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1. 8/14/21 702070 - Khởi nghiệp 1 Lecturer:

2. 8/14/21 702070 - Khởi nghiệp 2 EVALUATION

3. 8/14/21 702070 - Khởi nghiệp 3 1 2 3 4 5 6 Content The theory of Entrprenuership

4. 8/14/21 702070 - Khởi nghiệp 4 Business model creation

5. TEXTBOOK Osterwalder, A., Pigneur, Y., 2010. Business model generation: a handbook for visionaries, game changers, and challengers Wiley and Sons, New Jersey. Laverty, M., Little, C., 2020. Entrepreneurship. Rice University. Website: https://businessmakeover.eu/ 8/14/21 702070 - Khởi nghiệp 5

6. 8/14/21 702070 - Khởi nghiệp 6 CHAPTER 1 – INTRODUCTION TO INNOVATION & CREATIVITY

7. 8/14/21 702070 - Khởi nghiệp 7 GEID (2017)  -  An entrepreneur is a person with the vision to see an innovation and the ability to bring it to market Handong (2017) :  Entrepreneur –  some one who can recognize opportunities where others see chaos or confusion; they are aggressive catalysts for change within the marketplace; they challenge the unknown a n d continuously create the future OECD (2007) :  Entrepreneurs  - are those persons (business owners) who seek to generate value, through the creation or expansion of economic activity, by identifying and exploiting new products, processes or markets ENTREPRENEUR

8. An entrepreneur is someone who identifies and acts on an idea or problem that no one else has identified or acted on. This combination of recognizing an opportunity to bring something new to the world and acting on that opportunity is what distinguishes an entrepreneur from a small business owner . A small business owner is someone who owns or starts a business that already has an existing model , such as a restaurant, whereas an entrepreneur is someone who creates something new .  This new creation can be a new process or product, a business that identifies a new or unique target market, or a combination of ideas that creates a new approach or method, for example. 8/14/21 702070 - Khởi nghiệp 8

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12. 8/14/21 702070 - Khởi nghiệp 12 ENTREPRENEURSHIP

13. 8/14/21 702070 - Khởi nghiệp 13 Entrprenuership is the pursuit of opportunity beyond resources controlled (Howard Stevenson) Tinh thần khởi nghiệp là sự dấn thân theo đuổi các cơ hội mới vượt quá các nguồn lực bị / được kiểm soát

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15. 8/14/21 702070 - Khởi nghiệp 15 GROUP WORK PRESENTING AN ENTREPRENEURSHIP & WAYS LEAD TO SUCCESS OR FAILURE IN REAL LIFE

16. 8/14/21 702070 - Khởi nghiệp 16 INNOVATION

17. 8/14/21 702070 - Khởi nghiệp 17 CREATIVE

18. 8/14/21 702070 - Khởi nghiệp 18 INVENTION

19. 8/14/21 702070 - Khởi nghiệp 19 Một suy nghĩ hay hành động mang tính khác thường ( mới lạ ) Chưa mang tính thực tiễn Creative Khả năng thực thi một cái gì đó mới Mang tính thực tiễn Innovation Tạo một cái gì đó mà chưa có từ trước và được công nhận là một sản phẩm có giá trị Mang tính thực tiễn Invention

20. 8/14/21 702070 - Khởi nghiệp 20 GROUP WORK MỖI NHÓM CHO VÍ DỤ VỀ SỰ SÁNG TẠO, SỰ ĐỔI MỚI VÀ SỰ PHÁT MINH CHO 1 SẢN PHẨM CỦA DOANH NGHIỆP

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23. 8/14/21 702070 - Khởi nghiệp 23 GROUP WORK - MỖI NHÓM CHỌN RA 1 SẢN PHẨM/DỊCH VỤ - SẢN PHẨM/DỊCH VỤ CỦA BẠN CÓ KHÓ KHĂN GÌ KHI CẠNH TRANH TRÊN THỊ TR Ư ỜNG - THẢO LUẬN ĐỂ TÌM RA Ý T Ư ỞNG, PHÁT TRIỂN Ý T Ư ỞNG THÀNH SỰ SÁNG TẠO ĐỂ SẢN PHẨM CÓ THỂ CẠNH TRANH TRÊN THỊ TR Ư ỜNG - TRÌNH BÀY Ý T Ư ỞNG KINH DOANH CỦA NHÓM

24. 8/14/21 702070 - Khởi nghiệp 24 CHAPTER 2 – BLUE OCEAN STRATERGY VS MEDICI EFFECT

25. BLUE OCEAN A slang term created in 2005  The idea behind it is the referral to the vast marketing options that occurs when an unknown industry or innovation occurs The term blue ocean was coined by professors W. Chan Kim and Renee Mauborgne in their book Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant (2005)  t he authors define blue oceans as markets associated with high potential profits 8/14/21 702070 - Khởi nghiệp 25

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28. BLUE OCEAN STRATERGY Definition: Blue Ocean Strategy is referred to a market for a product where there is no competition or very less competition. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure 8/14/21 702070 - Khởi nghiệp 28

29. BLUE OCEAN STRATERGY Description:  Blue Ocean Strategy can be applied across sectors or businesses. It is not limited to just one business  In today's environment most firms operate under intense competition and try to do everything to gain market share. When the product comes under pricing pressure there is always a possibility that a firm’s operations could well come under threat. This situation usually comes when the business is operating in a saturated market, also known as 'Red Ocean'.  When there is limited room to grow, businesses try and look for verticals or avenues of finding new business where they can enjoy uncontested market share or 'Blue Ocean'. A blue ocean exists when there is potential for higher profits, as there is now competition or irrelevant competition.  The strategy aims to capture new demand, and to make competition irrelevant by introducing a product with superior features. It helps the company in make huge profits as the product can be priced a little steep because of its unique features.  8/14/21 702070 - Khởi nghiệp 29

30. RED OCEAN VS BLUE OCEAN STRATERGY 8/14/21 702070 - Khởi nghiệp 30

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32. 6 PATHS FRAMEWORK 8/14/21 702070 - Khởi nghiệp 32

33. EXAMPLE OF BLUE OCEAN STRATERGY Ford Motor Co. In 1908, Ford Motor Co. introduced the Model T as the car for the masses. It only came in one color and one model, but it was reliable, durable, and affordable. At the time, the automobile industry was still in its infancy with approximately 500 automakers producing custom-made cars that were more expensive and less reliable. Ford created a new manufacturing process for mass-producing standardized cars at a fraction of the price of its competitors. The Model T's market share jumped from 9% in 1908 to 61% in 1921, also officially replacing the horse-drawn carriage as the principal mode of transportation. Apple Inc. Apple Inc. found a blue ocean with its iTunes music download service. While billions of music files were being downloaded each month illegally, Apple created the first legal format for downloading music in 2003. It was easy to use, providing users with the ability to buy individual songs at a reasonable price. Apple won over millions of music listeners who had been pirating music by offering higher-quality sound along with search and navigation functions. Apple made iTunes a win-win-win for the music producers, music listeners, and Apple by creating a new stream of revenue from a new market while providing more convenient access to music. 8/14/21 702070 - Khởi nghiệp 33

34. EXAMPLE OF BLUE OCEAN STRATERGY Cirque du Soleil:  This Canadian entertainment company began in the 1980s as a bunch of “crazy people” with a vision of what the modern circus could be. Traditional circus performances were lighthearted affairs targeted toward children, whereas Cirque offered a more sophisticated experience with some of the world’s best performers. In fact, many of Cirque’s shows included astonishing acts that couldn’t be seen anywhere else. While kids are still part of the target audience, the much higher ticket price guaranteed the primary customers would be adults. Cirque du Soleil did not attempt to be another circus with clowns and performing animals—its Blue Ocean Strategy completely reinvented the market. Backroads:  This company turned travel into something more challenging and engaging than the typical relaxing itinerary of an all-inclusive cruise or beach vacation. Backroads expanded the industry to offer something novel: luxury active travel. These meticulously designed, fitness-based trips include guides who take guests hiking, biking, camping, and more. Backroads’ Blue Ocean Strategy appealed to a much different audience than vacationers looking to relax, and has played a major role in expanding the industry to include travelers who want to feel fulfilled and accomplished at the conclusion of a trip. 8/14/21 702070 - Khởi nghiệp 34

35. MEDICI EFFECT According to Frans Johansson, these innovators are changing the world by stepping into the Intersection: a place where ideas from different fields and cultures meet and collide, ultimately igniting an explosion of extraordinary new discoveries. Johansson calls this proliferation of new ideas ‘the Medici effect’ —referring to the remarkable burst of creativity enabled by the Medici banking family in Renaissance Italy. In this fascinating book, he reveals how we can find intersections in our own lives and turn the ideas we find there into pathbreaking innovations The core of it is about two types of ideas: Directional ideas Intersectional ideas 8/14/21 702070 - Khởi nghiệp 35

36. MEDICI EFFECT Directional innovation  improves a product in fairly predictable steps, along a well-defined dimension. Examples of directional innovation are all around us because they represent the majority of all innovations. This is what we call incremental improvements (Innovation is in my opinion a bit on the optimistic, even window-dressing side) The goal is to evolve an established idea by using refinements and adjustments. The rewards for doing so are reasonably predictable and attained relatively quickly. People and organizations do this all the time through increasing level of expertise and specialization. It is absolutely necessary if one does not wish to squander the value of an idea. Even an intersectional idea will, once it has become established, develop and evolve along a specific direction. 8/14/21 702070 - Khởi nghiệp 36

37. MEDICI EFFECT Intersectional innovations , on the other hand, change the world in leaps along new directions. This is what Guy Kawasaki calls “jumping the curve”. These ideas are game changers. I am preparing a whitepaper on how NIBC (Nano, Info, Bio, Cogno )) technologies are major game changers. Although intersectional innovations are radical, they can work in both large and small ways. They can involve the design of a large department store or the topic of a novella; they can include a special-effects technique or the product development for a multinational corporation. 8/14/21 702070 - Khởi nghiệp 37

38. 8/14/21 702070 - Khởi nghiệp 38 CHAPTER 3 – THEORIES OF INNOVATION

39. It is remarkable how many people are under the false assumption that companies are either innovative or not.   This is a very polarizing and simplistic perspective that does not take into account the different types of innovations that companies can and do pursue. Break down innovation into two dimensions:  Technology and Market, which gives us the following 4 types of innovation 8/14/21 702070 - Khởi nghiệp 39

40. Disruptive vs. sustaining innovation Clayton Christensen was the first to introduce the concept of  disruptive innovation in 1995. Disruptive innovation, by definition, refers to a  concept, product or service that creates a new value networ k either by disrupting an existing market or creating a completely new market. In the beginning of the life cycle of an innovation, disruptive innovation generally provides lower performance, and while these kinds of innovations often aren’t “good enough” to satisfy current customers, they appeal to a different market instead. Sustaining innovation,  on the contrary, refers to the type of innovations that  exist in the current market  and instead of creating new value networks, it rather improves and grows the existing ones. 8/14/21 702070 - Khởi nghiệp 40

41. Radical vs. incremental innovation Both sustaining and disruptive innovation can be either radical or incremental. Radical innovation  happens when a  new technology completely disrupts existing business  or economy and  creates a new business model . Only about 10% of innovations fall into this category because they are the most difficult to execute. Incremental innovation , in turn, refers to  a series of small, gradually built improvements to existing products, processes or methods  to maintain competitive position over time. The majority of innovations are incremental, because these types of innovations are often the easiest and most cost-efficient to implement. 8/14/21 702070 - Khởi nghiệp 41

42. Architectural vs. modular innovation In addition to the types of innovations mentioned above, I'd also like to briefly introduce the concepts of  architectural  and  modular innovation . Architectural innovation  is described as the reconfiguration of existing product technologies, and was introduced by Rebecca Henderson and Kim Clark in 1990. The main point in architectural innovation is that while the core components of the product remain the same, the relationship between these components changes. This type of innovation  entails the overall design, system or the way components interact . Modular innovation  (or component innovation), on the contrary, is the exact opposite. In modular innovations, one or more components of a product is changed while the overall design stays the same. 8/14/21 702070 - Khởi nghiệp 42

43. The Innovation Matrix 8/14/21 702070 - Khởi nghiệp 43

44. 8/14/21 702070 - Khởi nghiệp 44 CHAPTER 4 – INNOVATION CULTURE WITHIN FIRMS

45. Business model, technology- and marketing innovations 8/14/21 702070 - Khởi nghiệp 45

46. Business model innovation Business model innovation  is all about the ability to rethink your current business to find new revenue streams and maintain competitive advantage. It can be done either by improving an existing business model or by looking for new ways to provide value. Many previously successful company has failed in business model innovation because instead of envisioning possible future innovations, they've been too busy with their current operations. What these companies should have done instead, is to have tried to  actively challenge the basic assumptions and the dominant logic in the industry  to find new profitable opportunities. 8/14/21 702070 - Khởi nghiệp 46

47. Business model innovation Luckily, business model innovation is easier when done in a systematic manner: Analyse your current business model  – Identify your target market and your offering. How exactly is your value proposition created and your revenue generated? Confront your current business model –  Engage in ideation to challenge common assumptions and current way of doing things. Sometimes, questioning your long-held assumptions may help you to come up with those infamous “out-of-the-box ideas” especially if you’re suffering from a creative block. Ensure the consistency of a business model –  Make sure your new business model is consistent with your long-term vision. Build a pilot and test it –  Make iterations based on your findings, always keeping success factors and possible pitfalls in mind. 8/14/21 702070 - Khởi nghiệp 47

48. Technology innovation A general misconception is that innovation breakthroughs are always based on fascinating and costly technologies. Creating positive change doesn’t necessarily require the most tech-savvy personnel or large technological investments. However, most of the great innovations still utilize new technology, in one way or another. For many industries, technology is the major player when seeking a competitive edge and increasing profit margins  Generating new ideas based on technology, capability or knowledge to produce a new solution to a real or perceived need and to develop this solution into viable entity. 8/14/21 702070 - Khởi nghiệp 48

49. Technology innovation New technology can be used to: Accelerate your innovation processes Realize new possibilities in the market Generate ideas and build them into innovations Model your products and services for the market Experiment and test these new concepts 8/14/21 702070 - Khởi nghiệp 49

50. Marketing innovation For a business to succeed,  marketing innovation  is claimed to be as important as product innovation. This makes sense, as there’s no point spending time and money on business model- and product development if no one is able to find it and benefit from it. However, marketing innovation isn’t just about finding new unique channels and tactics to promote your offering but about finding new markets and creating new value propositions that others aren’t able to (or do not want to) provide. This can be done by launching your technology, product or business model in new unconventional places or by promoting your existing offering in a way it hasn’t been promoted before. Classic marketing innovations are such where  an existing product is used to a whole new purpose  and it provides a  different value proposition  for a completely  new segment . 8/14/21 702070 - Khởi nghiệp 50

51. Ten types of innovation The model describes itself as  The Discipline of Building Breakthroughs  and aims to provide a way to  identify new potential opportunities beyond products  and revisit existing strategies to develop viable innovations. The ideology behind these types of innovations is that  building new products isn’t the only way to innovate  and might actually provide the lowest return on investment with minimum competitive advantage. Instead of solely focusing on developing different features of the product, the ten types of innovation-framework approaches innovation in a more  holistic  way, claiming that the best results can be achieved when all of the following categories are considered. 8/14/21 702070 - Khởi nghiệp 51

52. Ten types of innovation 8/14/21 702070 - Khởi nghiệp 52

53. Innovator’s Dilemma One of the most significant and widely recognized theories in history, is designed to explain psychological and economic phenomenon regarding disruptive innovations The core: In the beginning, innovation, and most specifically disruptive kind, is inferior to the existing products and services on the market. Because product improvement takes a lot of time and requires multiple iterations, the value for the customer is minimal,  at the bottom of the S-curve 8/14/21 702070 - Khởi nghiệp 53

54. Innovator’s Dilemma 8/14/21 702070 - Khởi nghiệp 54

55. Innovator’s Dilemma 8/14/21 702070 - Khởi nghiệp 55

56. Jobs-To-Be-Done Framework A theory and a methodology by Strategyn , focuses on Outcome-Driven Innovation. The fundamental idea of the theory is that people buy products and services to  get jobs done , and while different products and services come and go, the underlying job-to-be-done stays the same.  The difference between traditional innovation and outcome-driven innovation is that most traditional innovations are just improved versions of existing products, whereas outcome-driven innovations are more focused on the job that needs to get done. This outcome-driven approach allows you to  learn more about customer's needs  and which of those are unmet. The reason for this is that outcome-driven approach directly addresses specific metrics the customer has in mind that define the successful execution for the job. 8/14/21 702070 - Khởi nghiệp 56

57. Jobs-To-Be-Done Framework 8/14/21 702070 - Khởi nghiệp 57

58. Crossing The Chasm Moore believes that the  most difficult transition is from the early adopters to early majority , referred here as the chasm. The chasm occurs because the expectations between these two adopter categories are significantly different. The basic idea is that the entire market can be represented with a bell curve that can be divided into segments based on how eager the customers are to adopt new technology with each segment having their own sets of expectations and desires. The left side of the curve, the early market, consists of people who want the newest inventions, whereas the ones on the right, in the mainstream market, are more interested in real, convenient solutions. 8/14/21 702070 - Khởi nghiệp 58

59. Crossing The Chasm 8/14/21 702070 - Khởi nghiệp 59

60. Crossing The Chasm The early market type is typically expecting intuitive solutions and are often motivated by future opportunities. The mainstream market, however, is more analytic and willing to bear smaller risk, whereas the late majority is usually motivated by real-life problems that are present at the moment. Typically, people who fall into this category only want to pursue things that are extremely likely to happen. For companies to be able to cross the chasm, they need to find new ways to make their products more attractive in the eyes of the early majority. Developing the product and changing the way you talk about it to suit the majority can often mean making compromises that alienate the innovators and the early adopters that allowed your early success. This can be a very painful process that many companies find difficult, not only psychologically, but also in practice. 8/14/21 702070 - Khởi nghiệp 60

61. Crossing The Chasm The best way to win over the mainstream is to focus on segmentation and do it extremely well. Here’s a few tips: 1. Vertical vs horizontal  – define your target market and brand yourself as a specialist in that specific niche. This obviously won’t work if your business idea is to provide a single solution for all types of users. Either way, you must pick either one as you cannot provide everything for everybody. 2. Focus  on one niche at a time 3.   Acknowledge differences –  Make sure your product, pricing and distribution meets the expectations of the mainstream market.  8/14/21 702070 - Khởi nghiệp 61

62. The Three Horizons of Growth The three horizons of growth, created by McKinsey & Company, is a well-known model for organizations to structure their initiatives and finding an appropriate balance between short- and long-term projects in their portfolio. 8/14/21 702070 - Khởi nghiệp 62

63. The Three Horizons of Growth The point of the three horizon model is that for an organization to maximize their growth potential, they need to simultaneously work on projects within all three horizons: Horizon 1 : Initiatives related to the  core  business Horizon 2 : Development of new opportunities in  emerging  businesses Horizon 3 : Creation of  new , transformational businesses To maximize growth potential, you need to simultaneously work on projects for all three horizons You can’t guarantee a bright future without a balance between all of the three horizons and by finding that, you’ll not only  maximize your growth potential , but also  decrease the risk  of your business portfolio. 8/14/21 702070 - Khởi nghiệp 63

64. 70-20-10 Rule To put the three horizons model into practice, you can use the 70-20-10 rule, pioneered by then Google CEO Eric Schmidt, which  is a simple rule for allocating resources  between “the core”, “the adjacent” and “the innovative stuff”, often referred to as “the transformational”. Here the  core  refers to the activities that make up the majority of existing business, whereas the  adjacent  means new improvements and logical extensions for the current business. The  transformational , however can mean anything brand new for the organization that isn’t related to the core.  To get the best possible result, try to allocate 70% of your resources on the core business initiatives, 20% on projects related to your business, such as new markets, and the rest 10% on creating something completely new. In addition to anecdotal evidence from Google, has also seemed to confirm that companies that allocate their resources in this manner, typically outperform their peers by a margin of 10-20% (measured with their P/E ratio). The research also identified that the long-term returns for each type of investments are actually the inverse of the resources invested. 8/14/21 702070 - Khởi nghiệp 64

65. 70-20-10 Rule 8/14/21 702070 - Khởi nghiệp 65

66. 70-20-10 Rule 8/14/21 702070 - Khởi nghiệp 66 Because the three horizon model of growth and the 70-20-10 rule are talking about the exact same thing, we can combine these two for a more practical look at the issue.

67. 8/14/21 702070 - Khởi nghiệp 67 CHAPTER 5 – NEW PRODUCT DEVELOPMENT

68. What Is New Product Development? New Product Development (NPD) is the total process that takes a service or a product from conception to market. New or rebranded products and services are meant to fill a consumer demand or an opportunity in the marketplace. The steps in product development include drafting the concept, creating the design, developing the product or service, and defining the marketing. A new product opens a whole new market: It can completely replace a current product, take over an existing product, or simply broaden the market for something that already exists. Sometimes existing products are introduced to new markets, repackaged, or marketed differently. New products can improve the use of a company’s resources, launch a company into a new market or segment of the market, improve the relationship a company has with its distributors, or increase or defend a company’s market share. 8/14/21 702070 - Khởi nghiệp 68

69. What Is Fuzzy Front End, and Why Is It So Important in Product Development Processes? Process management is a technique that ensures improvements are introduced with a consistent, structured set of activities. In your product development processes, whether for a new or revamped product, your process management strategies are critical to ensuring that your products will be continuously improved. These strategies will necessarily include your product development processes, and ensure that even very complex products make it to market consistently and improved regularly. The four phases of product development are: Fuzzy Front-End Design Implementation Fuzzy Back-End 8/14/21 702070 - Khởi nghiệp 69

70. What Is Fuzzy Front End, and Why Is It So Important in Product Development Processes? 1. Fuzzy Front-End (FFE):  often called the ideation step, is considered one of the best opportunities for driving innovation in a company.  There have been many case studies that examine how FFE is done in different companies, looking for consistencies and best practices. Some companies have idea management software or some type of regular way that they generate ideas. Some companies use integrated product teams (IPTs), a group that is responsible for defining the product. Volumes have been written about FFE because of its relative importance in product development, but the FFE process is unique to each company.  However, there are a few consistent activities that occur with every FFE approach, and provide teams with critical decision points before moving forward. 8/14/21 702070 - Khởi nghiệp 70

71. What Is Fuzzy Front End, and Why Is It So Important in Product Development Processes? Determining the innovation goal.  This preliminary analysis is your opportunity to figure out what problem you need to solve for your customers before you make a product. Figuring out what your customers think about this goal.  People will buy a product or service that solves a problem for them, but the problem itself must be present. Products that customers don’t need, didn’t ask for, or degrade your brand loyalty are unsuccessful. Reviewing other market segments for possible connections or technology to get ideas.  When thinking about new products, it’s important to collect data on how people are using the product, how much they will pay, and whether the price for the benefit is reasonable. During your market research phase, you should also review the market size and conduct a segmentation analysis. 8/14/21 702070 - Khởi nghiệp 71

72. What Is Fuzzy Front End, and Why Is It So Important in Product Development Processes? Prototyping your ideas.  is a mockup of the proposed product, intended to verify your design. The extent of the product prototype is dependent upon your company’s needs. Some companies need a fully-functional model to show how the product works, while some companies will only require a 3D representation  you should test your prototype in different use-case scenarios and identify its points of failure. Testing your ideas with your customer base.  Should conduct a customer value assessment to obtain the opinion of a sample of your target market. This assessment helps to adequately predict the response to the release of your product. Experts say that early customer involvement cuts down on uncertainty and helps make product objectives clear product  called listening to the voice of the customer ( VoC ). Planning how to funnel these potential products into your product development process. is the initial stage of deciding how to develop, mass produce, & market the new prototype  opportunity to conduct a technical assessment, and also your source-of-supply assessment. 8/14/21 702070 - Khởi nghiệp 72

73. What Is Fuzzy Front End, and Why Is It So Important in Product Development Processes? 8/14/21 702070 - Khởi nghiệp 73 How your company performs FFE, there are some deliverables you should expect to create for each product that moves beyond FFE. These include: - A mission statement - The market trends - The customer benefits and acceptance data - The technical concept - Product definition and specifications - Economic analysis of the product - The development schedule - Project staffing and the budget - A business plan - An economic analysis How innovative they are, all new product ideas must meet certain criteria for your company. They must: - Fit your company skill sets - Fit the interest of your company - Solve a problem for someone - Be something that someone will buy - Be scaleable

74. What Is Fuzzy Front End, and Why Is It So Important in Product Development Processes? 8/14/21 702070 - Khởi nghiệp 74 When define your product  several questions that you should ask as early in the process as possible  disperse these questions into your FFE process or put them into a checklist before moving to development. These include:

75. What Is Fuzzy Front End, and Why Is It So Important in Product Development Processes? 2. Design:  Once a product is more than just a notion, the next step in the product development process is the product design. Some of these activities may have been started in FFE, but in this step, all of the planning goes into high gear so that you capture both the high-level design processes and detail-level requirements. This step is mostly about validating the manufacturing feasibility of the product, and how you’ll integrate the internal components of the design. 3. Implementation:  During this phase of development, you will determine whether your prototype meets your design and requirements specifications from the previous steps, and you will also figure out how to deliver the product and provide support for your customers. At this point, you prepare your facilities that will manufacture, provide the supplies for, transport, and distribute the product. 4. Fuzzy Back-End (FBE):  This stage is sometimes called the “messy” back-end of innovation. This process is not considered as fun as the innovation process because in FBE, fun meets the execution processes and you must be disciplined about the release. This is the true commercialization phase where production and product launch happen in a structured way. In other words, the FBE is where the product truly comes to life in the marketplace, executing a company’s strategic vision.  8/14/21 702070 - Khởi nghiệp 75

76. Product Development Process Models Your company depends on being able to formalize your innovation process properly. According to urban legends of new product development, between 70% and 90% of new products fail. More conservative, peer-reviewed studies compiled by the Product Development and Management Association actually put that failure number between 30% and 49%. Even with these lower failure rates, however, there is still a large amount of money at stake. Therefore, a process model is critical to saving your company money and time. There are many different approaches and models for innovation, depending on the needs of your company. These include: Describe and evaluate actual practice Recommend an ideal process Make a system out of  development activities Simplify development activities Are centered around your customers Are team-based within your company 8/14/21 702070 - Khởi nghiệp 76

77. Product Development Process Models The Scorecard-Markov model : analysis model is a mathematical model that deals with the probabilities of things happening. These things are divided into the past, present, and future. The past isn’t as relevant as the present, because the present gives us the probability of something happening in the future. This model is especially helpful in scenarios where there are transitions from one state to another. In this model, you develop a matrix that represents the transition states and how likely they are to go from one to another, and apply it to the Scorecard-Markov model to make new product screening decisions. Developed to act as a scorecard for new product ideas, the matrix includes your customers’ needs, the strength of your marketing, your company’s competency, the compatibility of your manufacturing, and your distribution channels. In other words, this model is used to whittle down all of your ideas from FFE to ones that make mathematical sense for your company. It is a formal, evidenced-based process for the people you report to who want “real data” on why some ideas make it out of FFE and some do not. 8/14/21 702070 - Khởi nghiệp 77

78. Product Development Process Models The IDEO Process:  This model comes from a design and consulting firm of the same name, and is set apart because it is the “human-centered design process,” designing from the perspective of the user. IDEO’s designers make a point to observe real people in real situations, looking for the Form-Fit-Function (FFF) of their designs. FFF specifies the interchangeability of parts in a system and describes the characteristics of parts. Further, if a part is not needed for the fit, form, or function, it should not be added. This process following steps: Observation Ideation Prototype quickly Get user feedback Refine Implement 8/14/21 702070 - Khởi nghiệp 78

79. Product Development Process Models The Booz, Allen, and Hamilton (BAH) model:   This is one of the earliest and most well-known models for new product development. It is considered foundational for all other models developed to the present day in any industry and is meant to be sequential. BAH state that, “For every seven new product ideas, only one succeeds.” This model does not take into account the need for speed and flexibility in today’s marketplace product development. The seven steps are: New product strategy Idea generation Screening and evaluation Business analysis Development Testing Commercialization 8/14/21 702070 - Khởi nghiệp 79

80. Product Development Process Models The Stage-Gate model:   Also known as the Phase-Gate model, this is a project management approach that divides up the process of developing new products into a funnel system. Once each stage of product development is complete, it passes through a management-approved gate prior to moving onto the next stage. Sometimes stages are processed simultaneously. In this model, companies save money by filtering out the bad concepts and ideas through a funnel by the time the process is complete. The following eight stages were developed to improve the new product’s marketability and your team’s productivity once you have a product idea. After each stage is complete, you must decide whether or not to continue. 8/14/21 702070 - Khởi nghiệp 80

81. Product Development Process Models Stage 1: Generating Your company has a product idea. The first step counts on your performance of a SWOT analysis. It also known as a SWOT matrix, you perform a basic scan of your organization’s Strengths, Weaknesses, Opportunities, and Threats. Strengths and Weaknesses are internal to your company, whereas the Opportunities and Threats are external. Things to consider during your SWOT analysis are the current marketing trends, return on investment (ROI), and any notable costs such as distribution. This step is where you develop the roadmap for the product. Many experts advise developing more than one road map scaled to fit different risk levels. Stage 2: Screen the Idea In this step, an objective group or committee reviews criteria that you developed and decides to either continue or drop a project. This step is done quickly so that you drop any ideas that do not make the cut. Market potential, competition, ROI, and realistic production costs should be part of the criteria. 8/14/21 702070 - Khởi nghiệp 81

82. Product Development Process Models Stage 3: Test the Concept    Testing the concept with your customers. This is after the internal screening step, so the picture itself is more firm. The customers should be able to display their understanding of the product, and say whether they want or need it. Their feedback gives your company some marketing ideas and potential tweaks to the product itself. Stage 4: Business Case Analysis  fully formed product; the concept has been reviewed internally and externally. At this time, you can develop a set of metrics and a business case. The metrics should include the development time, the value of any launched products, the sales figures, and other data that shows the utility of your process. The business case should paint a complete picture of the product, from the marketing strategy to the expected revenue. 8/14/21 702070 - Khởi nghiệp 82

83. Product Development Process Models Stage 5: Product Development  where your product takes flight. You are getting ready for consumer testing, so the technical team must complete your design. During this step, you should complete beta versions, settle on manufacturing methods, and address packaging. Stage 6: Test Market  the whole concept is together and pitched to your consumer test group as the beta test. In this way, you validate your concept. At this time, you should work out any technical issues with the product. Stage 7: Commercialization This is the step that finally takes your product to launch in the marketplace. Complete final marketing and prices, and give the finalized details to rest of your company - especially the sales and distribution teams. Set up technical support to monitor customer’ needs. 8/14/21 702070 - Khởi nghiệp 83

84. Product Development Process Models Stage 8: Launch! The launch plan should be comprehensive for maximum impact. At a minimum, include these seven things in your launch plan: Market research including who will buy your product A competitive analysis outlining how your product is different and similar to the competition, why customers may buy elsewhere, and how you will lure them to your product A marketing strategy and the test of the strategy with your focus group A public relations program A complete product A marketing plan timeline A trained and ready sales team 8/14/21 702070 - Khởi nghiệp 84

85. Product Development Process Models It is important to understand this model, as many firms still adhere to the traditional eight-step process. The APQC revamped this eight-step model and consolidated into a five-step, five-gate model. The steps in this consolidated and slightly reworked model are: Stage 1:  Discover new product ideas Stage 2:  Build your business case Stage 3:  Development Stage 4:  Test Stage 5:  Launch 8/14/21 702070 - Khởi nghiệp 85

86. What Is the Product Development Lifecycle? 8/14/21 702070 - Khởi nghiệp 86

87. What Is the Product Development Lifecycle? 8/14/21 702070 - Khởi nghiệp 87

88. What Is the Product Development Lifecycle? There are many methodologies that have been incorporated into product development. Many of these are familiar to business professionals, as they have roots in Business Process Management concepts. These include: Lean Product Development (LPD):  Lean product development uses the lean principles of innovation, shortening development time, and redevelopment cycles, and employs low development costs, low production cycles, and low production costs to develop new products. Allen Ward, who wrote Lean Product & Process Development  states that Lean principles increase innovation by a factor of ten, and increase the introduction of new products by 400% to 500%. Lean divides new product development into what customers wish for, want, and need. 8/14/21 702070 - Khởi nghiệp 88

89. What Is the Product Development Lifecycle? Design for Six Sigma (DFSS):  DFSS is a process management technique that is related to the traditional Six Sigma (SS) methodology. However, it differs from the traditional methodology in that DFSS does not focus on improvement of an existing process or processes, but on preventing process problems at the beginning. DFSS, like SS, focuses on measurement. Implement DFSS by performing these steps: define, measure, analyze, design, verify (DMADV). By contrast, the steps in SS are define, measure, analyze, improve, control (DMAIC). Flexible Product Development : This methodology is counter to many popular development methodologies such as LPD and DFSS. This method encourages the company to continually make changes, even late into development, by remaining agile. The techniques used to produce this agility include modular architectures, experimentation and using an iterative approach to design, set-based design, and allowing new processes to develop as the product develops. 8/14/21 702070 - Khởi nghiệp 89

90. What Is the Product Development Lifecycle? Quality Function Deployment (QFD):  is a concurrent engineering approach where quality is designed into products, not discovered as missing or present later. Quality is defined as when a product meets the needs of the customer while providing value. QFD pays special attention to the “voice of the customer” through interviews, surveys, focus groups, reports, and observation. This data is then put into a matrix for product planning and designed from their inputs. User-Centered Design (UCD):  known as user-driven development (UDD), it places usability at the core of each design step  must validate each usability assumption in real world testing. The biggest difference between UCD and everything else is that UCD optimizes how people already do things. There is no movement toward changing their experience. Design for Manufacturing (DFM) and Design for Assembly (DFA):  The manufacturing industry uses both DFM and DFA, and are examples of concurrent engineering design. DFM designs with the idea that manufacturing is easier to achieve, while DFA designs intentionally for the ease of assembly. Both have specified rules to accomplish them.   8/14/21 702070 - Khởi nghiệp 90

91. How to Create a Product Development Process Especially in a tough economy, innovation may be necessary because it makes companies more competitive. Even though the natural managerial response to an economic downturn is to reduce spending, it would be ill-advised in development. Innovation can reposition a company in the marketplace and grow it for the future. Whether you are looking to improve your current processes or build new ones, there are some best practices and mistakes to avoid. Best practices to improve your product development processes: Put your customer’s needs and wants first. Be readily manufacturable. Price fairly, not greedily. Consider your profit margins early. Your quality should be “high enough.” Introduce at the right time. Anticipate your competition. Use a process management approach. . 8/14/21 702070 - Khởi nghiệp 91

92. How to Create a Product Development Process Especially in a tough economy, innovation may be necessary because it makes companies more competitive. Even though the natural managerial response to an economic downturn is to reduce spending, it would be ill-advised in development. Innovation can reposition a company in the marketplace and grow it for the future. Whether you are looking to improve your current processes or build new ones, there are some best practices and mistakes to avoid. Best practices to improve your product development processes: Put your customer’s needs and wants first. Be readily manufacturable. Price fairly, not greedily. Consider your profit margins early. Your quality should be “high enough.” Introduce at the right time. Anticipate your competition. Use a process management approach. . 8/14/21 702070 - Khởi nghiệp 92

93. How to Create a Product Development Process Integrate new product development within your company, not as a separate entity. Audit your projects. Develop databases for your projects, including notes and the processes used. Have your engineers use development notebooks. Develop a central collection of results. Use market research and test market results. Develop a project management database. Develop technology and marketing databases. Create job performance reports on each of your projects. Follow up projects with seminars and workshops on any issues encountered. Publish in technical journals, at least occasionally, to move industry standards. Use cross-functional teams. Develop a model of product development for your company. 8/14/21 702070 - Khởi nghiệp 93

94. How to Create a Product Development Process Develop metrics for your product development process. Record snapshots of your design at major points during the process. Be consistent with your naming conventions. Where possible, minimize iterations of your products. Get team buy-in sooner, rather than later. Some additional best practices for those companies dispersed in different countries: Involve your overseas subsidiaries in your development process. Create cross-national teams for new idea generation. 8/14/21 702070 - Khởi nghiệp 94

95. How to Create a Product Development Process Many decisions are made and practices are built at the highest levels. Sometimes we do not realize that our carefully crafted practices can lead to bad decisions in the future, or down the hierarchy of our company. The following are ways to head off bad decisions in product development: When possible, standardize your decision-making criteria.  decision-making is based on experience and may be difficult when you are creating a new development process. However, you should still give your teams the benefit of knowing what information management needs to make a decision, and give management the “real” picture that includes risks and problems without the fear of punitive action. With clear information requirements, your teams can give management a clear picture. Make your timelines realistic.  Are your timelines already based upon a launch date? It’s tough when there is already a deadline before your team understands the customer needs or the product’s technical challenges. If your timelines are too aggressive, your team may be forced to put out ideas that are half as good or that don’t really meet your customer’s needs. 8/14/21 702070 - Khởi nghiệp 95

96. How to Create a Product Development Process Be willing to take a stand. Decisiveness is a trait of a good leader. It is absolutely appropriate to want as much information as possible before you make a decision, but in short development cycles, it is critical to weed out the additional options quickly so your team can focus. Pull down any functional silos. A cross-functional development team has the advantage of having the perspective of your full company. It would be frustrating and time wasting if you didn’t consider downstream stakeholders or missed significant opportunities simply because a representative from manufacturing or sales was not on your team. Further, with a cross-functional team, you ensure that your company objectives are cohesive. Ensure that your product is the best it can be. C ompanies struggle with the idea of pushing back a launch. Remember: launching a product that is inferior to what you first projected is not better than pushing your launch back or even cancelling it. Should you find yourself in the unfortunate position where you have to decide to either push your launch back, cancel your launch completely, or launch what you have, run a cost-benefit analysis  It is true that sometimes rushing to market is necessary, even critical to securing your product’s rightful place. At the end of the day, you must ask yourself:  Is it worth alienating your customers with a sub-par product? 8/14/21 702070 - Khởi nghiệp 96

97. What Is Product Development in Marketing? Your product development marketing strategy helps you generate interest around your new or revamped product. Your product marketing strategy incorporates your new product introduction process (NPI), which comes into effect after completing the design and testing. This is the stage where manufacturing takes over. In other words, this is where the prototype goes to full production and into a sale. NPI takes over where NPD leaves off. A product marketing strategy should include your customer analysis, product development, pricing, branding, and sales and distribution plan.  8/14/21 702070 - Khởi nghiệp 97

98. What Is Product Development in Marketing? Get Your Strategy Ready Early: customers should be able to understand what your product does, how it compares to the competition, and what distinguishes it  should be working on your marketing plan before your product leaves the FFE, and firm it up through development. Use Social Media: should build your product’s landing page as soon as it is out of development and vetted by your consumer test groups. Use your site’s available features to collect even more consumer information for your launch. Continue to keep your product momentum going by building a Facebook page and opening a Twitter account for your product. Get Internal Buy-in:  Everyone in your company should be a cheerleader for the newest product. Further, anyone in your company can have an idea about its promotion, so listen to all of them - gems can turn up in the most unexpected places. Designate Your Goals and Budget:  As your product is making its way, you will want to designate a team responsible for its launch. Your team can put together a comprehensive marketing project and budget. Develop Your Marketing Materials : It's time to put together your product marketing support with content, and your advertisement package. Internally, you will need to determine the product needs for customer support, warranty, and repairs. 8/14/21 702070 - Khởi nghiệp 98