3 Step to Build New Product/Services (Applied Inside-out + Outside-In Approach)

There are two main stream of strategy/approach regarding how the company design  for new product/service to their customer. The approach are:

1. "Inside-Out" approach is guided by the belief that the inner strengths and capabilities of the organization will produce a sustainable future.

2. "Outside-In" approach is instead guided by the belief that customer value creation is the key to success. 

Here a diagram to describe the Inside out Vs. Inside In.

The right balance between "Inside out" and "Outside in"  approach during  the process to design, Launch, and evaluation of  the product/service are different between each company and sometimes need time to processed it well through the internal organization to have the same understanding. In many case we got some Leader that add the approach with " Business Instinct" that will drive that product/services successful in the market.

In this time we will explain a simple step how we will combine the Inside out+ Outside in

1. Capturing the Voice of the Customer 

Voice of the customer (VOC) is captured by surveys, interviews, reports, focus group discussion with the customer

 

 

After  we got the "customer insight/"hidden need", so we could focus on "How" we will be serve and "What" type of  product/Service we will focus on.

2. Understanding Customer Satisfaction 

2.1 Kano model 

       

Determines needs, wants, and delighters. in this tool we will used the customer perspective to design the level of product/services to be offers

2.2 Quality Function Deployment (QFD)

Is a structured method that is intended to transmit and translate customer requirements, that is, the "Voice of Customer"  :

-Through each stage of the product development and production process, that is, through the product realization cycle.

-These requirements are the collection of customer needs, including all satisfiers, exciters/delighters, and dissatisfiers.

Here a QFD framework to design the product/services:

 

3. Sizing up the competition

Bench-marking is comparing yourself to the best in the  world. Bench-marking provides   standards to aim toward 

 

Value Added Vs Non Value Add Process

What Is Values? this is the basic and fundamental question that we have to answer or found before we do or create product/services that we ill offer to our customer. and the terrible thing that many of us define the value used our perspective not used our customer

What Is Value? Value is defined by the Customer. 

To Add Value or Not to Add Value, That Is the Question. 

• Defining value-added. (VA)

(1) The Customer must be willing to pay for it.

(2) The activity must change the product.

(3) The activity must be done correctly the first time. 

• Defining non-value-added. (NVA)

(1) Not valued by the customer.

(2) Not transforming.

(3) Not correctly done. 

• When non-value-added seems like value-added 
       Like: Administration, accounting, legal, reports, approvals, testing, inspections, transportation

Here a simple Matrix for you to be focus on reducing waste after you identified it.




After we map and identified list of  process and activity we could map it in to the matrix  and  try to start with the easy one.

Here some hint to use this matrix :

Step 1:  Unnecessary Vs Non Add value. recommended : Stop doing that activity. 

This is a quick in action that no need any effort and impact to process if e stop doing it but will give impact to whole team that by doing simple thing we could improve process more.

Step 2: Necessary Vs Non Added Value. Recommended: Use Reduce, Integrate, Simplify, Eliminate (RISE) concept to optimize the process.

in this step it's quite bit challenging, Why? because we have to make more analysis and simulation to that process. we can used RISE concept and discuss  the option and list improvement that we  will take together with the owner of each process related. Remember discuss/brainstorming with process owner and other party it's key success to improve and remove this waste.

Step 3: Unnecessary Vs Value Added . This just can't happen.

Step 4: Necessary vs Value Added. Recommended. our main target/bull eye. 

Process or activity that listed on this quadrant are the main target than will give big impact to the whole process improvement. but remember don't rush to just doing in this quadrant before you do the step 1 and 2 activity.