Lecture 4— Capturing the Voice of the Customer Or Marketing 101 Winter 2015 ECEn 490

Are the customer and user always the same person? What are examples of situations or products that may have a different person who is responsible for the purchase than the actual user. Winter 2015 ECEn 490

The BOF is a collection of all the critical information that you know about your project. Strategy or Solution Critical Assumptions Body of Facts - BOFs Assumptions can make or break a development project Winter 2015 ECEn 490

Unstable Strategy!! Assumptions Changed!! What happens when Assumptions prove to be invalid? Strategy or Solution Assumptions Changed!! Unstable Strategy!! Body of Facts - BOFs Winter 2015 ECEn 490

Team Email assignment; Prior Homework Read Chapter 4, “Identifying Customer Needs” and/or read the lecture 4 notes. Team Email assignment; Develop the “Body of Facts” (all the information that you currently know about your project). What are the key assumptions that you are making at the beginning of the project? Winter 2015 ECEn 490

Concept Development Phase System-Level Design Detail Design Testing and Refinement Production Ramp-up Mission Statement Identify Customer Needs Establish Target Specs Analyze competitive Products Generate Product Concepts Select a Concept Refine Perform Economic Analysis Plan Remaining Development Project Development Plan Concept Development Winter 2015 ECEn 490

What development phase is the most critical to the eventual success or failure of the product? Why? Winter 2015 ECEn 490

 Early phases of Product Development Market analysis and Strategy Technology development  Concept Development Winter 2015 ECEn 490

What’s the Problem? Our Performance Customers’ Need ECEn 490 Winter 2015 ECEn 490

“Marketing is too important to leave to the marketing department”— Bill Hewlett—one of the founders of Hewlett-Packard Co. Winter 2015 ECEn 490

Kano's "3 Arrow Diagram" ECEn 490 Neutral Feeling Winter 2015 Satisfied Feeling Neutral Physically Fulfilled Condition (Need is met) (Need is not met) Dissatisfied Feeling Feeling Winter 2015 ECEn 490

Kano's "3 Arrow Diagram" “Taken for granted” ECEn 490 Unstated, Satisfied Feeling Physically Fulfilled (Need is not met) Condition (Need is met) “Taken for granted” Unstated, Expected Quality Dissatisfied Feeling Winter 2015 ECEn 490

Kano's "3 Arrow Diagram" “Competitive” “Taken for granted” ECEn 490 Dissatisfied Feeling Satisfied Physically Fulfilled Condition (Need is met) (Need is not met) "One-Dimensional" Quality “Competitive” the more the better Unstated, Expected Quality “Taken for granted” Winter 2015 ECEn 490

Kano's "3 Arrow Diagram" “Competitive” “Surprise & Delighters” Dissatisfied Feeling Satisfied Physically Fulfilled Condition (Need is met) (Need is not met) "One-Dimensional" Quality Exciting Quality “Competitive” the more the better “Surprise & Delighters” Unstated, Expected Quality “Taken for granted” Winter 2015 ECEn 490

Kano's "3 Arrow Diagram" ECEn 490 Unstated, Expected Quality Satisfied Feeling What was exciting yesterday becomes expected tomorrow Physically Fulfilled (Need is not met) Condition (Need is met) Unstated, Expected Quality Dissatisfied Feeling Winter 2015 ECEn 490

What difference does it make? Does it change the effort on customer identification? Does it change the risk of product acceptance? What about manufacturing? How does it impact R&D expenditures? Winter 2015 ECEn 490

The goals for Identifying Customer Needs Ensure that the product is focused on customer needs. Identify unusual or hidden needs. Provide a ‘body of facts’ for justifying the product specification. Create an archival record of the needs. Ensure that no critical customer need is over-looked. Develop a common understanding of the customer needs by the team. Winter 2015 ECEn 490

The 6 steps in Identifying Customer Needs Define the scope of the effort Gather raw data from customers. Interpret the raw data in terms of customer needs. Organize the needs into a hierarchy of primary, secondary, and tertiary needs (if required) Establish the relative importance of the needs. Reflect on the results and the process Winter 2015 ECEn 490

Step1 Defining the scope Often included as the Mission Statement or Project Charter the project charter usually contains a description of the customer and targeted market Key business goals critical customer needs being met key program assumptions major stakeholders Keeps us from “boiling the ocean”– taking on more than we can accomplish. Winter 2015 ECEn 490

Mission Statement: Screwdriver Project Product Description Benefit Proposition Key Business Goals Primary Market Assumptions Stakeholders A handheld, power assisted device for installing threaded fasteners. Drives screws more quickly, with less effort than by hand Product introduction 4th Qtr. 2006 50% gross margin 10% share of cordless screwdriver market by 2008 Do-it-yourself consumer Light duty professional Hand held Power assisted Nickel-metal-hydride battery technology Users Retailer Sales force Production Legal department Winter 2015 ECEn 490

Step 2 Gather Raw Data from Customers Identify typical customers or users sometimes these can be individuals, other times in groups develop a set of questions that will draw out needed comments decide on using interviews or surveys. Perform the market study capture the customer inputs, written statements, voice, video recording, etc. compile the final written list of customer statements. Winter 2015 ECEn 490

Customer Needs Interviews Generate a ‘script’ or list of questions Open ended versus closed ended questions examples when to use which Let the customer talk - be flexible Manage your time Get the whole team involved Winter 2015 ECEn 490

Step 3 Interpret the Raw Data in Terms of Customer or User Needs express the need in terms of What the product will do, not How it will do it. Try to keep the interpretation at the same level of detail as the customer input. Use positive statements. Express the need as a product attribute. Avoid the words Must and Want Winter 2015 ECEn 490

Examples of interpreting customer comments Customer statement Interpreted Need “I need to drive screws fast, faster than by hand” The SD drives screws faster than by hand. “I sometimes do duct work; use sheet metal screws”. The SD drives sheet metal screws into metal duct work. “I like the pistol grip; it feels better in my hand”. The SD is comfortable to grip. “I don’t like it when the tip slips off the screw.” The SD tip remains aligned with screw head without slipping. “I sometimes drive screws in at an angle” The SD will show when the screw in not aligned with the surface. Winter 2015 ECEn 490

Step 4 Organize the Needs into a Hierarchy Write each Interpreted Need statement on a sticky note, and put them on the wall or chart. Eliminate redundant statements. Group the notes according to how similar the needs are to each other. For each group of notes, write a label on a bigger sticky note. Look for higher level groups of similar sub groups. Go back and do a “sanity check” on the data. “how does it feel?” Winter 2015 ECEn 490

Step 4 Organize the Needs into a Hierarchy Quadrotor must be able to move in any direction at 3 mph. Quadrotor must be able to hover over the target Quadrotor flight characteristics Quadrotor must be able to fly for 10 mins without recharging Winter 2015 ECEn 490

Step 5 Establish the Relative Importance of the Needs. First try the Team Consensus method Give every team members three sticky dots and have them vote. Or just give each team members three votes. Be careful that all the primary needs are at the same level. If key customers are available, let them help establish importance either by surveys or in focus groups. Winter 2015 ECEn 490

Step 6 Reflect on the Results and the Process This method is not an exact science. Did we get the important customers in our data? Are there needs that the current customers can’t envision? Do we have some weak areas of analysis? Are we surprised by the results? And why? Did we get the key stakeholders involved? Winter 2015 ECEn 490

Steps in customer needs prioritization. State the Project Scope or Mission. Capture customer inputs, one customer need on each Sticky note. Group similar needs. Title the groups. Lay out groups and show relations between groups. Vote on most important needs and draw conclusion. Theme Conclusion Winter 2015 ECEn 490

Email Team discussion Assignment Discuss with your team the following: Who is the customer or a user?, What information do you need to help identify the critical design features of your project? What questions would you ask to get the information you need?, Can you translate the user’s answers into product needs? How would you set a priority on the needs that are identified? Reading Assignment, Class notes for Lecture 5 Winter 2015 ECEn 490

Examples of Homework example (page 65 text) Customer statement Interpreted Need Priority “I need to drive screws fast, faster than by hand” The SD drives screws faster than by hand. ** 3 M “I sometimes do duct work; use sheet metal screws”. The SD drives sheet metal screws into metal duct work. * 1 L “I like the pistol grip; it feels better in my hand”. The SD is comfortable to grip. *** 5 H “I don’t like it when the tip slips off the screw.” The SD tip remains aligned with screw head without slipping. ** 3 M “I sometimes drive screws in at an angle” The SD will show when the screw in not aligned with the surface. * 1 L Winter 2015 ECEn 490

Control Documents The Functional Specification Document, FSD, answers the question; What does the customer want, or what will they accept? It is mainly a quantitative measure of user needs that allows the team to know when they have met their goals. The Concept Generation and Selection Document, CGSD answers the question; How will we deliver the solution to the customer’s requirements, and how do we know that we are offering an optimum solution. Again the meat of the CGSD is a set of tables and matrices showing quantitatively how we have arrived at our project definition. The Project Schedule answers the question; When will we deliver the solution. The Schedule shows the timing of project tasks, the breakdown of staffing requirements, and dates for project reviews and checkpoints. Winter 2015 ECEn 490

Functional Specifications Document Most product ideas are initially driven by a loosely defined set of customer inputs that usually are not consistent or complete. One of the most common mistakes that companies make, is to go into full-scale product development before these customer needs are thoroughly analyzed and the feasibility of the complementary technologies are determined. In several studies of unsuccessful commercial products, it was found that there was a common theme of poorly defined features in the early stages of the project. Subsequent project redefinition caused delays and missed expectations to the customer. Winter 2015 ECEn 490

FSD Requirements Project Description and background: What is the project, and what is expected to be accomplished. (Mission statement) Project Requirements: The customer needs and requirements including their relative importance. Functional Specifications: The measurable engineering characteristics and target values for the product. You should include preliminary targets for marginal values and ideal values for each specification. Linking of the Project Requirements and Functional Specifications: The analysis of the specifications to insure that critical program and customer requirements are being met. (First step in testing document) Winter 2015 ECEn 490

Control Documents FSD CES FSD ECEn 490 Schedule Identify Customer Needs Establish Target Specs Analyze competitive Products Generate Product Concepts Select a Concept Refine Perform Economic Analysis Plan Remaining Development Project FSD CES FSD Schedule Preliminary & Final “Functional Specifications Document” - (FSD) “Concept Evaluation and Selection Document”- (CESD) “Project Schedule” with Staffing Assignments – (Schedule) “Final Project Report” (Most of the control documents are initiated during the 1st phase, and only updated in later phases.) Winter 2015 ECEn 490