Professional Documents
Culture Documents
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'igure ;. 9atrix view of sample values and their attributes
C
!xercise 2+
Transfer the diagram to the 1alue proposition matrix using ,emo Tool#. -ou can use
the data already supplied in the ,emo 3ase.
"n the existing matrix .1alue proposition basic0, the additions that you $ust made under
!xercise *, are not implemented yet. -ou can do this implementation by clic&ing
.%atrix0 on the menu bal&, selecting .4rgani5e view ..0, and clic&ing the new values
and attributes that you have $ust added.
/ame the matrix, for example, .1alue proposition basic *0.
The value proposition matrix of the complete analysis using the diagram view of 'igure 2
has been shown in 'igure =. All values are now in the first column on the left. The
attributes are positioned at the top in the first row. 7elow the identified customer group
the scores of that customer group for those values are seen. Any needed value or attribute
can be added also at this stage by simply clicking on the corresponding icons.
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AppleiPhoneNextinstore
Brandimage
3xperiences
Price
Productchoice
er!ices
Positi!eAttri"ute#mportanceon$eeners
Positi!eAttri"ute#mportanceonBusinesspeople
&!erallAttri"ute#mportance'AppleiPhoneNextinstore4
(ompetingmartphones
(ompeting)ooglephone
AppleiPhoneoldinstores
AppleiPhoneNextinstores
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'igure =. 9atrix view of complete set of values and their attributes
%ith the set scores in the matrix, it is easy to find out the importance of each attribute for
value creation. %e can calculate the attribute importance on value creation for the
individual customer groups. Then we click on the icon and select each customer group
separately. 'or this analysis ?ositive attribute importance# was chosen, and ?/egative
attribute importance# was deleted. Also the ?6verall Attribute *mportance# that is
normalized and expressed on a scale of (> was subse5uently calculated. This is done by
clicking the icon . %ith this we combine the value creation potential of the attributes
for both customer groups.
The relative overall importance of the attribute ?design# is the topper. 6nly next comes
?high product value# and all other attributes even less important.
6bviously these results are the outcome of the team#s own analysis. *t is based on the
experience and intuition of the team. This may, however, be biased. *n order to make it
realistic, it may have to be validated by market research. This type of analysis is a soA
called D*D6 system, meaning +Darbage *n, Darbage 6ut, or 8Bubbish in, Bubbish out,
system. *t is decided to validate the results later in a small survey. The team decides to do
this using the company#s other retail outlets. 7ut first it is decided that the outcome is
checked with representatives of larger retailers.
E
After calculating the relative importance of the product attributes, the team wants to score
similar products of major competitors. *n addition to these competitive scores, the team
wants to score its own current product as well. The scores range between ; 3perfect4 and (
3marginal4. Two major competitive products were identified. "mart phones and the
relatively new Doogle phone. /ext, the team scores the company#s own current product.
This is in many respects better than those of the competitors. $owever in the market with
high demands, a better product and better marketing and sales are not a luxury any more.
Thus the new generation ihone is identified, and how it should be placed in the market
was scored in the last row. 6n some attributes improvements are identified as marginally or
absolutely necessary. And on the other attributes no improvements are marked as
necessary. Taking up these attributes any further for improvement would re5uire resources
that are far too scarce and costs far too high.
The attributes have been scored and competitive positioning of various similar products
being done, the advisor exposed to the team also the ?values# that are relatively hard to
measure. This is an indirect approach for establishing the rather abstract and complex
perceptions of values to the customer. The advisor did this exposure by clicking the blue ?
# icon for each existing product. Also the future proposed ihone is shown to impact in
its ?brand image#. ?roduct choice# is 5uite important, at least against market giants such as
"mart phones. "urprisingly, however, ?price# scores low. There was a long discussion
whether ?high product value# is an important attribute for creating values such as ?price#
and ?experiences#. *n the tradition of positioning the product at the high end, this is not
strange at all. $owever it was concluded that specifically for Apple product line the former
?price# has little effect. *t was agreed that ?experiences# is far too emotional feature, and not
contributed by an economically defined attribute ?high product value#.
6ne 5uestion, however, came up after the above analysis. %hy there is concern to place a
new product and a new sales and marketing approach with special attention on ?services#F
*n a dynamic market with rather short product life cycles it is better to be the leader, both
with the product and also at retail stores. The product is deigned, developed and supplied
by major manufacturers of the electronic industry. *t is the responsibility of the retail stores
to position the product in the market. A chainAstore such as Apple "tores does it
systematically at its :>> and odd stores in the !"A. *n the upcoming *ndian market, the
role of an individual major store in the city is not entirely negligible in this regard& the
contribution can be substantial. *n addition telecom service providers have a strong
influence in the market, in terms of productAmarket performance than retailerAmarket
performance.
Then the team determined the scores for the ambitions for the new product that the retailer
would wish and thus can recommend to the manufacturer to develop at least for the
upcoming *ndian market. *n general, the product should be as good as the competitor#s 3the
5ualifiers4 and on a few attributes it must have a higher score 3the differentiators or !"#s4.
The higher scores are preferentially given to those attributes that matter high to the
customer. *t was decided to give the highest priority to ?high product value# for augmenting
?services#.
G
*n the radar diagram of 'igure C that is generated by pressing +Beport, this is further
clarified. This seems to be a beautiful figure for the shareholders# meeting, when this plan
had to be presented.
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Brandimage
3xperiences
Price er!ices
Productchoice
Businesspeople
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'igure C. Badar diagram prioritizing ?values#
<astly, the team was curious to know whether it was possible to create one total score of
the value creating potential of the new product versus the old product. *t was explained
that this could be done by clicking on the icon named ?roduct Concept "core#. This
calculates the total value creating score for the present product and the new product
concept 3see 'igure =4. This score was calculated for both ?teeners# and ?business
people#. *n both cases the score of the proposed product concept was higher than the
score of the present product. The team concluded that this was an easy way to generate
more concepts and see which of the concepts seemed to be the best for both targeted
customer groups.
-verybody realized that these results were based upon the present knowledge, experience
and gut feeling of the team. Therefore they had to be validated by market research. This
was something that has to be done later.
(>
!xercise 6+
Wor&out on the sample matrix view .4verall attribute importance0. 7ill in the
competitors0 data for attributes. %a&e your own $udgement for prioriti5ing attributes of
the new proposed product Apple i'hone. /ext, obtain .'roduct value reali5ation0 of all
products in the analysis.
8se the ,emo Tool for this exercise.
!xercise 9+
,raw the .:adar diagram0 on the basis of the analysis that you have carried out so far
and using the ,emo Tool.
Workshop 2
2.2. #unctions to perfor! and their re$uire!ents
The second workshop started with making an inventory of functions necessary to realize
the attributes. %herever possible the functions were described with a verb and a noun
:
.
Thus each function is defined more precisely in the description box& see 'igure E.
'igure E. 'unction description in detail
)efining functions in this way prevents us from immediately start thinking in terms of
solutions. *n general, by defining the functions with a verb and a noun we are stimulated
to look for innovative solutions for those functions. 'or example, ?Bange of application
functionalities# was described as ?roviding a classification of functionalities#. This could
facilitate searching for suitable application, and giving choice of performance criteria
such as price, language, network choice, etc. This ?providing a range of functionalities#
would contribute to the attribute. Accordingly the team defined various functions to fulfil
the product attributes as shown in 'igure G.
:
A function can be defined as an end or purpose that a +thing, or activity is intended to perform, expressed
in a verbAnoun form.
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Help f unctions
ange of apps f unctionalities
Price of apparatus
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'igure G. 'unctions for fulfilling product attributes
)efining values, attributes and functions more precisely was important for using the
matrices later. This was also important for the nonAtechnical participants. %ith this
approach they became more involved and committed to the whole innovation process.
"coring the contributions of the functions to the attributes between ; 3essential4 and (
3marginally supportive4 was the following step.
The function analysis !atri"
After having described a number of functions for fulfilling the attributes, the team
decided to convert the mind map into a matrix. This was done by clicking on the ?Create
a new matrix view# icon in the toolbar. This time the ?'unction Analysis# matrix was
chosen. The matrix that appeared after completing the dialogue box looks as shown in
'igure (>.
(1
!xercise ;+
!xpand the diagram .<uality 7unction ,eployment basic0 on the ,emo Tool. 8se some
new functions than those provided in the complete diagram of 7igure *=, and score them.
:emember to update the set of attributes by .copy0 from the previous diagram and .paste0
them on the present new diagram of functions.
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'igure (>. 'unction analysis for scope of prioritization
The functions 3 4 were listed in the first column of this matrix and the attributes 3 4 in
the first row 3see figure above4. The ?6verall Attribute *mportance 3 4# for the
customers value creation was the first row just beneath the attributes
2
. After having done
that, the participants devoted themselves to further identifying the functions necessary to
substantiate the attributes.
6nce the list was completed, the team started with refining the scores. $ere the team was
trying to allocate about the same total number of points over the functions that
contributed to a certain attribute. *n this way the whole matrix was scored. At the bottom
of the matrix 1 rows with the scores on the attributes of the current product and the
desired product were present. These rows are characterized by a white bungalow icon 3
4.
After all the functions were scored, the ?6verall 'unction *mportance# for the customer
was calculated by clicking on the phi 3 4 icon. A column appeared at the right with
numbers between (> and (. This number indicates the team the relative contribution of
the functions to customer value creation.
7y clicking on the icon in the menu balk named ?'unction @alue Bealization#, the
contribution of the current product functions on customer value creation was calculated.
2
%hen this row is not present, click on the icon in the menu balk. *t will appear then in the matrix view.
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The difference between the interest of the functions for creating customer value and how
the current product scored on this value made it possible to calculate the +opportunity,
for improvement. This was calculated using a simple formula, namely the 8opportunity8
is 1 times the importance for the customer 3 4 minus the score of the current product 3
4.This number may never be lower than the relative importance for the customer. The
result is represented by omega 3 4.
Deneral re5uirements on the product are those that the customer readily identifies without
even referring to functional details. They indeed are connected with attributes since they
are a part of attributes. 6nly a few to name are ?costs#, ?profitability# to the retailer and
various elements of ?reliability#. *n the 0uality 'unction diagram these were now added
and their scores are given& see 'igure ((. 7y selecting these general re5uirements,
attributes and their connecting scores, a matrix representation could be made for an over
view. This was done by clicking on the matrix view and choosing for ?Be5uirement
importance analysis#. The resulting diagram is shown in 'igure (1.
Help f unctions
High product value
#o/operations and deals $ith telecom service providers
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Accessibilit" of applications
Price of subscription
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'igure ((. Deneral re5uirements for fulfilling attributes
(2
!xercise >+
3onstruct the .7unction analysis matrix0 on the basis of your diagram of functions. 3alculate
.4verall function importance0 of the new product, and identify 2 possible opportunities. 8se
the ,emo Tool for this analysis.
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'igure (1. Deneral re5uirement importance analysis matrix
*n order to proceed with the prioritization of general re5uirements, some functional
re5uirements were obligatory. A ?functional re5uirement# could be added by clicking on ?
# icon, and naming it. 'or example, ?number of applications# was an essential
functional re5uirement toward ?range of application functions#.
7y clicking on the icon in the menu balk their importance to customer value creation
was calculated. The consultant added that these scores said something about how critical
these re5uirements were to reliability of the product. *n 5uality management one has to
focus upon such re5uirements. The resulting outcome was more front end oriented rather
than that with product orientation. *t showed that ?profitability# for the retailer, and
?accessibility reliability# in support of the product performance are the most important
general re5uirements of Apple ihone /ext.
The second workshop was now almost finished. -veryone had the feeling that the
discussions were very fruitful and much was achieved. /ow there was a message for the
manufacturer and also to the supplier. 6ne thing remained on the priority, however. The
final product should provide a good 5ualityHprice ratio and has to differentiate itself from
competing products. 'urthermore, it has to support the corporate image. *n order to check
this, one final exercise had to be executed before everyone could go home to perform his
homework.
(;
!xercise ?+
3onstruct .General requirement importance analysis matrix0 using the ,emo Tool.
2.%. Brandin&
The team explored the impact of customer values on brand building or its sustainability.
The advisor took the team through ?7rand assessment#. The images originate from
automotive industry, and applied to brand identification of cars. 7ased on these brand and
corporate images, also other products can be identified. 9any '9CD and consumer
durables fall in this category of brand creation. Also services are easy to analyse using
these criteria.
The team identified various brand values of the existing product ?Apple ihone old# that
contribute to different brand images of Apple. 7y using the first choice of brand values in
each image the archetype of the Apple organization could be established. These were
listed as shown in Table (.
7rand images (st 7rand value 1nd 7rand value :rd 7rand value
*mage ( Bevolutionary Creative 6ptimistic
*mage 1 ioneer 6riginal 6ptimistic
*mage : *nnovative -xceptional rofessional
*mage 2 Attractive )ominat )reaming
*mage ; !ni5ue athAbreaking *ntelligent
Table (. 7rand images and their values for existing Apple ihone old
'or this analysis the team confined to use a single product ?Apple ihone old# for finding
out the archetype of the organization Apple. The prescribed brand values to images for
the existing ?Apple ihone old# yielded the archetype represented in 'igure (:.
'igure (:. Corporate image, or archetype, of the organization Apple
(=
?-xplorer# and ?outlaw# score 5uite high. This means Apple is a solo concern with its
own uni5ueness in innovation, and trend. All other archetypes including ?creator# were
5uite low. The latter is surprising to notice from this analysis.
The next consideration is whether the major brand values would be supported by the
previously chosen ?customer values# for Apple ihone /ext. %hich customer values are
elevated with the inclusion of the brand values that are so important to the product
manufacturer and the retailerF *n order to do this analysis, the diagram analysis was
carried out by linking ?customer values# 3 4 with the identified ?brand values# 3 4 as
shown in the diagram view of 'igure (2.
3ni4ue
!xperiences
Business people
Teeners
Services
Product choice
Brand image
Price
Attractive
0nnovative
Pioneer
evolutionar"
#orporate Apple
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'igure (2. )iagram view of corporate image related to customer values
(C
!xercise @+
Go to Arand Assessment Tool# and ran& various images as you would anticipate on the
future Apple i'hone /ext. 8sing these scores find out the archetype of the corporation Apple.
!xercise B+
3onstruct the diagram view and the matrix on the basis of the data that you have collected so
far. tart with a blan& new diagram .Aranding0 and copy into this the .values0 that you have
chosen before. Then identify various brand values, give possible relationship with .customer
values0 and score. !xplore whether the brand image created by Apple i'hone /ext is
consistent with the existing image.
Go to Arand Assessment Tool# and ran& various images as you would anticipate on Apple
i'hone /ext.
"ubse5uently using this diagram and clicking on the matrix view, corporate brand values
and customer values were integrated. 7rand value support to product value realization
became evident to the team by clicking on and selecting Apple ihone /ext The result
shows that Apple ihone /ext indeed falls reasonably in line with the long held
?innovative# vision of the organization.
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'igure (;. Corporate brand image of Apple ihone /ext
The team studied this using the ?7rand matrix# in 'igure (; to judge how far the planned
new product was a step forward compared to the current product. *t appeared that this
was the case with the new ihone /ext. The consultant added that in order to be sure,
however, we have to wait and see what the manufacturer Apple Corporation is likely to
take up for the upcoming *ndian market.
%. Conclusions
The new product shows that the corporate image related to the brand as .innovator0 is
the most relevant. This means that we are on the right trac&.# That was the conclusion
the retail manager made concluding the meeting. Ce continued, Gentlemen, we &now
now what will help us loo& forward to our own business. We also &now now what
message can be given to the manufacturer about the best design and how it can support
the corporate brand image.# Ce closed the meeting with a strong feel of relief as to the
much promising mar&et of the most modern cell phones in the city.
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