Post on 29-May-2018
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The Lead Useridea generation metho
Professor Eric von Hippe
15.356
The Lead Useridea generation method
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Contrasting innovation methods
Traditional methods a
find a need and(Target users provid
New methods are based on
finding / encouragingand commercializing solutions
Need and market life cycle curve
Targetusers
Lead users
Contrasting innovation methods
T
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Essential Definitions
1. An INNOVATION is anything new that
used (enters the marketplace) wheor minor.
2. The functional source of innovation dependfunctionalrelationship between innovator and
An innovation is a USER innovation whenexpects to benefit by using it;
Essential Definitions
1. An INNOVATION is anything new that
used (enters the marketplace) wheor minor.
2. The functional source of innovation dependfunctionalrelationship between innovator and
An innovation is a USER innovation whenexpects to benefit by using it;
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Many industrial and consumer productroots in user innovation.
Consumer product examples:
Category Example
Health Products Gatorade
Personal Care Protein-base ShampooFeminine Hygiene
Sports Equipment Mountain BikeMountain Climbing-Piton
Apparel Sports Bra
Food Chocolate MilkGraham Cracker Crust
Many industrial and consumer productroots in user innovation.
Category Example
Health Products Gatorade
Personal Care Protein-base ShampooFeminine Hygiene
Sports Equipment Mountain BikeMountain Climbing-Piton
Apparel Sports Bra
Food Chocolate MilkGraham Cracker Crust
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Users innovate when it pays for th
Only Lead User innovations form the bas
products and services of value to manufac
Lead Users are users that:
1. Have needs that foreshadow general demmarketplace;
2. Expect to obtain high benefitfrom a soluti
needs. (Such users are more likely to innN it i th th f i ti !)
Users innovate when it pays for th
Only Lead User innovations form the bas
products and services of value to manufac
Lead Users are users that:
1. Have needs that foreshadow general demmarketplace;
2. Expect to obtain high benefitfrom a soluti
needs. (Such users are more likely to innN it i th th f i ti !)
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Lead users at leading edge of needLead users at leading edge of need
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The World Wide Web
A Lead User Innovation
Berners-Lee did not set out to invent a conte
cultural phenomenon; rather, he says, it wasI needed in my work. He wanted to simply toproblem that was hindering his efforts as a co
software engineer at CERN.Berners-Lees innovation was to apply hypertgrowing reality of networked computers. He e
the idea he had developed at CERN and madavailable on the Internet in the summer of 199
The World Wide Web
A Lead User Innovation
Berners-Lee did not set out to invent a conte
cultural phenomenon; rather, he says, it wasI needed in my work. He wanted to simply toproblem that was hindering his efforts as a cosoftware engineer at CERN.
Berners-Lees innovation was to apply hypertgrowing reality of networked computers. He e
the idea he had developed at CERN and madavailable on the Internet in the summer of 199
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Adopter CategorizationAdopter Categorization
According to InnovativenesAccording to Innovativenes
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Product area selected for pilot test oProduct area selected for pilot test o
user methods:user methods:
Computer-Aided-Design system
Used to lay out printed circuit boards (P
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In PC-CAD Lead Users were innovRoutine Users were not
Expected LeadExpected LeadUser AttributeUser Attribute
Type of Questions WeType of Questions WeAskedAsked
LELEUsUs
At Front ofAt Front ofHigh DensityHigh DensityTrend?Trend?
What are your:What are your:
zz Avg. Number of layers?Avg. Number of layers?
zz Avg. Line width (mils)?Avg. Line width (mils)?
(1988 data)(1988 data)
66
11
High Need ForHigh Need ForImprovedImprovedSystem?System?
Are you satisfied with yourAre you satisfied with yourpresent PCB CAD system?present PCB CAD system?
NN
Active InActive InSolving OwnSolving Own
Did you build own PCBDid you build own PCBCAD SystemCAD System
8282YeYe
In PC-CAD Lead Users were innovRoutine Users were not
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Consum er produc t innovat ors are lead usSports equipment userSports equipment user
CharacteristicsCharacteristicsInnovatorsInnovators NonNon--
innovatoinnovato
Lead User Characteristic (1):Lead User Characteristic (1):
Being Ahead of the TrendBeing Ahead of the Trend**
I improved or developed new techniquesI improved or developed new techniques
in my sport.in my sport.
4.294.29 5.845.84
Lead User Characteristic (2):Lead User Characteristic (2):
High Benefit from InnovationHigh Benefit from Innovation**
I have new needs which are not satisfiedI have new needs which are not satisfiedby existing products.by existing products.
3.273.27 4.384.38
I am dissatisfied with the existingI am dissatisfied with the existingequipment.equipment.
3.903.90 5.135.13
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Many lead users innovat eIndust r ia l p roduc t s n % innovaPr in t ed Ci rc u i t CAD 136 24.3%Pipe Hanger Hardw are 74 36%Library IT Syst ems 102 26%Sof tw are sec ur i t y fea tures 131 19.1%Surgic al Equipm ent 262 22%Consumer products
Out door Product s 153 9.8%
A i LU h i iA i t LU h t i ti
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As innovator LU characteristics go uAs innovator LU characteristics go u
does innovation attractivenessdoes innovation attractiveness
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Performance AssessmentPerformance Assessment
of Lead User Research at 3Mof Lead User Research at 3M
Research Team:Research Team: Prof. Gary Lilien, Penn State UniveProf. Gary Lilien, Penn State Univer
Prof. Pam Morrison, University of New South Wales; DProf. Pam Morrison, University of New South Wales; D
ASI Associates, Mary Sonnack, Division Scientist, 3MASI Associates, Mary Sonnack, Division Scientist, 3M;Prof. Eric von Hippel, MITProf. Eric von Hippel, MIT
(For the complete article and other Lead User Videos(For the complete article and other Lead User Videos
Go toGo to leaduser.comleaduser.com on the Web)on the Web)
A t R lt L d U N LAssessment Results Lead User vs Non Le
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Assessment Results: Lead User vs. Non-LeFunded Ideas
LU Ideas (n=5) NON-LU Id
(n=42)Newness of Idea
z Novelty compared tocompetition
z
Newness of needs addressed
9.6
8.3
6.8
5.3
Projected Profitability
z % market share in year 5
z Estimated sales in year 5
68%
$146m
33%
18m
Strategic Value
z Strategic importance
z Fit with Strategic plan
9.6
9.8
7.3
8.4
Fit with Business
Assessment Results: Lead User vs. Non-LeFunded Ideas
LU Ideas (n=5) NON-LU Id
(n=42)Newness of Idea
z Novelty compared tocompetition
z
Newness of needs addressed
9.6
8.3
6.8
5.3
Projected Profitability
z % market share in year 5
z Estimated sales in year 5
68%
$146m
33%
18m
Strategic Value
z Strategic importance
z Fit with Strategic plan
9.6
9.8
7.3
8.4
Fit with Business
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Essential Definitions
Breakthrough:
z
Determines Future Business Growth and Marginsz Major Product line >20% of Division Sales
Incremental improvement:
z Valuable to existing business
z Extension to existing lineIncrem
Traditional 3MMethod
41
Essential Definitions
Breakthrough:
z
Determines Future Business Growth and Marginsz Major Product line >20% of Division Sales
Incremental improvement:
z Valuable to existing business
z Extension to existing lineIncrem
Traditional 3MMethod
41
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Example of a LU innovation on 3M web
3M's Major Innovations
Commercialized 2001
z 3M Inflata-Pak Air Cushion Packaging
packaging eliminates the need for peanutswrap while protecting fragile items for shippof tough, durable plastic, it conforms to odd
and seals itself.
Example of a LU innovation on 3M web
3M's Major Innovations
Commercialized 2001
z 3M Inflata-Pak Air Cushion Packaging
packaging eliminates the need for peanutswrap while protecting fragile items for shippof tough, durable plastic, it conforms to odd
and seals itself.
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Lead User concept generation projects
cost more than traditional ones
Person DaysTraditional 3Mconcept developmentstage
60
Lead User conceptdevelopment stage
At 3M
154
(pl
Lead User concept generation projects
cost more than traditional ones
Person Days
Traditional 3Mconcept developmentstage
60
Lead User conceptdevelopment stage
At 3M
154
(pl
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ACTIVITY: Think about possible Lead U
yourmarkets
Step 1Step 1 Select a specific market & specificSelect a specific market & specific majormajor
aboutabout
Step 2Step 2 Brainstorm possible lead usersBrainstorm possible lead users withinwithinthth
marketmarket
zz Which types of individuals or firms have nWhich types of individuals or firms have n
leading edge of the trends?leading edge of the trends?zz Which ones have a high incentive & the rWhich ones have a high incentive & the re
solve their leading edge needs?solve their leading edge needs?
Step 3Step 3 Brainstorm possible lead usersBrainstorm possible lead users outsideoutside tt
ACTIVITY: Think about possible Lead U
yourmarkets
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Example of searching for lead users ou
target market
Look for users facing higherneeds than anyone in targetmarket:
People who need even highresolution than anyone doingmedical imaging
Examples:
Experts in semiconducimaging
Medical X-Ray
Instead of a board of leading radiol
Example of searching for lead users ou
target market
Look for users facing higherneeds than anyone in targetmarket:
People who need even highresolution than anyone doingmedical imaging
Examples:
Experts in semiconducimaging
O
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All Users Testing
Sales
Need Data
Market Research R&D
Manufacturer
Technical
Service
Sales
Need Data
Need Data
Service
Solution Data
Solution Data
Solution Data
Organizing to use the LU Method