by Montie Roland, Montie Design

Morrisville - Last week, I had the honor of being selected as a judge for an Interactionary Design Competition held by the Triangle chapter of the Usability Professionals Association (www.triupa.org). According to Scott Berkun (www.scottberkun.com), an interactionary is

 

“an experiment in design education. The idea is to explode the process of design by forcing insane time constraints, and asking teams of designers to work together in front of a live audience. From what we’ve seen, it forces the discussion of design process, teamwork, and organization, and asks important questions about how designers do what they do.”

The event was a lot of fun and helped the participants (and maybe even the audience) sharpen their design skills. The event began with a keynote presentation from Anthony D. Hall. Hall is responsible for making sure that the IBM.com website is easily usable by a worldwide audience. He spoke from the perspective of a usability professional who has a staff of researchers and developers whose only job is to make a website (with millions of pages) easier to use.

The Interactionary was driven by three teams and a panel of judges. The teams had ten minutes to design an interface to a voting booth. There was a twist however. The interface had to allow the user to find out more information about each candidate before voting. The interface also had to allow the voter to change his vote if the candidate that he voted for was not currently in the lead. The event started with first team being introduced to the design requirements. They were then give ten minutes to find a solution. During those ten minutes they were encouraged to do user research by polling the audience. They then had two minutes to present their solution and answer questions from the judges. We (the judges) rated the team on teamwork, approach / process, and the validity of their design. This continued until all of the teams had an opportunity to create a new interface based on the criteria.

This event didn’t teach the team members, or the audience, how to design. Instead it helped them sharpen their design skills. By creating an absurdly constrained situation, the format of the event forced the team members to act in a bold way, while having fun. Design is about pushing the boundaries and talking bold risks. Events like this make design fun. They make it easier for all to stay passionate about design. That passion gets translated into better products and services. When that happens, everyone wins.

The pictures from the event are at:

http://flickr.com/photos/waynesutton/sets/72157603027654523/

Montie Roland is President of the Carolinas Chapter of the Product Development Management Association. Roland is also President of Montie Design, a product development and prototyping firm in Morrisville, NC and the RTP Product Development Guild. You can reach Montie by email at: montie@montie.com

The product development world, just like other industries, has its own language. One example of this “product speak” is the term product champion. Many products (and most of the very successful products) are driven by the vision of one person, or a small group of people. We call these people “product champions”.
Product champions drive new products to market through experience, use of available resources, drive, determination and vision. They have a vision for a product. They work with others around them to push that product out to the market. This new product can be an extension of existing products in a existing company. The vision may be bolder and push an existing company in a direction.

A good example of a new direction for an existing company is the Apple iPod. Apple is a computer company that struck out into the personal entertainment industry. The biggest leap is when a product champion has to build a new company around a new-to-world product. When that vision incorporates technology and design practices from two or more industries (what we call cross-pollination) the opportunity exists for a truly disruptive product. Disruptive products change the marketplace and can propel a manufacturer to a position of market leader.

Product developers categorize new products into four areas. The first category of product development deals with incremental advances. An example, is a company that makes 42-inch plasma televisions decides to create a 44-inch model. Generally, these products make incremental, or evolutionary, leaps forward in technology or design.

The next area is a class of products that are based on existing products, but make revolutionary leaps in the state of the technology or the design approach. These products can dramatically affect an entire industry and drive market share to new heights, or help a company establish a presence in a market space that they weren’t previously able to penetrate.

Me-too products are designed compete with existing products. These products may be new to company that manufactures them, but they are not new to the market. Me too products generally are designed as direct competitors. They are generally not very innovative in their design.

New-to-world products are exactly what the name implies. These products are often technologically innovative and higher risk. They do not exist in the current marketplace, or they use a technology or a design approach that is not currently available.

The Apple iPod was not a new-to-world product. An existing market space for MP3 players existed for several years before the iPod arrived on the scene. The designers of the iPod combined improvements in four key industries to make the iPod a massive success. Apple improved the state of the basic product by designing the click wheel interface. This interface was a significant improvement over the traditional interface provided by existing manufacturers such as Rio. These advancements were revolutionary in that industry.

Apple went farther by bundling the product with iTunes. iTunes was software product that leveraged Apple’s core competency with computers to deliver content over the internet. iTunes also made it simple and easy to update the iPod’s firmware. Previous MP3 players required more-than-average expertise to simply update the firmware. Apple changed the user expectations about how easy it should be to purchase and download music to the player. They also changed the industry by creating users that expected painless firmware updates through iTunes. While the iPod was not a new-to-world product, iTunes was a new-to-world product.

The product champions at Apple had the vision to create a well-integrated product that combined advancements from multiple industries including electronics, audio compression, internet technology, service, and software. The amazing part is that existing manufacturers in the MP3 player market space were concentrating on the player itself and the software to drive the player. At the time the internet was mainly be used a vehicle to move data, but not as an integrated part of the user experience. The product champions at Apple saw an opportunity to cross-pollinate between multiple industries and create a market dominating product.

The RTP Product Development Guild has core philosophy that the most disruptive products come from the cross-pollination of technology and design knowledge from two or more different industries.

Product champions do not necessarily have to have experience from within multiple industries. The key is to have a vision that integrates technologies and practices from multiple industries into a single product. Then you have an opportunity to create the next highly disruptive and highly successful product.

by Tom Vass, Vice-President, RTP Product Development Guild

The RTP regional economy has a unique set of economic strengths in technology innovation. The basic platform for all the strengths comes from the population of scientists and engineers who live in the region. Raleigh tops America for PhDs per capita for a metro city.

The RTP is geographically the largest research park in the world and is home to more than 130 R&D companies, employing nearly 40,000 workers. The RTP is home to IBM, GSK, Cisco Systems, DuPont and Sony Ericsson.

The high number of PhDs, and the location of large high tech corporations sets the stage for technology commercialization in distinct product areas. Our focus at the Guild is on product development because that leads to new venture creation which leads to new markets.

New markets are essential for wealth creation because persistence in the status quo distribution from current markets of wealth tends to lead to economic stasis. We suspect there is a mutually reinforcing relationship between wealth creation and new product creation, meaning that the more of one leads to the more of the other.

However, this relationship is perfectly symmetrical, which means that the longer the status quo of current markets remains constant the longer the existing distribution of wealth will stay the same. The result will be lower rates of innovation and new product development.

New products do not get created without a lot of effort, and our basic business model addresses how to help entrepreneurs commercialize their ideas. Our approach to new product development is different than the existing players in the region.

We focus attention on independent entrepreneurs who are not affiliated with the tech transfer programs at the local universities. We also target small engineering and manufacturing firms, and spin-offs from the R&D efforts of the larger corporations. We suspect that many of the 40,000 workers in the RTP have great ideas that could turn into great products if they follow the business development model of the RTP Product Development Guild.

During the month of October, we are going to target product development in the 4 areas we think will be most beneficial to regional economic growth. Each product area shares a common technological platform in both design and production, even though the end market users of the products are different.

On each Wednesday evening of October, we will host an educational seminar at our facilities in Morrisville, N. C., to introduce our model to budding entrepreneurs in each product area.

Our selection of product areas are:

1. October 10. Consumer technology products for the mass retail market.

2. October 17. Health monitoring and home health care products.

3. October 24. Sports and recreational equipment.

4. October 31. Homeland defense products.

We will charge a small admission fee, and our seating is limited to the first 20 entrepreneurs who register to attend. We are soliciting the participation of individuals and small companies who are curious about our business model of advice for commercializing technology.

We think that participants will gain benefits from meeting each other, and listening to how others are going about the process of commercializing their product ideas. If the RTP Guild model seems attractive, then the next step would be to apply as a project candidate for one of the Guild’s product development teams.

While commercializing technology is a great objective, we think that the bigger goal for each entrepreneur is to win the Guild’s prestigious annual award for the RTP’s Most Disruptive Product Technology, presented in March of each year. But, you can’t win the prize unless you get in the game.

Registration for the October events is at: www.rtpproductguild.com

by Montie Roland, President - Montie Design

Product design in the RTP area is nothing new. Entities that vary in size from the smallest startup to the largest multi-national companies are engaged in a daily business of product development. These companies don’t practice the art and science of product development in a vacuum. They rely on an infrastructure of local vendors that provide a variety of services and products.

Since moving into our new office space where we added an embedded machine shop, and becoming a part of the RTP Product Development Guild, the Montie Design business model has changed dramatically. The biggest change is how much tighter we have integrated with the product design community around us. Our firm has relied on the services of other vendors for years, so in itself this is nothing new.

The new offices opened in June of 2007. Approximately one month later, we were joined in the office by Brandon Lisk and 101Machine. The office space included a shop and office area big enough for both companies. The rationale for having them in the same space allows both companies to offer more vertically integrated services. Consulting firms operate with remote (across town) vendors every day, but being in the same building allows a greater level of cooperation and coordination, thus relieving pressure from clients to have an in-house machine shop.

What I didn’t expect was how it would change the Montie Design business model. Once 101Machine was up and running, clients began expecting that Montie Design would do several things. The first was to handle the prototype builds directly. Previously we would design the product and create the documentation. Then we would recommend a machine shop and get a quote. The client would then take that quote and issue a purchase order directly to the machine shop (or other vendor). Now clients expect us to manage the prototype build and handle the billing so they just have to create one purchase order. This arrangement makes it more convenient for the client and gives us a higher level of control over the process. However, it also added a new layer of administration that we have accommodated for. As a result, we have begun issuing purchase orders to vendors and tracking them. This was a big change for a small, but growing, company. It was a welcome change because it has allowed us to offer a broader range of services that aren’t directly tied to the number of billable hours. It also requires tighter financial controls because of the larger, and more complex, cash flow requirements.

Not all prototype parts and pieces can be economically produced by a single machine shop. An example was a group of physically large parts that were beyond the normal capabilities of 101Machine. Barnes Machine, in Apex, was able to very cost effectively produce these parts in a very tight time frame. This was a case where we were able to produce a set of prototype parts in an off-site location as a service to our client. JMC Machine is another example of an off-site vendor (also located in Apex). We have worked with Glenn Berry and Howard Nystrom for over a decade to produce parts for customers.

We also work closely with ADR Hydrocut to create complex, flat parts. ADR Hydrocut has two water jet cutting machines. The water jet process uses an extremely thin column (fifteen times the thickness of a human hair) of water mixed with an abrasive to cut complex shapes out of sheets of just about any material. Their business model relies on quick turnarounds of parts. This means that you can usually order a part and receive it within five to ten working days. One of the advantages of our current office location is the close proximity to ADR Hydrocut. This proximity and close working relationship with the owners, Al Ely and Ron Harris, allows us to work hand-in-hand with them, which is critical on projects with tight time restrictions.

The value of the relationship with JMC Machine and ADR Hydrocut has gone far beyond any one project, or one customer for that matter. The personal relationships with the owners of these companies have lasted for over a decade. These are people that I call friends. As it is always critical to not confuse friendship with what is best for the firm, or the customer, I find it wonderful to be able to work with a group of friends whom you can trust.

So how does all of this tie into the subject of a design community? Much of our success as a design firm is related to the availability and performance of the vendors that support us. Without the vendors behind us, we could not serve our customers at the level to which they have become accustomed. Adding a level of vertical integration has allowed us to expand our services, but at the same time has highlighted our need for quality relationships with reliable vendors. Relationships such as these help form the backbone of the product design infrastructure that is such a vital part of product design successes in the Research Triangle Park area.

Morning,

I thought this might interest many of you. The event is taught by the Brand Manager of Lenovo. You can sign up at http://pdma2.eventbrite.com. More information about the event is available at www.pdma.org/carolinas.  Detailed information about the event follows.

Cheers,
Montie

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We take networking seriously and innovation is a lot of fun, so what could be better than combining the two?

Join us for an evening of networking and innovation. The evening will begin with beer, pizza, and business card exchange, then we will get an introduction to Systematic Innovation, and then we will split into teams and have some fun innovating some products. Those who have most fun will even win a prize!

About Systematic Innovation (SI): some call it innovation by templates and there is some truth to that even though on the surface the notions of templates and creativity appear to be an oxymoron. However, when you think about it, we may subconsciously use learned templates in our creative thinking anyway. SI techniques attempt to come up with such templates and they can be quite effective tools in stimulating creative thinking that result in innovative solutions. A most visible SI technique is TRIZ, a technique used by companies such as Ford, Procter & Gamble, Eli Lilly, 3M, and Samsung.

This session will be led by Stacey Baer from Lenovo and Shimon Shmueli from Touch360.
See bios below.

Who Should Attend Product managers, engineers, designers, and marketing managers.

Stacey Baer, Ph.D., Lenovo

Currently the corporate Brand Manager of the international PC manufacturer Lenovo, Stacey’s primary responsibilities are to manage the Lenovo and ThinkPad brands. Her responsibilities also include branding strategies, product & brand naming, and trademark management.

Stacey received a BA in Psychology in 1986 from Muhlenberg College in Pennsylvania, and then went on to get a Masters of Science (1989) and Doctoral degree (1996) in Cognitive Psychology from the University of Kentucky.

Stacey was hired by the PC division of IBM in 1992 as the lead Human Factors engineer for IBMs PC brands. Her product responsibilities over the next few years included the PS/2, Aptiva and then the ThinkPad brands.

In 1998, Stacey became the first Customer Experience Strategist for the IBM company. She had world-wide responsibility for defining end-to-end customer experience strategies, first for all ThinkPad products and then later for all the PC Division’s customer-facing device brands.

In 2003, Stacey received an Executive MBA from the Fuqua School of Business at Duke University. She became the WW Brand Manager of IBMs PC Division, and then the Corporate Brand Manager for Lenovo after the PC Division was sold to Lenovo in 2005.

Shimon Shmueli, Touch360

Shimon is the founder of Touch360 where he leads product development, innovation and design, and technology and business strategies.

Before founding Touch360, Shimon was with IBM, where he held various leadership positions, among them as worldwide marketing segment manager for PC products, worldwide product manager for the ThinkPad line of consumer notebooks and accessories, and leading the development of new mobile platforms.

Shimon was a co-founder and CTO at KeyNetica, a company that pioneered the use of the USB Flash Drive as a mobile platform. He also served as a marketing and business strategy consultant and as adjunct professor at George Mason University where he taught graduate marketing classes.

Shimon holds an engineering degree from the Technion in Israel; an MSEE/CS degree from Polytechnic in New York; and an MBA from Wake Forest University. Always a student, he is currently pursuing graduate studies in industrial design at North Carolina State University.

Shimon has been a speaker and mentor in various forums, including Taiwan Design Center, Johns Hopkins University, and Virginia Tech School of Architecture & Design. He is a professional member of IDSA, IEEE, HFES, DMI, and PDMA.

Hi

Thank you for visiting and welcome to my blog on technological innovation and product development.

Clayton Christensen and Michael Porter, both professors at Harvard University, have written about technological innovation, primarily from the perspective of large multi-national corporations. Their work, as seen from the eyes of senior managers of large corporations, is going to be modified and changed in this blog.

One purpose of this blog is to place technological innovation in the context of regional metro economies, acting as if those economies can be seen as functioning in a similar capacity as a multi-national corporation that provides the organizational support system for innovation.

Another purpose of this blog is to create a working business model that engineers and technologists can use to accurately predict the trajectory of technology in their home communities. I suspect that if engineers and scientists had a business model to follow that reduced their risk of creating new products and new ventures, that they would create many more new products. The creation of the business model will occur in real time, as a new group called the RTP-Product Development Enterprise Network takes shape and form.
Much of the thinking about technological innovation and evolution for this blog originates in a book I have been writing for the past 7 years entitled, “Predicting Technology: Identifying Future Markets and Disruptive Technologies.” As I complete various parts of this work, I hope to put those segments on this blog for your review.

My work on technological evolution involves an alternative economic theory, which is built upon the foundation of neoclassical general equilibrium, but then departs from this theoretical heredity. The new theory applies biological genetic evolution to product development and regional economic growth. I call the new theory “Structural Evolutionary Regional Economic Theory,” or SERET, for short. Part of this blog will introduce you to SERET.

As a small blog housekeeping rule, when I write about a major topic, such as SERET, I will create a topic notation for you to respond in the PDEN Discussion forum. As I introduce new topics or issues, I hope that you will provide your analysis and comments in this forum. Part of my theory on innovation is that knowledge diffusion is much like disease contagion, which occurs when you infect groups of people with new ideas.

I am grateful to Montie for creating this blog and this forum, and I hope you will feel free to come to his RTP Product Development Management Association meetings. He is trying hard to use that organization as a social and civic tool for scientists and engineers, and his efforts are worthy of your support. His next meeting is Jan 19, 2006, in Cary, NC at the Lord Corporation building.

Tom

Afternoon All,

Here is your chance (press release below) to get a grant to help fund your start-up in NC.

Their website is www.ncidea.org.

Happy Hunting!

Montie

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NC IDEA seeks grant applications from entrepreneurs and early-stage companies
08-21-2006

RESEARCH TRAINGLE PARK, N.C. – NC IDEA is seeking grant applications from North Carolina entrepreneurs and early-stage companies focused on information technology, medical devices or material sciences.

NC IDEA is a private, non-profit organization dedicated to helping establish and develop early-stage companies through the commercialization of research innovation. NC IDEA plans to award $150,000 “proof of concept” grants to help bridge the gap between innovative ideas and venture capital funding. The grants are designed to prepare companies for equity funding, accelerating the creation of new North Carolina companies and jobs.

NC IDEA is accepting online applications through its Web site (www.ncidea.org) beginning today, Aug. 21. Grants of up to $50,000 per company will be awarded in December.

The grants support business activities that validate potential markets, reduce business risks, and advance projects to the point at which they are suitable for consideration by private equity investors. Preference is given to companies that have not previously received equity financing. An entrepreneur who has not formed a company may apply, but company incorporation is required prior to the awarding of grant funding.

Bridging the Innovation Gap
Many new technologies are not successfully transferred out of universities and research institutions because of a funding gap between government and private equity support. Research funding typically does not include support for business development activities or development of product prototypes suitable for mass production. Yet, venture capital funds typically do not invest in companies until they have a product and are already generating revenues from customer sales.

The NC IDEA grant program provides a novel source of assistance to bridge this gap. Earlier this year, NC IDEA awarded $225,000 in grants to seven early-stage North Carolina companies.

“NC IDEA’s grant program offers young pre-venture companies an opportunity that can’t be found elsewhere,” said Josh Whiton, chief executive officer of TransLoc, which received an NC IDEA grant in the previous cycle earlier this year. Dr. Nimmi Ramanujam, a professor at Duke and project manager for previous grant recipient Illuminus, agreed. “There are no other sources of early funding that can be sought to address these issues,” she said.

In addition to funding, NC IDEA and its strategic partners facilitate access to business and technology leaders who will mentor and guide entrepreneurs to help them overcome research, product development, sales and product adoption hurdles. NC IDEA collaborates with the Council for Entrepreneurial Development (CED), The North Carolina Technology Association (NCTA), the North Carolina Small Business and Technology Development Center (SBTDC) and Southeast TechInventures.

The initial “pre-proposal” applications must be submitted online by Sept. 15. Approximately 12 to 15 companies submitting “pre-proposal” submissions will be selected to participate in a subsequent full proposal submission and review period from Sept. 15 through Oct. 27. This process will include submission of a more in-depth proposal and prioritized budget for use of grant proceeds, and potentially a presentation from the company to a NC IDEA Grants Program advisory committee.

About NC IDEA
NC IDEA provides grants, loans and traditional venture capital to help young companies between seed funding and Series A financing. The non-profit company further supports these companies by leveraging strategic partnerships and alliances to help companies through research phases, business challenges and growth goals. NC IDEA is committed to supporting North Carolina’s economic development by ensuring young, innovative companies grow, create jobs and become contributing business leaders. For more information, visit www.ncidea.org. Media Contact: Scott Yates, Largemouth Communications (for NC IDEA), 919-649-6621, scott@largemouthpr.com.