The Innovative Lean Enterprise

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Chapter 4

Idea Generation

In Chapter 3 we learned about finding and quantifying new opportunities and

the understanding of various customer requirements. We learned that customer

satisfaction depended on certain must-have requirements, one-dimensional

requirements, and attractive requirements. We also learned how each of these

requirements contributes to customer satisfaction. In Chapter 3, we introduced a

new tool called the product fulfillment map, which utilizes all of the customer

touch points with the various categories of product fulfillment targets. We

learned how this tool can be used to test current and proposed strategies and,

in some cases, can unlock new opportunities by the application of the tool.

We also learned about a method to quantify market opportunities. We

defined a scale for importance and satisfaction with respect to offerings and

how to calculate the opportunity based on the scores of importance and sat-

isfaction. Finally, we defined a method to categorize the opportunities based

on their calculation and defined three potential markets. The first was the

overserved market, the second was the adequately served market, and the

third was the underserved market.

In this chapter, the topic of idea generation will take any company from

where it is to where it could be. Two perspectives will be discussed regard-

ing idea generation. The first is the internal industry perspective. This will

take an approach that is in tune with your industry. The internal perspec-

tive of idea generation will help you to create new ideas that will fill gaps

according to those problems and solutions familiar with your current indus-

try. The second alternative will take the form of an external industry per-

spective. This perspective will unlock new offerings based on gathering new

ideas from external frames of reference, such as a different industry.

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Internal Perspective Techniques

We begin by looking at some of the most common ways to generate new

ideas, beginning with the internal perspective approach. This approach deals

with the industry’s current customers and the current problems these custom-

ers are solving. There are many techniques to gather feedback from custom-

ers, lost customers, and competitor customers that ultimately lead to new

ideas. These new ideas fuel product changes, new product concepts, and

new services. We begin by discussing various voice of the customer (VOC)

techniques.

The understanding of a target market allows one to choose certain VOC

methods that will provide customer insight. Target customers can be a set of

people who represent some sort of common need or want. Another exam-

ple of target customers is a group of people or customer group that shares a

common problem, for example, men in the age range of 45 to 60 looking for

products to solve the problem of gray hair. It is desirable to choose a set of

target customers of adequate size, allowing for high levels of sales. In later

chapters, we will discuss various forms of target customers so that the larg-

est possible group can be defined and targeted.

VOC techniques will allow the acquisition of quantitative data, qualitative

data, or a combination of both. Some techniques are more costly and time-

consuming than others. Special consideration should be taken as to which

method is best for you.

The use of qualitative data will be subjective. For example, you may ask

an individual to rate a product’s performance. The individual may provide

you with feedback that the product’s performance is inferior. How does one

interpret such a response? Do you deem the product as inadequate, or do

you look for more clarifying feedback? In any case, you must always get to

the root cause of the feedback. For example, you may realize that the par-

ticipant was not using the product properly, and that resulted in an unfair

rating of the product. Qualitative data mining requires that participants

properly understand the question in view of the facilitator. If the product is

available, errors can be reduced by having the participant demonstrate the

use of the product. This technique can ensure that data received will be

relatively accurate.

Quantitative data and analysis allow aspects of the product to be ranked

using a numerical scale. As defined in Chapter 3, obtaining a numerical value

can provide a measurable method of evaluation. This can substantially aid in

measurable decisions. As in qualitative analysis, quantitative analysis must also