LECTURE 2
PRODUCT ANALYSIS & INNOVATIVE PRODUCT
DEVELOPMENT
By
Dr. Nisha Palagolla
11th August 2023
[email protected]
LEARNING OUTCOMES
On successful completion of this lesson, the learner will be able to:
Ø Understand what is a product, different forms of products
and product attributes.
Ø Describe B2C and B2B products with examples.
Ø Discuss what is product analysis and some tips on how to
conduct an effective product analysis.
Ø Discuss the importance of product analysis on innovation.
Ø Explore the link between innovative product development
and sustainability.
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WHAT IS A PRODUCT?
A product is anything that can be offered to the
market for consumption or reproduction that can
satisfy a want (desire) or need.
A product can be:
A good/ An object
A service
A system 3
ATTRIBUTES OF GOODS
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ATTRIBUTES OF SERVICES
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ATTRIBUTES OF SYSTEMS
Organization Interdependence
The structure or order The parts of the system
or the arrangement depend on one another.
of components that The interdependence is
helps to achieve desogned according to a
objectives. plan for proper functioning.
Central Objective
A system has a central
objective. Users must
know the central
objective of a system
Integration clearly for better Interaction
Integration means results. The manner in which
the holism of systems. each component
It is concerned with functions with other
how a system is tied components of the 6
together. system.
PRODUCT CATEGORIZATION
ØConsumer products (B2C): are bought by
final consumers which are used for personal
consumption.
ØIndustrial/Business products (B2B): are
bought by other businesses which are used
for further processing or conducting a
business.
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CONSUMER PRODUCTS (B2C)
Convenience Shopping Products Specialty Products Unsought Products
Products
Relatively inexpensive Need comparisons Search extensively New innovations
Little shopping effort More expensive Reluctant to accept Buyers do not actively
substitutes seek
Buying frequency is Available in fewer Brand loyalty Aggressive advertising
high stores Personal selling
EXAMPLES: EXAMPLES: EXAMPLES: EXAMPLES:
Soap Furniture, TV, Cameras A BMW Car Life insurance policy
Sugar Clothing Rolex Watches Burial insurance
ATM cash withdrawals Airline tickets Heart surgery Thesaurus
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BUSINESS PRODUCTS (B2B)
Materials & Parts Capital Items Supplies & Services
Raw materials and semi Industrial products used in Supplies & services
finished parts, mostly sold to production and operations provided for other
other industrial users to businesses.
produce finished goods.
EXAMPLES: EXAMPLES: EXAMPLES:
Iron, crude oil, timber, fruits, IT Systems Energy
vegetables, tubes, tyres, Buildings Maintenance
Infrastructure Security
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WHAT IS A PRODUCT ANALYSIS?
ØProduct analysis is the process of collecting and
analyzing data about various aspects of product
attributes and product performance.
ØThe aim of product analysis is to better understand its
strengths and weaknesses, to evaluate how effective
it is at satisfying user needs, and to identify areas for
improvement.
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PRODUCT ANALYSIS CRITERIA
Ø Product analysis helps designers to
identify the gap in the market to
design a new or a better product.
Ø Strengths: The internal positive attributes of the product or brand
Ø Weaknesses: The internal negative attributes, or areas of
improvement, in the product or brand
Ø Opportunities: The external factors that could help a product or
brand improve its competitive advantage
Ø Threats: Factors that could present challenges for the product or 11
brand
TYPES OF PRODUCT ANALYSIS
ØCompetitive product analysis to guide product
marketing strategies.
ØProduct attribution analysis to identify touchpoints
leading to success.
ØProduct cohort analysis for a granular understanding of
customer behavior.
ØProduct journey analysis to identify friction and drop-
off points.
Including but not limited to 12
TIPS FOR PRODUCT ANALYSIS
Ø Define product analysis goals
Ø Set KPIs
Ø Collect data from right sources
Ø Analyze data to identify trends
Ø Make informed decisions
Ø Communicate decisions
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DATA COLLECTION FOR PRODUCT ANALYSIS
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INNOVATION
Ø Innovation is the specific function of entrepreneurship,
whether in an existing business, a public service
institution, or a new venture started by an individual in
the family kitchen.
Ø It is the means by which the entrepreneur either
creates new wealth-producing resources or endows
existing resources with enhanced potential for creating
wealth.
Peter Drucker
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FIELDS OF INNOVATION
ØProduct Innovation
ØProduct Performance Innovation
ØProcess Innovation
ØBusiness Model Innovation
ØMarketing Innovation
Including but not limited to 16
PRODUCT & PRODUCT PERFORMANCE
INNOVATION
ØProduct innovation is the creation and
subsequent introduction of a goods or service
that is either new, or performance of an
existing product is improved.
ØProduct innovation stimulates process innovation
and new processes stimulate new products.
ØUnderstanding the Product Life Cycle is vital for
product and product performance innovation.
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PRODUCT LIFE CYCLE
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PROCESS INNOVATION
ØInnovation in the processes can improve the
efficiency or effectiveness of existing methods.
Ø Possible process innovations involve production,
delivery, or customer interaction.
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BUSINESS MODEL INNOVATION
Ø The most successful businesses in the world are
undergoing constant innovation in their business model.
Ø Different channels, technologies and new markets can
lead to new possible business models (i.e. Digital
business models).
Ø Managing and sharing resources in a new way can
also lead to an innovative business model.
Ø The development of ICT has led to connecting new
markets, customers and other stakeholders that foster
new business models. 20
MARKETING INNOVATION
ØNew methods to capture and hold attention
from customers.
ØEither through the use of innovative
marketing/sales concepts or the use of new
channels for customer acquisition/sales.
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TYPES OF INNOVATION
Existing technology New technology
New market New market
(Alibaba) (Airplane
manufacturers)
Existing technology New technology
Existing market Existing market
(Smartphone) (Amazon- bookshops)
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HOW TO KEEP INNOVATION GOING?
Ø Encourage employees constantly
Ø Customer feedback
Ø Stakeholder feedback
Ø Employee training & development
Ø R&D
Ø Rewarding for innovative thinking
Ø Productive collaborations
Ø Feedback from experts 23
Ø Creating a supportive culture
INNOVATION AND SUSTAINABILITY
Ø Innovation is the key driver of sustainability.
Ø Technological innovation
Ø Innovation in resource management
Ø Innovation in waste management
Ø Innovation in energy consumption
Ø Innovation in product delivery
Ø Etc.
Ø Innovation can make businesses more resilient in the
long term.
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INNOVATIVE PRODUCT DEVELOPMENT
Ø It is the process of updating old products or creating new
ones.
Ø It is defined as changes that improve a look, design,
capacity, functionality, and user experience.
Ø The improvement can be either physical for a company's
product or intangible in companies that offer services.
Ø It is essential in creating new opportunities. It promotes
business expansions by opening new market opportunities,
and aids businesses in taping into different customer
groups. 25
INNOVATIVE PRODUCTS
Ø What are the latest innovations of:
Ø Automobiles:
Ø Computers
Ø Smart phones
Ø Cloths
Ø Watches
Ø Televisions
Ø Modes of payment
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RECOMMENDED READING
Ø Dhillon, B.S., Engineering Design: A Modern Approach,
Richard D. Irwin, Inc., Chicago, 1996.
Ø Dhillon, B.S., Creativity for Engineers, World Scientific
Publishing Co. Pte. Ltd., Singapore, 2006.
Ø Maggie Macnab, Design by Nature: Using Universal Forms and
Principles in Design, USA, 2012.
Ø Robin Lowe and Sue Marriott, Enterprise: Entrepreneurship
and Innovation, Elsevier Ltd., 2006.
Ø Edited by James C. Barrood, Entrepreneurship and Innovation:
Global Insights from 24 Leaders, Rothman Institute of
Entrepreneurship, 2010. 27
Q&A
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