Many companies conduct product management without product planning.
They copy a product which is originally designed by other companies, and modify it.
They strive to survey technology/market trends and roadmaps from leading companies/giant research firms.
And they enhance the variety of functions and/or the numbers to make their spec table better.
They love to swim in the ‘red ocean’.
Apple is one of the companies which is carrying out product planning as well as product management.
It often enters the market very late, but re-creates the market itself.
Apple strives to understand what the user-experiences the customer looks for, values, and needs,
and re-invents the product category to make customers’ lifestyle better.
Apple loves to make her heart sing with her product.
4. There
is
nothing
more
important
task
than
to
find
out:
“what user-experiences the customer looks for,
values, and needs”.
Everyone
knows
this,
but
this
isn’t
easy
task.
5. Instead,
many
companies
give
an
ear
to
the
industry’s
influencers,
and
oversee
compeItors,
apart
from
their
target
customers.
A
Company
(a
consumer
products
company)
Target
Customers
Influencers
(big
research
firms,
oligopoly
firms)
6. Instead,
many
companies
give
an
ear
to
the
industry’s
influencers,
and
oversee
compeItors,
apart
from
their
target
customers.
A
Company
(a
consumer
products
company)
CompeItors
Target
Customers
7. Curious
to
say,
influencers
provide
the
vision
of
the
newly
defined
product
category
for
their
customers,
the
consumer
products
companies.
(*) examples of influencers
9. Problem
is
that
the
influencers’
happiness
doesn’t
correspond
the
companies’
happiness.
10. Everybody Netbook!
(with Wintel !!!)
The
influencers’
happiness
is
to
spur
an
intense
compeIIon
in
their
customers’
market
because
such
compeIIon
brings
them
huge
revenue.
15. Many
companies
start
from
products.
They
improve
exisIng
products
and
make
the
spec
table
beRer
one.
New segment
Existing market
Existing market
Sometimes they create a new segment.
16. Fewer
companies
start
from
people.
They
innovate
new
user
experiences
and
make
the
people’s
life
beRer
one.
Existing market
Existing market
Sometimes they create a new market.
New market
17. My
focus
here
is
clearly
on
the
laRer
case,
“start
from
people”
*Lots of theories, practices, consulting services are available for the former case, such as
theory of competition, product management practices, social media marketing, etc.
18. True
markeIng
says,
“These are the user-experiences
the customer looks for, values, and needs.”
True marketing says, “These are satisfactions the customer looks for, values, and needs.”
– Peter. F. Drucker
19. To
find
out
”the user-experiences” is
the
starIng
line
for
new
product
planning,
however,
20. You can’t go out and ask people, you know,
what the next big thing.
– Steve Jobs
“Steve Jobs speaks out”, CNN Money, Aug/03/2008
21. [This
product
is
“Innova5ve”]
means
that
the
product
brings
far
be;er
user-‐experience
to
the
target
customers.
23. What
ordinary
people
can
imagine
is
limited
to
incremental
improvement
of
exisIng
products,
their
imaginaIon
can’t
beyond
this
disconInuity.
24. If I had asked people what they wanted,
they would have said “faster horses”
– Henry Ford
Founder of the Ford Motor Company
25. (Around 2000,) We did market survey about the demand for
camera-phone, not once, four times. Every time the results
showed negative. However, nowadays, camera-phone
became standard.
– A comment from a marketing director
(Martin Cooper’s Keynote Speech at IEEE Wescon 2005)
26. It’s really hard to design products by focus groups.
A lot of times, people don’t know what they want
until you show it(*) to them.
– Steve Jobs
(*) From the context, “it” doesn’t mean prototype, “it” means finished
product such as shown at Apple’s conference.
27. It’s
us
who
have
to
answer
the
quesIon:
“what the next big thing”
28. Both Honda-san(*) and I had never started product
development from technological point of view.
The first and foremost priority was our goal
what product we really wanted to make.
– Masaru Ibuka, co-founder of Sony
Quoted from“The Soul of Monozukuri”
Masaru Ibuka,
photo from www.sony.net
(*) Soichiro Honda, founder of HONDA
29. The idea for the Walkman had come from Ibuka, who was
over 70 years old, and Morita(*), himself approaching 60
enthusiastically supported it.
Not content to rest on their laurels, both kept looking for new
ideas and strove to understand what kind of products would
meet the lifestyle needs of young people.
– Quoted from “Sony History”, www.sony.net
(*) Morita: Akio Morita, co-founder of Sony
30. "It was very nearly fetishistic, in fact – he even had a
collection of Sony letterhead and marketing materials,"
laughs Deutschman(*). "Sony was a company that Jobs
instinctively admired and saw as model from the very
beginning.”
By Jeff Yang,
"How Steve Jobs 'out-Japanned' Japan”, SF Gate
(*) Alan Deutschman, Author of "Walk the Walk", Professor at University Nevada-Reno.
32. We figure out what we want. And I think we're pretty
good at having the right discipline to think through
whether a lot of other people are going to want it, too.
That's what we get paid to do.
– Steve Jobs
CNN Money, Aug/03/2008
33. Once
we
reach
a
strong
confidence
that
“a lot of other people are going to want it, too”,
then
most
barriers
which
prevent
us
from
innovaIon
are
removed.
35. “I
requested
engineering
team
to
implement
that
feature,
but
they
said
it
was
too
difficult
and
too
risky
to
do
it.
So,
we
had
to
abandon
it.
However,
our
compeMtor
could
do
it
and
we
are
in
for
it
now.
Stupid
engineering
team!”
Marketers
36. “I
asked
markeMng
guys
how
criMcal
to
implement
that
feature
for
our
business.
But
they
didn’t
show
any
compelling
explanaMons.
So,
we
had
to
make
it
lower-‐
priority
task.
Otherwise,
we
could
do
it!
Our
markeMng
team
doesn’t
work
at
all”
Engineers
37. Before
iPhone,
most
manufacturers
believed
that
it
was
impossible
to
implement
full-‐web
browser
on
mobile
handset.
38. But
just
less
than
one
year
a^er
iPhone,
many
manufacturers
released
mobile
handsets
with
full-‐web
browser.
40. We
see
a
lot
of
similar
stories
in
our
history:
Transister
Radio,
Home
VTR,
Walkman,
Personal
Computer,
Megapixel
Digital
Camera,
Full-‐flat
CRT,
Large
format
LCD,
Boradband,
Tablet
PC,
…
etc.
42. Barriers
against
an
innovaIon
are
not
so
high
if
we
share
a
strong
confidence
that
“a lot of other people are going to want it, too”.
43. This confidence fires up us to realize far better
user-experiences, innovative products,
no matter how high the barrier may be.
44. You
know,
potenIal
ability
of
engineering
is
much
higher
than
we
expect
and
engineers
can
be
more
flexible
if
they
share
the
confidence.
45. MarkeIng,
sales,
logisIcs,
legal,
producIon,
PR,
IP,
HR,
or
top
managements,
in
whatever
secIons,
persons
in
charge
can
be
more
passionate
and
creaIve
if
they
share
the
confidence.
46. The
missing
piece
for
innovaIon
is
the
strong
confidence
that
”a lot of other people are going to want it, too”.
47. The
key
to
get
strong
confidence
is
the
ability
to
understand
and
share
the
feelings
of
target
customers,
that
is,
“Empathy”.
empathy:
the ability to understand and share the feelings of another.
(by Concise Oxford English Dictionary)
49. Keynote speech, Mar/2011, from Apple.com
It's in Apple's DNA. The technology alone is not enough. That
is technology married with the liberal arts, married with the
humanities, that yields us the result that makes our hearts sing.
– Steve Jobs
50. This
sentence
explains
about
the
advantage
of
Apple’s
products,
but
it
doesn’t
explain
why
they
can
create
such
aRracIve
products.
51. The
quesIon
I’d
like
to
ask
here
is:
“How
to
create
such
a`racMve
products?”
56. So,
Apple
o^en
enters
the
market
very
late,
and
she
gorgeously
re-‐defines
the
product
which
makes
customers’
hearts
sing
as
well
as
herself.
Category
Inception
Apple Product
Released
MP3 Player
1997
iPod
2001
MP3 Download(*)
1999
iTune Store
2003
Smart Phone
2001
iPhone
2007
Mobile App(**)
1999
App Store
2008
Netbook
2007
iPad
2010
Apple’s
blockbusters
(*) Napster, etc.
(**) NTT docomo, etc
57. The greatest praise an innovation can receive is
for people say,
"This is obvious. Why didn't I think of it?"
– Peter. F. Drucker
58. Looking
back
from
today:
The
demands
for
iPod
&
iTune
Store
was
obvious
around
1999.
The
demands
for
“Breakthrough
internet
communicator(*)”
was
obvious
around
2005.
The
demands
for
“big
iPhone”
was
obvious
around
2008.
(*)
Steve
Jobs’s
introducMon
words
about
iPhone
59. It
may
sound
paradoxical,
but
Steve
Jobs
says:
“We do no market research. We don’t hire consultants.”
61. Apple Store, Photo by Camillo Miller, Flickr
Apple
Store
was
launched
on
May/2001,
5
months
before
the
first
iPod
would
be
released,
two
years
before
the
iTune
Store
would
be
launched.
(*)At
that
Ime,
Apple's
annual
revenue
was
only
$5.4
billion
and
loss
was
$25
million.
There
were
only
Notebook
and
Desktop
computers
in
the
Apple
Stores.
62. In
2011,
Apple
has
336
stores
in
11
naIons:
Switzerland:
3
Germany:
5
UK:
30
Canada:
20
China:
4
France:
7
Spain:
2
US:
240
Japan:
7
Italy:
6
Australia:
12
63. 5.8
millions
people
come
to
Apple
Stores
each
week
and
610,000
members
in
“one-‐to-‐one”
service.
(data
from
ifoAppleStore.com)
One-to-one service at Apple Store Photo by Phil Photostream, Flickr
64. Apple Store Photo by Camillo Miller, Flickr
Apple
has
about
50,000
employees
and
about
30,000
of
them
are
working
at
Apple
Stores
as
full-‐Ime
employees.
60%
of
employees
are
there
sharing
their
vision
"Enrich
Lives".
(*)
Gateway,
now
a
subsidiary
of
Acer,
had
similar
retailing
strategy,
but
they
didn't
hire
their
own
people,
didn't
own
real
estate.
On
the
other
hand,
Apple
does.
65. The only way to enrich their life is to be part of their life.
– Ron Johnson
Senior Vice President of Retail, Apple
68. The business enterprise has two – and only these two –
basic functions: marketing and innovation. Marketing and
innovation produce results; all the rest are “costs”
– Peter F. Drucker
69. Empathy: [em-puh-thee]
- the ability to understand and share the feelings of the
target customers; “the CORE” ability of Marketing
Empathy
MarkeIng
70. Empathy: [em-puh-thee]
- the ability to understand and share the feelings of the
target customers; “the Source” of Innovation
encourage
Motivation (act)
Passion (triumph)
Empathy
Innovation (produce)
Creativity (think)
inspire
Imagination (feel)
[ref]“Towards a Definition of Creativity“, Wisconsin Task Force on Arts and Creativity in Education
71. “Empathy”
is
the
very
core
ability
for
both
markeIng
and
innovaIon,
the
two
basic
funcIons
of
business
enterprise.
73. Apple
has
been
building
huge
and
gorgeous
Empathy
plaLorm,
Apple
Store.
74. Samsung
has
“Regional
Specialist
Program”,
a
very
aggressive
Empathy
culIvaIon
program.
(*) see http://is.gd/Eu0Gfy
This is very old program, since 1990.
75. Dyson’s
engineers
home-‐stayed
in
Japan
several
months
to
understand
and
share
the
people’s
lifestyle
before
designing
DC12.
Dyson’s vacuum cleaner DC12,
a strategic product for Japan market
76. However,
to
build
the
Empathy
as
an
effecIve
system
is
not
easy,
especially,
in
this
profound
changing
age.
78. Global
Economy
Share
of
Global
GDP
Ø USA:
31%(2000)
-‐-‐-‐>
18%(2015)(*1)
Ø BRICS:
8%(2000)
-‐-‐-‐>
23%(2015)
-‐-‐-‐>
31%(2020)(*2)
Share
of
Global
Cell-‐Phone
Market(*3)
Ø USA
market:
50%
(1998)
-‐-‐-‐>
12%
(2015)
Ø Asia
market:
19%
(1998)
-‐-‐-‐>
50%
(2015)
E7
will
beyond
G7
in
2020
in
terms
of
GDP(*4)
(*1) IMF
(*2) BRICS Summit
(*3) Softbank
(*4) PWC
In order to really create a new category of devices, those devices are going to have to be far better at doing some key tasks. – Steve Jobs
Martin Cooper
“ To establish a place of work where engineers can feel the joy of technological innovation, be aware of their mission to society, and work to their heart’s content.” Masaru Ibuka (Co-founder, Sony Corporation)
Sony Walkman TPS-L2 (1979) Photo by GeorgeArthur, Wikimedia
"You know how you see a show car, and it's really cool, and then four years later you see the production car, and it sucks? And you go, What happened? They had it! They had it in the palm of their hands! They grabbed defeat from the jaws of victory! "What happened was, the designers came up with this really great idea. Then they take it to the engineers, and the engineers go, 'Nah, we can't do that. That's impossible.' And so it gets a lot worse. Then they take it to the manufacturing people, and they go, 'We can't build that!' And it gets a lot worse." Read more: http://www.time.com/time/magazine/article/0,9171,1118384,00.html#ixzz1Uf1Ug8I8
"It's not about pop culture, and it's not about fooling people, and it's not about convincing people that they want something they don't. We figure out what we want. And I think we're pretty good at having the right discipline to think through whether a lot of other people are going to want it, too. That's what we get paid to do. "So you can't go out and ask people, you know, what the next big [thing.] There's a great quote by Henry Ford, right? He said, 'If I'd have asked my customers what they wanted, they would have told me "A faster horse." ' " http://money.cnn.com/galleries/2008/fortune/0803/gallery.jobsqna.fortune/2.html
Sony also often entered market Radio -> Already widespread in 1955 -> Transistor Radio, pocket radio Color TV -> in 1960s, color TV’s market share was growing to 25%. -> Sony released the color TV very late. But it was Trinitron, very bright. Sony had got market leader next over 30 years. VTR -> entered late, but like Apple’s Apple II, first home use VTR Game -> Nintendo, Sega -> PlayStation Walkman and bunch of “world first all transistor xxx. Digital tape, CD, MO, MD
“ Towards a Definition of Creativity“ Wisconsin Task Force on Arts and Creativity in Education