Design Thinking Innovation on Learning Launch

Challenge

I am heading one of the Product Lines in the Packaging Materials company and lead a team of  Product Managers. We work a lot with the new product development, but very often base ideas on  how new products shall look and perform based on our own assumptions and technical capabilities,  rather than on customer insights and needs. In this assignment, I would like to reflect how we utilized  learning launch on one of the new products. Specific of our business is that it is very capital heavy  and launching new product requires many investments into development work, some production  asset adjustments, promotion, etc. Therefore, if the product does not fly – risk of losing substantial  money is high.

Selection

Learning Launch is a great tool to test if idea or product can meet customers’ needs and create value  for them before decisions with big financial impact are done. It can be used to test the entire concept  or specific assumption and from my perspective represents the quintessence of the agile approach.  The aim of using this instrument is not to prove that idea is right, but to test if it fails or not – so  failure is similarly welcomed result as success, important that it happens quick and cheap.

Application

Starting with the product development – something that has been already done in the past. We had  a need to fill production capacity and decided to develop a product that would fit to the “sweet spot”  (optimal production parameters that gives the highest efficiency) of production. Our assumption was  that this product could be used for customer segment that is new for us and our assumptions for the  product concept were based on the subjective judgment of that business and product requirements.  Since we were targeting a production sweet spot, it was not difficult to create recipe and produce  material, but we decided to first test that our assumptions were correct before launching new  product. So, we got to the Learning Launch. We produced limited lots of materials and identified  customers who would be potential interested in the product. We approached some of those  customers with presentation of our product and samples. Already after the first round of discussions  we realized that our assumptions about the market were not correct – due to some technical  limitations in the basis weight of the material, that machine can produce, we could address only  niche segment – that helped us to get realistic expectations of needed production capacity. Second  step was to present the material and test our assumption that we have the best visual appearance  then competitors. And we have got this confirmation, however also learned that visual appearance  plays 20% in the choice of material, while 80% depends on specific physical properties that we don’t  even measure (remember, it’s a new business segment for us). Back home we made measurements  to understand that we are far behind the competition. Good that we produced very limited volumes  of this prototype. We scrapped it and develop new concept that was fundamentally different from  the first one – increased the physical properties, sacrificing visual appearance. We have selected the  size

that seamed to be popular, again produced prototype in limited volumes, but more than first time.  We sent new prototype to wider range of customers to test if our material delivers on the physical  properties but is lighter in weight (competitive advantage). And we have got positive feedbacks with  some improvement wishes! But also learned that selected size doesn’t suit all customers and we  need to extend the line with at least two more sizes. Again, we developed 3rd prototype, considering  customers feedback and created it in few extra sizes. This final approach to the customers has shown  that we got to the point! Only after this we adjusted machinery for the scale production, defined that  name and prepared the proper product launch campaign.

Insights

Here I would like to share a paradox. I have written earlier that learning launch is a good tool for a  quick test. In fact, using this tool took 6 months longer time vs initial plan. But if we haven’t used it,  we’ll spent a lot of money, adjusted production, produced stock and launched new product just to  learn that it doesn’t answer the needs of customers and they will not buy it. We have failed relatively  quick and cheap with 3 prototypes to develop good product. This case also helped us to learn that  our assumption are very often biased by our past experience and instead of trying understand real  needs of customers we are looking for confirmations of our assumptions.

Approach

Learning Launch is definitely good alternative to the conventional approach, when product  development is based only on the desktop study, assumptions and existing technical capabilities. We  have seen the value of involving customers early in the process, testing and iterating. Moreover, we  will apply this approach to other product development projects, as well as to design of the service  offerings. We also would like to use more agile methods in the process, for instance try SCRUM  process.


Design Thinking Innovation on Learning Launch Challenge I am heading one of the Product Lines in the Packaging Materials company and lead a team of Product Managers . We work a lot with the new product development , but very often base ideas on how new products shall look and perform based on our own assumptions and technical capabilities , rather than on customer insights and needs . In this assignment , I would like to reflect how we utilized learning launch on one of the new products . Specific of our business is that it is very capital heavy and launching new product requires many investments into development work , some production asset adjustments , promotion , etc . Therefore , if the product does not fly – risk of losing substantial money is high . Selection Learning Launch is a great tool to test if idea or product can meet customers ’ needs and create value for them before decisions with big financial impact are done . It can be used to test the entire concept or specific assumption and from my perspective represents the quintessence of the agile approach . The aim of using this instrument is not to prove that idea is right , but to test if it fails or not – so failure is similarly welcomed result as success , important that it happens quick and cheap . Application Starting with the product development – something that has been already done in the past . We had a need to fill production capacity and decided to develop a product that would fit to the “ sweet spot ” ( optimal production parameters that gives the highest efficiency ) of production . Our assumption was that this product could be used for customer segment that is new for us and our assumptions for the product concept were based on the subjective judgment of that business and product requirements . Since we were targeting a production sweet spot , it was not difficult to create recipe and produce material , but we decided to first test that our assumptions were correct before launching new product . So , we got to the Learning Launch . We produced limited lots of materials and identified customers who would be potential interested in the product . We approached some of those customers with presentation of our product and samples . Already after the first round of discussions we realized that our assumptions about the market were not correct – due to some technical limitations in the basis weight of the material , that machine can produce , we could address only niche segment – that helped us to get realistic expectations of needed production capacity . Second step was to present the material and test our assumption that we have the best visual appearance then competitors . And we have got this confirmation , however also learned that visual appearance plays 20 % in the choice of material , while 80 % depends on specific physical properties that we do n’t even measure ( remember , it ’s a new business segment for us ) . Back home we made measurements to understand that we are far behind the competition . Good that we produced very limited volumes of this prototype . We scrapped it and develop new concept that was fundamentally different from the first one – increased the physical properties , sacrificing visual appearance . We have selected the size that seamed to be popular , again produced prototype in limited volumes , but more than first time . We sent new prototype to wider range of customers to test if our material delivers on the physical properties but is lighter in weight ( competitive advantage ) . And we have got positive feedbacks with some improvement wishes ! But also learned that selected size does n’t suit all customers and we need to extend the line with at least two more sizes . Again , we developed 3rd prototype , considering customers feedback and created it in few extra sizes . This final approach to the customers has shown that we got to the point ! Only after this we adjusted machinery for the scale production , defined that name and prepared the proper product launch campaign . Insights Here I would like to share a paradox . I have written earlier that learning launch is a good tool for a quick test . In fact , using this tool took 6 months longer time vs initial plan . But if we have n’t used it , we ’ll spent a lot of money , adjusted production , produced stock and launched new product just to learn that it does n’t answer the needs of customers and they will not buy it . We have failed relatively quick and cheap with 3 prototypes to develop good product . This case also helped us to learn that our assumption are very often biased by our past experience and instead of trying understand real needs of customers we are looking for confirmations of our assumptions . Approach Learning Launch is definitely good alternative to the conventional approach , when product development is based only on the desktop study , assumptions and existing technical capabilities . We have seen the value of involving customers early in the process , testing and iterating . Moreover , we will apply this approach to other product development projects , as well as to design of the service offerings . We also would like to use more agile methods in the process , for instance try SCRUM process .