Product innovation for customer satisfaction - pmNERDSpmnerds.com/pmnerds/brochures/workdescrip/Product Innovation... · Product innovation for customer satisfaction Contents

Workshop Description 1 2009-2013, All Rights Reserved, pmNERDS LLC

Product innovation for

customer satisfaction

Contents Overview ................................................................................2

Market Sensing.......................................................................3

Problem Definition .................................................................5

Feature Definition ..................................................................8

Requirement Definition ........................................................11

Workshop Deliverables .........................................................14

Index ....................................................................................17

pmNERDS Workshops

version 1.3


Overview Through this workshop, attendees will learn a systematic team approach to product

innovation that is repeatable, defendable, and maintainable. Many times the

organizations’ product innovation effectiveness is heavily dependent upon the

capabilities of team members and their heroics. When team members change or a

team is newly formed, the results are hard to predict and the ramp up time for

members is very large. As buyers are demanding increasingly more product capabilities

and interaction among products, product-lines are becoming harder to manage. The

need to standardize process and centralize data to leverage enterprise, customer, and

market information and assets has dramatically increased the need for better visibility

and communication, not only between product innovation team members, but across

other internal and external stakeholders as well.

By leveraging leading practices in change adoption and our patented deployment

process, our workshops help transform ad hoc communities into formalized communities

of practice that support continuous innovation thru tightly integrated learning &

innovating practices. The product innovation workshop educates attendees on

practices, provides skills mentoring, and performance coaching around the following

activities: market sensing, problem definition, feature definition, and requirement

definition. The product innovation methods in this workshop are gated continuous

processes that can support waterfall, agile, iterative, and spiral methodologies. These

methods have hooks for more robust methods, which can be used to break process

constraints of the product innovation team.

Members of the product innovation team who will be directly responsible for or involved

in creating or managing the specific product innovation assets of market evidence,

ideas, problem statements, product features, and market requirements should attend

this workshop.


Market Sensing

Intro to DANCE

Market sensing is about establishing relationships that make everyone look good. We

use the acronym DANCE to teach the concepts of market sensing.

Differentiation: Evidence of Norms, Equivalent Comparisons, Perceived Value

Anticipation: Co-Synthesis, Trends, Relationships

Nudge: Contact, Covert Change, Planned Sequence

Cost Position: Our Effort, Balance, Decreasing Trend

Echo Chamber: Unfriendlies, External Perspective, Super Sonic

By continually managing the relationship between the firm and the market through the

principles of DANCE, product innovation teams will gain higher customer loyalty.

Through this relationship the product innovation team can create market driven

products that are responsive to market needs, and uncover extraordinary opportunities

that lead to business breakthroughs. Market Sensing with DANCE uncovers needs or

ideas that will allow the product innovation team to differentiate through its ability to

provide value to the customer. This method helps the team to anticipate the needs of

customers, and enables the customers to anticipate what the product innovation team

will deliver next. With Market Sensing, the team has the ability to nudge the market

towards future offerings while doing market research and interacting with them. Using

the analysis of the competitive landscape, organizations can estimate future relative


cost-positions. This method prevents the Echo Chamber effect where the product

innovation team only hears their message being repeated back as opposed to true

market needs.

Intro to Ideas

An idea is a documented request to the product innovation team from end-users,

buyers, and/or stakeholders for new features, products, services, capabilities, or

improvements to existing or new offerings, expressed in the voice of a specified person.

The idea template is used to capture and define ideas at the same level of detail so

that they can be compared and refined efficiently. Using this template the product

innovation team can really uncover the needs of customers that are driving the idea

request.

Idea Gathering Activities

The first step in this market sensing method is capturing feedback or ideas. This

workshop introduces many market sensing activities that generate ideas and

categorizes them into three groups: those methods focused on Market Analysis,

Competitive Analysis, and Customer Satisfaction. Depending on the business objectives

driving market sensing different methods are appropriate. This workshop drills into the

details of the method of capturing ideas and feedback through customers and sales

force requests, which is a Customer Satisfaction method.

Customer Interviews

Interviewing is used to investigate the perceived value of an idea and determine what

competing solutions exist that is similar to this idea. This is used to establish an initial

concept of the ideas differentiation and cost-position.

Pugh's Refinement

The workshop teaches how to use Pugh’s Method of Refinement to improve and refine

ideas. This is one of the major opportunities for innovation in the market sensing process.

Ideas are improved, and new ones are created by synthesizing multiple ideas into one.

Portfolio Balancing

The set of ideas are treated as a portfolio and market segment balancing techniques

are used to eliminate bias and ensure that all target segments are represented. Through

portfolio balancing the impact of loud customers is minimized, and the voice of quiet

customers is solicited.

Tangible Output

A balanced idea portfolio is the end result of the market sensing process. The set of

ideas that are captured, defined, partitioned, refined and ranked throughout market

sensing are treated as a portfolio that is partitioned, optimized and balanced.


Problem Definition

Intro to FORCE

The problem statement provides the force required to deliver customer satisfaction. We

use the acronym FORCE to teach the concepts of problem definition.

Familiar Form – Location, Format, Style Original Perspective – Technology, Stakeholder, Market Perspective

Relevant Progression – Performance Readiness, Change Risk Impact, Innate Roadmap

Carat, Color, Clarity, Cut – Categorize, Current, Comparison Enlightened Service – Customers’ Value Chain, Leadership, Validation

The problem statement provides the force required to deliver customer satisfaction. The

problem statement highlights the conflict that exists between today and the customer’s

desired state. The resolution of this conflict is the driving force of product innovation and

will require change. Just as change requires force, to identify and resolve this conflict,

the product innovation team will need FORCE. Problem Definition with FORCE, focuses

on being able to provide enlightened service. This method focuses on helping to define

problems that can deliver what customers need, not just what customers want. With

enlightened service, the product innovation team discovers customers’ goals, and

anticipates their needs, in order to provide them with empowerment to overcome

obstacles.


Intro to Problem Statements

A problem statement is the documented conflict between the existing or current

situation and the desired situation. The problem statement uncovers the source of

perplexity or conflict, both implicit and explicit; using the voice of the end-user in non-

technical terms.

5W’s & H

This workshop teaches the 5 Ws and H method from Ikujiro Nonaka to uncover and

define problem statements. When speaking about getting an original perspective of a

market problem, we want to step back and look at its origin. Before trying to define

how to solve it, we want to understand where it’s coming from and what is truly driving

both the conflict and the desire to resolve it. The product innovation team must break

away from their current biased opinions and narrow perspective and establish a new

original perspective.

Categorization

The problem statement process first associates each selected idea into one of three

sub-portfolios: Maintenance & Utilities, Enhancement & Improvements, and

Transformational. When writing a problem statement you can write it so that it leads to

different levels of innovative solutions. By categorizing and routing problems into these

portfolios we can drive the innovation process to create solutions that are new to the

world, new to the industry, new to company, or that leverage existing capabilities.

Problems must be relevant to customers, and build up the customer readiness with

each subsequent product launch. Relevant progression ensures that customers’

readiness is steadily increasing. This enables the customers to get engaged, anticipate,

and make the products progression relevant.

Standard Format

This method not only teaches the use of a standard format, but also quickly illustrates

the conflict driving the problem along with the customer’s desired situation. The

principle of familiar form is critical to be able to compare, analyze, and select problem

statements. Problems need to contain the same type of information and written in a

similar format. Using templates and process steps, this method establishes a format for

problem statements and multiple review gates to ensure all the information is captured.

4Cs & GIA Diamond Grading System

The four ‘C’s are used in problem definition to compare, evaluate, and rank problems.

The carat or weight of the problem is based on its market demand. This helps determine

the potential return or opportunity size of addressing this problem. The problem

statement’s color refers to the level of detail included in the description of the problem.

When evaluating problems based on clarity we look for inclusions such as internal bias,

obsolete and incomplete information, or external blemishes such as poor


communication, overpowering and aggressive clients, misrepresentation, and

manipulation. The cut of a problem statement is a measure of its market attractiveness.

The higher the population desiring a solution to a problem statement is the finer the cut.

Tangible Output

A balanced problem statement portfolio is the end result of the problem definition

process. The set of problem statements that are defined, categorized, refined, and

ranked throughout problem definition are treated as a portfolio that is partitioned,

optimized, and balanced according to desired thresholds.


Feature Definition The product feature articulates the promised value customers’ gain from a specific

product capability. We use the acronym VALUE to teach the concepts of feature

definition.

Visualization – End Results, Delivery, Use

Accessibility – Clarity, Single Truth Value, Compelling Purpose Lasting Impact – Duration, Size, Applicability

User Centered – User Voice, User Capability, User Return

Evolved Expectations – Performance Readiness, Optimal Level of Complexity,

Excitement Half-Life

VALUE illustrates and teaches the concepts necessary to communicate your strategic

intent to both internal and external stakeholders concisely. The product feature

articulates the promised value customers’ gain from a specific product capability. The

feature needs to have enough value to motivate customers to adopt the new

capability and anticipate its launch with excitement. The features’ value could be

based on its material and monetary worth, the support it provides towards a goal or

objective, its strength in manipulating emotions, or even its ability to meet specific

needs.


Intro to Features

A feature is a distinctive characteristic of an offering that has a compelling purpose,

intended to impress and delight the consumer at a specific point in time. It is a

functionally noteworthy point or capability.

Standard Format

This workshop leverages a template that captures the feature goal and high-level

technical approach. Using this format the product innovation team can ensure that the

features are written in a way that is accessible, focused on the user, and that customers

can visualize themselves using to get a desired benefit or result.

TRIZ Levels of Invention

This method uses the TRIZ Levels of Invention to determine the appropriate solution types

for features. Alignment between the problem sub-portfolio type and the solution level

are maintained to ensure features are in line with the markets evolved expectations.

Typically the level of invention of a feature also impacts the value impact and duration

of that impact which is the focus of the Lasting Impact principle. The goal is to try and

balance the feature portfolio with features that will have as long a lasting impact as

possible and those that have a large impact over a shorter period of time.

Brainstorming

The problem solving technique of brainstorming is used to define features for the

selected problem statements. The workshop teaches guidelines as well as potential

derailers or issues of brainstorming activities. While brainstorming it is important to define

the feature in a way that it produces a clear visual image so that all the people

involved will interpret the feature in the same way.

Function Point Categorization

Functional Point Analysis blazed the trail for business process engineering based on

functional demand. This method establishes a foundation for functional analysis using

standard function points in the feature categorization process. Specific products

targeting various industries can modify these function points to make them more

reflective of market segment demands. This categorization makes estimation easier and

increases process efficiency by bundling features to leverage product assets and

development efforts; while reducing redundant initiatives.

Efficient Frontier

Features cost or development effort is scoped in this method and is compared against

the feature’s business value impact to create an Efficient Frontier for analysis. Attendees

gain experience ranking and selecting features in the “Zone of Efficiency” and

leveraging portfolio balancing techniques to help the product innovation team select


out of all the opportunities they could invest in, those features that will bring the greatest

value to both the market and the stakeholders.

Tangible Output

A balanced feature portfolio is the end result of the feature definition process. The set of

features that are defined, categorized, refined, scoped, and ranked throughout

feature definition are treated as a portfolio that is partitioned into levels of invention,

optimized, and balanced according to the product innovation strategy.


Requirement Definition

Intro to MODEL

The market requirement provides the description & constraints of a feature, in order to

form a mental model of what is needed to satisfy the customers. We use the acronym

MODEL to teach the concepts of requirement definition.

Milestones – Accessible, Standard, Verifiable, Organized – Make Tangible, Relationships, Multiple Partitioning

Design – Future Intent, Holistic View, Conflict Management

Estimates – Buy-in, Constraints, Probability & Magnitude Legitimize – Socialize & Debate, Verification, Validation

We use the acronym MODEL to illustrate and teach the concepts necessary to define

good market requirements that will deliver satisfied customers. We use this acronym

because models give features and their requirements a physical representation.

Modeling is about making what seems intangible, tangible. When you have a feature

you must design, build, and deliver, you need a way of modeling it within the context of

the whole.

The Requirements Definition with MODEL Method is concerned primarily with market

requirements definition and analysis, leading to the translation of product features into

a set of PERFORMANCE requirements, BASIC requirements, and EXCITEMENT


requirements that can later be translated into design requirements by the engineering

and development teams.

Intro to Market Requirement

A market requirement is a clear articulation of what is called for by the circumstances

or nature of the product feature. It states in an inward facing voice that which

necessarily follows from, and is needed to delight the customer through achieving the

feature’s goal.

Kano Analysis Categories

Requirements can be categorized into three major types based on impact to customer

satisfaction. These types are derived from Kano Analysis assessments. By using these

types as sub-portfolios of the requirement portfolio, product innovation teams can

manage the customer satisfaction levels of their products by adjusting the portfolio mix

based on these three requirement categories.

Quality Gate Review Criteria

The objective of the quality gate review for requirements is to verify that the nine quality

checkpoints of requirements have been met. It is also acts as a socialization step for

gate reviewers, enabling the discussion, clarification, and debate on requirements to

happen throughout the process.

Estimation

Features have different constraints that need to be met when defining the market

requirements. It ranges from cost, time, risk, capability, and so on. Estimating

requirements is critical to avoiding breaking these constraints. If requirements are not

estimated, you increase the risk that a feature will not meet its constraints, and will not

be delivered successfully if at all. In this method, the product innovation team estimates

all the BASIC, PERFORMANCE, and EXCITEMENT requirements.

Cohesiveness, Prerequisite, and Dependency Relationships

This step strives to estimate the effect each requirement has on each other from the

perspective of value and customer satisfaction. When requirement relationships are

being analyzed, they become legitimized through tracing. The product innovation

team knows not only where requirements come from, but also how they impact each

other.

Tangible Output

A balanced requirement portfolio focused on delivering delighted customers is the end

result of the requirement definition process. The set of requirements that are defined,

categorized, refined, estimated, and bundled throughout requirement definition are


treated as a portfolio that is partitioned into requirement types, optimized for customer

satisfaction, and balanced according to the product innovation strategy.

The Product Innovation Team

Who’s on your PIT Crew?


Workshop Deliverables

Process EFBD

Unlike other training courses that tend to focus on either strategy or tactics, and fail to

address practices in context of strategy, pmNERDS™ workshops address both the

tactical 'WHAT' & 'HOW', along with the more strategic 'WHY' and 'WHEN', not just in

generalized glossed over objectives, but in context of complete business process

definition, primary business goals, and process objectives.

Function blocks have been used by mankind even before there were napkins at

restaurants. They have become second nature; few need an explanation of how they

work. The FBD, “Function Block Diagram” is enhanced to define what information is

required by each block, and what information is produced by each block. It is further

enhanced by including the control logic of the process. Together these enhancements

and the block diagram are referred to as an “Enhanced Function Block Diagram”.

The EFBDs document the specific process being implemented. This documentation

enables quick change impact analysis, and increases process maintainability while

lowering overall cost of ownership. A visual diagram helps gain rapid consensus for

process standardization and lowers new-process ramp-up times. By using the EFBDs,

organizations can validate data-flow and process control logic prior to implementation

and reduce rework costs.

Reference Guide

Unlike other training courses that leave the participants empty handed or with a binder

full of power point notes after the course, pmNERDS™ training workshops provide a fully

indexed reference guide for each workshop that includes process background, best-

practice theory, asset descriptions and definitions, dramatized case studies, process

diagrams, data flows, process control logic, logical data model, and process

ownership.

Dramatic Case Studies

Our case studies are used to further illustrate concepts presented within our reference

guides. These concepts are illustrated through fictitious dialog between members of a

product innovation team. They anticipate common questions, and provide answers in

an illustrative way that facilitates the learning experience.

Reference Material

pmNERDS™ is not a research and development organization. The methods we teach

are proven across multiple industries and have stood the test of time. As the product

innovation professional organizations and members of the community at large publish

new methods, we establish where these new methods can be inserted into the bigger

innovation process when constraints demand it. When possible, we also provide a list of


these published works that further support the material taught in our reference guides.

This additional reference material can provide a rich background that there isn't

enough time to provide in a one day course.

Glossary of Terms

Like other professions, there are a lot of acronyms and jargon plaguing the product

innovation discipline. Unlike many other professions, there is not common agreement on

the meaning of many of these terms. Our workshops provide a glossary of terms in our

reference guide that helps the onboarding process, but also helps in the rapid

institutionalization of new processes, and product innovation concepts.

Logical Data Model

The logical data model documents the needed information, including pull-down menu

values, relationships, reports, dashboards, statistic objects, and external file links for

implementation in the tool or tools of your choice.

This diagram is an enhanced Entity Relationship Diagram, mapping relationships

between entity attributes instead of just entities. It contains industry standard values for

pull-down menus as taught in the workshops, and relationship definitions including

mathematical expressions for computed information. It defines data types; logical

database entities including dashboards, scorecards, and reports along with statistical

entities used to capture the persistent data used in the workshop processes.

The logical data model is included with workshops to help integrate product innovation

activities with other activities found within the innovation value chain, and break down

process and informational silos. It allows the IT specialist to leverage existing IT

investments from clearly specified data needs. The Logical Data Model is an enabler to

quickly facilitate adoption within the larger enterprise architecture. The bottom line is

that this helps IT further reduce total cost of ownership with increased maintainability of

the product innovation implementation in an environment of change.

Deployment Project Template

Unlike other training courses that ignore change adoption and deployment of new

processes, the pmNERDS™ training workshops include access to deployment project

plans, templates, self-assessments, and information that helps transfer ad-hoc

communities into formalized product innovation communities of practice based on

over 300 product innovation implementations and our patented Seven Pillar

deployment architecture.

Communication Plan Template

Many training courses fail to enable the promotion and implementation of the new

practices taught in the course, in pmNERDS™ workshops, you'll construct a

communication plan, specific for the topics of that workshop, which identify adoption


hurdles, messages, and activities for the targeted personas of your organization to

ensure smooth adoption.


Index

A

Adoption, 2, 12

Adoption Plan, 12

Analyze, 3, 6, 8, 9, 11

Anticipation, 3, 6, 7, 11

Asset, 2, 8, 11

B

Balance, 7

BASIC, 9, 10

Best-Practice Theory, 11

Bias, 4, 6

Business Objectives, 3

C

Capability, 2, 3, 6, 7, 10

Carat, 5

Categorization, 3, 5, 9

Centralize, 2

Change, 2, 5, 11, 12

Clarity, 6

Color, 6

Communication, 2, 6, 12

Community of Practice, 2, 12

Compelling, 7

Competitive Analysis, 3

Conflict Management, 5, 6, 9

Consensus, 11

Constraints, 2, 9, 10, 11

Continuous, 2

Control Logic, 11

CORE Method, 9

Cost Position, 3, 4

Customer, 1, 2, 3, 5, 6, 9, 10

Interviews, 4

Loyalty, 3

Satisfaction, 1, 5, 9, 10

Cut, 6

D

DANCE, 3

Dashboards, 12

Data-Flow, 11

Defendable, 2

Deliverables, 1, 11

Deployment, 2, 12

Design, 9

Development, 9

Differentiation, 3, 4

Dramatized Case Studies, 11

Driving Force, 5

E

Efficient Frontier, 8

Engage, 6

Enlightened Service, 5

Enterprise Architecture, 12

Entity Relationship Diagram, 12

Estimate, 3, 8, 10

Estimates, 10

Evolved Expectations, 7

EXCITEMENT, 9, 10

F

Feature, 2, 7, 8, 9, 10

Feedback, 3

FORCE, 5

Foundation, 8

Function Blocks, 11

G

Glossary, 12

Goals, 5, 7, 9, 11

I

Ideas, 2, 3, 4, 5

Implementation, 11, 12

Initial, 4

Innovation, 1, 2, 3, 4, 5, 6, 11, 12

Innovation Team, 11

Interaction, 2

Investment, 12

L

Legitimize, 9

Level of Invention, 7, 8


M

Maintainable, 2

Market, 1, 2, 3, 4, 5, 6, 8, 9, 10

Analysis, 3

Attractiveness, 6

Requirement, 2, 9, 10

Research, 3

Segment, 4, 8

Market Sensing, 1, 3

Method, 9

MODEL, 9

N

Nudge, 3

O

Objectives, 7, 9, 11

Opportunities, 3, 4, 8

Optimal, 4, 6, 8, 10

Organized, 9

Original Perspective, 5

P

Partition, 4, 6, 8, 10

Perceived Value, 4

Performance, 2, 9

PERFORMANCE, 9, 10

Performance Coaching, 2

Personas, 13

Perspective, 5, 10

Portfolio, 4, 6, 7, 8, 9, 10

Balance, 4, 8

Mix, 9

Practices, 2, 11, 12

Problem, 2, 5, 6, 7, 8

Problem Solving, 8

Problem Statements, 2, 5, 6, 8

Process, 2, 4, 5, 6, 8, 10, 11, 12

Process Background, 11

Product, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12

Product Innovation, 2, 3, 5, 7, 8, 9, 10, 11, 12

Product Innovation Team, 2, 3, 5, 7, 8, 9, 10, 11

Project Plans, 12

Q

Quality, 9

R

Ranking, 4, 6, 8

Reference Guide, 11, 12

Reference Material, 12

Refinement, 3, 4, 6, 8, 10

Relationship, 3, 10, 12

Relevant Progression, 6

Repeatable, 2

Requirement, 9

Requirements, 2, 9, 10

Review, 6, 9

Risk, 10

S

Scorecards, 12

Self-Assessments, 12

Skills Mentoring, 2

socialization, 9

Stakeholders, 2, 3, 5, 7, 8

Standard, 6, 8, 12

Standardize, 2

Strategic Planning

Objectives, 9

Strategies, 7

Strategy, 7, 8, 10, 11

Sub-Portfolios, 5, 7, 9

Synthesis, 4

Systematic, 2

T

Tangible, 9

Team, 2, 3, 5

Templates, 6, 12

Thresholds, 6

TRIZ, 7

V

VALUE, 7

Value Chain, 12

Voice, 3, 4, 5, 9

Documents

Product innovation for customer satisfaction - pmNERDSpmnerds.com/pmnerds/brochures/workdescrip/Product Innovation... · Product innovation for customer satisfaction Contents