the whole product model, from niche to mainstream (by david pas)

Title presentation (change text in slide master) 1

CONFIDENTIAL Template Innovation Day 2017 CONFIDENTIAL

THE WHOLE PRODUCT MODEL

David Pas Coordinator [email protected]

TRACK 3 - USER CENTRICITY


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David Pas

INTRO

Coordinator

Design Coach 5x5, Designregio Kortrijk

Guest Lecturer University of Antwerp, Product Design, Design Sciences department

Guest Lecturer University of Antwerp, Innovation Management, Applied Economical Sciences department

“to be leading in innovation is also about changing expectations & perception of a product. That's why I’m also looking for meaningful tweaks, and not only for technological leaps”


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CONTEXT

Strategy

Business

Technology

User centricity

TRANSFORMATION FRAMEWORK

Designthinking

Digital & datasciences

Business modelinnovation / servitization

3D printingAdvancedmaterials

IoT &sensors

Robotics &autonomous

platforms

Early uservalidation

(User)co-creation

Behavioralchange

Roadmap

Accelerated by open innovation and technology transfer


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TRANSFORMATION


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THE WHOLE PRODUCT = CORE + KEY ENABLERS

The whole product is the total of what a customer buys.

CORE + KEY ENABLERSThe whole product is the physical object, software or service from which a customer gets direct utility plus other factors, services and perceptions that make the product useful and desirable

THE WHOLE PRODUCT CAN BE DEFINED DIFFERENTLY IN DIFFERENT PHASES OF THE PRODUCT LIFE CYCLE


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EXAMPLE : IPAD

GENERICWhat is shipped in the box.

EXPECTEDThis is the thing that the consumer thought he/she was buying. It’s the minimum configuration of products and services to achieve the objective

+ +


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AUGMENTEDThe product fleshed out to provide the maximize the buying objective

POTENTIALRepresents the product’s room for growth with ancillary products.

+ +

EXAMPLE : IPAD


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WITHIN THE LIFE CYCLE

EARLY ADOPTERS EARLY MAJORITY


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TRANSFORMATION TO SCALE UP THERE IS A LIFE BEYOND THE NICHE


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THE OBJECTIVE

EARLY ADOPTERS EARLY MAJORITY


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THE FACTS

2,5 % 13,5 % 34 % 34 % 16 %

MARKET SHARE

16 %

Innovators Early Adopters Early Majority Late Majority Laggards


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THE FACTS

2,5 % 13,5 % 34 % 34 % 16 %

MARKET SHARE MARKET SHARE

16 % 84 %

Innovators Early Adopters Early Majority Late Majority Laggards


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WHAT’S SO DIFFICULTA SHIFT FROM BEING BELOVED TO BEING LIKED


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WHAT DO THESE PRODUCTS HAVE IN COMMON ?


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WHAT DO THESE PRODUCTS HAVE IN COMMON ?

THEY WERE BOTH ONE OF A KIND


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…the more pragmatic mainstream user was not able to compare before purchase…

AS A CONSEQUENCE

That made it hard to shift to the mainstream market, because this market was not ready for it.


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BEING UNIQUE IS ONE THINGBEING DIFFERENT IS EVEN HARDERFROM BEING BELOVED TO BEING LIKEDWITH THE WHOLE PRODUCT MODEL


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FEATURES OF A NICHE-PRODUCTBELOVED BY IT’S USERS


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I WAS DESIGNED FOR…..


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THIS BELIEVER


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WHAT ‘DRIVES’ THE PURCHASE ?


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SURE, YOU’RE BELOVED…BY YOUR FRIENDS

“I love it”

NICHE MARKET


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MORE PEOPLE, MORE OPINIONS

“I like it, but….”

NICHE MARKET MAINSTREAM


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BIGGER MARKET, MORE OPINIONS

NICHE MARKET

What’s the best buy ?What’s doing a good job ?What’s the best value for money

“I like it, but….”

MAINSTREAM


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TO SCALE UP MEANS : “FROM LOVE IT TO LIKE IT”FROM STRICTLY DESIGN-CENTRICTO MORE MARKET-CENTRICUSER-CENTRIC


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FROM A ‘COOL’ STATEMENT


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TO FACTS


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FROM…

More analytic

Evolutionary advances

Conformist

Stay with the herd

Risk-avers

Motivated by current problems

Pursue what is probable

Will seek best solution or vendor

More Intuitive

Revolutionary advances

Contrarian

Avoid the herd

Risk-taking

Motivated by future opportunities

Seek what is possible

Will seek best concept

…TO


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FROM… …TO


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DESIGN TO BE LIKED AND TO BE LOVEDFROM BEING BELOVED TO BEING LIKEDWITH THE WHOLE PRODUCT MODEL


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SO WHAT’S THE BIG IDEA ?

DESIGN TO GROW

HERE1



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START A FIRE DESIGN TO GROW

HERE HERE2 1


Distinctive value proposition which can be “loved”


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HERE HERE2 1

FOCUS ON

MARKET


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HERE HERE2 1

FOCUS ON

DESIGNFOCUS ON

MARKET


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HERE HERE2 1

FOCUS ON

DESIGNFOCUS ON

MARKET

USER-CENTRIC


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Positioning exists in people’s heads. The most effective positioning strategies are the ones that demand the least amount of change.

IN THE MAINSTREAM MARKET, YOU NEED COMPETITION

FUN SECURITY


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Keep it simple : differentiate from competition with a limited set of unique features.

IN THE MAINSTREAM MARKET, YOUR USP’S MIGHT DIFFUSE

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Create a balanced mix of emotional value

drivers and functionalfeatures

IN THE MAINSTREAM MARKET, EMOTIONS AND FACTS COUNT

Allow buyers to rationalizetheir ‘pre-established’ choice

DESIGN CHALLENGE


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EAMPLE : RATIONALIZE THE PURCHASE OF ……


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MAKE IT A PROCESS THE WHOLE PRODUCT MODELLIFE-CYCLE COMPATIBLEUSER-CENTERED


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THE MODEL FOR A PROCESS


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DESIGN TO LOVE IT

GENERIC PRODUCTYou’re able to start with a minimum lovable/viable productWith just enough features to become beloved by early customers, and to provide feedback for future improvements and development.

“I love it”

NICHE MARKET

DESIGN CHALLENGEThis is really about finding the hidden need and answer with

a distinctive new offering


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DESIGN TO LIKE IT

AUGMENTED PRODUCTYou’re able to adapt and to appeal to create a specific market position in multiple market segments without touching the core !

“I like it , but… .”

NICHE MARKET MAINSTREAM

DESIGN CHALLENGEThis is more about finding a smart way to differentiate in different market segments


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EXAMPLE : THE START-UP WAY

Although not equipped with all features from the beginning, still a viable product launch.Accepted by the early adopters, now ready to evolve into other market segments.


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EXAMPLE : THE BIG CORPORATE STYLE

Although not performing what was expected from the beginning, still a successful product launch.Accepted by the early adopters, now ready to conquer the mainstream, since it (finally ;-) is equipped with cellular connectivity.


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THE USER-CENTERED TOUCHBEYOND DESIGN TRENDSBEYOND MARKET FACTSBUT BASED ON ‘SCALABLE’ NEEDS


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BEYOND VALUE-ADDING BY DESIGN

Do not search only for features that people might love, but look for some resistance, why people might refuse it !


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LISTEN ALSO TO WHAT YOU DON’T LIKE TO HEAR

User centricity should exceed the hunt for the hidden and unmet needs. Validate to understand also the ‘unwillingness’ to use or purchase. Understand why users do not adopt your great idea.


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BEYOND TECHNOLOGY LEAPS

Since technology used to be the innovation driver for decades, adoption life cycles were based on functional product performance.

DESIGN CHALLENGE

Today, the innovation speed is so high that

human adoption becomes the next bottleneck


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INDUSTRY TRANSFORMATIONA FEW EXAMPLES


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TORO/IRRITROL

New irrigation control product portfolio based on a smart roadmap to allow two brands to serve a global market.


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BOSCH

An entire new product portfolio to serve the Smart Home market.


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SOME TIPS TO GO ‘MAINSTREAM’

• You need competition, moreover, try to ‘design your competition’• Don’t think in “taking a small part in a big market”. If you want to

go beyond the niche, think bigger and conquer a segment to reach a significant market share.

• Positioning exists in people’s heads : the most effective positioning strategies are the ones that demand the least amount of change.

• Your beloved idea might dilute in the mainstream…

“Sometimes you must destroy what you like to get what you love”


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THANK YOU


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