Scratch: Cirque du Soleil 114

Redefining a Brand: Herbal Essences 115

Maintaining an Established Identity: Harley 118

Brand and the Value Opportunities 120

Summary Points 122

References 122

Part Two The Process 125

Chapter 5 A Comprehensive Approach to User-Centered, Integrated New Product Development 126

Clarifying the Fuzzy Front End of New Product Development 127

A New Way of Thinking 128

iNPD Is Only Part of the Process 130

User-Centered iNPD Process 132

Resource Allocation 156

Allocating the Time Resource: Scheduling 157

Allocating the Cost Resource: Financing 158

Allocating the Human Resource: Team Selection 159

Summary Points 160

References 160

Chapter 6 Integrating Disciplines and Managing Diverse Teams 162

User-Centered iNPD Facilitates Customer Value 163

Understanding Perceptual Gaps 166

Team Functionality 171

Team Collaboration 171

Negotiation in the Design Process 172

Team Performance 176

Part Differentiation Matrix 181

Team Conflict and the PDM 188

PDM and the Role of Core Disciplines 190

Issues in Team Management: Team Empowerment 191

Understand the Corporate Mission 192

Serve As a Catalyst and a Filter 192

Be Unbiased 193

Empower and Support the Team 194

Let the Team Become the Experts 196

Recognize the Personality and Needs of the Team 196

Use of an Interests-Based Management Approach 196

Visionaries and Champions 198

Summary: The Empowered Team 199

iNPD Team Integration Effectiveness 199

Summary Points .200

References 201

Chapter 7 Understanding the User’s Needs, Wants, and Desires 204

Overview: Usability and Desirability 205

An Integrated Approach to a User-Driven Process 210

Scenario Development (Part I) 212

New Product Ethnography 214

Using Ethnography to Understand Parrotheads 220

Lifestyle Reference and Trend Analysis 223

Ergonomics: Interaction, Task Analysis, and Anthropometrics 225

Interaction 225

Task Analysis 228

Anthropometrics 231

Scenarios and Stories 236

Scenario Development (Part II) 236

Storytelling 238

Broadening the Focus 241

Other Stakeholders 241

Identifying Users in Nonconsumer Products: Designing Parts within Products .243

Product Definition 244

Visualizing Ideas and Concepts Early and Often 247

Summary Points 252

References 253

Research Acknowledgments 254

Part Three Further Evidence 255

Chapter 8 Service Innovation: Breakthrough Innovation on the Product–Service Ecosystem Continuum 256

The Era of Interconnected Ecosystems: Product, Interface, and Service 257

Empathy Versus Logic 260

Traditional Service Design 262

Umpqua: Designing a Bank Like a Product 265

UPS Moves Beyond the Package Delivery Industry 267

The Disney Renaissance: The Ultimate Entertainment Service 272

Interaction Design 276

Interaction Through a Multisensory Interactive Teaching Tool 277

Summary Points 279

References 280

Chapter 9 Case Studies: The Power of the Upper Right 282

Reinventing the Classroom with Upper Right Seating Systems: The IDEO and Steelcase Node 283

Ball Parks Play in the Upper Right: The Dallas Stadium and PNC Park 291

Innovation in Machining: Kennametal Beyond Blast Titanium Manufacturing 296

Electric Vehicle Innovation: Bringing Upper Right Transportation to the Twenty-First Century 300

Upper Right Open Innovation Partnerships between Companies and Universities 305

Innovation along the Highway: Navistar International LoneStar 307

The 50+ and Environmental Responsibilities: Designing a New Refillable Sustainable Packaging System 311

Making University–Industry Innovation Partnerships Work 315

Summary Points 316

Endnotes 316

Chapter 10 Case Studies: The Global Power of the Upper Right 318

The BRIC Countries 319

Brazil: Innovation and Growth in South America 320

China: Haier, The First Major Chinese Global Brand 323

India: Design Impact and Social Responsibility in India 328

Be Green Packaging: The World Is Flat Meets Cradle to Cradle in Connect+Develop 330

DesignSingapore Council: The Third Component from the Little Country That Can 332

Summary Points 335

References 335

Chapter 11 Where Are They Now? 338

Changing SET Factors 339

The OXO GoodGrips Peeler 340

The Crown Wave 346

Retired Case Studies 348

Summary Points 360

Epilogue 361

Future Innovators 361

Have Faith in the Leap 363

References 365

Index 367

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Creating Breakthrough Products Revealing the Secrets that Drive Global Innovation

Creating Breakthrough Products Revealing the Secrets that Drive Global Innovation

0133011429

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