2. Shad Valley MUN 1 Introduction to Product Design and Development Lecture 2: Mission Statement and Identifying Customer Needs Dr. Leonard M. Lye, PEng, FCSCE Professor of Engineering Program Director, MUN Shad

3. Shad Valley MUN 2 Concept Development The concept development process generally includes the following activities: –Recognizing an opportunity gap –Identifying customer needs –Establishing target specifications –Concept generation –Concept selection –Concept testing –Setting final specifications –Project planning –Economic analysis –Benchmarking of competitive products –Modelling and prototyping

4. Shad Valley MUN 3 Detailed generic product development process

5. Shad Valley MUN 4 Customer Needs Process Define the Scope –Mission Statement Gather Raw Data –Interviews –Focus Groups –Observation Interpret Raw Data –Need Statements Organize the Needs –Hierarchy Establish Importance –Surveys –Quantified Needs Reflect on the Process –Continuous Improvement

6. Shad Valley MUN 5 Mission Statements In product design, the ability to frame the problem, to ask the right questions, at the right time, and of the right person(s), is essential to success. –“The mere formulation of a problem is far often essential than [is] its solution, which may be merely a matter of mathematical or experimental skill. To raise new questions, new possibilities, to regard old problems from a new angle requires creative imagination and marks real advances in science” – A. Einstein

7. Shad Valley MUN 6 A mission statement and technical clarification of the task are important first steps in the product design process. They are intended to: – focus design efforts –define goals (goals must be stated before they can be met) –translate the business case to the development team –Provide a schedule for tasks (define timelines and milestones for task completion) –Provide guidelines for the design process that will prevent conflicts within the design team and other teams)

8. Shad Valley MUN 7 Uses of the Mission Statement Written by the project manager or team Distributed to all development team members at the project kick-off, to explain what they will be doing and the project goals. Can also be used as a calling card to explain what the project is about when interviewing customers, meeting potential suppliers, or carrying out design reviews.

9. Shad Valley MUN 8 The Mission Statement The mission statement may include some or all of the following information: –Brief (one sentence) description of the product. E.g. Key customer benefit. –Key business goals: corporate strategy, goals for time, cost, and quality. –Target markets for the product: primary and secondary markets –Assumptions and constraints that guide the development effort: price, technology, environmental, etc. –Stakeholders: people affected by success or failure of the product. –Avenues for creative design: key areas for innovation

10. Shad Valley MUN 9 Customer Needs Example: Cordless Screwdrivers

11. Shad Valley MUN 10 Mission Statement Example 1: Screwdriver Project Product Description A hand-held, power-assisted device for installing threaded fasteners Key Business Goals Product introduced in 4th Q of 2006 50% gross margin 10% share of cordless screwdriver market by 2008 Primary Market Do-it-yourself consumer Secondary Markets Casual consumer Light-duty professional Assumptions Hand-held Power assisted Nickel-metal-hydride rechargeable battery technology Stakeholders User, Retailer, Sales force, Service center, Production, Legal department Avenue of Creative Design Ergonomic shape, compact stowage, lightweight, elegant

12. Shad Valley MUN 11 Mission Statement: Example 2 Finger Nail Clipper Product Description –Remove and file excess fingernail length Key Business Goals –6 month development of beta prototype –30% profit margin –Initial 5% market share –Supplement fingernail polish business Primary market –Adult of all ages, focusing on fingernail polish users Secondary market –Knife collectors, business executives Assumptions and constraints –Small, compact stowage volume, long life span (10-20 years) –Steel processing and moldable plastic Stakeholders –XXX Corporation; user; salons; retailers Avenues for creative design –Ergonomic shape; store/capture of nails; compact stowage; ease of cutting

13. Shad Valley MUN 12 Identifying Customer Needs Is there a need for your product? Who would buy it? What do they want out of your product? The technologist’s problem: –“Our plan is to lead the public to new products rather than ask them what they want. The public does not know what is possible, we do” – Akia Morita, 1986. This result is often products like the Betamax videotape. Such technology-focused thinking causes market failure of innovative products. They fail to satisfy the customer! It is also true that sometimes customers do not know what is possible – but creative inventors do.

14. Shad Valley MUN 13 Customer populations The customer is a statistical concept; there are numerous potential purchases of a new product being designed. The customer population is a set of persons whom we want to be purchasers of our new product. Customer populations are very varied; different customers use the product differently, have different objectives for the product, operate the product in different environments, and generally have different expectations.

15. Shad Valley MUN 14 Types of Customer Needs Direct, latent, constant, variable, general and niche needs Needs are largely independent of any particular product we might develop; they are not specific to the concept we eventually choose to pursue. A team should be able to identify customer needs without knowing if or how it will eventually address those needs.

16. Shad Valley MUN 15 Process Identifying customer needs is itself a process. There are 5 steps: –Gather raw data from customers –Interpret the raw data in terms of customer needs –Organize the needs into a hierarchy of primary, secondary, and (if necessary) tertiary needs –Establish the relative importance of the needs –Reflect on the results and the process

17. Shad Valley MUN 16 Step 1: Gather Raw Data Interviews: one-on-one interview Focus groups: Moderator facilitates a 2- hour discussion with a group of 8 to 12 customers – may be videotaped. Observing the product in use: watching customer use an existing product. Be the customer: depending on the product – use it yourself.

18. Shad Valley MUN 17 Eliciting Customer Needs Data Helpful questions and prompts for use after the interviewers introduce themselves and explain the purpose of the interview: –When and why do you use this type of product? –Walk us through a typical session using this product –What do you like about the existing product? –What do you dislike about the existing product? –What issues do you consider when purchasing the product? –What improvements would you make to the product?

19. Shad Valley MUN 18 General Hints for Effective Interaction with Customers Go with the flow – let the customer talk. Use visual stimuli and props – bring a collection of existing and competitors products. Suppress preconceived hypotheses about the product technology. Don’t bias the discussion. Have customer demonstrate the product and/or typical tasks related to the product Be alert for surprises and the expression of latent needs – use follow up questions. Watch for nonverbal information – facial expressions, the way they hold the product, etc.

20. Shad Valley MUN 19 Documenting interactions with customers Audio recording – need to transcribe Notes – designate someone as note taker, someone else as questioner. Video recording – focus group session, use environment, non-verbal clues. Still photography – easier to display images, inability to record dynamic info. Don’t forget to send a thank you note to the customers interviewed.

21. Shad Valley MUN 20 Step 2: Interpret Raw Data Customer needs are expressed as written statements and are the result of interpreting the need underlying the raw data gathered from the customers. Each statement or observation may be translated into any number of customer needs. Below are 5 guidelines for writing need statements. The first two guidelines are fundamental and are critical to effective translation; the remaining three ensure consistency of phrasing and style across all team members.

22. Shad Valley MUN 21 Sample customer interview data: electric wok redesign

23. Shad Valley MUN 22 Guidelines for Needs Statements Express the need in terms of what the product has to do, not in terms of how it might do it. Express the need as specifically as the raw data Use positive, not negative, phrasing Express the need as an attribute of the product – not always possible. Avoid the words MUST and SHOULD.

24. Shad Valley MUN 23 Five Guidelines for Writing Needs Statements Guideline Customer StatementNeed Statement-WrongNeed Statement-Right What Not How Specificity Positive Not Negative Attribute of the Product Avoid “Must” and “Should “Why don’t you put protective shields around the battery contacts?” “I drop my screwdriver all the time.” “It doesn’t matter if it’s raining, I still need to work outside on Saturdays.” “I’d like to charge my battery from my cigarette lighter.” “I hate it when I don’t know how much juice is left in the batteries of my cordless tools.” The screwdriver battery contacts are covered by a plastic sliding door. The screwdriver battery is protected from accidental shorting. The screwdriver is rugged. The screwdriver operates normally after repeated dropping. The screwdriver is not disabled by the rain. The screwdriver operates normally in the rain. An automobile cigarette lighter adapter can charge the screwdriver battery. The screwdriver battery can be charged from an automobile cigarette lighter. The screwdriver should provide an indication of the energy level of the battery. The screwdriver provides an indication of the energy level of the battery.

25. Shad Valley MUN 24 Step 3: Organize the Needs into a Hierarchy The result of steps 1 and 2 should be a list of need statements (up to 300 sometimes). The goal of step 3 is to organize this list into a hierarchical list. –Primary needs: most general needs –Secondary and tertiary needs: express needs in more detail Not all primary needs have secondary needs This activity is best perform on a wall or large table by a small group of team members – use of Post-it notes is a good approach. –Eliminate redundant needs –Group similar needs –Consider creating super groups of 2 to 5 –Review and edit the organized needs statements

26. Shad Valley MUN 25 Example: Sorted customer needs – electric wok.

27. Shad Valley MUN 26 Step 4: Establish the Relative Importance of the Needs This establishes the relative importance of the needs identified in steps 1 to 3. Outcome is a numerical weighting for a subset of the needs. –Relying on consensus of the team members based on their experience with customers: asking customers to indicate importance during interview –Basing on further customer surveys: asking customers interviewed to rank the needs Trade-off between the two approaches is cost and speed versus accuracy.

28. Shad Valley MUN 27 Step 5: Reflect on the Results and the Process The process of identifying customer needs can be usefully structured, it is not an exact science. The team must challenge its results to verify that they are consistent with the knowledge and intuition the team has developed through many hours of interaction with customers. –Have we interacted with all important types of customers in our target market? –Have we capture the latent needs of our target customers? –Are there areas we should have pursued in follow-up interviews or survey? –Which customers we spoke to gave good feedback? –What do we know now that we didn’t when we started? Surprises? –How might we improve the process in future efforts?

29. Shad Valley MUN 28 Summary Identifying customer needs is an integral part of the concept development phase of the product development process. 5 steps process: –Gather raw data from customers –Interpret raw data in terms of customer needs –Organize the needs into a hierarchy –Establish the relative importance of the needs –Reflect on the results and the process Customer needs should be expressed in terms of what the product has to do, not in terms of how the product might be implemented  gives maximum flexibility to generate and select product concepts

30. Shad Valley MUN 29 Summary (Continue) The key benefits of identifying customer needs are: –Ensuring that the product is focused on customer needs and that no critical customer need is forgotten –Developing a clear understanding among team members of the needs of the customers in the target market –Developing a fact base to be used in generating concepts, selecting a product concept, and establishing product specifications –Creating an archival record of the needs phase of the development process.

31. Shad Valley MUN 30 Needs Translation Exercise: Book Bag Design Example “See how the leather on the bottom of the bag is all scratched; it’s ugly.” “When I’m standing in line at the cashier trying to find my checkbook while balancing my bag on my knee, I feel like a stork.” “This bag is my life; if I lose it I’m in big trouble.” “There’s nothing worse than a banana that’s been squished by the edge of a textbook.” “I never use both straps on my knapsack; I just sling it over one shoulder.”

32. Shad Valley MUN 31 Visual Information Example: Book Bag Design