Analytical approach Attribute Value Mapping
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1 Analytical approach Attribute Value Mapping 2009, SIT 1
2 Bi-Polar Business Development Current Situation Watered down value proposition. Hard to differentiate towards competition. Need of renewal - new ideas and concepts. Analysis Provocation Desired Situation New ideas, concepts and offerings. Unique and compelling value proposition. Strong competitive advantage. 2009, SIT 2
3 Market Threats Low-cost products High-tech products Solutions Decrease cost Increase profit 2009, SIT
4 Innovation! How? 2009, SIT 4
5 Market survey - identify new customer needs Identify market needs in order to create attributes (specs) that comply to the needs New value New attribute If I had asked my customers what the wanted they would have answered faster horses! Henry Ford 2009, SIT
6 If you cannot predict the future, invent it! 2009, SIT 6
7 Brainstorming can easily lead to out of the box ideas, mentally as well as resource-wise New value Brainstorming New attribute 2009, SIT
8 Think outside the box 2009, SIT 8
9 Think inside the box 2009, SIT 9
10 KAPRO - Needed ideas In the Box Used available resources to make competitors irrelevant New for Kapro $ Market Existing for Kapro $ Known to Kapro New for Kapro Technology 2009, SIT
11 Sweet Spot of Innovation Too far away Too close The sweet spot A differentiated value 2009, SIT 11
12 New value Luck and Ad hoc innovation has created many successful innovations! New attribute Luck 3M s Post-it 2009, SIT
13 New value Luck and Ad hoc innovation has created many successful innovations! New attribute Luck Procter & Gamble s Ivory Soap 2009, SIT
14 New value Luck and Ad hoc innovation has created many successful innovations! New attribute Luck Pfizer s 2009, SIT GlaxoSmithKline s Zyban
15 "Our company has, indeed, stumbled onto some of its new products. But never forget that you can only stumble if you're moving." Richard P. Carlton, Former CEO, 3M 2009, SIT 16
16 What would your main selling points be if you were to sell a spirit-level? 2009, SIT 17
17 Attributes vs. Values Attributes Objective facts about a product or service. Describe the qualities or characteristics. Formulated from the company s perspective - Our product Values Whatever the customer can expect to gain from the product or service. Describe the values for the customer. Formulated from the customer s perspective - I as a customer has a plumb-vial. can measure levelness. 2009, SIT 18
18 I give You get 2009, SIT 19
19 2009, SIT 20
20 2009, SIT 21
21 Attribute-Value Mapping Value Value Value Value Value Value Value Value Attribute Attribute Attribute Attribute 2009, SIT 22
22 Attribute-Value Interconnection Values are always based on one or more attributes. I can build horizontal constructions Attribute are usually composed of other more basic attributes. I can measure levelness Values Plumb Vial Attributes Bubble Glass container Liquid 2009, SIT 25
23 Attribute-Value Mapping I can build horizontal constructions I can measure levelness So what? Values So what? How? Plumb Vial How? How? Attributes Bubble Glass container Liquid 2009, SIT 26 9
24 Fall in love with customer values! Understand what we have! 2009, SIT 27
25 4% Global success factor for innovations across all industries and markets Source: Doblin Analysis 2009, SIT 28
26 Products do not survive without differentiating value. The majority of all product introductions aim for defending market shares, not take new ones. 2009, SIT 29
27 Attributes are expanded Edge Logo Plumb Vial Body Plastic Hole Glass container Bubble Liquide Plastic frame Milled surface Length: 60 cm 2009, SIT Indicators Accuracy: 0.5mm/m 30
28 Values identifies from attributes I feel good I earn more money I get positive feedback I get more customers I get satisfied customers I can work effectivelly I have my tools in good order I'm "proud" of showing of the brand I build plumb constuctions I can work easier I don't have to worry I don't lose time and money I can can hang up the level I feel it looks nice and I recognize the brand I feel bad about advertising other's goods I can measure levelness I get a good grip of the body I can "mistreat" my level without it breaking Edge Logo Plumb Vial Body Plastic Hole Glass container Bubble Liquide Plastic frame Milled surface Length: 60 cm 2009, SIT Indicators Accuracy: 0.5mm/m 31
29 I earn more money I get positive feedback I get satisfied customers I get more customers I can work effectivelly I can use it to force/hammer things into place I build plumb constuctions I can work easier I don't have to worry I don't lose time and money e I feel bad about advertising other's goods I can measure levelness I get a good grip of the body I can "mistreat" my level without it breaking Logo 2009, SIT Plumb Vial 32 Body
30 KAPRO Innovation by Analysis New for Kapro $ Market Existing for Kapro $ Known to Kapro New for Kapro Technology 2009, SIT
31 Distinctive value Hygiene values Price 2009, SIT 34
32 SIT and one of Swedens biggest bakeries launched a innovation project with the aim of identifying distinctive values. Äntligen Subs ( At Last Subs ) was launched autumn 2008 The bread is already the forth biggest in the Swedish sale charts, with a doubled price in comparison to its toughest competition. Distinctive value: Easy to eat with one hand on the go. SIT Tool: Multiplikation 2009, SIT 35
33 1. The business potential within portion bread was identified 2. Consumer values where analysed in a value analysis. A differentiating value was chosen easy to eat with one hand on the go. 3. Possible solutions where created to fulfil the differentiated value. 4. The concept behind Äntligen Subs was created. Tool: Multiplication 5. Äntligen Subs has today a volume of 180,000 packages a week and is Sweden's forth best selling bread. 2009, SIT 36
34 During winter 2004 Malaco and SIT worked together in an innovation project that focused on developing new sweets (candies) in bags. This was one of several innovation projects leading to Malaco s launch of the Truly concepts. Malaco Truly The concept of sweets that puts naturalness and purity above all. A sweet that can be eaten without having a bad conscience. Turnover: 50 MSEK in Sweden alone. Distinctive value: A clear conscience SIT Tool: Attribute dependency 2009, SIT 37
35 1. The business potential within sweets in bags was identified. 2. Consumer values where analysed in a value analysis. A differentiating value was chosen With a clear conscience. 3. Possible solutions where created to fulfil the differentiated value. 4. The concept behind Truly was created. Tool: Attribute Dependency Alt 1 Alt 2! 5. Malaco Truly is selling today in big parts of Europe. 2009, SIT 38
36 Shift mental set of attributes and values Inside-out perspective Outside-in perspective Value Value Attribute Attribute Attribute Attribute 2009, SIT 39
37 Shift mental set of attributes and values Inside-out perspective Value Attribute 2009, SIT 40
38 Values identifies from attributes I feel good I earn more money I get positive feedback I get more customers I get satisfied customers I can work effectivelly I have my tools in good order I'm "proud" of showing of the brand I build plumb constuctions I can work easier I don't have to worry I don't lose time and money I can can hang up the level I feel it looks nice and I recognize the brand I feel bad about advertising other's goods I can measure levelness I get a good grip of the body I can "mistreat" my level without it breaking Edge Logo Plumb Vial Body Plastic Hole Glass container Bubble Liquide Plastic frame Milled surface Length: 60 cm 2009, SIT Indicators Accuracy: 0.5mm/m 41
39 What value? What attribute? 2009, SIT
40 It has been a very positive experience to work with SIT in this project. In projects it is often a question of internal resources and competences versus need for consultants in projects and the same goes for this project. And the decision to go for consultants is even higher in the financial crisis we have at the moment. Now, with the result in the hand, together with the whole experience through the project as well, I must say that this was really value for money and it is not likely that we could have such a high quality result without the involvement of SIT. At the same time it was a pleasure to see how SIT took the project leader role without it being part of the scope of supply. It will be my pleasure to pay the last invoice , Thomas Möller, Alfa Laval AB 2009, SIT 43
41 Shift mental set of attributes and values Outside-in perspective Value Attribute Attribute Attribute 2009, SIT 44
42 Values in Bad times I have to sell before I can buy! The bank isn t giving me a loan Copyright 2008, SIT 45
43 We can provide storage Solutions! I have to store my stuff! I have to sell before I can buy! Widerlöv genomförde en workshop för att klara krisen: * Flytthjälp till de som säljer först * IB-samordnare * Tätare banksamarbete De har tagit marknadsandelar 2009, SIT 46
44 A penetrating, discerning understanding that unlocks an opportunity. 2009, SIT 50
45 Value map 1 3 Value 4 Value Customer Values Competitor 1 Distinctive Value Value Value Value Value Competitor 3 Competitor 2 Value Value Value Value Value Value Value Value Value Value Attribute 2 Attribute Attribute Attribute Attribute 2009, SIT 53
46 Why is it difficult to identify new solutions? Copyright 2008, SIT
47 Which is the odd one out? 1) 13 2) 17 3) 19 Copyright 2008, SIT
48 Provocative Business Development Current Situation Watered down value proposition. Hard to differentiate towards competition. Need of renewal - new ideas and concepts. Provocation Desired Situation New ideas, concepts and offerings. Unique and compelling value proposition. Strong competitive advantage. Copyright 2008, SIT 61
49 Market survey - identify new customer needs New value AV-mapping Brainstorming New attribute Luck Provocation Copyright 2008, SIT
50 Get an idea? From who? or Create an idea! Copyright 2008, SIT 63
51 New value New attribute Provocation using SIT Thinking Tools to break mental fixedness Provocation Copyright 2008, SIT
52 Adapt idea and Identify Feasibility New value Identify Customer Values Define Virtual Product New attribute Manipulate object Provocation Choose object Copyright 2008, SIT
53 Adapt idea and Identify Feasibility Identify Customer Values Define Virtual Product Manipulate object Manipulate object Multiplication Choose object Copyright 2008, SIT
54 Multiplication A multiplication (or addition) of components already existing in the product along with a required adjustment - Qualitative Change. Copyright 2008, SIT 67
55 The logic behind SIT Genrich Altshuller SIT is based on thoughts originally formulated by the Russian marine engineer Genrich Altshuller ( ). Altshuller compiled common principles for hundreds of thousands of patents and inventions into a method of approaching problems in technology and engineering. SIT has later been adapted to the fields of new product development, marketing, process and business development. Copyright 2008, SIT
56 Study of Creative Thinking Usually people refer to the - Inventive Person (choose your co-workers) - Inventive Circumstance (no criticism, brainstorming, lateral thinking etc.) SIT instead deal with - Inventive Patterns (identified from s of patents, successful marketing and business models) Copyright 2008, SIT 69
57 Reference Multiplication Widerlöv - Real Estate Agent An additional mailbox where the owner distribute prospects and passers-by easily can obtain a copy at all times. Enabling greater intake of presumptive buyers. Copyright 2008, SIT 70
58 Adapt idea and make it doable Identify Feasibility Change properties for the Identify Customer Values Multiply component Define Virtual Product Manipulate object Manipulate object Multiplication Choose object Choose one component Copyright 2008, SIT
59 Adapt idea and make it doable Identify Feasibility? Identify Customer Values It could be use to align sloping floors (2%) and pipes (1%)! Define Virtual Product Manipulate object Multiplication Choose object Copyright 2008, SIT
60 Adapt idea and make it doable Kapro patented the idea with plumbing angles and called it Top grade. Within one year after launch of Top grade, the revenue doubled and the profit tripled Copyright 2008, SIT 73
61 KAPRO New for Kapro $ Market Existing for Kapro $ Known to Kapro New for Kapro Technology Copyright 2008, SIT
62 Adapt idea and make it doable Function Follows Form Identify Feasibility Need? Function Identify Customer Values Define Virtual Product Form Manipulate object Specifications? Choose object Copyright 2008, SIT
63 Sweet Spot of Innovation Too close A differentiated value The sweet spot Too far away SIT inwards mechanisms: In the box feasibility - Can it be done? Not all ideas are good! Starting point is today s DNA Does the idea connect to a customer value? SIT Outwards mechanisms: Using ThinkingTools to break mental fixedness Identifying new customer insights Does the idea connect to a differentiated customer value? 2009, SIT 76
64 Systematic Innovation is about changing focus - constantly Business model Organization Marketing Production Product & Services Logistic Branding Processes Strategy Copyright 2008, SIT 77
65 Subtraction - Examples Subtraction - Elimination of core components rather than addition of new functions. Metro Newspaper Ghicco Baby Seat Dyson Cyclone - Vacuum Cleaner Cash Card Mobile Phone Copyright 2006, SIT 78
66 Reduction - Philips DVD-player 1999 Q50 DVD Player Range A DVD player without a display an idea with several benefits. The unit could be very thin, thus saving space and cost. In addition, a very minimalistic design was achieved, rendering award prizes for its innovative design. The difficult thing is that people believe that creativity is a personality trait of the best people in the company, but if you apply the right methods, like SIT, you generate many, many useful ideas. Today [4 years later] the company is still rolling out many of the 149 usable ideas generated. Henk Speijer, Senior Consultant, Market Intelligence, Philips Consumer Electronics Copyright 2006, SIT 79
67 Tapping into a market 10 times bigger than the traditional third-party market New flexible value offer - every module a product US$ 10,00 Billion Compliance Management Marine Personal Machinery Optimisation Dry Docking Contingency Response Purchasing Accounting Environmental Excellence Safety Excellence New Service New Service US$ 10,00 Billion US$ 7,50 Billion US$ 5,00 Billion Original rigid value offer - all modules as the service Compliance Management Marine Personal Machinery Optimisation Dry Docking Contingency Response Purchasing Accounting Environmental Excellence Safety Excellence New Service New Service US$ 1,25 Billion Old market Redefined market US$ 2,50 Billion US$ 0 Billion 2009, SIT 1
68 Framework for Innovation Capability RESULTS STRUCTURE CULTURE 2009, SIT 2
69 Innovation, by definition, means taking risks. However, nothing is more risky than not innovating. Copyright 2006, SIT 80
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