Innovation

Product

 

New Product
Development (NPD)

Shift To New Approaches: 7 Reasons

  Ekaterina Khramkova

Ekaterina Khramkova

CEO, Lumiknows

 

The very meaning of
new product development (NPD)
has dramatically changed.

  

 

New Product Development (NPD) Tacit Knowledge New Economy: Key Features Value Innovation Searching for Opportunities Enterprise Strategies Keeping Eyes Open for Inspiration Knowledge Management Entreprneurial Creativity New Product Design Effective Thinking

 

 

   

 

 

Strategic Design Thinking

3 Bs of Strategic Creativity

Virtuoso Marketing    Creative Marketing

Reason ❶: Fundamental Changes in the World Design Industry

The industry of design is undergoing deep transformation: from now on design is not only for appearance and style. Design is dramatically changing its role from being simply a tactical device to becoming a strategic business tool.

 

 

Reason ❷: Transformation of Consumption Culture

Technological revolution provides customers with real power in the market. Today, the question of the utmost importance for brands is how to satisfy people who have an almost endless choice reinforced by instant access to global market.

Value Innovation: Yin-Yang Strategies

Thus, the main issue of new product development (NPD) has dramatically changed.

Until recently it was: ‘What technical / organization /financial / manufacturing possibilities for designing new product we have’ (Technology-Driven Strategy).

Now it is:

‘What else does our customer want?

How can we emphasize with him?

What should we design to make our new brand/product experience as interesting, amazing, exciting as possible’ (Consumer-Driven Strategy).

Reason ❸: Marketing Research vs. Design Research

Traditional marketing tools are good for analyzing existing market ideas. Intuitive thinking, qualitative approach used by designers is very good for imagining new possibilities.

Designers identify new product opportunities, create design briefs, conduct market research, develop a platform for further innovations and even brief advertising companies on how to promote the new product.

 

 

 

 

Reason ❹: From 'Consumer' to 'Human' Experience

In contrast to artificial situations of focus group discussions, designers prefer conducting in-context observations looking at the world through their customers’ eyes, empathizing with the soul, mind and body of customer.

Philosophy of Zen Buddhism with its total immersion in reality, attention to ordinary life and day-to-day experiences is possibly the best way to describe how they like approaching to work.

Those who combine design thinking with interest in user research are called human factor specialists. They research into total human – not merely customer – experience, investigate how people approach the world, what nuances of interaction with the product, brand, environment is of the most importance for them, what they expect from usage.

Today, many companies create such new jobs as cognitive psychologists, social anthropologists, cross-cultural specialists who adapt products of global brands to markets with different values and mentality, as well as ethnographers.

Reason ❺: Design Thinking – the Best Tool to Tackle Tacit Knowledge

New economy requires new way of thinking to tackle ‘ill-defined’ tacit knowledge.

As the real power in the market goes to the customer, companies must learn how to use effectively the tacit knowledge their people accumulated about customer wants.

Customer Success 360

Reason ❻: From Product Design to Experience Design

This is a gift of co-creation, of holistic approach to life and ability to fill it with meaning, emotions and lifestyle drivers. New designers are able to create diverse human experiences, not just physical shapes, content, not simply a form, workplaces, not merely furniture.

 

 

Reason ❼: From the Knowledge Economy to the Creativity Economy
In today’s era of hypercompetition companies must be very
creative to differentiate from the competition in the eyes of their customers. Companies need to learn how to manage creativity effectively. They also need very creative employees.

  

 

   Creativity and Design Thinking

3 Creativities of an Innovator    Love Your Customers    How To Invent a Great Product    TRIZ 40 Principles