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new product development

Team Culture and Hybrid NPD Processes

Culture is one of those words that we all know what it means, yet we struggle to identify and name it.  Team and organizational cultures are best characterized from those within the group.  They might describe the culture as open and risk-tolerant or as hierarchical and lacking trust. 

New product development (NPD) is a systematic approach to convert nascent ideas into salable products and services.  Not every idea makes it to the marketplace nor should they.  We develop new products by taking advantage of new technologies and by combining concepts into new opportunities.  NDP is a fun arena in which to work because product managers can apply business knowledge, technical skills, and market research to drive success.

A Typical Hybrid NPD Process

Most product development professionals are familiar with waterfall or staged-and-gated process.  These approaches to NPD include upfront customer research and product design followed sequentially by prototype testing and manufacturing scale-up.  Thus, the term “waterfall” as each phase flows to the next with appropriate management approvals and team hand-offs.

At the opposite end of the spectrum are Agile processes that support project management of (primarily) software product development.  Scrum is the most widely deployed Agile methodology and uses short periods of collaborative teamwork to accomplish small tasks.  Flexibility is valued above planning, yet full Agile practices are difficult to successfully implement for NPD.

Hybrid NPD processes include WAGILE (read more here) and Lean NPD (read more here).  These processes embrace the discipline of setting boundaries (e.g., gates or management reviews) while simultaneously supporting frequent experimentation and direct customer feedback.  Integrating the structure of waterfall approaches with the desire for continuous learning of Agile systems, hybrid NPD offers key benefits to product development such as improved speed-to-market and increased customer satisfaction.

Teamwork in a Hybrid Environment

Product development teams have their own culture, just as any group has its own culture.  For hybrid NPD processes, teams must actively collaborate to achieve a shared purpose.  This starts with trust.  In The Innovation ANSWER Book, we discuss the theory of intellectual trust and emotional trust.  Taking the necessary, calculated risks for NPD success requires teams built on emotional trust.  Let me give an illustration from the feline world.

Along with a number of our neighbors, we feed a handful of stray cats.  We’ve named them based on their looks and coloring, so we have “Ginger” and “Gray”, for instance.  Most of the strays give us only intellectual trust.  They wander by each person’s door, checking to see if food has been set out.  Yet, they are easily spooked if we walk too close to them or attempt to pet them.  They intellectually trust us to deliver food but are unwilling to take further risks.

However, a couple of the strays have built adequate emotional trust with the humans.  They meow at us and allow people to get close.  One neighbor has invited one in to watch television with her, have a snack, and then be on his way.  She has a cute collection of photos of the white cat.  Another of the strays was sitting outside my door one day with a beat-up cat I’d never seen before.  She trusted us to feed and help him back to good health. 

Team Trust and Hybrid NPD

Do your NPD teams have a culture of trust?    Are our teams willing to take risks or do they scatter like stray cats when the going gets tough?

Successful implementation of quicker and more effective hybrid NPD processes requires a high degree of emotional trust.  Management must trust their teams (within well-defined boundaries) to execute the development work in the best way they know how.  Team leaders must trust the process to balance risk of investment and speed.  Individual contributors trust their own excellence and commitment to growing a culture of disciplined, yet flexible, product development tools.

Learn More

Please contact me at info@Simple-PDH.com to learn more about hybrid NPD project team effectiveness.  

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Why Product Development is Like a Bank Loan

Loans among friends can quickly impact their friendship in a negative way.  I have learned that loaning a book to a friend really means giving them the book.  Not intentionally, people lose or damage the items they have borrowed so they cannot return them.  (Or are embarrassed to admit it.)

My dad was a CPA, so I also learned at a very early age that family and friends should never loan money to family and friends.  He spent many hours sorting out promises and loans in the estates of his clients, including treasures of furniture and jewelry along with monetary wealth.  Nothing good ever came from these squabbles among family members.

That’s why throughout time, advanced societies use neutral parties for loans.  Americans borrow money from banks and repay those loans over an agreed-upon period of time.  The bank charges interest because they do not have the use of that sum during the loan.  Interest also covers the risk that the borrower may never repay the loan.  Where there is higher risk, the interest rate is also higher.

New product development (NPD) is much like a bank loan.  A company is making an investment gamble and cannot use the resources committed to a project in any other way.  For example, human resources can only work on one thing at a time.  If you choose to design and develop a new product, your human talent cannot also simultaneously work on production improvement.  Hiring more staff allows multiple initiatives to occur at the same time, but we are all restricted – as human beings – to doing only one thing at a time.

Investment

NPD is like a bank loan from the perspective of investment.  Financial experts do not loan money to every person who walks through the door.  Entrepreneurs are well aware that they must prepare a legitimate business case to receive a bank loan.  The banker is evaluating whether the investment will pay off as well as considering other investment options.  Money, like time, can usually only be spent once.

Product development is an investment by a firm in the idea.  Management must be convinced that the business case (market and technology) for the new product is the best use of limited financial resources.  Just like bankers, management considers trade-offs on the use of limited resources (time, money, equipment, and staff).  Product development is often a long-term investment for a firm.

Risk

Again, banks take risks that some people will default on their loans.  Just as I have learned that “loaning” a book to a friend really means “giving” them the book, bankers recognize that a certain percentage of loans will go bad.  Not only has the bank made an investment by loaning that money, the risk is they will lose not simply the gains (interest) but also the principal.  In other words, they may be worse off because the transaction took place.

New product development is inherently risky.  We do not know – at the beginning of a project – whether we can develop a cost-effective technology or whether consumers will buy the product at a price to deliver a profit.  Some product designs will never be commercialized, and the investment is lost, just like a defaulted loan.

Collateral

Banks often ask for collateral in exchange for risking their money.  If you borrow money to buy a car, the car itself holds value.  If you default on the loan, the bank can repossess the car to regain some of their investment.  Similarly, if you take out a home mortgage, the house itself serves as collateral for the loan.

While investment and risk have ready parallels between NPD and bank loans, collateral is a little more esoteric.  Companies specialize in certain products, technologies, and markets.  Their knowledge, including patents and license or franchise potential, serve as long-term collateral for product development.

For example, if the R&D group at your firm investigates a new plastic treatment for a part on a new product, they retain that knowledge whether or not the part is used on a commercial product.  Learning and knowledge are key to successful product design and development.  That’s what companies mean when they say, “Our people are our greatest asset.”  The knowledge asset is the collateral for an NPD gamble.

NPD is Like a Bank Loan

Banks take risks and invest money where they expect a payback.  They charge interest to earn a profit on those investments.  Loan risks are balanced by collateral, or assets, that will recover a portion of the investment if the borrower defaults.  This system is fair for both the lender (the bank) and the borrower.

New product development (NPD) is an investment risk taken by companies of all sizes.  They hope that sales revenues will deliver a profit on the investment made in designing and developing the new product.  The risk of a failed project is balanced by the collateral of increased corporate knowledge.

Do you need to understand and evaluate NPD risks?  If so, please contact me and we’ll discuss how processes and portfolios can reduce the inherent risk of NPD.  We strive to help our clients improve speed-to-market and improve effective team collaboration. 

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The Culture of NPD Processes

We all know that culture influences business outcomes more than any other variable.  Great strategies must be translated into effective business plans and implemented at the operational level.  Yet, if there is a breakdown in communication as a result of cultural conflict, a great business strategy can fail mightily.

Having an open, accepting cultures paramount for success in innovation.  The ability to “fail” allows new product development (NPD) teams to take risks.  Without risks, there is no opportunity for innovative growth.  And, of course, growth drives learning.

If you’ve read this far, you’re probably thinking, “Yes, culture impacts innovation success, but what do I do about it?”  The answer is that every organization must adapt their NPD process to their culture.  When there is a logical match between organizational culture and the NPD process, strategic goals for innovation are readily achieved.

Different Organizational Cultures

Culture is an unwritten set of rules that dictate how a group of individuals interact.  At a societal level, Asian cultures are known for group consensus while American and European cultures are better known for independent actions.  There is no right or wrong culture; however, people’s behaviors will reflect the dominant culture.

The Prairie Dog Culture

Prairie dogs share a lot of their living space with other prairie dogs.  They mostly live underground within a complex network of tunnels.  Yet, a sentinel is posted who alerts the group to a threat at which point, the entire community responds as one – diving into the tunnels for safety.

The Lion Pride Culture

Lions, on the other hand, are fairly solitary animals in the wild.  Lion prides have a hierarchy that leads to the paternal head.  As in the movie, The Lion King, the head lion might make poor decisions, but the rest of the pride follows.  Similarly with a good decision, the pride follows along obediently.

Everything In-Between Culture

Of course, between the extremes of a prairie dog clan and a hierarchical lion pride are the vast majority of organizational cultures.  Some companies lean more heavily to one side than the other.  Yet, every organization has a distinctive culture that encourages (or discourages) innovation.

Culture and the NPD Process

One of the biggest challenges of Agile implementation for tangible product development, and in large corporations, is cultural change.  The Agile philosophy pushes decisions to the lowest levels in an organization.  However, many senior executives are threatened by their perceived lack of involvement in these day-to-day decisions.  They wonder how they can take responsibility for profit and loss, if they don’t control each and every decision.

Of course, this lack of trust results in a hierarchical decision framework.  From an innovation standpoint, these organizations find it impossible to adopt Agile processes.  Instead, fear of failure results in a review- and approval-heavy staged-and-gated processes.  It’s not unusual to see “half-gates” in these organizations, as senior leaders micromanage the decision points.

In my experience, hybrid NPD processes like WAGILE and Lean NPD, are excellent transitions for hierarchical organizations investigating improvements in speed-to-market.  WAGILE (read more here) is a great NPD process when the product managers have close communication and interaction with end-users and customers.  Lean NPD is a better approach for organizations that innovate in B2B or wholesale markets, relying on market research external to the core development team.

Culture is the Crown of Innovation

Culture not only drives strategy, but culture dictates the innovation process.  Risk-averse organizations are challenged to transition to Agile, regardless of their desire to do so.  Instead, adopting a hybrid waterfall-Agile NPD process allows the organization to design and deliver new products quicker, cheaper, and better while building on internal strengths.

Want to learn more?  Join the PMI CBC chapter on 17 May for a brief discussion of Project Management in New Product Development.  Register here for this free event.  Also join our monthly Product Development Lunch and Learn webinar on 13 June at 12 pm Central Time to learn more about Project Management for NPD Processes.  Register here. 

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Product Development Creativity

Check out the short video summary (about 1 minute) then read on!

The last few years have brought tumult, upheaval, and an endless parade of changes to how we work and live.  Business in the United States has shifted from small companies to large corporations.  Technology has introduced a permanent “work-from-home” culture.  Some people don’t even shop for their own groceries or go to restaurants or the cinema anymore!

Unprecedented change is scary.  As individuals, we can prepare ourselves for desirable changes, like a new fitness routine or an extra-long vacation.  But as a group, people often resist change.  We want to know the benefits of change and one negative voice in the crowd introduces questions to all.

While debate is good and healthy for any society, product development professionals and product managers view debate and change through a different lens.  How can we creatively address a new market need?

Creative Change

In new product development (NPD), we seek to introduce positive change into influence customers.  Creative solutions to our customers’ problems help them to live better lives and to engage in their own businesses at a higher level.  New product designs force change but success is the adoption of that change.

Creativity is defined as “the ability to transcend traditional ideas.”  NPD practitioners and product managers are constantly looking for new ideas and concepts to solve problems in a new way.  For example, e-bikes (electronic bicycles) are experiencing huge growth.  The electric motor offers a creative solution for people who are not fit enough for cycling and for the elderly who still want to enjoy the outdoors.

Steps for Creativity in NPD

copyright Global NP Solutions

A typical NPD process includes the following steps.

  1. Understand the customers problem
  2. Generate ideas to solve the problem
  3. Create prototypes to test solution ideas
  4. Finalize the results and feedback
  5. Refine the product concept

We apply a variety of creative tools at each step to ensure the product development process advances.  We also want to make sure that our customers accept and will adopt the proposed new product solution.  For instance, e-bikes are much, much heavier than a traditional bicycle so people are less likely to travel with an e-bike.

Here are some creativity tools to apply in the traditional end process to gather customer feedback and lead to greater customer satisfaction.

  1. Customer shadowing, empathy map, journey map
  2. Brainwriting, affinity diagrams
  3. Wizard of Oz, paper prototypes, focus groups A/B testing
  4. Voice of customer, statistical analysis
  5. Product roadmap, feature releases, value stream mapping

Product Development Creativity

Product designers cannot sit still.  Change is happening in tsunami steps all around us.  We must adopt new technologies and generate creative solutions to help our customers.  Learning and applying a set of creativity tools ensures we have a variety of new products available to release in the short-, medium-, and long-term to satisfy consumers across the spectrum.  Creativity can be re-learned and practiced in everything we do every day.

Learn more in our free Product Development Lunch and Learn webinar on 9 May 2022, 12:00 pm CDT, 3 Creativity Tools.  You might also be interested in our Deep Dive Creativity Workshop for Product Managers on 27 May 2022.  Check out our course calendar here, register here for the free Product Development Lunch and Learn, and register here for the in-depth creativity workshop.

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Listening for Customer Needs

I’ve always been interested in how people differentiate “hearing” and “listening”.  I remember one of my Japanese colleagues warning me to get a commitment to action from the multi-national team because saying “Yes” in Japan only meant “I heard you”.  I’m guilty, too, of nodding and saying “Yes” occasionally when someone asks if I heard them.

Hearing is the mechanical process of sound waves entering our ears and being converted to electrical signals.  The electrical signal that registers in our brain allows us to “hear” speech, music, and traffic noises.  Animals also “hear” noises – my cat jumps a mile if you clap your hands during one of his many siestas!

Listening, on the other hand, is a qualitative and emotional response to the sounds we hear.  Listening requires an analysis and understanding of the words, a commitment to action, and/or a witty conversational response.  In new product development (NPD), we often refer to “listening to the voice of the customer” during upfront research.  We do not say we only “hear” the customer.  We say we “listen” to the customer – gathering the qualitative and emotional responses.

Gathering Customer Needs

Of course, in product development and product management, customer needs drive design and implementation.  As product development professionals, we also know that customers are challenged to accurately describe their needs.  It is often easier for a consumer to make a complaint or to offer platitudes than to specify needs and wants.  Interestingly, the voice of the customer is more about multi-channel listening than hearing sounds.

What is multi-channel listing in product development?  It is collecting data and information (the voice of customer, VOC) that reflects a customer’s needs and problems.  “Listening” may include focus groups, observation, or journaling.  In this case, listening includes all our senses, not just hearing.

Creative Listening

Some creative ways to gather customer needs include shadowing, A/B testing, and journey mapping.  Shadowing is a market research technique in which members of the product development team follow customers (or potential customers) while they conduct daily activities.  This allows the NPD team to observe all aspects of product usage as well as pain points and competitor product advantages.  Shadowing, like many VOC methods, can generate a lot of data.  So, the NPD team should be prepared with an analysis and sorting method in advance.

A/B testing can be direct or indirect.  Product designers test preference for one or another feature in the new product.  Alternatively, one set of customers is tested for acceptance of Feature A and another set is tested for acceptance of Feature B.  In this method, you will need to ensure the sample size is adequate for the expected data integrity.

Finally, customer journey maps (see last week’s post here) are a great way to connect the customers’ decisions and emotions with the steps taken to research, purchase, and use a new product.  Some organizations structure business functions around the typical steps in the customer journey map.  For example, a digital retailer organizes IT projects by webpage presentation (customer shopping), customer ordering domain, shipping, and returns.

Learn More

Listening is tricky business and even more challenging when our customers cannot explain -in words – what they seek as new product features and benefits.  We use market research and design thinking tools to listen to the “voice of the customer”.  Our skills as product development professionals include multi-channel listening, meaning we must hear and observe our customers interacting with a variety of product solutions.

Join me on 9 May 2022 for our free monthly Product Development Lunch and Learn webinar.  This month’s topic is 3 Creativity Tools and you can learn how to better “listen” for customer needs.  REGISTER HERE.

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Creativity In Product Development

What does “creativity” mean to you?  For me, my hobby of card-making is creativity.  I can combine different colors, textures, and patterns on a 5×7-inch canvas that I send with love to family and friends.

Of course, my work life also includes creativity.  Solving problems and coming up with unique answers is creative work, too.  However, like most adults, I often fail to equate “creativity” with trouble-shooting or any other of my day-to-day activities.  Yet, working in product development demands creativity from all professionals and disciplines to successfully generate products to the marketplace.

New Product Development

New product development (NPD) is a broad term covering the design of unique technologies to the introduction of an existing product into a new market.  Products span from the tangible (goods we touch, like cars or cell phones) to software and applications (search engines and instant messaging).  Product managers today are often responsible for identifying new customer needs to feed the product development pipeline.

Successful product managers and product development professionals link customer needs with novel and creative solutions.

Inspired By Creativity

To deliver delightful new product solutions to our customers, we must offer them creative products and services.  NPD teams use several different stimuli to understand customer needs and to identify creative solutions to those consumer problems.  For example, the customer journey map (downloaded a template here) is a creative tool to track customer behaviors and satisfaction throughout the product selection and purchase process.  The figure below shows another example of a customer journey map.

The customer journey map is one of my favorite tools to identify new product needs.  Sometimes, we can creatively solve a customer’s need by changing how we package, deliver or market a product instead of developing additional features and functions.  The customer journey map helps us identify these simple, non-technical opportunities.  Keeping things simple is highly valuable in NPD!

Another creativity tool I love to use with innovation teams is brainwriting.  While traditional brainstorming focuses on collaborative creativity, brainwriting first utilizes individual problem-solving to address NPD questions.  Brainwriting works by presenting a problem to a group of people, typically the innovation team.  Each individual, quickly and by himself, records a potential idea or concept.  After a short period of time (about 30 seconds), they pass their sheet of paper to the person sitting at their right.

This person then adds a new idea or builds on the first idea.  After another 30 seconds, the paper is passed to the right again.  This process repeats several times until perhaps a half dozen ideas are collected on each sheet of paper.  At that point, the page is returned to the originator who then selects the “best” idea.  These concepts are then shared and prioritized as in a traditional brainstorming session.

Creativity Tools in Practice

Please join me for the May Product Development Lunch and Learn session on 9 May 2022 at 12 pm CDT (1 pm EDT) to learn 3 Creativity Tools.  These webinars are free and full of dialogue with fellow NPD professionals and product managers.  REGISTER HERE.

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Project Management Skills

In the past few weeks, we have been exploring the similarities and differences in roles between project managers and product managers.

To wrap up this series, we describe specific skills to master for each role.  In this post, we will discuss project management skills and next week, will take a look at those necessary for success as a product manager.

Strategic Project Management Skills

Project managers must view the outcomes of their work from a strategic perspective what is the goal of the project?  How does this particular project advance objectives of the firm?  Why is it project important now?

Businesses undertake projects for just three basic reasons.

  1. Improve revenue (growth)
  2. Reduce costs (savings)
  3. Stay in business (competition, regulatory)

Project managers with a strategic viewpoint will reinforce growth, cost reduction, or regulatory compliance in their work.  It is important to understand why you’re doing a project before developing detailed plans.

Tactical Project Management Skills

All business strategies are converted into tactical plans and operational activities.  Tactics describe how an activity, or task will be done, how it will be completed, and when the product or feature will be released.

Project managers are experts at tactical skills, such as creating and managing project schedules, monitoring actual cost versus budgets, and mitigating project risks.  In fact, much of the role of a project manager in new product development is to monitor and manage risk.  This is the purpose of any staged-and-gated process or the WAGILE approach to develop new products with speed and agility.

Projects often require significant capital investment and resource commitments.  Senior executives do not make these decisions lightly.  So, a large part of the project manager’s job is to reassure senior executives at their decisions were appropriate.  (Of course, it is also important to inform them if the project is completely off the rails and was a poor decision.)

For example, if a product roadmap indicates a next generation product release by year-end, the project manager will develop a schedule with appropriate resourcing with the following tasks.

  • Proof of concept (2 months)
  • Customer feedback (1 month)
  • Generate product specs (1 month)
  • Design and produce prototype (2 months)
  • Customer feedback (1 month)
  • Finalize product specs (1 month)
  • Initiate manufacturing (1 month)
  • Quality check and ramp up production (1 month)

Operational Project Management Skills

As indicated earlier in this series, project managers are often responsible for much of the day-to-day execution of a project.  This means that project managers need strong technical skills to help team members in trouble-shooting and mitigating risks that can impact schedules or budgets.  Project managers are also responsible for reporting project status from project initiation to close-out.

Thus, project managers need to master communication, negotiation, and leadership.  While all successful new product development team members should be good at communication, negotiation, and leadership, project managers utilize these skills up and down organizational strata as well as peer-to-peer.  For instance, knowing what level of detail to communicate to whom can drive a successful dialogue and help project managers enable decisions.

Project Management Skills

Successful project managers demonstrate mastery in many skills.  Join us on 11 April at noon CDT (1 pm EDT) for an open discussion session of project vs. product management.  Learn more here and REGISTER HERE.

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Product Manager and Project Manager Roles

Societies mature and in a competitive free market, job specialization results from those advances.  Long ago, a family raised its own food and used the by-products for other uses (e.g., cattle delivered beef to eat, leather for shoes, and fat to make soap and candles).  Today we have farmers and ranchers raising meat and produce that we purchase at the supermarket, and we buy our shoes at different stores depending on special needs (e.g., running shoes at a sporting goods store and dress shoes at department stores).

Specialization also trickles into our job functions.  Previously, project managers juggled strategic and tactical objectives, balancing business needs with the day-to-day implementation of project tasks.  Moreover, the project manager was also typically responsible for people and talent management, including development and learning plans for project team members. 

Project managers, like the family of bygone days, also managed multiple tasks – negotiations for contracts (with help from purchasing and legal), quality planning, and risk management.  In this way, project managers “owned” the project and understood benefits as well as costs.  A highly skilled and experienced project manager zooms in and out from a macro-viewpoint to detailed tasks and activity implementations as needed throughout any given workday.

Recent Introduction of Product Management

In the last several years, a new role has surfaced in many businesses.  That is the role of a product manager.  Conceptually, a product manager handles a project’s strategic linkages between the business or customer needs and the technical development and design teams.  Ideally, the project manager then can focus solely on execution of day-to-day tasks.

With continued job specialization, product management is sometimes further classified by in-bound and out-bound product marketing.  To gather customer and business needs, product managers must analyze consumer behaviors, market trends, competitors, and so on.  But product managers also work as brand or category managers, helping to determine product features and release roadmaps.  The former represents in-bound marketing and the latter out-bound product management.  In both cases, product managers remain attuned to customer needs above all else.

The Need for Product Management

How do you know if your organization needs a product manager?  One organization with which I have worked recently had conducted R&D activities, product development, and customer interactions through individuals called “project managers”.  As their business has evolved, they were purchasing and re-branding many different product solutions from outside vendors.  The role of project manager changed to product manager.

In this situation, individuals originally spent the bulk of their day-to-day activity monitoring budgets and tasks to convert a new idea into a saleable product.  They Interacted closely with their manufacturing facility to ensure quality and proper inventory levels.  They established schedules and supervised technicians and specialists who gathered experimental data to continually improve product designs.  Small teams often visited the factory (located in the same building as the project team) in order to ensure product development progressed at the right pace.

As the company transitioned to more off-the-shelf and out-of-the-box product solutions, the role of the project manager was not as crucial as that of a product manager.  No longer were the factory development trials critical path items.  Instead, they assessed quality by gathering samples from the outside vendors.  Because the firm’s product cycle follows the school year, timetables and schedules for off-the-shelf products are set without negotiation.  Coordination activities adjusted from day-to-day to year-long sales cycles.

Product managers learned forecasting and sales techniques to balance the technical expertise they had previously established as project managers.  In this way, the product managers truly served both the business and their customer.

What is Your Role?

Learning to distinguish between the roles of project management and product management is important for today’s complex business challenges.  Learn more at our free webinar on Project vs. Product Management 11 April at 1 pm EDT/12 pm CDT.  Register here for our monthly product development lunch and learn.

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Understanding Customer Needs

Every new product development professional carries a toolkit for the job.  Just like a carpenter carries a saw, hammer, and clamps, product managers use market research, processes, and planning to finish a job.  Carpenters choose specific saws and blades depending on the fineness of work.  A quick cut of a 2×4 board does not need the same degree of precision or quality as cutting maple veneer for a kitchen cupboard.

Product development professionals select different tools and apparatus to match the outcomes of their job, too.  Market research to gather data on market opportunities is different than the customer insights necessary to establish a pricing strategy (read more here).  While saw blades provide various degrees of fineness and integrity to the carpenter’s job, we similarly use market research tools to better understand specific customer needs throughout the new product development process (see the figure below).

Opportunity Identification

The first phases of new product development focus on opportunity identification.  In early stages of product development – whether you use a traditional staged-and-gated, Agile, or WAGILE approach – you must study and observe customers.  What is the problem they need help solving?  What are the limitations or constraints they face in addressing a given pain point?  What is the solution worth to them?

You may use tools like observation, interviews, or questionnaires during this stage of product development.  Essentially, product managers are researching the needs and desires of customers as well as available product solutions.  If the market is very crowded with competitors, product development may take a different pathway.  Market research is invaluable to determine needs of existing and potential customers.

Design and Development

During design and development of a new product, we begin to identify potential concepts that we feel will address the customer’s pain points.  We specify the requirements and features of that solution, thus allowing the engineering teams to craft a working product.

Market research tools deployed during design and development include concept testing, AB testing, and QFD (quality function deployment – read more here).  The goal is to determine a narrow set of features that will deliver the expected consumer benefit while also creating value (profit) for the firm.

Production

Finished products move into production which includes manufacturing and servicing the product as a normal part of the business.  For example, after a carpenter finishes the job, a homeowner continues to perform maintenance.  We sometimes have to fix things – like a loose knob on the kitchen cupboard – but we also do maintenance to ensure long time enjoyment of the product.  Wiping spills from cupboards keeps them clean and shiny, preserving the wood quality for a long life. 

Likewise, once a product is launched, we perform maintenance to fix bugs or quality issues not identified pre-launch.  Long-term profits are maintained as product managers ensure cost-effective and reliable manufacturing is in place for the product.

During production, market research entails lead user panels, for instance, to identify next generation features.  Focus groups are used to uncover needs of non-users.  For example, how can we transition the product to more markets?  Which market segments demand a premium version of the product?  Can we make it less expensively but still maintain quality and customer satisfaction?

Market Research Tools

Market research tools help new product development practitioners understand customer needs.  We deploy different techniques depending on the stage of development and the desired fidelity for the data.  We use qualitative market research to gather thoughts, feelings, and opinions of customers while we use quantitative market research to validate and verify product specifications statistically.

Learn more in our New Product Development Lunch and Learn sessions.   On 14 March, the free webinar discusses customer insights and market research tools.   Register here.  For more information on Customer Insights, also check out Chapter 2 of The Innovation ANSWER Book, 2nd edition and Chapter 3 of The Innovation QUESTION Book.

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Hybrid Product Development Today

Today, many of us are working in very different environments than two years ago.  A lot of people are permanently working from home (“remote”).  Others are going to the office a couple of days per week.  Still others are doing the same job, at the same place, as they have always done (truck drivers, hospitality workers, factory and assembly plant personnel).

Learning to work in a new way can be stressful, but we are also living in a time when technology helps to bridge gaps.  With video conferencing, we have face-to-face conversations with our coworkers and can easily share documents or files.  While some of us might be in a shared space looking at the hard copy, others participate equally from remote locations looking at the same electronic document.

What Does Hybrid Mean?

Hybrid, therefore, means a blend of geographical working environments, facilitated by technology.  But what does hybrid mean culturally or for our work processes?

Unfortunately, as “Zoom fatigue” is a real symptom of work burnout, we know that our hybrid work cultures must adapt.  It is a very different atmosphere to welcome a new employee to your campus and to show him around the office building than it is to dive into work tasks as the new employee logs onto her first meeting.  Trust, especially emotional trust, is critical to tackling higher risk tasks and projects.  And, trust is hard to build in a hybrid culture.

Consider converting five minutes of each meeting to team-building.  Use the time to create social relationships with your hybrid teams.  Talk about sports, hobbies, or travel.  You want to generate a culture that shares openly and will lead to trust.  Sharing personal life interests alongside our professional engagements supports relationships among team members.

Our processes change in a hybrid work environment, too.  We no longer have quick hallway conversations.  Instead, we hold scheduled meetings and discussions (lots of them!).  Hand-offs and transfers of tasks between functions and departments are more complicated, especially if the receiver does not have the appropriate project background (why, how, when).  Shared files and chats can help to facilitate processes.  Even better, document your workflows, roles and responsibilities, and follow the agreed-upon processes.

Creativity in a Hybrid World

While relationships, culture, and processes are manageable in remote and dispersed work environments, creativity becomes even more challenging.  Again, tools are available for us to use technology, to share ideas, to capture concepts and activities, and to interact with fellow team members and customers.  I recommend using a facilitator to help your team focus on the work instead of the ever-changing technology.  A group like MAFN (Mid-Atlantic Facilitators Network) can help you find a skilled technical facilitator.  In that way, you can capture creative ideas, without interrupting ideation.

Finally, our approaches to creativity in a hybrid world must take advantage of all we have learned to generate ideas within teams over the years – regardless of technology.  Join me starting on 11 February for a special-request, three-part Creativity Master Class.  Register here.

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