Chapter 1

Introduction to Chemical
Product Design

The Hong Kong University of Science and Technology

Outline
• Introduction
• The Chemical Supply Chain
• The Chemical Business Hierarchy
• Chemical Product Design
• Conceptualization of Products
• A Multidisciplinary Hierarchical Framework
for Chemical Product Design
• Methods for Tasks in Product Design Framework
• Consumer Preference
 The Chemical Supply Chain

The Chemical Business Hierarchy

 Chemical
What is ^ Product Design?
 The Chemical Supply Chain

Chemical engineers are skilled in materials and processing. Starting with raw materials, they
produce intermediate chemicals which are used in consumer products. Chemical engineers are
also involved in sustainability such as recycling used products and producing renewable energies.
5
There are three primary sources for all the chemicals we
need in our daily lives:

• Air and water

• Natural gas, petroleum and minerals
• Living things, including animals and plants

Ethylene, propylene, benzene and xylene can be obtained

from petroleum.

From these raw materials, we derive more complex

molecules by reaction.

EXAMPLE 1.1 Show the main chemical reactions for

producing polyester, starting with ethylene and para-
xylene.

2(CH2CH2) + O2 → 2(CH2CH2)O Ethylene oxide

(CH2CH2)O + H2O → HO(CH2CH2)OH Ethylene glycol

6
 + 3O2 + 2H2O

Para-xylene Terephathalic acid

nHO(CH2)2OH + nHOOCC6H4COOH →

[(CH2)2OOCC6H4COO]n + 2nH2O Polyester

Sylvinite is a mineral consisting of salt and potassium chloride.

Bauxite is a mineral which yields alumina, from which aluminum

is produced.

The chemical supply chain shows how all chemical

products can be obtained from air, water, natural gas,
petroleum, minerals and living things step-by-step. 7
The Chemical Supply Chain
B2C
Products

B2B Products 8
 The Chemical Business Hierarchy
Business Examples Business Activities
sector
Petroleum Shell, To provide basic feedstock Oil and gas
sector, aka ExxonMobil, such as ethylene, benzene, exploration,
oil Chevron, BP, xylene for the manufacture refining
companies, Texaco of more complex chemicals operations
refineries such as ethylene glycol and
polyester.
Starting materials:
Petroleum and natural gas
The DowDuPont, To manufacture more Invent
chemical BASF, Bayer, complex chemicals such as chemical
companies Mitsubishi, polymers, organics and processes,
Sinopec inorganics to supply and
consumer goods and manufacture
pharmaceutical companies. chemicals
Starting materials: Basic
materials such as ethylene,
benzene, and xylene
The Kellogg, Construction and technology To build a
specialized Brown and transfer plant with a
engineering Root mature
firms technology
for a client
9
Business Examples Business Activities
sector
The Merck, New drugs and Drug discovery &
pharma- Johnson & healthcare products manufacturing
ceutical Johnson, Starting materials:
companies Pfizer Complex chemical
intermediates
The food Unilever, Foods such as ice To formulate and
companies General Mills, creams, magarines, manufacture
Nestle teas, and coffees branded foods
Starting materials:
Living things and
Chemical intermediates
The large Procter and To sell a wide variety To formulate and
consumer Gamble, of consumer goods manufacture
goods Unilever Starting materials: various branded
companies Complex chemical consumer goods
intermediates such as soaps and
detergents, etc.
The small Dinnerware To provide consumer To manufacture
consumer manufacturer goods for specific various consumer
goods market sectors. goods such as
companies Starting materials: plastic toys,
Chemical intermediates dinnerware
Chemical Product Design

11
B2B and B2C Chemical Products
• Business-to-business (B2B) products
– Simple molecules: Ethylene glycol
– Basic polymers: Polypropylene
– Functional molecules: Dyes, active
pharmaceutical ingredients

• Business-to-consumer (B2C) products

– Devices: Air purifier, transdermal patch
– Functional products: Moisture absorber
– Formulated products: Hand lotion, mosquito
repellent spray
12
 Product Specifications
• B2B product (Terephthalic acid)
– Purity is the primary concern
– Impurity 4CBA leads to yellowish PET bottles
• B2C product (Sunscreen lotion)
– Functional attributes
• Protects parts of the body from UV light
• Adheres to the body surface
– Rheological attributes
• Should not flow by itself, but can be pumped out from the
bottle
• Spreads easily when rubbed on skin
– Physical attributes
• Stable over time within a certain temperature range
– Sensorial attributes
• Feels smooth and does not cause irritation
• Provides a pleasant smell
13
 Product Life Cycle
• B2B products have a lower profit margin than B2C
products
• B2C products have a shorter life cycle
• Redesign and re-launch of an improved B2C product
to keep the product competitive

14
 B2B Products vs. B2C Products
B2B Products B2C Products
Customers Allied chemical industries Consumers
Nature of Simple or complex Devices, functional materials,
products molecules formulated products and equipment
Product design Molecular design Selection of ingredients,
microstructure and product structure
Product lifecycle Decades Month / Year
Team Primarily chemists and A multidisciplinary team of marketing
chemical engineers personnel, financial specialists,
lawyers, electronic engineers,
mechanical engineers, chemists and
chemical engineers
Financial goal Cost reduction New sources of revenue
Unit operations Traditional – distillation, Unconventional – granulation, milling,
crystallization, extraction, nanomization, etching, lamination,
absorption, adsorption, physical vapor deposition, inkjet
etc. printing, screen printing, laser
scribing, etc.
Knowledge Well-structured Fragmented so far
Technical focus Engineering optimization Improved product performance /
quality followed by reduced cost 15
 Examples of Products Designed in HKUST
Creams Granules/
Transdermal LCD Display Capsules
patches

Powder/ Humidity
UV Sensor Cledos airLED Sensor
Composite
solids

16 16
 The Importance of Product Design
in Chemical Firms

• The evidence that advanced materials with

desired functions are more profitable than
commodity chemicals
• DuPont commercialized 2047 new products
in 2012 and 29% of sales in 2012 was
derived from new products launched within
the past four years

17
New Products at DuPont
Market Sectors and Forms of Chemical Products
Market Sector Molecules Devices / Functional Products Formulated Products
Herbicide Controlled release herbicide Balanced fertilizer
Agriculture Pesticide Mosquito repellent mat
Liquid mosquito repellent dispenser

Polyvinyl butyral Auto tire Diesel exhaust fluid (an aqueous urea solution
Automotive Butadiene-Styrene copolymer Safety windshield used with a catalytic system in a diesel vehicle
to reduce nitrogen oxides in its exhaust)
Refrigerant Indoor catalytic air cleaner Paint
Building & Weather barrier film
Construction Acrylic composite countertop
Humidity sensor
Smart window (applying voltage changes its light
transmission properties)

Organic light emitting diode materials Optical bonding equipment Optically clear adhesive
Electronics Phosphor LED light Die attach adhesive
Touch panel
Silver nanowire
Quantum dot
Copper nanoparticle

Lithium iron phosphate (a cathode material) Solar panel Heat transfer fluid
Energy Graphene Fuel cell
Bioethanol Battery

Environmental PersonalCoagulant
Care, Tetrafluorethane (a Nylon toothbrush
Ion exchange resin filaments Tooth paste Air freshener
Reverse osmosis membrane
Health Care & propellant for inhalant Herbal extract
Water filter Sunscreen lotion
Medical drug) Moisture absorber
Transdermal patch Bar soap
D-Xylose (commonly called wood sugar, is a natural Wine aerator Ice-cream
Food & Beverage Active pharmaceutical Medical diagnostic
5-carbon sugar obtained from plants. It adds flavors Ice-cream machine kit Hair spray
to prepared foods and can be used as animal feed.) Tooth
ingredient Sugarbrush
ester (a food grade surfactant with sucrosesoftener
Fabric as
hydrophilic group and fatty acid as lipophilic
Disposable
group) diaper Laundry detergent
Espresso
Hand warmer coffee machine powder
Non-absorbing fat
Tetrafluorethane (a propellant for inhalant drug) Hemodialysis device
Nylon toothbrush filaments Pharmaceutical tablet
Tooth paste
Personal Care, Health Active pharmaceutical ingredient Herbal extract Sunscreen lotion
Care & Medical Transdermal patch Bar soap
Medical diagnostic kit Hair spray
Tooth brush Fabric softener
Disposable diaper Laundry detergent powder
Hand warmer Pharmaceutical tablet
Hemodialysis device
Ethylene vinyl acetate copolymer (used as a peelable Flexo platemaking equipment Ink for digital textile printing
Packaging & Printing sealing layer) Food packaging film Toner for photocopying

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 Issues to be Addressed in Product Design

• Types of decisions involved in product design and

development
• Product design decisions : What to make?
• Process design decisions : How to make?
• Business decisions : Do we want to make?
• Management decisions : How to do it efficiently?
• An approach (paradigm) for product design and
development is needed to organize the activities and
tasks in a systematic manner

– The multidisciplinary hierarchical framework for chemical

product design and development

20
Conceptualization of Products

21
Technology Push and Market Pull

22
From Internet
 Fullerenes
• Richard Smalley was awarded the
Nobel Prize in Chemistry in 1996 for
the discovery of a new form of carbon,
buckminsterfullerene ("buckyballs")
• Using technology developed by MIT
researchers, Nano-C, Inc. developed
a combustion method of fullerenes
production around 2003
• Frontier Carbon Corp (part of
Mitsubishi) started quantity
production around 2003

23
Technology Push - Fullerene for Organic PV

Fullerenes in toluene:
(above) C60, (below) C70

~ 1 nm C60 C70

Fullerene Mixed fullerenes

(65%C60, 20%C70 & C60 (99%) C60 (99.9%) C70 (98.0+%) C70 (99%)
purity 15%C )
>70

US$ ~5/g 35-45/g 80-90/g 250-350/g 450-500/g

Price of gold: US$36/g 24

 Market Pull for ITO Replacement
• Transparent conductive oxides
(TCO) are doped metal oxides
used in optoelectronic devices
such as flat panel displays and
photovoltaics.
• To date, the industry standard
in TCO is ITO, or tin-doped
indium-oxide. This material
boasts a low resistivity of ~10−4
Ω·cm and a transmittance of
greater than 80%.
• However ITO has the drawback of being expensive. Indium, the
film’s primary metal, is rare (6000 metric tons worldwide in 2006),
and its price fluctuates due to market demand (over $800 per
ingot in 2006).
• For this reason, doped binary compounds such as aluminum-
doped zinc-oxide (AZO) and fluorine doped tin oxide (FZO) have
been proposed as alternative materials, among others.

25
Other Alternatives

26
From literature
A Multidisciplinary Hierarchical
Framework
for
Chemical Product Design

27
 Multidisciplinary Hierarchical Product
Design Framework
Phases and Job Functions

Phase III
Phase I Phase II
Product
Job function Product Detail Design &
Manufacturing &
Conceptualization Prototyping
Launch

Management Project management

Business and
Market study Product launch
Marketing
Research and Product
Prototyping
Design design
Process design
Manufacturing Feasibility Engineering
Plant startup
study design
Finance and
Economic analysis
Economics

28
 Phase I Phase II Phase III
Job Product Detail Design & Product Manufacturing &
function Conceptualization Prototyping Launch

Management Project management

 Set product development  Identify service issues  Consider business alliances
objective-time chart  Recruit salespersons  Manage design changes
 Secure the necessary human,  Recruit production personnel
financial and physical  Monitor project progress and
resources spending

Sales and Market study Product launch

Marketing  Collect consumer preferences  Develop marketing plan  Develop promotional and
 Identify product attributes  Identify a family of products launch materials
 Study competing products  Test marketing  Firm up key buyers or sales
channels

Research and Product design Prototyping

Design  Choose ingredients and base-  Fabricate prototype  Continue product improvement
case formula  Characterization of prototype  Investigate related products
 Identify product structure  Stability tests  Consider development of
 Measure physical and chemical  Performance tests technology platform
properties of product  Study product safety
 Specify product technical
requirements
 Identify technical challenges
and opportunities

Process design
 Process conceptual design  Synthesize manufacturing  Continue process optimization
process

Manufacturing Feasibility study Engineering design Plant startup

 Estimate product cost  Perform scale-up studies  Obtain regulatory approvals
 Identify sources of raw  Procure necessary equipment  Plant startup
materials  Perform engineering design  Develop inventory control
 Investigate patent issues scheme
 Study environmental impact Economic analysis
 Perform make-buy analysis

Finance and  Calculate internal rate of  Facilitate make-buy analysis  Update economic return
Economics return and other financial  Evaluate all tax issues  Manage cash flow
metrics
 Evaluate opportunity cost
29
 Elements of the Product Design
Framework for Task Execution
• Methods
• Rule-based (e.g., Quality function deployment)
• Model-based (e.g., Mechanistic model)
• Hybrid method
• Database (e.g., Chemical database, equipment
database, thermodynamic database)
• Tools (e.g., Excel, Matlab, ICAS software)
• Experiments

30
 Project Management
Objective-Time Charts
A A. Corporation
promote concurrent
B
(objectives)
C
execution, facilitated D
B. Business Unit
by decomposition into Months C. Manufacturing Site
subobjectives D. R&D Laboratory

Resources
D1
D2
D3 Input Output
D4 info. info.
D5
D6 Tools
Weeks

D41
D42 D61 RAT2IO mnemonic
D43 D62 contains the
Days D63
details on how to
technically achieve
D64
each objective
Days
(task)
31
Objective-Time Chart – Example
Time (months)

32
 RAT2IO for Each Task
Define Objective of the task
Specify the input and output Information
Identify the Activities to be performed
Identify appropriate Tools
Identify human and monetary Resources to perform the
activities
Estimate the Time needed to meet the objective

Time required Resources: allocation

to perform the and minimization
activities
ACTIVITY
Input Results

Information
TOOLS flow and
Software and
documentation
experimental tools
33
 RAT2IO Mnemonic
• Resources – People, IP, Equipment, Money
• Activities – Market survey, Patent search, Process
chemistry, Process design, Equipment selection, Legal
issues
• Tools – Bench-scale experimental setups, Analytical
instruments, Software tools (ICAS, AspenPlus, etc.),
Systematic design procedures (CAMD, etc.)
• Time – Time needed to meet each objective
• Information – Solubility data, Product attributes,
Product ingredients & microstructure
• Objective – Market research, Product concept

34
 RAT2IO – Example
Objectives Input Information Output Information Time
• A prototype that • Product microstructure • Die attach adhesive • 5 months
meets the product • Product specifications (DAA) composition
specifications • Physicochemical and ingredients
property database for • Characteristics of
the ingredients synthesized
ingredients
• Measured product
specifications

Tools Activities Resources

• Laboratory equipment such • Develop the chemistry • Four synthetic chemists,
as reactor, mixer, recipes for the two chemical engineers
centrifuge, oven, etc. nanomaterial and one mechanical
• DAA test equipment such as ingredients engineer specializing in
thermal conductivity • Fabricate the electronic packaging
measuring device, prototypes and test • Laboratory space and
viscometer, automatic die their performance facilities
bonder, die shear test • Develop the • Budget for manpower,
equipment, etc. manufacture process space, and tools
• Analytical instruments such • Obtain necessary
as scanning electron process data
microscope, particle sizer,
etc.

35
Stage-GateTM Product-Development Process

Each gate is intended to reduce the risk by:

• verifying manufacturability;
• matching product features and performance to the
consumer needs.

The gate reviews are conducted by key stakeholders and

decision makers from legal, business, technical,
manufacturing, supply-chain, environmental, health, and
safety teams.

At each gate review, a decision is made to either:

• advance the design project to the next stage;
• retain the design project at the current stage until pending
critical issues are resolved;
• cancel the design project when a need is no longer
recognized, or when road blocks have been encountered
that render the project infeasible. 36
 Stage-GateTM Product-Development Process
Gates, where reviews Items to be screened
Stages, where of the deliverables or evaluated during
goals are set take place each gate review

Principal steps to be
accomplished at each stage

Cooper, R. G., Product Leadership: Creating and Launching Superior New Products, 2nd Edition, Basic
Books, Cambridge, MA (2005). 37
Methods for Tasks in Product
Design Framework

38
Market Analysis and Marketing
Plan
Investigation and Decisions and
research actions

• Market situation and • Product positioning

potential customers • Pricing and market shares
• Market segment
• Channels and distribution
• Competitive analysis • Promotion and
• Critical success factors and communication
risks • Marketing organization
and sales process
• Return on marketing

39
 Market Situation and Potential
Customers
• What desires and needs do the new product
address?
• What are the potential customers doing now?
- Nothing
- Using a different product
- Using a product from competition that is similar to
the proposed product
• Understand the nature of the industry.
• Who are the key players and individuals in the
industry?
• Are there potential partners in each phase of
product development?
• How satisfied are the potential customers with
the existing products?
• How hard will it be to get them to change to the
new product?
40
 Competitive Analysis
• Competitive Matrix
Honda Honda Toyota Toyota Corolla Your
Civic Civic LX Prius XLE Product

Miles per gallon 37 28 44 32 ?

5-Yr Fuel Cost $6,500 $8,500 $5,500 $7,500 ?
Tax Rebate $525 0 N/A 0 ?
Price $23,270 $18,430 $24,170 $19,330 ?

• Tangible Items
- Intellectual property rights
- Exclusive license
• Intangible Items
- Superior brand
- Intimate customer relationships
- Government support
Adapted from C. Franklin, Berkley Center, NYU 41
 Market Segment

• The segment size has to be sufficiently large

to be financially attractive yet it is
manageable with the company resources
• Ways to segment the market:
- Geographic: local, regional, national,
international
- Demographic: B2C - gender, age, income,
education, ethnicity
- Industry: B2B
• Ways to identify market segments:
- Trade shows, market survey of potential
customers and suppliers

42
Critical Success Factors and Risks
• What absolutely must happen for the product to
succeed? For example,
- A certain product specification must be met to
generate sales.
- The product cost must be below $xyz.

• What are the potential troubles and

corresponding contingency plans? For example,
- Competitor lowers its product price in response to the
new product being launched into the market.
- Sales projection is below expectation by 40%.
- The supplier raises the raw material price.
- The distributor refuses to market the product.
- The cost of the shelf space is too high.

43
 Pricing and Market Shares

• How much do you want to charge?

• How much can you charge in view of
consumer affordability?
• How much can you charge in view of the
price and quality of the competing products?
• Will your products be bundled?
• Will you be offering discounts, financing,
coupons, etc.?
• How much sales or market shares do you
expect to secure?

44
 Channels and Distribution

• Direct
• Online
• Own stores
• Indirect
• Through retailers
• Through wholesalers
• Through contractors
• Factors to consider
• Does your product needs professional
installation?
• Does you product need the persuasion of a
sales person?
 Promotion and Communication
It is important to inform and retain the customers.
• Common Tools
- Advertising (newspaper, magazines, radio, TV, direct
mail, email, website)
- Brochures/sales literature
- Social networking (Google, Facebook, etc.)
- Infomercial
- Trade shows/events
- Cold calling/telemarketing
- Relationship sales
• Factors to consider
- How and by whom is the buy-decision made?
- What media your target segment use most often?
Marketing Organization and Sales
Process

• Most common is by function: sales

manager, advertising manager, market
research manager, customer service
manager, etc.
• Customer relationship management (CRM)
aims to improve:
- Customer perceived value in comparison to
competing offers
- Customer satisfaction by improving customer
delights
 Kano’s Model of Consumer
Satisfaction
• Basic quality (Dissatisfiers) – What consumers want
and therefore don’t ask
– E.g. A pharmaceutical is non-toxic
• Expected quality (Satisfiers) – When present,
consumers are pleased; when absent the consumers
are dissatisfied.
– E.g. The aspirin should relieve a headache.
• Exciting quality (Delighters) – Features that
consumers do not request because they do not know
of their possible existence. Therefore, they are often
called “latent” or ”hidden” needs.
– E.g. a cell phone battery that lasts days without
recharging.

48
Consumer Preference
Consequence of not having a clear, consumer
focused product definition and systematic
product development process
Product Unexcited
definition not consumers
consumer-
Lack of a focused
systematic Low
Product
development sales
late to
process that is
Product market
based on the
voice of the definition
customer not clear Low
Long Profit
development
time
Development
process not
clearly High
defined and development
not efficient cost
50
Wants vs. Technical Requirements
• The relationship between product
attributes (which are often
qualitative) and technical
requirements (which have to be
quantifiable) are often empirical
– Thick creams have a high viscosity and
thin creams have a low viscosity
– Crunchiness is related to fracture
mechanics and the sound released during
biting / chewing
– The richness of ice-cream is related to the
way the ice-cream melts inside the mouth
51
Translating Consumer Preferences to
Technical Specifications
• Wine is commonly judged based on the following attributes
• The weights of each attribute (i.e., how important is this
attribute) are identified through market research
Attributes, yi Weight, wi Preference function:
Acidity 0.0714 𝐻 = ෍ 𝑤𝑖 𝑦𝑖
𝑖
Sweetness 0.0714
H = overall consumer preference
Bitterness 0.0714 wi = weighing factor of attribute i
Clarity 0.1429 yi = product attribute i score

Color 0.0714
yi depends on technical
Brightness 0.0714 characteristics, xi
Bouquet 0.2858
Body/texture 0.1429 Thus, need yi vs. xi
Finish/ aftertaste 0.0714

Whitnack, C., Heller, A., Frow, M.T., Kerr, S., Bagajewicz, M.J. Financial risk management in the design of products
52
under certainty. Comp. & Chem. Eng., 33, 1056-1066 (2009) .
 Product with Maximized
Consumer Preference
• Analyze each Characteristics xi
preference curve
and decide an Acidity (pH) 3.5
optimal yet Sweetness (wt% residual sugar) 0.16
achievable score, yi
Bitterness (g tannin/L wine) 0.25
• Calculate H by
multiplying the Clarity (Turbidity, NTU) 0.02
resulting yi by the Color (absorbance ratio) 1
corresponding
weighting factor, wi Brightness (% brightness) 0.95
Bouquet
Butterscotch (mg furfural/kg wood) 270
Clove (µg eugenol/L) 15
Vanilla (mg vanillin/ kg wood) 55
Oak/ coconut (µg lactones/L) 105
Body/texture (wt% alcohol) 10.1
Finish/ aftertaste (residence time, s) 120

53
Quality Function Deployment

Quality Function Deployment (QFD) was

originally developed in Japan as an effort to
get engineers to consider quality early in the
design process. It started in the Kobe
shipyards as a way to expand and implement
the view of quality as taught by Deming and
others. It was very successful in reducing the
required change orders after production was
started.

54
 Four-step Approach to QFD

Conceptualization Product Design Process Design Quality by Design

& Specifications

Empirical CAMD tools, Database of Pareto analysis,

correlations, Database of equipment, root cause
heuristics, etc. materials, etc. mechanistic analysis,
models, etc. fishbone
diagram, etc.

CAMD = Computer-aided molecular design

55
 Block D summarizes the
House of Quality synergies and conflicts among
technical requirements

• Translate consumer
preferences (A) into Block C determines the
technical relationships between A
requirements (B) and B

Block G calculates Block E shows the

the importance of importance of each
each technical consumer preference
requirement Block F shows the
competitors’ capabilities
56
House of Quality of a Hand Lotion

57
 House of Quality of a Hand Lotion
• Five consumer preferences and technical requirements are considered
• The correlation matrix pairs the consumer preference with technical parameters
• The ability of hand lotion to protect the skin from dryness is strongly related to
the emollient type and concentration (with a score of 9)
• Whether the lotion spreads easily or flows under gravity depends on emollient
viscosity (with a score of 1), and more significantly on thickener type and
concentration (with a score of 9)
• Whether the lotion feels smooth depends on the homogenizer operating
conditions (with a score of 9), and less importantly on emollient and surfactant
(with a score of 3), and thickener (with a score of 1)
• To make the lotion not oily, an O/W emulsion is needed (with a score of 9). It
also depends on the emollient (with a score of 3)
• The interaction matrix at the top shows that as the emollient concentration
increases, the emulsion is less likely to be O/W emulsion. Therefore, compromise is
needed between skin protection and the desire of having a non-oily feel.
• The column next to the correlation matrix shows that protection of the skin from
dryness is the most important consumer preference
• The company’s product beats the competitors in all aspects, except for skin
protection.
• The bottom row, importance weighting, shows that the emollient type and
concentration is the most important technical parameter to satisfy consumer
preferences.
58
Building Blocks of Business Model Canvas
• Value Proposition describes what the product offers to meet the
wants and needs of a group or groups of customers
• Customer Segments identify who these groups of customers are
• Channels are the means by which the customers are reached
and offered the product
• Customer Relationships are the ways in which the product is
promoted to the customers
• Revenue is the income generated from the customer segments
• Key Resources are the wherewithal needed to implement the
business model
• Key Activities are the activities undertaken to execute the
business model
• Key Partners are the people such as raw materials and
manufacture equipment suppliers who play a significant role to
help realize the business model
• Cost Structure details the most significant costs to operate the
business model 59
Business Model Canvas

60
 Example: Ryanair

https://jorgeluisavellaneda.wordpress.com/2015/02/23/canvas-model-
company-ryanair/
 Innovation Map
• For technology-push products, it is helpful to create an
innovation map which connects the new materials or
processing technologies to market needs.

• It has four basic layers:

• New Materials and/or Processing Technologies: This is the
foundation layer.
• Technical-Value Proposition: The technical
advantages/differentiations are assessed.
• Products: The potential products are identified.
• Customer-Value Proposition: The product
advantages/differentiations, expressed from the customer
point of view, are identified.

• The innovation map is not just the reverse of Quality

Function Deployment (which beginning with consumer
preferences focuses on market-led products). It enables the
creation of products and processes using the same
technology platform expressed in the form of experience,
knowhow, structure, etc.
62
Innovation Map Example – Nano ZnO

• ZnO that absorbs UV light is the key component of a

sunscreen lotion. However, the lotion is whitening
as micron-sized ZnO particles reflect visible light.
• Nano ZnO can be produced by solid state reaction. It
transmits visible light and leads to a transparent
sunscreen lotion.

• Nano ZnO can also be

functionalized by attaching
hydroxyl groups or long carbon
chain to produce water soluble or
water insoluble product,
respectively.
• The water insoluble product can
be used at the beach, while the
soluble one indoors.
• Following similar paths, other
inorganic oxides lead to different
products. 63
Innovation Map Example – Nano ZnO

64
Product Design Framework Characteristics
• Multidisciplinary
• The team includes expertise from various
disciplines such as basic sciences, material
science, chemical engineering, electronic
engineering, business, legal, marketing and
finance.
• Hierarchical
• It covers the design activities level by level with
additional details and finer scales while keeping
the overall product design project in mind.
• Iterative
• Product design is iterative in which the same task
will be repeated when more information is
available from other teams, as shown in a
workflow diagram.

65
Workflow Diagram for Product Development

Market Product Design

Study

Prototyping

Feasibility Study,
Engineering Design Process Design &
& Plant Scale up Economic Analysis

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