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TRANSCRIPT
A New Age of Product Development
Aims of Lean Product Development
• Need for more innovative solutions• Long development cycle times• Many redevelopment cycles• High development costs• Long production cycle times• High production costs
Trends
• Future of work• The maker movement• Retail Innovations• The Lean Startup Mindset
The Future of Work
• Open• Intrinisically Rewarding• Fast vs. Secret
Maker Movement Evolution
Individual Tinkerers
Makerspaces
Hardware accelerators
Products
The Lean Startup
Validated LearningCustomer DevelopmentMinimum Viable Product
The untold story
LVL1 Makerspace
A new reality:Knowledge and passion for products are abundant outside our walls
• What if everyone COULD see?• What if anyone could influence
the development of a product?• Manufacturers and consumers
experience products together
Invent a new world of home appliances
by creating a socially-engaged community of
home enthusiasts, designers, engineers, and makersthat will share ideas, try them out, and
build real products to improve your life.
Micro-Factory
Market Insight
Technical Specification
Engineering / Evaluation
Consumer Testing
Mass Production
Traditional Product Launch
Time / Money
Mass Production
Years to marketRare product launchLimited innovation
Micro-FactorySale
s Qua
ntity
Barrier 3: Selection Bias
100,000+100,000+
Time to Market
Traditional Production
Barrier 2: Production Cost
Barrier 1: Confidentiality
______________________
Risk Assessment
Uncertainty
High Cost
SOUND FAMILIAR?
Full-scale production
11-100
101-1000 Low-Volume Production
Minimum Viable Product1-10
Market Validation
Micro-Factory
First Sale in 3-6 months
Sale
s Qua
ntity
Time to Market
MicroFactory Production
100,000+Mass Production
Building an Innovation Engine
DESIGN12 new products per year
BUILDCustomer Ready from Unit 1
SELL3 months from concept to sale
+Focus on Making
Products are meant to be experienced
Always design a thing by considering it in
its next larger context. A chair in a room,
a room in a house, a house in an environment,
an environment in a city plan.
Why the Maker Movement?
Eliel Saarinen
The things we make aren’t merely specs
on a sheet or prototypes in a lab. They are meant
to be companions in everyday life. The context in
which we, as makers, experienceappliances is the home.
It’s about the user experience!
Me
Butter Conditioner
Butter Conditioner
INCLUSIVE
INCLUSIVE
Shifting to a making mindset
INTERNAL FOCUS Design to pre-determined specifications
MAKE LATERMaking is the last step of the design process
FILTER INNOVATIONUse business processes to filter out ideas
CONSTANT ITERATIONFeedback from consumers and enthusiasts
MAKE SOONERCreate solutions to better understand problems
PURSUE INNOVATIONThink in terms of possibilities, not processes
PRODUCT LIFECYCLE
Imagine you had to start over…
• What would you do differently?• How would that hold you back?• What if you had an entirely new type of organization?
PRODUCT LIFECYCLE
Imagine you had to start over…
• What would you do differently?• How would that hold you back?• What if you had an entirely new
type of organization?
CASE STUDIES
Easy Load Double Oven
Hypothesis: Consumers will pay a premium for ease of access
Test: Build and sell ~100 units to sell at appliance dealers
Criteria: Price point and sales volume
Easy Load Oven Drawer
Hypothesis: Makers and hackers will design compelling features when software is open
Test: Sell kits that allow makers to developers to hack into their appliances
Criteria: What do people make?
Green Bean
SmartWatch Notifications
ChillHub
Nugget Ice Statistics
3:1_______________________________________________________
Preference over crescent ice
generally
8:1_______________________________________________________
Preference among females in US Southeast
Nugget Ice Lean Development
Hypothesis: Consumers will pay 3x premium to have nugget ice in their homes
Test: Presell through crowdfunding platform
Criteria: Number of units sold
Goal: Validate consumer interest in technology that can be scaled by GE Appliances
Nugget Ice - OPEN INNOVATION
IDEA CHALLENGE PRODUCT
Opal Nugget Ice Maker Indiegogo sales
30 days
6,400 units
$2.5M in sales
$400 price
Thank you!