ENGINEERING DESIGN(KG22803)

Bachelor Of Oil And Gas Engineering

Chapter 2: Solicit customer voices

and identify an innovation
opportunity

By: Dr. Emma Suali

Faculty of Engineering
TABLE OF CONTENT
2. Solicit customer voices and identify an innovation opportunity
2.1 Activities of designer
2.2 Design methodology
2.3 Design process
2.4 Innovation rule
Task of Design Engineer
•The main task of engineers is to apply their scientific and
engineering knowledge to the solution of technical
problems, and then to optimise those solutions within the
requirements and constraints set by material, technological,
economic, legal, environmental and human-related
considerations.
•Problems become concrete tasks after the problems that
engineers have to solve to create new technical products
(artefacts) are clarified and defined.

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Identify scientific knowledge that you will
gain from this course?
Activities Of Designers
The activities of designers can be roughly classified into:
Conceptualizing, i.e. searching for solution principles.
Generally applicable methods can be used along with the
special methods.
Embodying, i.e. engineering a solution principle by determining
the general arrangement and preliminary shapes and
materials of all components.
Detailing, i.e. finalizing production and operating details.
Computing, representing and information collecting. These
occur during all phases of the design process.

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Activities Of Designers
direct design activities (e.g. conceptualising, embodying,
detailing, computing), and
indirect design activities (e.g. collecting and processing
information, attending meetings, coordinating staff).
One should aim to keep the proportion of the indirect activities
as low as possible.
In the design process, the required design activities have to be structured in
a purposeful way that forms a clear sequence of main phases and
individual working steps, so that the flow of work can be planned and
controlled.

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Need For Systematic Design
In view of the central responsibility of designers for the technical and
economic properties of a product, and the commercial importance of
timely and efficient product development, it is important to have a defined
design procedure that finds good solutions.
This procedure must be flexible and at the same time be capable of being
planned, optimised and verified. Such a procedure, however, cannot be
realised if the designers do not have the necessary domain knowledge and
cannot work in a systematic way. Furthermore, the use of such a procedure
should be encouraged and supported by the organisation.

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Design Methodology
A design methodology must:
• allow a problem-directed approach; i.e. it must be applicable to every
type of design activity, no matter which specialist field it involves
• foster inventiveness and understanding; i.e. facilitate the search for
optimum solutions
• be compatible with the concepts, methods and findings of other disciplines
not rely on finding solutions by chance

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Blender
- Not everything can be blended
- ice cube
-Palm oil fruit
• facilitate the application of known solutions to related tasks
• be compatible with electronic data processing
• be easily taught and learned
• reflect the findings of cognitive psychology and modern
management science; i.e. reduce workload, save time, prevent
human error, and help to maintain active interest
• ease the planning and management of teamwork in an
integrated and interdisciplinary product development process
• provide guidance for leaders of product development teams.
CURRENT METHOD: SYSTEM THEORY
The problem analysis step is about the gathering of information
about the system under consideration by means of market
analyses, trend studies or known requirements.
The aim here is the clear formulation of the problem (or
subproblem) to be solved, which is the actual starting point for the
development of the system.

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Current Method: Value Analysis
In general, a start is made with an existing design, which is
analysed with respect to the required functions and costs.
Solution ideas are then proposed to meet the new targets.
Because of its emphasis on functions and the stepwise
search for better solutions, Value Analysis has much in
common with systematic design.

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CURRENT METHOD: DESIGN METHODS
VDI Guideline 2222 defines an approach and individual methods for the conceptual
design of technical products and is therefore particularly suitable for the
development of new products.
The more recent VDI Guideline 2221 proposes a generic approach to the design of
technical systems and products, emphasising the general applicability of the
approach in the fields of mechanical, precision, control, software and process
engineering.

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Poor Planning, purely experience-based design decisions, and trial-and-error
based design practice may lead to the following consequences:
1. Project failure
2. Missed schedule
3. Cost over-run
4. High warranty cost
5. Frequent maintenance
6. “Me, too”product
7. Unhappy customer

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CHARACTERISTICS OF THE 4 DOMAINS OF THE DESIGN WORLD

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General Design Process
Who are the Designers?
How do we design? What is design?

Design Process
1.Knowtheir "customers' needs".
2.Define the problem they must solve to satisfy the needs.
3.Conceptualize the solution through synthesis, which involves the task of satisfying
several different functional requirements using a set of inputs such as product design
parameters within given constraints.
4.Perform analysis to optimize the proposed solution.
5.Check the resulting design solution to see if it meets the original customer needs.
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 Voice Of Customers
What is Voice of Customer?
Voice of Customer is the customer’s voice, expectations, preferences, comments,
of a product or service in discussion. It is the statement made by the customer
on a particular product or service.

Customer Identification:
Customer is the one who buys or uses your products/services and he/she is the
one who receives the process output. We broadly classify customers into two
categories:

https://www.sixsigma-institute.org/Six_Sigma_DMAIC_Process_Define_Phase_Capturing_Voice_Of_Customer_VOC.php

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Voice of Customers
Internal Customers: Internal Customers are the ones who are
internal to the organization. They are Management, Employee(s) or
Any Functional Department in your organization.
External Customers: External Customers are not a part of the
organization. They are either the ones who use our product(s) or
service(s) or have vested interest in the organization. For e.g.
Clients, End-Customers, Shareholders, among others.
VOICE OF CUSTOMERS
Giving customers what they ask for.
Healthier fast-food products. Nicotine-free cigarettes. Bigger
engines in cars. After all, giving people what they want will
guarantee success—or so you would think.
Customers often describe the solutions they want in less focus
groups and surveys and sit back and wait while R&D rolls up its
collective sleeves and gets to work on materializing their ideas.

https://hbr.org/2002/01/turn-customer-input-into-innovation

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THE PROBLEM WITH LISTENING TO CUSTOMERS

The problem, when there is one, is simple:

Companies ask their customers what they want. Customers
offer solutions in the form of products or services. “I’d like a
picture or video phone,” they say, or, “I want to buy groceries
on-line.” Companies then deliver these tangibles, and
customers, very often and much to everyone’s chagrin, just
don’t buy.
The traditional approach of asking customers for solutions
tends to undermine the innovation process.
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The reason is also quite simple. Customers should not be trusted to come up
with solutions; they aren’t expert or informed enough for that part of the
innovation process.
That’s what your R&D team is for. Rather,customers should be asked only for
outcomes—that is, what they want a new product or service to do for them.
Maybe they want to feel a closer bond to people when talking on the phone
or to spend less time traveling to and from the grocery store.

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That’s because most customers have a very limited frame of
reference. Customers only know what they have experienced. They
cannot imagine what they don’t know about emergent technologies,
new materials, and the like. What customer, for example, would
have asked for the microwave oven, Velcro, or Post-It Notes? At the
time the transistor was being developed, radio and television
manufacturers were still requesting improved vacuum tubes.
What form the solutions take should be up to you, and you
alone.
 https://hbr.org/2002/01/turn-customer-input-
into-innovation

Step 1: Plan outcome-based customer

interviews.

Step 2: Capture desired outcomes.

STEPS TO TURN
CUSTOMER
INPUT INTO Step 3: Organize the outcomes.

INNOVATION
Step 4: Rate outcomes for importance
and satisfaction.

Step 5: Use the outcomes to jump-

start innovation.

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CUSTOMER NEEDS
Need is a desire or an expectation of a customer from a
given product or service. Customers may have many stated
needs which are often vague and generally are “wants”
from a product/service.

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 CUSTOMER NEEDS
For example Customer requires an Air-Conditioner for its use in his/her
bed-room. The real need of the customer is cool temperature in the
bedroom. Similarly, the real want from the Air-Conditioner is it has to be
quite, cost-effective and maintenance free. When the customer states
his/her requirements, we will often get to hear that the need is “Cool
Temperature, Less Noise (quite), Cost Effective and Free of
Maintenance”. However, “Cool Temperature” is the need and the rest
are just wants. It is important for the project team to understand the
stated needs of the customer and separate them from wants.

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The main reason that we separate needs and wants are: Needs
are important critical features and Wants are expectations of the
product or service over and beyond the needs. If the
product/service is not able to fulfill “Wants” of the customer, the
customer may only be highly displeased / dissatisfied. However, if
the product/service is not able to fulfill “Needs” of the customer,
he/she will not use the product/service and there is a high
likelihood that he/she will switch to competitors product/service.
Organizations reputation may also be at stake if “Needs” are not
met.
REQUIREMENT
Requirement is an attribute of the product or service which fulfils the needs of
a customer. Customer defines these requirements and are the “musts” of a
product or service.

For example in the above example of an air-conditioner, customer’s

requirement is “Cool Temperature” and the rest are “Good to Have” features.
Customer will not buy the Air-Conditioner if all of “Good to Have” features
are present but the “Requirement(s)” are not fulfilled. However, customer may
buy the product/service if the “Requirement” is fulfilled and “Good to Have”
features are present or not present.

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TRANSLATING VOICES TO NEEDS
Voice of Customer (VOC) methodology can be used to capture the customer
needs – both current (stated needs) and latent (unstated needs).
VOC methodology helps capture the needs of customer through stated
verbatim comments (customer voices). It helps translate verbatim comments
(customer voices) into customer needs to product/service output characteristics
(customer requirements).

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Distinct Categories of VOC:
At an organization level we broadly classify VOC into four distinct categories
(AICP):Voice of Associate: The feedback that we get from our Employees
Voice of Investor: The feedback that we get from our Management and
Shareholders
Voice of Customer: The feedback that we get from our Clients and End-
customers
Voice of Process: The feedback that we get from measuring our CTPs (Critical
To Process) and CTQs (Critical To Quality)

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VOICE OF CUSTOMER (VOC) METHODS
(1) Surveys: Surveys are a designed set of questionnaire which
is sent out to potential or existing customers. Surveys are cost
effective, however, have very low response rate.
This data collection technique is used to measure the
performance of a product, service or attribute across an entire
customer segment or group of segments. Surveys are typically
completed by customers via an online form, a phone call, or as
a hard copy and mailed to the company.

https://www.processexcellencenetwork.com/lean-six-sigma-business-performance/articles/tactical-
methods-for-collecting-voice-of-the-custo

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It is recommended to have a minimum of 100 answered questions
per data subgroup to minimize the margin of error. For example, if
two different customer segment subgroups are planned to be
analyzed within the data, say from age 18 to 25 and the other
from age 35 to 45, then each subgroup will need 100 answered
questions.

When developing the survey, it’s important to determine the

measurement scale for answers, test the individual questions against
the survey objectives, and validate the questions through a pilot
before launching it. These steps will significantly improve the data
collection success.
 VOICE OF CUSTOMER (VOC) METHODS
(2) Interviews: Interviews are individual meetings with potential or existing
customers where a set of questions are asked and answers are discussed to
understand customer voices. Interviews can tackle Complex Issues, however,
requires Trained Resources.
A very traditional VOC data collection method is the customer interview. This
technique is used to provide a specific customer point-of-view regarding product
or service issues, attributes and performance measures. It can be performed by
the organization directly to one customer or to a group of customers, such as
within a single customer segment. The method can be executed in person, on the
phone or through the mail.

Interviews performed in-person can have the highest cost of the three interview
forms; however, they also have the best completion rate and are the most likely
deployment vehicle capable of building trusting customer relationships, since
customers perceive this type of interaction as more personable.
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VOICE OF CUSTOMER (VOC) METHODS
(3) Focus Group: A group of people are called together in one conference room
and a discussion is held on specific topics that need to be addressed. These focus
groups are excellent for identifying the CTQ (Critical to Quality), however, are
difficult to generalize.
This is where a group of 8 to 12 potential customers within the demographic
groups that the company wants to target meet in a room together and are asked
to share their perceptions, beliefs and opinions about a product or service.
Typically the group participants are free to openly talk with one another.

This data collection method is used to gain insights into the customers’ prioritization
of needs and/or to test concepts and get feedback. Focus groups are sometimes
used in addition to interviews and surveys as the last step to further investigate
and understand the Voice of the Customer for each of the company’s touch points.

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VOICE OF CUSTOMER (VOC) METHODS
(4) Suggestions: Client/Customer/Employee feedback is received
and treated as suggestion to improve product or service.
Suggestions provide good improvement opportunities, however,
does not look at overall process.

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VOICE OF CUSTOMER (VOC) METHODS
(5) Observations: During the course of the
process, individuals can have observations and
can provide feedback to the process which does
act as a Voice of Customer.

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(6) Advanced methods: Some advanced forms of VOC data
collection include benchmarking industry market leaders;
investigating large competitors’ offerings; visiting customers in their
homes and businesses to listen to their issues and concerns; and
employing a team of mystery shoppers to covertly identify and
record any issues they may experience within each touch point.
Using a Kano Analysis will also help identify customer dissatisfiers,
satisfiers and delighters.

Another powerful advanced VOC data collection method is using a

Key Buying Factor Analysis. This is a graphical display in the form
of a hybrid Pareto and line chart that helps identify the Voice of
the Customer needs, the priority of these needs and how the
company and its top competitors rate against one another within
each need from the perspective of high-value customers.
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TRANSLATING VOC INTO REQUIREMENTS

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TRANSLATING VOC INTO REQUIREMENTS
Below is a sample of Voice of Customer that is
translated into a Requirement:

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INNOVATION OPPORTUNITIES
Innovative opportunities refer to a set of different elements within the
processes whereby actors identify, act upon and realize new
combinations of resources and market needs—in order to try to benefit
from their future economic potential.
‘‘innovative opportunities’’ consists of three elements: (1) economic
value; (2) mobilization of resources; and (3) appropriability.
(Source: HOLMEN et al. DOI:10.1080/13662710601130830)

NARASIMHALU, Arcot Desai and Institute of Innovation and Entrepreneurship. Innovation Rules: A Step by Step
Approach
Towards Identifying New Innovation Opportunities. (2009). 1-100. Research Collection Institute of Innovation
and Entrepreneurship.
Available at: https://ink.library.smu.edu.sg/iie_research/1
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Innovations fall under two categories. The first category can be called
compelling or “must have” innovations. The second category is often
called “good to have innovations. In some sense the first category addresses
the needs and the second the wants of human society.
Innovators who can identify innovations belonging to the needs category will
have a better shot at creating a new product that could end up as a market
leader. Customers, whether consumers or businesses, are generally willing to
pay for the products and services belonging to the needs category since it
addresses a must have solution. An inventor can easily introduce such a
product or service to the market with a small advertisement budget.

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Innovations belonging to the “wants” category are
often better addressed by market leaders. For
example, it is easy for a leader in a television set
market to offer a new television set with a larger
screen size as compared to a start up company.
Such innovations are often incremental in nature and
tend to require large sums of advertisement budgets
to get the customers’ mindshare.
Thank you