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Creating Breakthrough Products: Revealing the Secrets that Drive Global Innovation, 2nd Edition

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Creating Breakthrough Products: Revealing the Secrets that Drive Global Innovation, 2nd Edition


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Exciting new product examples, methods, and insights focused on both physical products and services in consumer and B to B environments.

  • Revision of popular book on product design that has provided a roadmap to uncover new opportunities in the marketplace, and provided the tools needed to develop an understanding of what customers value.
  • New chapters on service design and global innovation, plus content updates throughout
  • More visual and accessible, to reach even larger consumer, industry and academic audiences


  • Copyright 2013
  • Edition: 2nd
  • Book
  • ISBN-10: 0-13-301142-9
  • ISBN-13: 978-0-13-301142-5

For years, Jonathan Cagan’s and Craig M. Vogel’s Creating Breakthrough Products has offered an indispensable roadmap for uncovering new opportunities, identifying what customers really value, and building products and services that redefine markets — or create entirely new markets. Now, the authors have thoroughly updated their classic book, adding new chapters on service design and global innovation, plus new insights, best practices, and case studies from both U.S. and global companies. Their new Second Edition compares revolutionary (Apple-style) and evolutionary (Disney-style) approaches to innovation, helping decision-makers choose between them, and make either one work. Cagan and Vogel provide more coverage of Value Opportunity Analysis and ethnography, as well as new case studies ranging from Navistar’s latest long-haul truck to P&G’s reinvention of Herbal Essence. Throughout, readers will find up-to-date insights into identifying Product Opportunity Gaps that can lead to enormous success; navigating the "Fuzzy Front End" of product development; and leveraging contributions from diverse product teams — while staying relentlessly focused on customers’ values and lifestyles, from strategy through execution. Using additional visual maps and illustrations, they’ve made their best-selling book even more intuitive and accessible to both industry and academic audiences.

Sample Content

Online Sample Chapter

What Drives New Product Development

Sample Pages

Download the sample pages (includes Chapter 1 and Index)

Table of Contents

Foreword by Dee Kapur     xix

Acknowledgments     xxi

About the Authors     xxiii

Preface     xxv

Glossary of Acronyms and Terms     xxxv

Part One The Argument     1

Chapter 1 What Drives New Product Development     2

Redefining the Bottom Line     3

Positioning Breakthrough Products     5

Products, Services, and Product-Service Ecosystems     7

Identifying Product Opportunities: The SET Factors     10

POG and SET Factor Case Studies     15

The Margaritaville Frozen Concoction Maker     15

The BodyMedia FIT System     19

Starbucks     25

The GE Healthcare Adventure MRI Series     28

Summary Points     33

Notes     34

Chapter 2 Moving to the Upper Right     36

Integrating Style and Technology    37

Style Versus Technology: A Brief History of the Evolution of Style and Technology in the Nineteenth and Twentieth Centuries     40

In the Beginning     40

The Growth of Consumer Culture     41

The Introduction of Style to Mass Production     42

Post–World War II Growth of the Middle Class and the Height of Mass Marketing     44

The Rise of Consumer Awareness and the End of Mass Marketing     45

The Era of Customer Value, Mass Customization, and the Global Economy     46

Positioning Map: Style Versus Technology     47

Lower Left: Low Use of Style and Technology     48

Lower Right: Low Use of Style, High Use of Technology     49

Upper Left: High Use of Style, Low Use of Technology     50

Upper Right: High Use of Style and Technology     50

Positioning Map of Margaritaville Frozen Concoction Maker     52

Positioning Map of BodyMedia FIT System     53

Positioning Map of Starbucks     55

Positioning Map of GE Adventure Series     56

Knockoffs and Rip-offs     57

The Upper Right and Intellectual Property     59

Revolutionary Versus Evolutionary Product Development     60

Summary Points     62

References     62

Chapter 3 The Upper Right: The Value Quadrant     64

The Sheer Cliff of Value: The Third Dimension     65

The Shift in the Concept of Value in Products and Services     66

Qualities and a Customer’s Value System: Cost Versus Value     70

Value Opportunities     73

Emotion     74

Aesthetics     75

Product Identity     75

Impact     76

Ergonomics     77

Core Technology     80

Quality     80

Value Opportunity Charts and Analysis     81

VOA of Margaritaville Frozen Concoction Maker     84

VOA of BodyMedia FIT System     86

VOA of Starbucks     87

VOA of GE Adventure Series MRI     89

The Time and Place for Value Opportunities     90

VOs and Product Goals     91

The Upper Right for Industrial Products     93

The Upper Right of Commodity Products: Trading off Value among the Aluminum Can, the Plastic Bottle, and the Glass Bottle     96

Summary Points     98

References     98

Chapter 4 The Core of a Successful Brand Strategy: Breakthrough Products and Services     100

Brand Strategy and Product Strategy     101

Corporate Commitment to Product and Brand     105

Corporate Values and Customer Values     108

Managing Product Brand     109

Building an Identity     110

Company Identity Versus Product Identity     111

Building Brand Versus Maintaining Brand     114

Starting from Scratch: Cirque du Soleil     114

Redefining a Brand: Herbal Essences     115

Maintaining an Established Identity: Harley     118

Brand and the Value Opportunities     120

Summary Points     122

References     122

Part Two The Process     125

Chapter 5 A Comprehensive Approach to User-Centered, Integrated New Product Development     126

Clarifying the Fuzzy Front End of New Product Development     127

A New Way of Thinking     128

iNPD Is Only Part of the Process     130

User-Centered iNPD Process     132

Resource Allocation     156

Allocating the Time Resource: Scheduling     157

Allocating the Cost Resource: Financing     158

Allocating the Human Resource: Team Selection     159

Summary Points     160

References     160

Chapter 6 Integrating Disciplines and Managing Diverse Teams     162

User-Centered iNPD Facilitates Customer Value     163

Understanding Perceptual Gaps     166

Team Functionality     171

Team Collaboration     171

Negotiation in the Design Process     172

Team Performance     176

Part Differentiation Matrix     181

Team Conflict and the PDM     188

PDM and the Role of Core Disciplines     190

Issues in Team Management: Team Empowerment     191

Understand the Corporate Mission     192

Serve As a Catalyst and a Filter     192

Be Unbiased     193

Empower and Support the Team     194

Let the Team Become the Experts     196

Recognize the Personality and Needs of the Team     196

Use of an Interests-Based Management Approach     196

Visionaries and Champions     198

Summary: The Empowered Team     199

iNPD Team Integration Effectiveness     199

Summary Points     .200

References     201

Chapter 7 Understanding the User’s Needs, Wants, and Desires     204

Overview: Usability and Desirability     205

An Integrated Approach to a User-Driven Process     210

Scenario Development (Part I)     212

New Product Ethnography     214

Using Ethnography to Understand Parrotheads     220

Lifestyle Reference and Trend Analysis     223

Ergonomics: Interaction, Task Analysis, and Anthropometrics     225

Interaction     225

Task Analysis     228

Anthropometrics     231

Scenarios and Stories     236

Scenario Development (Part II)     236

Storytelling     238

Broadening the Focus     241

Other Stakeholders     241

Identifying Users in Nonconsumer Products: Designing Parts within Products     .243

Product Definition     244

Visualizing Ideas and Concepts Early and Often     247

Summary Points     252

References     253

Research Acknowledgments     254

Part Three Further Evidence     255

Chapter 8 Service Innovation: Breakthrough Innovation on the Product–Service Ecosystem Continuum     256

The Era of Interconnected Ecosystems: Product, Interface, and Service     257

Empathy Versus Logic     260

Traditional Service Design     262

Umpqua: Designing a Bank Like a Product     265

UPS Moves Beyond the Package Delivery Industry     267

The Disney Renaissance: The Ultimate Entertainment Service     272

Interaction Design     276

Interaction Through a Multisensory Interactive Teaching Tool     277

Summary Points     279

References     280

Chapter 9 Case Studies: The Power of the Upper Right     282

Reinventing the Classroom with Upper Right Seating Systems: The IDEO and Steelcase Node     283

Ball Parks Play in the Upper Right: The Dallas Stadium and PNC Park     291

Innovation in Machining: Kennametal Beyond Blast Titanium Manufacturing     296

Electric Vehicle Innovation: Bringing Upper Right Transportation to the Twenty-First Century     300

Upper Right Open Innovation Partnerships between Companies and Universities     305

Innovation along the Highway: Navistar International LoneStar     307

The 50+ and Environmental Responsibilities: Designing a New Refillable Sustainable Packaging System     311

Making University–Industry Innovation Partnerships Work     315

Summary Points     316

Endnotes     316

Chapter 10 Case Studies: The Global Power of the Upper Right     318

The BRIC Countries     319

Brazil: Innovation and Growth in South America     320

China: Haier, The First Major Chinese Global Brand     323

India: Design Impact and Social Responsibility in India     328

Be Green Packaging: The World Is Flat Meets Cradle to Cradle in Connect+Develop     330

DesignSingapore Council: The Third Component from the Little Country That Can     332

Summary Points     335

References     335

Chapter 11 Where Are They Now?     338

Changing SET Factors     339

The OXO GoodGrips Peeler     340

The Crown Wave     346

Retired Case Studies     348

Summary Points     360

Epilogue     361

Future Innovators     361

Have Faith in the Leap     363

References     365

Index     367


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