Cagan & Vogel, 2002 Creating

Breakthrough Products.
Lecture topics:
Chapter 1
Chapter 2
Chapter 3
Chapter 4

What drives new product

development
Moving to the upper right
The upper right: the value
quadrant
The core of a successful brand
strategy

Cagan & Vogel, 2002 Creating

Breakthrough Products.
Chapter 5 User-centred, integrated new
product development
Chapter 6 Integrating disciplines and managing
diverse teams
Chapter 7 Understanding the users needs,
wants and desires

Identifying product/service
opportunities: the SET factors
Identify the Product Opportunity Gap
Social & cultural trends
Economic
factors

POG
Technology trends

Fig 2.5: Positioning Map: lifestyle impact,

ergonomics, features

Fig 2.10 Starbucks Positioning Map

Cost vs Value: qualities and a

customers value system (chapter 3)

Value Opportunities

Emotion
Aesthetics
Product identity
Impact
Ergonomics
Core technology
Quality
Chapter 3

Brand strategy and product strategy

The best product opportunities arise from
emerging trends that are the result of changes
in SET factors
These changes generate Product Opportunity
Gaps
Value Opportunities must be converted into
product characteristics beginning with
corporate and product brand strategy
Chapter 4

Corporate commitment to
product and brand
Corporate mission

Customer satisfaction

Chapter 4

Product development

Program planning

Key Concepts in Chapters 5, 6, 7

Chapter 5 integrated new product
development process iNPD (Fig 5.1)
Chapter 6 desirable, usable, and useful
factors (Fig 6.2); parts differentiation matrix
Chapter 7 quantitative and qualitative
techniques for understanding the user
Fig 7.1 identifies the interdisciplinary
attributes of user-centred design

Integrated new product

development process Fig 5.
Product
planning

Program
approval

Identifying opportunities
SET factors
Product opportunity gap
Product opportunity statement
Understanding opportunities
Value opportunity
Actionable insights
Product attributes
Conceptualizing opportunities
Product concepts
-----------------------------------------Realizing opportunities
Concept details

Protecting Innovation

Fuzzy Front
End

Concept
Generation

---------------Transition

Product
refinement
Production
prototype
Launch
preparation

Product
launch

Fig 6.2: Overlap of disciplines

leads to value: User-centred iNPD
DESIGN

Brand image
Lifestyle image
Ease of use
Cost of aesthetics

Desirable

Ergonomics
Product interface
Features integration
Material selection
Manufacturing
Cost of integration
Usable

Customerdriven
product
concept
Useful
MARKETING

ENGINEERING
Functional features
Platform
Safety and reliability
Production cost

Fig. 6.14 Part Differentiation Matrix for Starbucks

PRIMARY
LIFESTYLE
IMPACT

LOW
COMPLEXITY

Ice cream
Books
Travel mugs
Milk
Sugar
Napkins

Beans
Roast process
Interior design of
The retail stores
Brewing machine
Roasting machines

SECONDARY
LIFESTYLE
IMPACT

HIGH
COMPLEXITY

Fig. 6.16 iNPD team integration effectiveness

DESIGN

Overcome perceptual gaps among team

members

MARKETING

DESIGN

Use understanding of customers to

maintain interests-based negotiations
Allocate parts using the PDM
Manage with focus on team
empowerment and discipline
understanding

MARKETING

ENGINEERING

ENGINEERING

Independent
Disciplines

Four elements of
team integration

High Performance
iNPD team

An integrated approach to a user-driven process

Fundamental to the success of a product
is positive user experience

Fig: 7.1 User-centered design