Creativity Research

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Creativity Research
You cannot think about thinking without thinking
about something (De-Kleer, J)
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Creativity in Advertising
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Creative Ads
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Creative Ads
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Creative Ads
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Creative Ads
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Market is a Complex System

• Market research revealed that during the last
  year the satisfaction of the consumers was
  increased. There were no changes in the product
  or the marketing activities. Good or bad news?
• In the firms portfolio of products you can
  spot a product that is an absolutely disaster in
  its design All the attributes are in the lowest
  level compared to the competing brands.what is
  your suggestion?

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Ideal points and satisfaction
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Decoy products
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Saddles Ubiquity
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Different types of adopters
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The Chasm
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Saddles explication
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Saddles Criticality
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Fax Machines
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Fax Machines - Do not forget the Take off
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What Is a New Product?

• New-to-the-World Products
• New Category Entries
• Additions to Product Lines
• Product Improvements
• Repositionings

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Why do Products Fail?
Results of some Older Studies

• Inadequate market analysis
• Competitive strength
• Insufficient mktg. effort
• Higher costs
• Poor timing
• Inadequate sales force
• Inadequate distribution
• Product deficiency

• Bad estimates of market potential
• General lack of market information
• Inadequate market size
• Over enthusiasm of product sponsor
• Resistance and impatience
• Internal conflicts

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Why do Products Fail?

• Project Newprod A study of over 200 industrial
  products
• Better mousetrap nobody wanted -- 28 of
  failures
• Me-too product meeting competitive brick wall
  -- 24
• Competitive one-upmanship -- 13
• Environmental ignorance -- 7
• Technical dog product -- 15
• The price crunch -- 15

Source Cooper and Calantone (1979).
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The Pillars of Success

• Unique, superior product
• Marketing knowledge and proficiency
• Technical (product) knowledge and proficiency
• Together Winning Strategy
• Best strategy A unique, superior product (in
  the eyes of the customer) that delivers unique
  benefits.

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The Conflicting Masters of New Products Management

• Three inputs to the new products process the
  right quality product, at the right time, and at
  the right cost.
• These conflict with each other but may have
  synergies too.
• Issue how to optimize these relationships in a
  new product situation.

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Failure or Success ?
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Failure or Success ?
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Polo Harlequin
market researches did not predict such a car
Is it possible that the car designers are not
familiar with the customers taste ?
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Post-It

• A failure
• An accident
• A rare event
• An insight
• A mistake
• Dedication - Test Marketing
• New Product

?
12 years
Why did the marketing researchers of 3M fail to
identify the need for such a product ?
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What Separates the Winners from the Losers

• New Product Process Success Factors
• 1. Developing a superior, differentiated product
  with unique benefits and superior value to the
  customer or user.
• 2. Having a strong market orientation throughout
  the process.
• 3. Undertaking the predevelopment homework up
  front.
• 4. Getting sharp, early product definition before
  development begins.

Source Robert G. Cooper (1996).
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What Separates the Winners from the Losers

• 5. Quality execution -- completeness,
  consistency, proficiency -- of activities in the
  new product process.
• 6. Having the correct organizational structure
  multifunctional, empowered teams.
• 7. Providing for sharp project selection
  decisions, leading to focus.
• 8. Having a well-planned, well-resourced launch.
• 9. Correct role for top management specifying
  new product strategy and providing needed
  resources.

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What Separates the Winners from the Losers

• 10. Achieving speed to market, but with quality
  of execution.
• 11. Having a multistage disciplined new product
  game plan.
• Project Selection Success Factors
• 1. Having a unique superior product.
• 2. Product-market environmentmarket
  attractiveness, competitive situation, PLC stage.
• 3. Synergy and familiarity.
• In Short a winning strategy is
• A unique, superior product (in the eyes of the
  customer) that delivers unique benefits.

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A Mortality Curve of New Product Ideas
No. of Ideas
Screening
One Successful New Product
Development
Business Analysis
Testing
Commercialization
Cumulative Time
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Uncertainty in New Product Development
IDEA ---------------------------------------------
--------------- LAUNCH
Amount at Stake
Uncertainty
Ideally, a new product development
should --Reduce uncertainty over the development
process --Keep amounts at stake low while
uncertainty is high
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A Typical NPD Process
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The Me-Too Rationale
On average, over 50 of firms revenues consists
of new products that were launched during the
past 5 years
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The Me Too Fallacy

• While some firms strategies consist of me too,
  more than 75 of the top 3 firms constantly
  innovate.
• The Me Too products failure rate is of the
  same magnitude of order.
• A Me Too product has no contribution to firm
  infrastructure, dimensions of growth or synergy.

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Rate of Use of NPD Steps among PDMA Members

• Concept searching 90
• Concept screening 76
• Concept testing 80
• Business analysis 89
• Product development (technical) 99
• Use testing/market testing 87

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Ending Idea Erosion One List of Killer Phrases

• Its just not right I cant tell you why.
• I know what I want when I see it Ill tell you.
• Heres my idea, now execute it!
• It shouldnt take more than an hour to do.
• Put it in writing!
• Dont ask questions just follow the rules.

• You need the approval of five unit heads.
• I personally wouldnt do it, but you can try.
• Why say thank you? Its his job, isnt it?
• What will the boss think?
• Dont rock the boat.
• Weve never done it this way before.

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Historic Roadblocks to Innovation

• I think there is a world market for maybe five
  computers. Thomas Watson, Chair, IBM, 1943.
• Computers in the future may weigh no more than
  1.5 tons. Popular Mechanics, 1949.
• I can assure you that data processing is a fad
  that wont last out the year. Business books
  editor, Prentice-Hall, 1957.
• So we went to Atari and said, ...Well give it
  to you. We just want to do it. Pay our salary,
  well come work for you. And they said no. So
  then we went to HP, and they said We dont need
  you, you havent got through college yet. Steve
  Jobs, co-founder, Apple Computers.
• 640K of RAM ought to be enough for anybody.
  Bill Gates, Microsoft, 1981.

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Historic Roadblocks to Innovation

• Who the hell wants to hear actors talk? H.M.
  Warner, Warner Bros., 1927.
• Stocks have reached what look to be a
  permanently high plateau. I. Fisher, Prof. of
  Economics, Yale, 1929.
• We dont like their sound, and guitar music is
  on the way out. M.. Smith, Decca Records,
  rejecting the Beatles demo tape, 1962.
• This telephone has too many shortcomings to be
  seriously considered as a means of communication
  and is inherently of no value to us. Western
  Union, 1876.
• Heavier-thanair flying machines are
  impossible. Lord Kelvin, President, Royal
  Society, 1895.
• Everything that can be invented has been
  invented. C. H. Duell, Commissioner, U.S. Office
  of Patents, 1899.

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Product Superiority Vs. Market Mix
The impact of a product Superiority far outweighs
other elements of marketing mix (e.g. sale force,
brand equity, promotion) in determining success
Robert G. Cooper (1996) New Products, What
Separates Winners from Losers. In PDMA Handbook
of New Product Development, John Wiley Sons,
NY.
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Newness Maps
Newness to the World Firm Newness Market
Newness
Firm Newness
High
Product Company fit issues
Mod
Cannibalization or Incremental sales
Product Market fit issues
Low
Low
Mod
High
Market Newness
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The Prevailing Paradigm
Ideas for a really new product
I dont know who discovered the sea, but it sure
wasnt a fish. An old Arab saying
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What Are The Market Conditions For An Unexpected
Idea?
Two virtual market situations
I Early stages of awareness for a new need II A
strong demand
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Creativity Science Is Rather Young

• Connolly T., Routhieaux R. L., Schneider S.K.
  (1993). On the Effectiveness of Groups
  Brainstorming Test of One Underling Cognitive
  Mechanism. Small Group Research, 24, 490-503.
• Dasgupta Subrata (1994), Creativity In Invention
  And Design - Computational and Cognitive
  Explorations of Technological Originality.
  Cambridge University Press.
• Diehl M., Stroebe W. (1987) Productivity Loss in
  Brainstorming Groups Toward the Solution of the
  Riddle. Journal of Personality and Social
  Psychology, 53 p. 497-509
• Finke Ronald A , Thomas B. World and Steven M.
  Smith (1992), Creative cognition. MIT Press
  Cambridge Massachusetts.
• Perkins D.N (1981 ) The minds best work, Harvard
  University Press
• Weisberg Robert W. (1992), Creativity Beyond The
  Myth Of Genius. W.H. Freeman Company NY.

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The Famous Getting out of the square Puzzle

• In the 70s only 20 solved this riddle
• In a replication (1989), participants where
  supplied with further instructions "In order to
  solve the riddle intersections of lines out of
  the imaginary square should be created."

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The Role of Product Evolution
The market-based parameters are constantly mapped
into the set of product-based parameters due to a
selection process
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Edisons Gate
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Kinetic Compaq
Full -
Empty -
Battery Status
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Cellphone speaker
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SETI_at_home
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Approaches To The Research Of Creativity
Personality Research Who is the creative person
Research of the Thinking Process Thinking
patterns Thinking models
Research of Creative Ideas Reconstruction of the
objective logic of the ideas themselves
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Conclusion
The market cannot indicate a need, if it does not
aware that such a need exists
If we wish to find an innovating new product -
there is no point to look for it in the market
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Products Evolution Example The Chair
Property
Use
Length of chairs legs The back of the chair The
arms of the chair Adjustable back Chair on wheels
Brings the body to desired height Support the
back Support the arms Adjustment to body Ability
to move with the chair in space
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Advantages Underlying the Set of Product-Based
Parameters The Product-Based Set of Parameters
is Manageable

• The parameters are noticeable.
• The size of this set is relatively small
  (compared to market-based sets).
• Similar to factors drawn from factor-analysis,
  the product-based set allows efficient
  manipulations.
• The parameters can be controlled to create new
  forms of the product.
• The history of the development of customer
  preferences is already embedded in the relations
  between the product-based parameters.

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Attributes Dependency Template
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Graphic Presentation of Attributes Dependency
Y
Y
X
X
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Graphic Presentation of Attributes Dependency
At Polo Harlekino
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Attribute Dependency Example Pizza Deliveries
Domino's Pizza dominates the pizza delivery
market. A competing chain interested in
penetration to this market is forced to choose
one of two alternatives 1. 2.
Introduction of an innovative product or service.
A long and fierce competition.
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The Dilemma
The competitor introduces a new product
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Attribute Dependency Example Pizza Deliveries
The market before Domino's
The market after Domino's
There is no dependence between price and time of
delivery
The price is dependent on time of delivery
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Attribute Dependency Example Pizza Deliveries
Before adding a new dimension
After adding a new dimension
There is no dependence between the price and a
certain value
The price is dependent on a certain dimension
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New dependency for pizza deliveries
Attribute
Reason
Possibility
No
The size of the pizza Taste Adding a bottle of
soft drink Temperature Distance between customer
and pizza shop Amount of previous orders
The price is already dependent on the pizza size
The attribute is relevant, but difficult for
measuring
Maybe
No
A bottle is a component, not an attribute
Yes
Very relevant, easy to measure
Yes
Easy to measure, but not so relevant
Although relevant and measurable, sometime the
price already changes according previous orders
Maybe
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Attribute Dependency Example Pizza Deliveries
Price and temperature
Solution - a new dimension
There is no dependence between the price and the
temperature
The price is dependent on the temperature
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A Basic Candle
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The voice of the customer leads to the
emergence of a variety of colors
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Attribute Dependency Example Candle in the wind
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Attribute Dependency A Real-Life Example
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R
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Attribute Dependency Example Pain Reliever
Therapeutic Substances doses
Time
The same doses is being used during night and day.
The doses are higher at night time.
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Attribute Dependency
Two ways of implementing new attributes
dependency
Within a product
Between products
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Internal and External Attributes
An Internal attribute is under the manufacturers
control its values are determent by the
manufacturer. An external attribute is outside
the control of the manufacturer but in direct
contact (locality in time and space) with the
product.
Internal attributes in a TV set are screen
size, resolution, color. External attributes in a
TV set are number of users, video type, time
viewed
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Dependent and Independent Attributes
Option 1
(B) Coat length
(A) Client Height
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Dependent and Independent Attributes
Option 2
(A) Client Height
(B) Coat length
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Dependent and Independent Attributes
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Forecasting MatrixExample A glass
0
0
0
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Attribute Dependency(A) Height - Diameter
diameter
height
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Attribute Dependency (A) Height - Diameter
diameter
height
FFF- Function Follows Form
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Attribute Dependency (B) Height - Color
Color
height
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Attribute Dependency (C) Height - Heat
Conductivity
Heat Conductivity
height
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Attribute Dependency (M) Temperature - Color
Color
Temperature
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Attribute Dependency (N) Temperature - Heat
Conductivity
Option A
Option B
Heat conductivity
Heat conductivity
Temperature
Temperature
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Forecasting MatrixExample A Babies Ointment
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Attribute Dependency (B1) Amount of Excretions -
odour
Odour
Amount of Excretions
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Attribute Dependency (A6) Viscosity - Time
Viscosity
Time
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Attribute Dependency (C4) Amount of therapeutic
substances - Age
Amount of therapeutic substances
Amount of therapeutic substances
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Attribute Dependency (C4) Amount of therapeutic
substances - Age
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Forecasting Matrix
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Forecasting Matrix Improving the Scanning
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Forecasting MatrixExample Mattress
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Attributes Dependency - Instructions
1. Write down the products internal variables
(i.e. variables within the manufacturers
control) 2. Identify a number of associated
external variables (i.e. variables outside the
control of the manufacturer but in direct contact
with the product) 3. Construct a New Dimensions
Matrix
Columns -
internal variables
Rows - both internal and external
variables 4. Create dependencies between
independent variable pair 5. Identify consumer
needs which match the new product form
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UITRA-SOL what is wrong with this product?
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Replacement Template
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ReplacementCar Door
Wind
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ReplacementA Problem Solving aspect
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ReplacementKinetic Compaq
Full -
Empty -
Battery Status
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The Conflicting Masters of New Products Management

• Three inputs to the new products process the
  right quality product, at the right time, and at
  the right cost.
• These conflict with each other but may have
  synergies too.
• Issue how to optimize these relationships in a
  new product situation.

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ReplacementFlat Tire
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Replacement - Definition
Using a component in the configuration or its
immediate environment in order to fulfill
required function
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Internal and External Components
An Internal Component is under the manufacturers
control its parameters are designed and
chosen. An external component is not under the
manufacturers control and it is in the immediate
environment (locality in time and space) of the
product.
Internal components in the case of the chair
Legs, seat, back. External Components in the case
of the chair Floor, user etc.
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Components and attributes
Height of the leg Color of the door Material from
which the handle is made Font size/color Picture
size/color Amount of cream, fat percentage Level
of moisture Filling type
Chair leg Car door Cupboard handle Font in an
advertisement Picture in the newspaper Cream in a
coffee Moisture in an ointment Filling to a
pillow
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A Links Definition
Y

• X controls Ys parameters
• The control is intentional

X
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A Link (Seat-Legs Relation)
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A Product Configuration
Definition The complete set of the product links
The Product Configuration contains the
evolutionary interaction between the product and
its market.
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A Chairs Configuration
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ReplacementExample 1 A Chair
Stage 1 - Split and Exclude an Intrinsic Component
Note that the legs function remains (as an
unsaturated function)
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ReplacementExample 1 A Chair
Stage 2 - Find an External Component with
Similarity to the Unsaturated Function

• A list of External Components
• wall
• Floor
• Table
• Ceiling
• Carpet

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ReplacementExample 1 A Chair
Stage 3 - Include and Join the Chosen Component
to the Dangling Link
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Replacement
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Replacementexamples for discussion
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ReplacementExample 2 Butter Patties in A Vat
Steam
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ReplacementExample 2 Butter Patties in A Vat
A Partial Configuration of The Melting System
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ReplacementExample 2 Butter Patties in A Vat
Joining an External Component to the Unsaturated
Function (include and Join)
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ReplacementExample 3 A Scanner
Light beams
Filter
Mirror
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ReplacementExample 3 A Scanner
Replacing The Costly Filter
CCD
Light
Mirror
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ReplacementExample 4 Pizza deliveries

• Building the configuration

• Split and Exclude the Oven

• Include and Join the Engine

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The Rubbermaid deck box
The goal was to develop easy to use, easy to
store, movable products. At the same time, these
products must be highly stable
The stabilizing base was replaced with a
component from the products environment the
soil in the garden (what about water?)
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Replacement and Integration interplay
How close are the two worlds in each example?
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Displacement Template
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Displacement
Mango
Instant Cakes
WalkMan
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Displacement - Definition
Removing a component and its associated functions
from the configuration, in a way that generates a
quality change.
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DisplacementExample 1 Catalogs
Regular catalog size
New catalog size
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A Chairs Configuration
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DisplacementExample 2 A Chair
Human Body
Seat
Back
Both the component and the function were displaced
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DisplacementExample 2 A Track
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DisplacementExample 3 A TV Set
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DisplacementExample 3 A TV Set
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DisplacementExample 3 A TV Set
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DisplacementUnbundling Vs. Displacement
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Award winner for best designPhilips DVD player
(the Slimline series)
You know you have achieved perfection in design
not when you have nothing more to add, but when
you have nothing more to take away. Antoine de
Saint-Exupery
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Displacement?
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Displacement - Instructions
1. Write down the products internal components
(i.e. components within the manufacturers
control) 2. Identify each components function in
the product 3. Define which are the essential
components 4. Remove a component with its
associated function 5. Visualize the resulting
product form 6. Search for any consumer needs
which match the new product form
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Components Control
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Components Control Example 1 Post-It
Product configuration of a note, before the
appearance of the Post It
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Components Control Example 2 Gum
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Components Control Example 3 Low-Radiation
Monitor
The computer radiation is an external component,
which reflect negatively on the user
Radiation filtering component resolves the
negative influence
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Components Control Example 4 Shampoo
Basic shampoo configuration
Anti-dandruff shampoo configuration
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Components Control Example 4 Shampoo
Hair
Another shampoo products configuration
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Components Control Example 4 Shampoo
Finding a negative connection between the
external component and the product configuration
Product configuration of a basic shampoo
Finding an external component
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Components Control Example 4 Shampoo
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Components Control Example 5 Pantyhose
The components control creates a new
configuration to the product, even though no
change was made in the product
Pantyhose Configuration
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Components Control Example 5 Pantyhose
A negative connection exists with a component on
the immediate environment
Pantyhose Configuration
The allegedly negative connection, has been found
to be a positive one, without a single change in
the product.
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Attributes Dependency Example 5 Pantyhose
Perimeter
Color
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  ?????.

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The Marketing Research Paradox
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The Distribution of Templates in Developed
ProductsA soap related category
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The Distribution of Templates in Developed
ProductsA soap related category
Non Templates
Attribute Connection
Component Connection
Replacement
Displacement
Division
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Experimental Validation Does CT Knowledge Lead
to Superior Ideas?
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Experimental ValidationDoes CT Knowledge Lead
to Superior Ideas?