Innovation and new product development (NPD) can be managed and measured by using a standardized process. In many organizations the challenge for product development is to implement an efficient process, to improve speed-to-market and the chance of commercial success while preserving creativity. The critical phases of a robust stage-gate product development process are; Strategy Development, Ideation, Concept Feasibility, Build & Pilot and Rollout. Today we cover the first 2 stages and recommendations on how to implement the process within your business.
Strategy Development – research and defining the opportunity
The key ingredient of any innovation process should be the extensive use of data and analytics to support the strategy creation and ideation process. Moreover, a clear understanding of your overall company strategy is important, since existing product lines and brand portfolios will define areas for new product development, product extensions or product refreshes. By understanding the consumer, competition, culture and macroeconomic environment you can then develop your strategy and identify potential opportunities.
Undertake primary research to gather intelligence into consumer behaviors, wants, needs, unresolved problems and attitudes. Because our thoughts, emotions, feelings and experiences lay mostly in the unconscious cognitive part of our minds, unlocking these is critical for finding unmet needs. Metaphor elicitation and observational research techniques have been proven to work best.
Host workshops and consumer labs that uncover emotions, feelings, passions and real-life experiences may also provide richer consumer feedback than your average focus group or survey. Gather relevant secondary data from market research reports and identify the latest social trends and technology from companies such as www.trendhunter.com. Finally, cluster your research data and market insights into opportunity segments and use them in the next phase to unlock new product ideas.
Ideation – generating the next breakthrough product or service
In the Ideation phase you use the opportunity segments and research to help develop the next breakthrough product or service. Brainstorming workshops can help you generate new ideas however planning is vital to make your sessions meaningful.
Before you start to brainstorm it’s best to send participants any competitor analysis or consumer research ahead of time so they can read and prepare. Make your sessions short (1-2 hours works best) to maximize concentration levels. Also develop some guidelines or principles to help focus your team’s mental efforts - these could be along the dimensions of economic, behavioral, pricing, production, manufacturing, technology or distribution – but don’t make them too narrow as to limit the creativity and fun!
While the CEO should champion innovation, ideas shouldn’t just come from the top down. Ideation sessions work well when comprised of people with diverse backgrounds, personalities or interests. Also try inviting creative Ad agency people, outside experts or cross-functional participants to bring in fresh thinking and alternative perspectives. Another great method is to host internal innovation labs with your customer service employees or suppliers, since they deal with your products and customer pain-points everyday. The result is better collaboration and a wider range of ideas through diversified thinking.
You’ve now created a pipeline of ideas to then rank and prioritize for further development. Additionally, by including people from all levels and giving them the ability to contribute their ideas and buy-in to the strategy, this creates collaboration and internal alignment that will ultimately speed-up the NPD process in your organization.
