10. Stage III: Preliminary Concept Generation (up to 5-6 weeks) • Preliminary concepts involving ideal attributes and features that will best meet customer needs in chosen area of focus. • The team informally assess business potential for the product or service being conceptualized. • Concepts come from lead users in target markets. • Business fit of concepts being conceptualized. Stage IV: Final Concept Generation (up to 5-6 weeks) • Mainly centres around a 1 to 2 day lead user workshop. • Generating alternative product concepts using the research knowledge. • Evaluate the concepts in terms of technical feasibility, market appeal, and management priorities. • Refines the concepts emerging from the workshop and presents recommendations backed by solid evidence.
11. Disadvantages of Lead User Research • The final outcome is unpredictable • A lot of dedication and patience is required from the research team as well as from the management. • Requires a lot of human resource commitment. • This methodology is very lengthy and time consuming.
12. Lead User Research at 3M Stage 1: Project Planning (6 weeks) • The team leaders probed the team for answers to questions about the market, polices, technical details etc. • In the process, the team built a invaluable database of information. Stage 2: Trends/Needs Identification (6 weeks) • Started with 5 day workshop to make sense of information gathered in Stage 1. •Contacted experts who were lead users in various fields. • Developed parameters for the breakthrough product like it should be easy to apply and remove, prove more effective than current products etc.
13. Stage 3: Preliminary Concept Generation (6 months) • International fact finding visit to developing countries which had high growth potential. • A Variety of lead users were found with expertise about different relevant attributes. Stage 4: Final Concept Generation ( weeks) • A two and a half day workshop to answer the question “Is there a revolutionary approach to infection control?” •The invitees successfully rose to the challenges and generated numerous product concepts. •Came with the 3 product ideas and a revolutionary strategy despite facing multiple challenges.
14. Product Innovation Charter Background : Stagnating drapes sales in the surgical-medical division. Sales in US market had limited growth and overseas markets were limited by high cost. Focus: The focus of the company is on reducing infections from the skin through surgical drapes and surgical prepping. Creating a Competency in surgical drape technology in a cost containing environment. Goals – Objectives: The goal is come up with a breakthrough product within the current business strategy that can revive the business unit. Guidelines: The new product should be within the existing business strategy of the unit.
15. Solutions/ Recommendations by the Research Team • “Economy” Line : One-size-fits-all strategy and time-saving dispensing systems will boost product acceptance • “Skin Doctor” Line : hand held devices for antimicrobial substances. • Antimicrobial “Armor” Line : An armor product line to “armor” catheters and tubes from unwelcome microscopic visitors. • Upstream Containment of Infections: Enter into the area of early intervention in the disease process.
16. Observations • Lead user research methodology is very unpredictable. It can lead to discovery of products that are never though before. • In 3M, management gives more stress on traditional approaches. The focus on incremental growth is so much that there are thousands of 3M product concepts and inventions awaited markets and languished on drawing boards and R&D labs. • The company should move from its incremental approach and restructure its business strategy to focus on new product innovation.
17. Value Creation • Developing cost effective products can help to capture markets in developing countries. • Introducing products for Upstream containment of infection can help 3M to be the leader in that sector. • 3M’s heavy emphasis on R&D will help them to discover revolutionary products.