Streetscooter (Fach) / 2 The Customer (Lektion)

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Understanding the Opportunity

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  • What is the fuzzy front end of innovation? Activities that come before the formal and well-structured new product (technology/service) portion of innovation "Product strategy formulation and communication, opportunity identification and assessment, idea generation, product concept definition, project planning, and executive reviews"
  • Common problems in managing the front end Lack of highly profitable ideas: Need to "feed" the innovation process faster with highly profitable products Lack of understanding where highly profitable ideas come from: Many anecdotal stories, but few factual case studies; Often perceived aas coming from one brilliant individual Front end perceived as mysterious: Typically low degree of accountability and unclear responsibility
  • Main clusters of fuzzy FEI activities Trend analysis: Understanding the external environment of business units and customers Opportunity Analysis: Indentifiying gaps between present staten and the envisioned state Idea Generation: Creating alternatives for solutions from opportunites identified in previous stages Concept Development: Combining ideas into concepts which cover primary features and customer benefits
  • Selected methods for trend analysis Scenario planning: A planning method that helps in exploring outcomes of technological and competitive developments and setting future strategies Trend workshops: Using methods like the trend flower method, new ideas concerning handling the future are generated in an interactive workshop format Customer innovation workshops: A flexible workshop format for interaction with customers which can be used in all stages. Coolhunting: Make observations and predictions in changes of new or existing cultural trends. Word derives from the aesthetic of "cool". Open technology scouting: Using open innovation platforms for technological broadcast search to scan the technology landscape for a given technology need area.
  • Selected methods for Opportunity analysis Technology forecasting: Capturing driving technological forces of business in graphical form; interactive process of the mapping process is core outcome. Outcome-driven innovation: A dedicated (qualitative) market research analysis to identify unfulfilled, latent customer needs and to translate them into market opportunities. Competitor intelligence: Methods to transform disaggregated competitor information into relevant and strategic knowledge. Netnography: Analyzing social media data and online consumers to identify latent needs and early concepts.
  • Trend analysis at Streetscooter Significant increase of e-commerce, leading to an increase of packages and logistic activities – and pollution Increased need for environmentally friendly delivery vehicles Globalization requires faster and more efficient product development cycles and go-to-market strategies
  • Opportunity analysis at Streetscooter Large car manufacturers are currently unable to offer affordable e-mobility and exhibit long product development cycles Reduction of CO2 emissions despite increase of logistic activities through e-mobility (GoGreen initiative of Deutsche Post DHL) Competitive advantage generation through “green distribution” Manage serial production of an e-vehicle within a short time,with a small team and little investment
  • Opportunity analysis at Streetscooter Large car manufacturers are currently unable to offer affordable e-mobility and exhibit long product development cycles Reduction of CO2 emissions despite increase of logistic activities through e-mobility (GoGreen initiative of Deutsche Post DHL) Competitive advantage generation through “green distribution” Manage serial production of an e-vehicle within a short time,with a small team and little investment
  • Methods for generating ideas Creating concepts internally (Using maanged process run by the innovation team): Market research (Voice of the customer) or Creativity techniques Gathering existing concepts from the periphery (Customer Co-Creation): Collect concepts from others inside/outside the organization
  • What is a product concept? A product concept is a verbal or prototype statement of what is going to be changed and how the customer stands to gain or lose Required inputs to the creation process: Benefit (to the customer for which he sees a need or desire) Form (the physical thing created, or, for a service, the set of steps by shich the service will be created) Technology (the source by which the form is to be attained)
  • Identifying the "jobs" of a product Challenge: Customers buy things to get jobs done. These jobs are independent of the particular product solution Approach: Qualitative and Quantitative research Goals: Reveal customers' real needs and creating opportunities for differentiation, more focusing on needs than ton particular technology, identify new business model
  • Job-based thinking for innovation A job is a stable factor over time - products and services are temporary solutions which are evaluated based on their contrubution to a solution J - Jobs-to-be-done: Context-specific problem or goal of a customer O - Objectives or outocomes: Functional, emotional, social metrics B - Barriers: Factors inhibiting getting the job done S - Solutions: Products, Services, compensating behaviors
  • Companies that segment their market by jobs often find that: The market is much larger – their share is smaller! Their real competitors are not in their product category. Growth potential is greater because non-consumption is usually a major competitor. Often, the required innovation is a service or business model innovation. Competitors cannot easily copy their solution.
  • Getting latent needs through emphatic design Challenge: Customers have difficulties envisioning future solutions and verbalizing their needs; Users' solutions are unknown to company Approach: Identify latent customer needs by observing customers in a non-intrusive way in their usage environment (core method of "Design Thinking"); Gathering information on interaction, habits etc. Goal: Develop concepts based on unarticulated customer needs, Achieve breakthrough designs potentially shorter, create opportunities for differentiation strategies
  • The Process of empathic design (4 steps) 1. Search field definition: Definition of potential target segments and issues to concentrate on 2. Capturing data: note critical incidents 3. Evaluation and documentation: share, extract and cluster observations and formulate problem statement 4. Reflection and analysis