MODULE 5: Product Ideation and Development

After you have identified and recognized a business opportunity and come up with
a product idea, you design the concept for possible commercialization or application. You
will be guided by the concepts of innovation, creativity and product development
process. You are tasked to pitch your innovative idea using the business model canvas.

PREASSESSMENT
Design Your Own. Group work (Due: November 5, 2020)
With the use of your creative mind, draw and describe your version of a
face mask.

The key factor that influences your product ideation and development is your
design mindset.

The Designing Mind

• Transcends traditional rules and patterns to create meaningful, fresh ideas,
interpretations, and solutions
• Generates multiple and novel ideas and finds multiple approaches for achieving
goals
• Is willing to experiment, to try new ideas over and over again, and learn from
mistakes

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 DYNAMIC MIND
• Dynamic mindset is the ability to shift between inventive thinking, where new ideas
are generated, and analytical thinking, where ideas are tested to identify an
appropriate solution.

EMPATHETIC
• Empathy is the ability to see a situation from multiple perspectives such as the point
of view of clients, end users, and colleagues. These various perspectives allow
design thinkers to imagine solutions that meet the needs of the users.

HUMAN CENTERED
• Design thinkers put the human experience at the center of problem solving where
the lives of people, their challenges, and their ideas are closely and deeply
examined by engaging with people in their everyday environments.

VISUAL
• Visualizing has two components:
First, visual thinking speaks to a form of thinking that brings about new ideas;
Second, is bringing to life what was conceptualized in the mind.

COMFORTABLE WITH AMBIGUITY

• Design thinkers must be comfortable with ambiguity (or not knowing) while at the
same time exploring information, generating ideas, and detecting patterns.

COLLABORATIVE
• Design thinkers engage with clients to understand what needs to be designed, with
end users to understand their perspectives, and with other stakeholders to
determine the context and existence of any constraints.
• In this way, design thinkers do not create solutions in isolation, but, rather, solutions
are co-created through engagement with others.

REFLECTIVE
• Reflection is described as learning through action where the design thinker proposes
a solution, creates an artifact that can be examined by others, and reflects upon
the perspectives provided by others to improve upon the solution.

OPEN TO TAKING RISKS

• There is a tendency to cling onto the status quo, which prevents the birth of new
ideas, but design thinkers are comfortable with questioning the status quo to seek
new opportunities.
• With this questioning the status quo also comes the ability to examine constraints to
understand why they exist and how they can be worked with.

EMBRACING OF FAILURE
• Design thinkers are not fearful that the ideas presented will not be received well or
completely miss the mark.

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 • DTs do not view failure as something to be avoided but rather as a needed part of
the problem solving process.
• DTs reflect on failure and use this information to move an idea into the next iteration.

OPTIMISTIC
• Design thinkers are committed to the pursuit of finding better alternatives. Therefore,
design thinkers approach a problem with an attitude that all problems have at least
one solution that will improve the situation from where it is currently.

ENGAGES IN PROTOTYPING
• Design thinkers view solution finding as an iterative process that requires refining and
combining ideas to arrive at a final solution.
• Design thinkers engage in prototyping to transform conceptualized ideas into
tangibles for the purpose of gathering feedback on how a solution will work in the
real world.

Unit 1: Product ideation

The topics that will be covered here are the principles of creativity and innovation.

Topic Learning outcomes:

At the end of Unit 1 topics you will able to:

1. Discuss the significance of creativity and innovation in the area of your
specialization.

Creativity
• The generation of ideas that result in the improved efficiency or effectiveness of a
system.

Entrepreneurial Creativity

• “At the very heart of capitalism… is the creative habit of enterprise. Enterprise is, in its
first moment, the inclination to notice, the habit of discerning, the tendency to
discover what other people don’t yet see. It is also the capacity to act on insight, so
as to bring into reality things not before seen. It is the ability to foresee both the
needs of others and the combinations of productive factors most adapted to
satisfying those needs. This habit of intellect constitutes an important source of
wealth in modern society.
Novak, M. (1996) Business as a Calling. The Free Press, New York. 120

Characteristics of a creative climate:

• A trustful management that does not overcontrol the personnel
• Open channels of communication among all business members
• Considerable contact and communication with outsiders
• A large variety of personality types
• A willingness to accept change
• An enjoyment in experimenting with new ideas

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 • Little fear of negative consequences for making a mistake
• The selection and promotion of employees on the basis of merit
• The use of techniques that encourage ideas, including suggestion systems and
brainstorming
• Sufficient financial, managerial, human, and time resources for accomplishing goals
© 2009 South-Western, a part of Cengage Learning. All rights reserved.

The Most Common Idea “Killers”

1. “Naah.”
2. “Can’t” (said with a shake of the head and an air of finality).
3. “That’s the dumbest thing I’ve ever heard.”
4. “Yeah, but if you did that . . .” (poses an extreme or unlikely disaster case).
5. “We already tried that—years ago.”
6. “I don’t see anything wrong with the way we’re doing it now.”
7. “We’ve never done anything like that before.”
8. “We’ve got deadlines to meet—we don’t have time to consider that.”
9. “It’s not in the budget.”
10. “Where do you get these weird ideas?”
Source: Adapted from The Creative Process, ed. Angelo M. Biondi (Hadley, MA: The
Creative Education Foundation, 1986).

Innovation:
• Is the process by which entrepreneurs convert opportunities into marketable ideas
• Is a combination of the vision to create a good idea and the perseverance and
dedication to remain with the concept through implementation.
• Is a key function in the entrepreneurial process.

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 • Is the specific function of entrepreneurship.
• It is an idea, practice or object that is perceived as new by an individual or other unit of
adoption.
• It is a use of new knowledge to offer a new product or service that customers want.
• Thus, it is Invention + Commercialization
• “Innovation is the search for and the discovery, development, improvement, adoption
and commercialization of new processes, new products and new organization
structures and procedures.”
© 2009 South-Western, a part of Cengage Learning. All rights reserved

Schumpeter’s distinction between ”Invention” and ”innovation”

 An ’invention’ is an idea, a sketch or model for a new or improved device, product,
process or system. It has not yet entered to economic system, and most inventions
never do so.
 An ’innovation’ is accomplished only with the first commercial transaction involving
the new product, process, system or device. It is part of the economic system.

WHAT IS AN INNOVATION?
 It is an idea, practice or object that is perceived as new by an individual or other
unit of adoption.
 It is a use of new knowledge to offer a new product or service that customers want.
Thus, it is Invention + Commercialization
 “Innovation is the search for and the discovery, developed, improvement, adoption
and commercialization of new processes, new products and new organization
structures and procedures.”

IMPORTANCE OF INNOVATION TO ORGANIZATION

• Competitive pressure and the need to survive
• The management of a firm or enterprise. Managers have to implement change, new
processes and improve systems
• The impact of innovation on organizational life

WHY INNOVATIONS FAIL

 Poor leadership
 Poor organization
 Poor communication
 Poor empowerment
 Knowledge management
 Poor goal definition
 Poor alignment of actions to goals
 Poor monitoring of results
 R&D efforts are not guided by marketing research, manufacturing capabilities and
skills
 Mere imitation /copy without any increase in value- innovation offers nothing new
 Customers are not yet ready for such innovation

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 TYPES OF INNOVATION (OSLO MANUAL)
 Product innovation
 A good or service that is new or significantly improved. This includes
significant improvements in technical specifications, components and
materials, software in the product, user friendliness or other functional
characteristics.
 Process innovation
 A new or significantly improved production or delivery method. This includes
significant changes in techniques, equipment and/or software.
 Marketing innovation
 A new marketing method involving significant changes in product design or
packaging, product placement, product promotion or pricing.
 Organisational innovation
 A new organisational method in business practices, workplace organisation
or external relations.

TYPES OF INNOVATION (KURATKO)

Principles of Innovation
 Be action oriented.
 Make the product, process, or service simple and understandable.
 Make the product, process, or service customer-based.
 Start small.
 Aim high.
 Try/test/revise.
 Learn from failures
 Follow a milestone schedule.
 Reward heroic activity.
 Work, work, work.

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 Rules for Innovation
1. Encourage action.
2. Use informal meetings whenever possible.
3. Tolerate failure and use it as a learning experience.
4. Persist in getting an idea to market.
5. Reward innovation for innovation’s sake.
6. Plan the physical layout of the enterprise to encourage informal communication.
7. Expect clever bootlegging of ideas—secretly working on new ideas on company
time as well as personal time.
8. Put people on small teams for future-oriented projects.
9. Encourage personnel to circumvent rigid procedures and bureaucratic red tape.
10. Reward and promote innovative personnel
Source: from “Corporate Venturing Obstacles: Sources and Solutions,” by Hollister B.
Sykes and Zenas Block, Journal of Business Venturing (winter 1989): 161. Copyright ©
1989 by Elsevier Science Publishing Co., Inc. © 2009 South-Western, a part of
Cengage Learning. All rights reserved

Some examples of Creativity and innovation:

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 Unit 2: Product Development
This focuses on the topics on principles of product, product development and the product
idea presentation.

Topic Learning outcomes:

At the end of Unit 2 topics you will able to:

1. Understand the concept of product;
2. Understand the stages in the product development process;
3. Use the strategies in product concept generation; and
4. Create a viable and sustainable new or innovative product applicable in your field
of discipline.

WHAT IS A PRODUCT?
 Customers buy satisfaction
 Product is the need-satisfying offering of a firm
 Product quality and customer needs
 A product with more features or even better features is not a high-quality product if
the features are not what the target market wants or needs
 Goods, services, ideas, people, organizations, places, events

PRODUCT CLASSIFICATIONS

 According to durability (degree of tangibility)

 Non-durable
 Durable
 Services
 According to market
 Consumer products
• Convenience- are consumer products and services that customers usually buy
frequently, immediately, and with a minimum of comparison and buying effort.
 Staples
 Impulse
 Emergency
• Shopping products are less frequently purchased consumer products and services

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 that customers compare carefully on suitability, quality, price, and style.
• Specialty products are consumer products and services with unique
characteristics or brand identification for which a significant group of buyers is
willing to make a special purchase effort.
• Unsought products are consumer products that the consumer either does not
know about or knows about but does not normally think of buying.

 Business products
• Raw materials
• Accessory
• Components
• Supplies
• Professional service

PRODUCT ATTRIBUTES
• Features: dimensions, source ingredients, service, structures, esthetic characteristics,
manufacturing process, performance, components, materials, price and many
more
• Benefits: Uses, savings, nonmaterial well-being, economic gains
• Function: how the products works

Levels of a product

Product planners need to think about products and services on four levels.
1. Core customer value, which addresses the question, What is the buyer really buying?
2. Actual product.
3. Augmented product, which is created around the core benefit and actual product
by offering additional consumer services and benefits.
4. Potential- the future augmented product

REASONS FOR UNDERGOING PRODUCT DEVELOPMENT

• Add value to the product and to increase sales

• To build company’s image
• To differentiate the products from that of the competitors
• To build on the success of the existing products which are selling very well.
• To replace the products which are not selling
• To offer something new and keep up with the latest fashion trends
• To meet customer needs
• To start a new production and/or to expand the company-diversify

THE BASIC NEW PRODUCT DEVELOPMENT PROCESS

1. Strategic planning
2. Opportunity Identification and Project Selection
3. Concept generation
4. Concept evaluation

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 5. Technical Development
6. Commercialization

PRODUCT CONCEPT IDEATION APPROACHES

• Combination: Combine two or more existing products to come up with new product
idea. example: swiss knife; puto pao; umbrella and flashlight;
• Other Uses- introduce another use for an existing product. baking soda as facial; coffee
as body scrub;

• Magnify/Minify/Modify
 Magnify: Magnify what is already in the market through adding ingredients, add
more value, strengthening, enlarging and thickening. Noodles with more vitamins
 Minify: Product ideas that are in the market by making it smaller, reducing,
shortening, making faster, omit, lighten, and split up. Radio-MP4, iPod
 Modify: Changing the color, the shape, the size, the scent. off lotion-off lotion with
scent; balloons into different shapes;

• Reverse- reverse the process or sequence; use opposite; backward ideas. Example:
reversible underwear, reversible bags.
• Adapt: Make adjustable. Example- tumbler for hot and cold; transition eyeglasses;
smartphones -water resistant; shoes-slippers;

• Substitute: Substitute through using another ingredient or material; using another

process; thinking of who or who else.
• What if: Asking what ifs will help you generate business ideas.

BUSINESS MODEL CANVAS

Source: https://www.edrawsoft.com/template-general-business-model-canvas.php

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 ACTIVITY

Explain activity:
Read: disruptive innovation
Visit: https://www.youtube.com/watch?v=QoAOzMTLP5s
https://www.youtube.com/watch?v=IP0cUBWTgpY

Evaluate activity (GROUP): FINAL PROJECT

Develop a new product idea that solves a problem during this

CoVid 19 crisis, taking into consideration the use of expertise in your
chosen field of discipline. Present the idea using the business model
canvas.

REFERENCES

Bruce R. and R. Duane Ireland. (2006). Entrepreneurship Successfully Launching New

Ventures. New Jersey, Pearson Education, Inc.
Dess, G., Lumpkin, G.T., and Eisner, A.B. (2010). Strategic Management: creating
Competitive Advantages. McGraw-Hill.
Diaz, P., Fajardo, H., (2015). Entrepreneurship Study and Practice. Small Enterprise and
Research Development Foundation, Manila.
Kuratko D. (2017). Entrepreneurship Theory, Process, Practice. Cengage Learning. 10th
edition, 2017
Kuratko D. Corporate Entrepreneurship

Small Enterprise and Research Development Foundation and UPISSI. (2007). Introduction
to Entrepreneurship. revised edition, Manila 2007.
Small Enterprise and Research Development Foundation and UPISSI. (2013). Windows to
Entrepreneurship A teaching Guide. Manila, 2013.

https://tc2.ca/pdf/T3_pdfs/Independent_mindedness_Tutorial.pdf
https://osf.io/pjwgs/
https://www.mindtools.com/pages/article/resilience-quiz.htm
https://www.docpotter.com/thifor-test.html
https://keydifferences.com/difference-between-micro-internal-and-macro-external-
environment.html

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