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Department of EECE, GIT

19EID132
Design Thinking

Course Code and Course Title: 19EID132 & Design Thinking


B. Jagadish Kumar
Asst. Professor
Department of EECE
Email: jbokam02@gitam.edu
Cell : 9989180291
UNIT-I
• Product Development : Introduction to design, characteristics of successful product
development, product development process, identification of opportunities, product
planning, Innovation in product development.
UNIT- II
• Design Thinking: Introduction, Principles, the process, Innovation in Design Thinking,
benefits of Design thinking, design thinking and innovation, case studies.
UNIT – III
• Idea generation: Introduction, techniques, Conventional methods, Intuitive methods,
Brainstorming, Gallery method, Delphi method, Synectics etc .Select ideas from ideation
methods, case studies.

SYLLABU UNIT – IV
• Design Thinking in Information Technology, Design Thinking in Business process model,

S Design Thinking for agile software development, virtual collaboration, multiuser and
multi account interaction, need for communication, TILES toolkit, Cloud implementation.
UNIT – V
• Design thinking for service design: How to design a service, Principles of service design,
Benefits of service design, Service blueprint, Design strategy, organization, principles for
information design, principles of technology for service design.

Department of EECE, GIT Course Code and Course Title: 19EID132 & Design Thinking
Learning Outcomes
After completing this course, the student will be able to

• innovate new methods in product development.


• apply Design Thinking in developing the new designs.
• select ideas from ideation methods in new product development.
• use Design Thinking in developing software products.
• apply principles of Design Thinking in service design.

Books:
•1. Pahl, Beitz, Feldhusen, Grote – Engineering Design: a systematic approach, Springer, 2007
•2. Christoph Meinel and Larry Leifer, Design Thinking, Springer, 2011
•3. Aders Riise Maehlum - Extending the TILES Toolkit – from Ideation to Prototyping
•4. http://www.algarytm.com/it-executives-guide-to-design-thinking:e-book.
•5. Marc stickdorn and Jacob Schneider, This is Service Design Thinking, Wiely, 2011

Department of EECE, GIT Course Code and Course Title: 19EID132 & Design Thinking
Coursera course

Department of EECE, GIT Course Code and Course Title: 19EID132 & Design Thinking
DESIGN THINKING
• Design is a realization of a concept or idea into a configuration, drawing or a product.
• Design Thinking is cognitive and practical processes by which design concepts are developed
by designers.
• Innovation is a new idea or a new concept.
• Product development is the creation of a new or different product that offers new benefits to
the end user.
•This course introduces the design thinking in product innovation.

Department of EECE, GIT Course Code and Course Title: 19EID132 &
Design Thinking
DESIGN THINKING

Department of EECE, GIT Course Code and


Course Title: 19EID132 & Design Thinking
Department of EECE, GIT

DESIGN THINKING
Five Phases of The Design Thinking
Course Code and Course Title: 19EID132 & Design Thinking

• Empathize
• Define the problem
• Conceptualize/ideate
• Prototype
• Test
DESIGN THINKING

1.Empathize

 Empathy with the user is a fundamental starting point for Design Thinking.

 The first phase of the process is undertaken in order to get know the user and understand his

needs, desires and objectives.

 It is therefore a matter of observing and involving people in order to analyze their needs and

emotional behaviour.

 During this phase, the designer is asked to put aside his beliefs and collect real information about

the user.

Department of EECE, GIT Course Code and Course Title: 19EID132 & Design Thinking
DESIGN THINKING

2. Define the problem


 Definition of the user’s problem is the second phase of the design thinking process.

 Following the gathering of information in the empathy stage the difficulties and obstacles

encountered by users need to be defined and the team is asked to solve the problem is

delineated.

 Obviously, the problem is analyzed and must be solved from the users’ point of view

after having collected and analyzed their requirements.

Department of EECE, GIT Course Code and Course Title: 19EID132 & Design Thinking
DESIGN THINKING

3. Conceptualize/Ideate
 After having acquired a solid knowledge of the users and clearly identified the problems, we

start to design the solutions.

 At this stage, a great deal of creativity and the ability to conceptualize is required.

 The team must be brought together, possibly several times, in order to collect as many

ideas as possible.

 Various creative techniques can be used, such as brainstorming and mind mapping.

 At the end of the creative phase, the best ideas are selected.

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DESIGN THINKING

4. Prototype
 The fourth phase of the design thinking process involves transforming ideas into tangible

products.

 A prototype is basically a small-scale version of the product that incorporates the potential

solutions identified in the previous phases.

 This step is essential so as to bring out any problems and defects.

 During the prototype phase, the design solutions can be confirmed, improved, redesigned or

rejected depending on the issues that arise due to the adjustments made to the prototype.

Department of EECE, GIT Course Code and Course Title: 19EID132 & Design Thinking
DESIGN THINKING

5. Test
 After prototyping it is necessary to test the solutions on the users.

 It is important to note that this phase is not always the end of the design thinking process.

 In fact, the results of the test phase often lead back to a previous phase.

 The feedback obtained may lead you to redefine the analysis of the original problem or develop

new ideas that were not previously thought of.

Department of EECE, GIT Course Code and Course Title: 19EID132 & Design Thinking
UNIT – I
Product Design & Development

TOPICS :
1. Introduction to Product Design.

2. Characteristics of successful product development.

3. Identification of opportunities.

4. Product development process.

5. Product planning.

6. Innovation in product development.

Department of EECE, GIT Course Code and Course Title: 19EID132 & Design Thinking
1. Introduction to Product Design

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What is a Product Design & Development ?
 Product Design is a realization of a concept or idea into a configuration, drawing or a product.
 Design is the creation of the objects or system or services that people use.
 The objects that can range from dresses, buildings, automobiles, computers, advertisement
materials, retailing, banking, transportation and healthcare.
 “Design is what links creativity and innovation. It shapes ideas to become practical and
attractive propositions for users or customers. Design may be described as creativity deployed
to a specific end.” -George.
 Product design is the process of identifying a market opportunity, clearly defining the problem,
developing a proper solution for that problem and validating the solution with real users.
 Product design is conceptualization of an idea about a product and transformation of the idea
into a reality.
Product development is the creation of a new or different product that offers new benefits to the
end user. Department of EECE, GIT Course Code and Cou
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Department of EECE, GIT Course Code and Course Title: 19EID132 & Design Thinking
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Department of EECE, GIT Course Code and Cou
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Need of a New Product Design

Organizations are required to design the new products for the following reasons

 To be in the business for a long time


 To satisfy unfulfilled needs of the customers
 Too much competition in the existing product line
 The profit margin is on the decline the company’s existing product line becomes
saturated and the sale is on the decline

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Reasons for new product failure
Following are the Reasons for new product failure :

 over estimation of the market size


 Poor design
 Incorrect positioning
 Wrong timing
 Priced too high
 Ineffective promotion
 Management influence
 High development costs
 Competition

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Considerations For
A New Product or Service Initiative

 Is there a need or desire for the product?

 Did you identify any pain area which you meant to address?

 Can customer buy it?

 Is the potential market adequate? What are the current market size?

 Could it be created with available technology and materials ?

 Will the final product or service satisfy the market?

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Design Methodology A design methodology, therefore, must :

Design Methodology is a
prerequisite for flexible and
continuous design process
using the product models
stored in a computer or
library documentation.

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Course Title: 19EID132 & Design Thinking
Proximity Design
 The principle of proximity design is the process of ensuring related design elements are placed together.
 Any unrelated items, should be spaced apart.
 Close proximity indicates that items are connected or have a relation ship to each other and become one visual unit which
helps to organize or give to a layout.
The following example explains how proximity design is used in rural development in Myanmar.
Proximity Designs is a not-for-profit social enterprise working to help reduce poverty for rural families in Myanmar (Burma).
They design market products and services that low-income farmers purchase and use to help increase their incomes.

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 Proximity Designs uses a design approach to improve the incomes and well-being of rural families
in Myanmar.
 They employ professional designers, engineers and ethnographers to discover unmet needs and
opportunities for new products and services.
 The organization operates a local design lab in Myanmar where its product designers create and
test multiple prototypes with the goal of developing products that
a) provide value to rural customers by increasing household productivity and incomes; and,
b) are affordable for families earning $2 per day or less.
 Products reach villages nationwide through a distribution network of private agro-dealers and
independent village agents.
 After-sales support and repair services are also offered to user households.
 Proximity conducts annual surveys to measure customer satisfaction and to document
improvements in farm family incomes.
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Proximity Design’s portfolio of products and services are marketed under the Yetagon brand in
Myanmar and include:
i. Foot-operated irrigation pumps that draw water from wells, streams or ponds. Approximate
capacity is 1,200 gallons per hour. (1galloon = 3.785 litres)
ii. Gravity-fed drip irrigation systems consisting of low-cost extruded plastic tape and small
micro-tubes connected to an elevated water storage tank. A single drip system is designed to
irrigate a 1/8 acre plot but can be linked to other systems to cover an acre.
iii. Portable water storage tanks made from plastic tarpaulin material, commonly used as elevated
tanks as part of Proximity’s gravity-fed drip irrigation systems. These tanks come in three
different sizes – 100, 150 and 250 gallons.
iv. Farm advisory services featuring training in selected low-cost, simple agricultural practices
that increase yields and protect farmers against losses caused by pests, diseases and overuse
of pesticides.
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Activity 1

Products that you loved and hated:

 In this activity, students will have to present about three

products they like and dislike based on their experience.

 What would you need to do in a bad product to make it

good?

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2. Characteristics of
Successful New Product Development (NPD)

 INSPIRATION is a requirement for new product development (NPD).The sources of inspiration are
creative people.
 In the case of new product development, along with inspiration and idea it is important following
through executing the idea.
 Following are some common characteristics of successful projects that can be implemented to
increase the likelihood of success in future projects.

1. An Active Product Owner 4. Decision Making Qualities

2. Good Problem-Solving Team 5. Clear Objectives

3. Intelligence and Creativity 6. Novelty of The Product

Department of EECE, GIT Course Code and Course Title: 19EID132 & Design Thinking
1. An Active Product Owner

 A product owner is a client who actively engages in the project, and as the term suggests asserts
their ownership, with everything that implies — pride of ownership, attention to detail, being
willing to take responsibility for decisions, and most importantly being part of the team.
 Effective product owners see the NPD process as collaborative, albeit one in which they play a
leadership role.

2. Good Problem-Solving Team


 In terms of the team, the highest degree of risk always comes from putting together a group
of people who have not worked together before and asking them to share a set of goals.
 This may be unavoidable at times (every team starts out this way), but assigning an
unproven team to a high-priority project requires meticulous attention to detail and
strategy, and the interpersonal aspect of resource management becomes a top priority.

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3. Intelligence and Creativity

 There is always risk involved in innovation: the challenge is to manage risk exposure to maximize
benefits (new ideas, efficiency gain) and minimize pitfalls (organizational anarchy, scope creep).
Department of EECE, GIT Course Code and Course Title: 19EID132 & Design Thinking
4. Decision Making Qualities

a) Recognizing dependencies in complex systems

b) Estimating importance and urgency

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c) Continuity and flexibility

d) Failures cannot be avoided

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4. Decision Making Qualities
e) Qualities of good designer

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5. Clear objectives
 In the beginning the objectives must be clear with respective originality, invention innovation,
adaptive or variant design.
 It is found that the best way to approach this is to crystallize the objectives of each phase of
delivery into a single statement.

6. Novelty of product
While innovation within a product (the output) is desirable, the project itself (the process) is not
the place to start experimenting with new ways of doing things. Every new product should have
a novelty in order to meet the people requirements. The designers play an important role with
different development tasks can have different degrees of novelty.

Department of EECE, GIT Course Code and Course Title: 19EID132 & Design Thinking
The following design tasks is of interest in new product development
1.Original Design 2.Adaptive Design 3.Variant Design
Two different cases in original design are invention and innovation
BASIS FOR COMPARISON INVENTION INNOVATION
Meaning Invention refers to the occurrence of an Innovation implies the implementation
idea for a product or process that has of idea for product or process for the
never been made before. very first time.
What is it? Creation of a new product. Adding value to something already
existing.
Concept An original idea and its working in Practical implementation of new idea.
theory.
Skills required Scientific skills Set of marketing, technical and
strategic skills.

Occurs when New idea strikes a scientist. A need is felt for a product or
improvement in existing product.

Concerned with Single product or process. Combination of various products and


process.

Activities Limited to R & D department. Spread across the organization.

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3. Identification of Opportunities

 At this step, scan the environment to determine what unfulfilled needs or desires are in the
marketplace.
 Ideas can also come from employees, managers, customers, suppliers, research and development
departments, and even your competitors.
 You need to carefully define your market at this stage to set the scope of the market and to determine
your competition.
 A market can be defined by customer needs, demographics, price, and product type, among other
criteria.
 Finally, you must carefully analyze these
Department opportunities
of EECE, GIT to Code
Course determine
and Cou if they're feasible and useful in
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helping your company achieve its objectives.
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4. Product Development Process

7 Stages in the Process of New Product Development are

1. Idea generation

2. Idea Screening

3. Concept Development and Testing

4. Marketing Strategy Development

5. Product Development

6. Test Marketing

7. Commercialization
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Department of EECE, GIT Course Code and Cou
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1. Idea generation
 Ideas are the key to innovation.
 The purpose of idea generation is to create a large pool of ideas.
 Idea generation is the first stage of the process and entails a method for
coming up with new ideas for product development that are superior to what
competitors are currently offering.
 Often, businesses come up with hundreds of new ideas and end up with only a
few that will be pursued in the end.
 There are quite a few ways to generate ideas, but they are less a “eureka”
moment and more akin to hours of target market research, discussion,
questioning, and brainstorming utilizing both internal and external idea sources.

External Idea sources


Internal Idea sources
Customers
Company employees at all levels Competitors
Company R&D Department Distributors
Suppliers
Outsourcing
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Let's look at one example of Idea generation

o Sam is a marketing manager for a shoe company, and he has about eight people who work for
him. Sam is a big fan of using idea generation with his team whenever they need to tackle a new
challenge.
o The team has a new project that month. They have to come up with a brand new way of marketing
the newest line of shoes to a previously unaddressed target audience.
o Sam puts his group to work into pairs. Each pair tackles the task by first thinking of many ideas,
far more than they would ever use.
o The pair will eventually rejoin the team, and the team will select the best idea or ideas before
assessing the ideas' worth on a focus group of potential customers at a later date.
o After feedback from the focus group, the team will adjust their approach and build on the idea
using the focus group feedback before putting their plan through real testing or trials.
o Finally, when the team is confident in their idea, the idea will be passed on for actual business
implementation.
o In this example with Sam and his team, their marketing plan will be employed by the company to
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target their new customer demographic. Course Code and Cou
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2. Idea Screening
 The second step in New product development is Idea screening.
 Idea screening is like, narrowing ideas down, and picking out the best ones with which to move
forward.
 Pursing non feasible ideas can clearly be costly for the company. Because the costs involved in new
product development increase exponentially as we move through each stage, the screening process
becomes crucial in avoiding huge financial loss.
 There are more factors involved in screening than simply whether or not a product idea is deemed
“good” or “bad.”
 Ideas must also fit into the overall business strategy and direction of a
company.
 If the idea is potentially a good idea but does not fit into the marketing mix, it
can end up being more costly and impossible to scale, which simply means that
your business will be unable to continue to grow in the long term.
 If a product does not meet the objectives and goals of the screening process, the
Department of EECE, GIT Course Code and Cou
idea must then be discarded, and the process begins anew with idea
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The following are the few examples in Idea screening.

 Relevance : Does the idea achieve your objectives?

 Assumptions : Is the idea based on stated assumptions?

 Constraints : Is the idea consistent with your constraints such as your

budget, resources and dates?

 Feasibility : Is the idea feasible ?

 Value : How valuable is the idea ?

 Risks : what are the risks etc.

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3. Concept Development and Testing

 Products are based on ideas, but they themselves are not ideas.
 Idea serves as the basic foundation that can be conceptualized in different products.
 Therefore, an idea needs to be evolved into a detailed statement expressed in consumer
terms.
 Idea is an initial thought; when finished with details an idea becomes a concept.

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i. Concept Development:
 An idea when detailed in terms of consumer needs, technology, user,
and use situation takes the form of product concept.
 For example, The mobile communication idea can take shape of different product concepts.
These may include the following:
Concept 1—Basic communication device for entry level consumers
Concept 2—Communications device that allows busy executives to do office work while on the go
Concept 3—Fashion accessory with communication ability for socially conscious people
Concept 4—Communication device coupled with music capability
Concept 5—Phone complete with social media applications for socially networked people
 These concepts are derived from the basic idea given to solving peoples’ need to stay in touch with
other.
 These concepts provide alternate routes to product development.
 For instance, brands such as Lava, Fly, and iBall are based on the first concept, while concept
two is visible in brands such as Blackberry and Lumia.
 Sony’s Walkman phones were designed in accordance to concept four.

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ii. Concept Testing:

 Concepts are expanded ideas.


 The concepts developed are tested with consumers to find out whether the idea is worth taking
forward.
 A number of concerns arise at this stage regarding concept’s appeal, understanding, and relative
superiority over other options in terms of preference, believability, and willingness to try and buy.
 For testing purposes, the concepts may be verbally described, expressed through pictures, or
developed into a physical form.
 These are then shown to a select group of consumers who are probed by asking questions meant
to check their understanding of the concept, concept believability, and perceived superiority over
existing options in relation to its reasonable pricing, and probability of purchase.
 Typically, the types of questions that can be asked when a concept is being tested.

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4. Marketing Strategy Development

 After the scrutiny of alternative concepts, the next task is to conceptualize its marketing strategy.
 The idea here is to achieve clarity on certain questions related to marketing.
 Marketing is about segmentation, targeting, and positioning and arriving at an appropriate marketing mix.

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Following are some important aspects related to marketing strategy:
i. Target Market:
 Targeting is only possible when target consumers are described in terms of their identifiable
descriptors such as age, income, and location.
 For instance, in our case the target market can be described as ‘people in the age group of 15—25
years located in urban areas with affordability to spend around Rs.10,000 who listen to music about
3—4 hours a day’.
 The statement of target market must be able to meet the criteria of effective targeting.
ii. Marketing Mix:
 It represents the aspects related to strategy execution. Marketing is about being able to meet
consumer needs profitably.
 For these decisions would have to be taken in the area of labelling, packaging, pricing, discounts,
promotions, advertising, and channels and logistics.
 For instance, continuing with the case of music phone the marketing mix elements can be elaborated
upon as a brand that would be called ‘music express’ and would be made available in three variants.
 Each of the variants would be manufactured in three colours that will be indicative of their storage
capacity and audio quality. Department of EECE, GIT Course Code and Cou
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iii. Objectives:
 It is said that what cannot be quantified cannot be managed.
 Therefore, targets have to be established in various areas related to marketing strategy.
 To begin with, a clear statement has to be made about marketing goals and objectives that the
product in question must achieve in a given period of time.
 Distinction has to be made between objectives and goals.
 Abstract statement like the product should achieve decent sales, share, and profit is meaningless.
 The question is what is meant by ‘decent’. Therefore, goals need to be spelled out in quantitative
terms.
 For instance, the objective may be stated as that the product is expected to achieve a sales target of
Rs.10 crore in the first year that should yield an estimated 5 percent net profit.

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5. Product Development

 We have three steps in this stage, when a paper idea is duly converted into a physical product-
(a) prototype development giving visual image of the product,
(b) consumer testing of the model or prototype, and
(c) branding, packaging and labeling.
 Consumer testing of the model products will provide the ground for final selection of the most
promising model for mass production and mass distribution.
 Initial stages with broad design parameters
 Produce early prototypes
 Show and obtain feedback from end users
 Refine design

 Fine tune & finalize design


 Vary formulations on key ingredients
 Conduct product testing amongst end users
 Experimental designs offer most powerful learning
 Optimize final design and packaging
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6. Test Marketing

 Test marketing is done to find out market response on a mini scale.


 It can provide a glimpse into whether the envisaged marketing strategy would be effective if the
product is launched in the entire market.
 In test marketing, data are collected on specific outcomes such as customer trial, repurchase,
satisfaction, advertising recall, product recognition, dealer response, and dealer satisfaction.
 It must be understood that results of test marketing are useful only when it simulates actual
market conditions.
 Discrepancies in firm’s marketing efforts or differences of test market with the actual market can
lead the company into taking wrong decisions.

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Test Marketing
• Simulated Test Market
• Live Test Market
Simulated Test Market (STM)
 Similar to Concept Test but with product
 Provide samples to consumers who are
 Interested in the concept
 Measure both trial potential and reaction to product
 Reaction to product is used to forecast repeat rate
 Volume is forecasted on basis of both the trial forecast and the repeat forecast
Live Test Market (LTM)
• To measure actual sales volume
• Controlled – Behaviour Scan
• Conventional –normal channels
• Track sales rate, trial, repeat
• Compare to goals and identify gaps
• Investigate and close gaps Department of EECE, GIT Course Code and Cou
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7. Commercialization

 Commercialization is the last stage in the new product introduction process.


 If data collected in the test marketing stage provides positive indications then
the product is considered ready for full-scale launch.
 Product commercialization commits the firm to the product’s introduction in
the market. This involves incurring costs on real basis.
 First, the product has to be manufactured or outsourced.
 If production is to be done in-house then questions arise about the existing
plant’s scale.
 A full-scale launch would involve commitment of resources on building
distribution network, appointment of dealers, sales force appointment and
training, advertising, and promotion budget.
 Commercialization takes the product out of the four walls of a company and
brings it to the market. Department of EECE, GIT Course Code and Cou
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Broadly four aspects are important at this stage:
i. Timing:
 A company must decide the exact time of launch of the new product. Several issues come to fore with
regard to timing.
 For instance, it is no good to launch an air conditioner during the winter months or a woollen jacket
in the summer months.
 If the new product seeks to replace an old one, then its launch should be postponed till its previous
stocks are exhausted.
ii. Where:
 There are two options with regard to geographical strategy of the launch.
 The company may choose from full-scale national or international launch or start with a limited
area.
 Going for a full- area launch requires enormous resources, capital, confidence, and capacity.
 Therefore, firms opt for a gradual roll-out starting with one region to the other.
 Even a well-endowed company like Apple does not go for a global roll-out of their new products.
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Apple products gradually move from North&America
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iii. Target:
 New products do not appeal to all potential consumers equally.
 People differ in their receptiveness of new products and ideas.
 Therefore, consumers with best responsiveness should be chosen at the launch
stage.
 Technically, the right prospects for any new product or service are innovators.
 Innovators are psychologically inclined to try out new things.
 The ideal target consumer is the one, who is an early adopter, heavy user, spreads
word-of-mouth communication, and is accessible at low cost.

iv. How:
 This aspect concerns how marketing mix elements are orchestrated.
 The allocations must be made to different, marketing mix elements.
 For instance, what arrangements are made for the product’s movement from place
of production to place of consumption or how the product would be promoted?
How would the campaign unfold? How would it be synchronized with brand
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5. Product Planning
 Product Planning determines the characteristics of product best meeting the
consumer’s numerous desires, characteristics that add stability, to products and
incorporates these characteristics into the finished product.
 Product planning involves devising procedures to evaluate the performance of
products and planning the modification where necessary, of existing products
aimed at extending their lives, the deletion of those products which have reached
the terminal stage of their lives and the development and marketing of new
products

Product planning signifies three important considerations:


a) Development and introduction of new products.
b) Modification of existing lines as may be needed in terms of changing customer
needs and preferences.
c) Discontinuance or elimination of marginal or unprofitable products.

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Main Objectives of Product Planning Process
i. To meet the customer needs – Successful marketing lies in identifying and meeting customer needs. This makes possible delivering
customer satisfaction.
ii. To increase the sales – Product planning enables a company to manufacture appropriate products which satisfy customer expectations
and thereby increase sales.
iii. To optimally utilize resources – Every company has limited resources in terms of money, material and human resources. Product
planning enables the company to make the best use of such limited resources by channelizing them towards the most appropriate products.
iv. To analyze the company’s strengths and weaknesses – Product planning analyzes the strengths and weaknesses of the company in the
light of the market requirements. This enables the company to consolidate on its strengths and overcome its weaknesses.
v. Survival of the firm – Product planning enables a company to survive in a highly competitive market through its components such as
product innovation, renovation and elimination.
vi. Commercial success – Product planning enables a company to achieve commercial success by coordinating the activities of all the
specialists in the company who contribute to the product’s performance in the marketplace. This is done through product development
teams, marketing executives, quality managers and sales representatives.
vii. Achieving the goals of marketing management – Product management and marketing management share similar objectives, which are
to maximize revenue and profit by meeting customer needs.
viii. To plan effectively – A key objective for product management is planning and developing the specifications for a range of products or a
product portfolio that meets the long-term strategic plan. The strategic plan may require development of new products to meet the needs of
new market sectors or improvements and extensions to the current product range to increase share in the existing sectors.
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Problem Solving Process In Product Planning

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Steps In Product Planning & Design Process

The planning and design process is divided into the following main phases

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Product Planning Project & Product Costs

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Knowledge domains required in the
Design & Development of a Product

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6. Innovation in Product Development

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Invention Vs Innovation
Invention
 The term ‘invention’, is defined as the act of creating, designing or discovering
a device, method, process, that has not existed before.
 In finer terms, it is a novel scientific idea conceived through research and
experimentation that turns into a tangible object.
 It can be a new process of producing a product or may be an improvement
upon a product or a new product.

Innovation
 The word ‘innovation’ itself signifies its meaning, as the transformation of an
idea into reality.
 In the purest sense, innovation can be described as a change that adds value to
the products or services; that fulfills the needs of the customers.
 It is when something new and effective is introduced to the market, that fulfills
the needs of the customers by delivering better products and services.
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BASIS FOR COMPARISON INVENTION INNOVATION

Meaning Invention refers to the Innovation implies the


occurrence of an idea for a implementation of idea for
product or process that has product or process for the very
never been made before. first time.
What is it? Creation of a new product. Adding value to something
already existing.

Concept An original idea and its Practical implementation of


working in theory. new idea.

Skills required Scientific skills Set of marketing, technical


and strategic skills.

Occurs when New idea strikes a scientist. A need is felt for a product or
improvement in existing
product.

Concerned with Single product or process. Combination of various


products and process.

Activities Limited to R & D department. Spread across the


organization.

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Key Elements of Innovation

The Four Key Elements of Innovation are


 Collaboration : Collaboration is one type of group activity familiar to community development.
There is no shortage of initiatives intended to be collaborative
 Ideation : Fresh, new ideas help your organization stand out. With intense competition for
resources, organizations must differentiate in order to survive.
 Implementation: What good are new ideas if they are not put to use? Organizations must engage
the best people to champion their ideas and keep those great ideas moving forward.
 Value Creation : You don't have innovation if your new ideas aren't creating value. Organizations
must implement ideas and programs identified as most effective in delivering value
to stakeholders.

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Innovation Measurements for success

Four reasons to pursue innovation as a driver of business success:


• Expansion. Successful innovation begets more innovation, which by nature enables
your business to scale and grow.
• Competition. The unique solutions you develop help differentiate your business
among the competition, giving a boost to your own revenue while nudging the entire
industry in a positive direction.
• Customer retention. Innovation helps ensure that what you sell doesn’t become
irrelevant or stop meeting the needs of your customers.
• Talent acquisition. Top-tier employees want to work for businesses that are at the
innovative forefront of their industries. That’s where the action, the learning, and the
opportunities are.
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Product Life Cycle

 The term product life cycle refers to the length of time a product is
introduced to consumers into the market until it's removed from the
shelves.
 The life cycle of a product is broken into four stages—introduction,
growth, maturity, and decline.
•Introduction: This is the introductory phase of a product when it is
initially launched in the market and has low growth rate.
•Growth: This is the second phase when there is very high growth rate
and the product generates maximum revenue in the growth phase.
•Maturity: In this, the profitability and the market share becomes less
due to intrusion of many competitors in the same market.
•Decline: This stage is the end of product life in the market as its
becomes to old to the customers that develops disinterest among the
product.

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Types of Innovation :
(a) Product Innovation
(b) Process Innovation

(a) Product innovation


 It is launching new or improved products or services on to the markets.
 Product design is normally the first step immediately after accepting the concept of the product.

 Product design has direct impact over selection of processing equiments & methods, plant
layout and in- process material flows.

 A proper product design ensures that

the intended functions are discharged by the product

it can be manufactured with ease in the factory

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Examples of Product innovation :

When people think of innovation, often, they’re thinking of product innovation.


Product innovation can come in three different forms.
1) The development of a new product, such as the Fitbit or Amazon’s Kindle.
2) An improvement of the performance of the existing product, such as an increase in the digital
camera resolution of the iPhone 11.
3) A new feature to an existing product, such as power windows to a car.

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Reasons for Change in Product Design / Product Redesign (Drivers of product innovation)

 Change in customer requirements Adding more functions / attributes Increasing saleability


(appearance etc.) Enhancing ease in manufacturing Tapping new markets or market segments
Increasing product’s life cycle

 Enhancing convenience to use

 Technological advancements and progress


 Standardization and simplification efforts in an organization. --- Simplification aims at reducing
product complexity and Standardization seeks manufacture of standardized products and
dropping what is unnecessary or superfluous.
 Improving quality Improving product reliability
 Maintaining technological leadership Reducing processing and manufacturing costs Gaining
competitive edge
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(b) Process innovation
 It is finding better or more efficient ways of producing existing products or delivering existing
services.
 It means the complete delineation and description of specific steps in the production process and the
linkages among these steps that will enable the production system to produce products / provide
services as per the goals / policies of the organization.

 Like product design, process design is very crucial to the success of an organization.

 Process design directly influences plant layout.

 It affects processing wastage and quality of output.


 The process design decision influences processing time, in-process-inventories and processing costs.

 It influences capability of an organization to make timely deliveries.

 A cost effective process design helps in procuring job work / contract work.

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Process innovation

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Department of EECE, GIT Course Code and Cou
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